Don’t let your first home cost you more than it cost. 

As seen in The Oakland Press

February 1st, 2026

Don’t let your first home cost you more than it cost.

by Ken Morris

In the 1993 movie “Groundhog Day,” comedian Bill Murray relives the same day over and over. Maybe it’s a stretch, but over the years I’ve seen many people fall into the same financial traps over and over. Bankruptcy, for example. I have helped people climb out of credit card debt countless times, only to see them get buried in it again.

Some people just seem to have a propensity to repeat the same financial mistakes. And in their mind, it’s never their fault. It’s always something from left field. Needing a car repair or a new furnace is life. Having to pay property tax is a regular homeowner obligation. Neither is an unusual event. But over the years, I’ve heard far too many people rationalize why they’re in financial trouble. And that’s just one reason why I’m a longtime proponent of financial education in schools.

People need to do a better job of managing their finances. That includes anticipating and being prepared for big-ticket costs associated with owning cars and houses. Government officials have recently floated the idea of allowing first time home buyers to take penalty-free withdrawals from their 401(k) retirement plans to be used for a down payment. A similar provision is already permitted with IRA accounts.

I’m against taking money out of any retirement account for the purpose of applying it toward a home purchase. So many current retirees have told me that they wish they had started saving for retirement when they were younger. If you take money out of a retirement account for any reason other than retirement, you’re essentially defeating the purpose of saving for retirement.

I do, however, support the idea of helping people get started on the road to life. That’s why I have always advocated for financial education. It’s critical. We don’t need another student loan fiasco where many young persons who borrowed money didn’t fully understand the loan repayment obligations. If people tap their 401(k) accounts for the purpose of home ownership, I fear they will ultimately regret it. I also don’t think we need another government bureaucracy with more forms for first time home buyers.

I do, however, believe a program could be developed for them. Perhaps designed and handled by a local bank or credit union. Back when I was young and needed a student loan, I was required to meet with a local banker. He reviewed my finances and set the terms of the loan. It was simply part of his job, and most bankers know a thing or two about finances.

I want to do all we can to help assure the launch into home ownership is successful. With the current proposal, an unsuccessful launch could result in a young couple losing a house and a portion of their nest egg. Nobody wants that.

A creative program needs to be developed for first time home buyers that let them avoid dipping into their retirement savings. Improved financial education, guidance from local banking institutions and some tax incentives from Uncle Sam can make it happen.

I have seen people fail financially because of unrealistic expectations or lack of knowledge far too frequently in my career. Just as Bill Murray discovered in “Groundhog Day,” the chain can be broken. I hope it happens soon.