The quest to become debt-free can sometimes result in making decisions that may impede future financial growth. I've been thinking about this a lot after getting this question on Facebook:
Myra Davis asks:
"My husband and I are 60. He plans to retire at 65. We owe $200,000 on our home. Does it make sense to withdraw from our 401(k) to purchase a smaller cheaper home and have no mortgage?
My first reaction is "No way!" I do not like the idea of tapping into a retirement account and raiding your financial future.
(Read more: Love & money: Should you merge your assets?)
Most financial advisers usually warn against 401(k) loans or withdrawals. But you and your husband can take withdrawals from a 401(k) without an early withdrawal penalty since you're over 59½-years-old.
Still, even if your husband retires at 65—his 401(k) money may have to last two decades or longer in retirement. It may make more sense to keep aggressively putting away money into his 401(k) over the next five years.
(Read more: We're in our 30s. How much should we be saving?)