My retirement does 6%--Do I drop it like it's hot?
I have about $0 saved up for REI. It all went into the purchase of my primary residence a year ago, and now that I'm stepping up my REI game I'm regretting that. Live and learn.
My down payments with HMLs comes from my parents, who will earn interest from me matching the HML's rate. I have little of my own cash in the game thus far. Obviously the intent is to change all that with profits from flips and BRRRs over the coming years.
I have various retirement accounts with not a TON of cash in them--only about $25k-- and in analyzing the returns I'm averaging about 6% in my current 401, and that includes the growth from the company matching.
I'm wondering if I should stop my 401 contributions and set aside that $300 per paycheck in a business checking account so I can build up my own cash reserves and not have to rely on other people's money so much. Of course, I lose out on the compound interest and company matching if I do that.
And/or, do I take the hit and pull out my current retirement savings? Dave Ramsey fans would say no, but if having the cash allows me to make other investments could it be worth it?
I'm 33 years old, and hope to build wealth through REI such that I can leave my full-time w-2 within the next 5 years (hopefully sooner).
Thanks, friends!