Glendale, AZ · Member since 2017 · 1k+ posts · 238 votes
Hi guys,
Can you please help me out?
Ive been struggling with figuring out what to do. I have been putting 18K into my 401K for the last 4 years and now have 100K in it. Ive been thinking that may be I should instead be buying real estate that cash flows?
I just keep going back and forth and cant seem to figure out what to do
It looks like your ROI is about 8% per year, which is not bad. Think of it this way, the only thing you did was sit back and relax (or work). Pretty passive right? Are you maxing out your Roth IRA?
I think you should look at your entire financial picture and then consider real estate. Do you have cash reserves? If so, do you have enough reserves for RE post-purchase? What is your goal? Do you have other income streams? There are a lot of factors that you need to consider.
Struggling with the same questions. With continued devaluation of the US dollar it has made me question putting any money in a 401k. I've gone the self directed route once before and ended up with terrible service and endless fees, making that just as expensive of an option as just paying the withdraw penalty. I've kinda landed on doing a loan within the 401k, which our administrator allows. You thought?
Developer · Member since 2020 · 4k+ posts · 4k+ votes
3y
Not financial advice.
The original post is 4 years old but received a lot of great advice. What did you take away?
This is an unusual post since we can look back 4 years.
1. Depends on the original OP's REI experience at the time and what they have scaled to at this time? If they are like most new posters they never got into REI.
2. Stock market. They did great over the last 4 years as a passive investor.
3. If they went the stock market route, they lost out on 4 years of learning curve.
So for anyone asking this question. . 1. You should max out to any company matching limits.
2. Short term debt with short term REI. Long term with long term. Y ou asked about taking a loan which is short term. This is okay if your doing a fix flip. Not a long term purchase.
3. If you haven't started your REI education and haven't identified your REI asset or deal type, stay passive. Once you are ready to start to scale, the REI will outperform the stock market.
First read all of the posts above and summarize what your take aways were. You won't get far in REI if you're waiting for someone to set the table. Dig in.