Statistical argument for 401k vs REI

[Chris Walter]

Hey BP! First time post - super excited to be a part of the community here!

I've given a first effort of searching for forums, but partly may be using poor keywords for my search and/or I may have been overwhelmed by the number of results that showed up - so asking for a breadcrumb.

Does anyone know if there has been a forum post, or blog article written, looking at the long-term returns of 401k investment vs. REI? Specifically, a rundown of sustained contributions to a 401k, its growth, and what post-retirement distributions look like, vs the long term value of cash flowing rentals (cash flow over the years, mortgage paydown, and assumed appreciation).

It's something that I have been thinking a lot about, and am ready to put the work into creating theoretical scenarios, but figured if the work has already been done, I'd love to save myself the time :)

[Dmitriy Fomichenko]

@Chris Walter

401k is not an investment, it is a retirement plan. You don't invest in 401k (or IRA), you contribute to your retirement plan.

Once you make the contribution - you can then invest those funds into various investments. Conventional retirement accounts are limited to investments confined to the stock market. You can however set up a self-directed IRA (or event truly self-directed Solo 401k plan if you are eligible) which can be invested in alternative assets such as real estate, private lending, crypto-currency and much much more.

There are benefits to do both. You invest in real estate with your savings, you get tax benefits and your investments appreciates in value. You contribute to a retirement plan, investments grows tax-deferred (or tax-free in case of a Roth) and you get a tax-deduction, a benefit which you enjoy now.