What to do with my 401k?

Question

I’ve recently been let go from my company due to downsizing. I have around 68000 in a 401k and am trying to decide what to do with that money. Options are leave it in, transfer to another account or pull it out(getting taxed if I pull it out). What are everyone thoughts on pulling it out and using it to purchase more rental properties? My rental properties are for cash flow and not appreciation. I have 4 units right now. Im just not sure how much I trust the stock market and hate the fees associated with 401k,ira, mutual funds, etc.

Any thoughts would be welcome! Thanks!

Libby

Any thoughts would be welcome! Thanks!

Libby

Tamara Deering · Answer

@Libby Baugher

Don't pull it out, you will incur fees and penalties.  You can transfer it to another 401K - look for one that will let you borrow against the balance, or put it in a self-directed IRA that will let you invest in real estate type transaction.  J Scott suggest putting self-directed IRA's to use on tax generating assets like hard money lending or notes.  I hope that helps.

Brian Boyd · Answer

@Libby Baugher Have you considered rolling it to a self directed IRA? Doing so would allow you to invest in real estate and continue to grow your retirement account without any penalties. I’m not an expert on self directed IRAs so consult one.