401k or Real Estate?

4 Replies

Hello BP,

I need some direction on what the better use of my money is. Currently I put 10% of my gross income into my 401k and in just a few years I already have 30k in there.  So my question is, would that money be better left alone or should I cash half out to use as a down payment on a rental property? 

Thanks, Steve

@Steven Torrez I would not suggest cashing out your 401k. You are going to take way to big of a hit with the taxes and early withdrawal penalties. Now maybe you should consider saving and investing outside of your 401k till you have enough of a bank roll to invest in real estate.  But you should always contribute to your 401k up to the amount that you maximize your employers matching contributions. (If they have it). That is an automatic return on your investment which is going to be a huge return. Even if they only match as little as 10% up to a certain amount, that is a GUARANTEED 10%. Always take free money when it is available.

Medium logo lf re cire box white bboxRussell Brazil, Associate Broker w/ Long & Foster | [email protected] | (301) 893‑4635 | http://www.RussellBrazil.com | MD Agent # 648402, DC Agent # SP98375353, VA Agent # 0225219736, MA Agent # 9052346 | Podcast Guest on Show #192

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