Updated over 4 years ago on . Most recent reply
401(k) loan for a down payment
All,
I’m thinking about taking $50k from my 401k to buy an investment property. Here are the pros that I can think of:
-I pay myself back and interest
-if market crashes i took money out on time and buy the dip
-have cash ready to pounce in real estate
The only con is if i quit or get fired I’ll pay the Loan back upon that’s the date.
What am i missing? Any cons you can think of?
Note: I’ve maxed out my 401k for last 10 years and feel like I’m overweight there hence want to diversify