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401k Question - To pull money out, or leave it
Hello everyone. I am new to investing and getting very close to finally getting my feet wet. Over the last couple of years my mindset has turned 180 degrees and I now look for investments rather than higher paying more work intensive jobs. So my current issue is.... Do I take the money out of my employer 401, or leave it? My goal would not to have to work for anyone ever again in the next 5-10 years, and live mainly off of my investments. I only have about $20,000 in there now, and assuming taxes and 10% penalty I'd probably come out with $12,000ish. This could give me a jump start on down payment for rental properties or rehab houses, etc.
What do you all think? I see no reason to further contribute to my 401k, as it's not a great investment in this day in age. And I think since I have such a little amount it in anyways, I don't see the point of rolling it over to a solo 401k or IRA and trying to invest with it. I feel like by just taking the penalty and pulling whatever is left out, I could get a quicker jump start on my investing. I am only 24 years old and eager to get started.
Please let me know your opinions and advice! Much appreciated!
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I'm considering same thing but I'm looking at doing the loan instead of taking it all out. I bet you could take the loan and get $10k (typically 50% of invested/vested amount). You'd still have rest instead of losing it all. I would love to hear other ideas.