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Wayne Bolen
  • Leander, TX
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Redirecting funds away from 401k into RE investments

Wayne Bolen
  • Leander, TX
Posted Jan 7 2021, 08:22

In the pursuit of financial freedom, I am considering redirecting my funds from my 401k into another vehicle that's liquid. This will give us immediate access to the money for purchasing/rehabbing properties. I'm not planning to touch what's already in my 401k, simply redirecting the funds that are going there from my pay. I'm curious if others have done this and what others' thoughts are on this technique. I know most people will say "that's a terrible idea, you're taking away from your retirement" and my wife has even had similar concerns. I've explained to her that 401k values are not guaranteed and we're still setting aside the money for investments, just more near term vs long term. I believe building out real estate portfolio will prove more valuable to us in the long term than a 401k will.

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