Lost job, 401k

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Lost job, 401k

Quynh-Chi Nguyen
Web Producer · Hamden, CT · Member since 2015 · 51 posts · 6 votes
I lost my job this past Tue. Any advices on what to do with my 401k? Thanks - Chi
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Mark Nolan
Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
10y

@Quynh-Chi Nguyen

You can transfer it to a self-directed IRA and invest in physical real estate.

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  • Mike Mclean
    Investor · Daytona Beach, FL · Member since 2016 · 15 posts · 2 votes
    10y

    First, sorry about losing your job. I have been in your shoes. Most times it us a blessing after all us said and done. 
    The answer to your question is not black and white. I would say - it depends.

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  • Quynh-Chi Nguyen
    OP
    Web Producer · Hamden, CT · Member since 2015 · 51 posts · 6 votes
    10y

    Thank you all for your feedback.  

    @Justin Windham - I was very tempting to cash them out but I will leave it alone for now. I paid about $7.90 fee per quarter. 

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  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    10y

    @Quynh-Chi Nguyen

    I see. It's probably best not to take the tax hit (and early distribution penalty if under age 59.5) for cashing out. I'm glad the fees aren't too high for your 401k right now. The next question is, what growth can you expect within the account? How does that compare to being able to invest in real estate (or other assets) with those funds?

    If I was in your place, I would focus on securing some income and then turn to what is best for the retirement account. Best wishes to you!

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  • Kevin Moen
    Rental Property Investor · Seattle, WA · Member since 2014 · 215 posts · 77 votes
    10y

    @Jay Hinrichs which is of course why its important to protect one's downside with equity and buying at 75% or less of the properties value. Secondly, re-defaults can be minimized when working with the right borrower, and structuring the modification the right way. Allowing a mod for someone who lost their job, has been in their home for 10+ years, and now has an income again is win win for all, and done the right way reduces re-defaults from occurring. Its tough to scale, but that is why our model is more of a surgeon than a steamroller.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Kevin Moen

    Love it great analogy !! 

    our model is more of a surgeon than a steamroller.

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  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    10y
    I changed jobs and cashed out 401k. I paid the penalties and taxes. But it was worth it to leverage the money and get out of the Ponzi scheme.
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