I'm trying to allocate $10k of savings for the end of the year. My current options are to max out my annual 401k or begin my next deal savings? I've recently purchased a property and used most of my available funds to do so. My savings rate is 85-90% with house hacking and other rentals cash flow so I'm able to save up fairly quickly. Some of the lessons from Set For Life (about net worth that's not accessible for decades) have me questioning whether to max out my 401k & save for rentals or contribute up to my 401k match and then save an extra $10k for rentals per year? I also fund a Roth and plan to continue that. I'd like the ability to retire from my day job in 2-10 years.
Starting to expand my mindset about what is possible. That good ole Midwest lifestyle of work at Corporation XYZ until you're 65 is slowly getting out of my brain.
I struggle with this, too and have decided to do both. With an 85%+ savings rate, sounds like this shouldn’t be a problem for you. Why not do both?
Yeah I think both options are good. Debating to save $10k in 401k + $60k in rentals or $20k in 401k + $50k in rentals?
I don't know much about borrowing from your 401k for "cash", but from what I've heard you can loan yourself the money. So basically you're paying yourself back with interest. The only caveat I've heard is you can't contribute to your 401k while the loan is out. You might be able to get around that if you have separate 401ks from different employers, but that's just speculation on my part. Might be worth looking into though!