401k SP500 money into real estate rental property in current market

[Gp G.]

Hi,

Is it good idea to invest 401k SP500 money into real estate rental property in current market conditions. I have to pay 10% penalty also as I am not 60 years yet. I see landlords reducing rents, costs increasing and negative cash flow. Also I see 401k money getting reduced over night due to stock market fluctuations.  Please advise

[Jules Aton]

VOO is awesome in my non-professional opinion, diversified and totally passive, liquid income. No guarantees it will hold value but historically that seems to be the case. I'd consider leaving that untouched and save up the money for a down payment if you want to invest in RE. It will take longer but you will retain the benefits or Roth and be truly diversified.