Thoughts on no 401k all real estate

Thoughts on no 401k all real estate

Member since 2019 · 1 post · 0 votes

I’m a young adult 18 and I have a pretty good job as a electrical apprentice. I make a reasonable amount of money and I know for fact I want to own real estate and create wealth thru it. The issue is everywhere I go left and right I’m told by every financial advisor that #1 max out 401k contributions and Roth then go to brokerage accounts or real estate. What is everyone’s thoughts on no 401k just straight real estate? I’m in the middle and I’m not sure which route I’m taking. I plan to invest 50k this year and if I do a 401k 26k of my investment cash will be on super long term hold till I’m at least 59 years old. Would love to hear opinions and thoughts thank you!

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  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes
    5y

    Nelson, 

    I recommend that you speak with a Fee-only Financial Planner that understands real estate investing to discuss your situation. 

    If your company's 401k matches your contributions, then you should definitely contribute enough to get the match. It's free money. 

    If your 401k allows loans, then your money is not tied up until your 59 1/2 and you could take a loan for a down payment on a property. 

    If 401k does not allow loans, you still may want to contribute so you are not putting all your eggs into the real estate investing basket. 

    Again, I recommend that you speak with a financial advisor that understands and/or invests in real estate. 

    Good luck and let me know if I can be of assistance. 

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