Should I pull out money from my 401k account

Question

So I been wanting to buy another duplex property but don’t have quite enough funds to do so, but I do have a 401k account. My question is, is it worth pulling out this money to buy another duplex? Thanks for reading.

Mindy Jensen · Answer

I talk to a lot of investors. I find that most people who pull from their 401k now regret it later. I wouldn't recommend doing this.

Can you take a loan from the 401k instead of withdrawing the funds?

James G. · Answer

@Abel Sanchez It really depends on a lot (your goals, your age, the company you work for etc.), the best way I can answer this is by telling you what I would do. I see my funds as better used in the real estate industry, so I was actually pretty fast to cash out my 401k funds. I felt like I would be able to grow more quickly by investing the money into real estate, and I didn't have that much money in the account to begin with. With all of that being said, if your company gives you a company match, there are not very many investments that give you an immediate 100% ROI (Or even more!) Do your research before making this decision; feel free to PM me with any specific questions. Hope this helps.

Abel Sanchez · Answer

@Philip Doetsch

Thank you Philip I will look into it.

Abel Sanchez · Answer

@Craig Boudy

Thank you for your response Craig, I will surely not take money out of there.

Abel Sanchez · Answer

@Mindy Jensen

Thank you for your response I will take it seriously, and yes I can actually take a small loan which I was also thinking about it. My original plan was to take a loan to convert my garage into a single and rent it out since it’s now legal to rent a well build garage in the city I live in.

Daniel Dietz · Answer

We do what @Abel Sanchez said in our SOLO401Ks that were rolled over from regular 401Ks and IRAs. The one catch is that you typically have to have 40% down. Other than that, it is a great option.

Philip Doetsch · Answer

@Abel Sanchez

Hi Abel, I believe you can buy real estate within an IRA without paying penalty’s or taxes.  Therefore, you should be able to rollover from 401k to an IRA the amount you need.  I am not a tax expert and pretty new to this so I would take this idea to an expert if you want to learn further.

Craig Boudy · Answer

@Abel Sanchez Absolutely no brother!

Should I pull out money from my 401k account

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