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Sharlene Burch
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$50,000 to invest... where is the question?

Sharlene Burch
Posted May 11 2020, 06:20

I have around $50,000 in a 401K and I'm wondering if I should leave it where it is or if there is another investment that would yield more money in my retirement years, which could start as early as 2-3 years from now. Because of my age, 59 1/2, I can take some, or all of it if I wanted, without penalty. But I would have to pay taxes on it, and I'm already in high tax bracket. I originally was going to use some of it as a downpayent for rental property and then Covid19 hit and there are so many unemployed in the area I'm in that I'm not sure I want to do that now. I'm kind of just sitting on the sidelines now seeing what happens with the economy and hoping the stock market doesn't crash in the meantime. I do own two homes now, one is my primary residence in the larger city (Minneapolis) and one is my weekend home/ will be retirement home about 3 hours away in a more rural setting in central Wisconsin, which is where I would like to invest if I did end up purchasing rental properties. I'm estimating that when I do sell the house in the cities I would clear around $50,000 - $80,000 on it in a couple of years. But that is going to depend on the housing market too. Sure wish I had a crystal ball. Any insight would be appreciated. 

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