would you cash in your 401k (penalty & all) to invest?

[R V]

really curious to know what your response is.
i'm a NOVICE investor. i just purchased my second home last monday and rehab starts this week. i made a cash purchase and will also pay the rehab cash. then i intend to refi.

should i decide to cash in my 401k (i'm in my 40's), i'm doing so in a down market where my next egg has already lost 35% of it's value. still, with penalties and tax consequences, i'll have about $140 in liquid.

what would you do?

thanks...

[Tod R.]

RV,

Be patient. Since you say you are a novice, don't rush in just yet. Get the two deals you have now settled, (refi, leased, sold). Roll that profit into the next deal. I know that LU (Lifestyles Unlimited) would not necessarily agree, but I suggest you become more experienced and educated before cashing out the 401K. You may consider funding a self directed IRA rather than your 401K. However, if your employer is matching your contributions, you would need to consider the impact. Just be patient! Especially since we've already suffered the big crash. I don't think we're going to see a spike in housing prices, or a slowdown in buying opportunities any time soon.