All Forum Posts by: James Wright

Thanks @Duncan Taylor I agree, I would definitely continue my contributions to retirement, stocks and real estate. I receive a 50% match when I contribute 6%, and some money goes to 401k and a Roth that my employer has. It's hard to beat a 50% return! I have both Roth and 401k in order to invest pre and post tax so that I can assess my tax and income situation at retirement and withdraw accordingly.

I have have 6 years worth of term life, but will bump it to 10.

@Account Closed Thanks. My risk tolerance is for short term. My full time, long term career prospects are pretty good. Currently, I am the sole provider in a family of 4 so I want to make sure that my cash flow situation remains good. It seems to me that the passive income that rental would provide would yield better returns than the stock portfolio, but you never know for sure.

@Account Closed

Thanks Bryan - I hadn't considered the custodian. My employer won't allow that, and it sounds above my risk tolerance right now.

@Duncan Taylor Thank you Duncan, The 401k is with my current employer and they don't allow self directed.

Even if they did, my understanding is that the self directed money is still to be used for retirement, so I wouldn't be able to use the initial money or profits as income until 59 1/2. Is that right?

@Duncan Taylor I just turned 34. I should be able to pay it all back after we cash out refi in a month or so.

What would you suggest as the way to go? I want to do it the right way, not just the less bad way!

Thanks!

Hello - I am new investor that recently started an llc with a partner to invest in buy and holds, and flips if the opportunity is right. I work a full time job with good income and great credit.

I have borrowed from my 401k to buy one house in cash, and will cash out refi once the renovations are complete - which will take less than a week.

I don't like having 401K payments drawn out of my check each month, plus dealing with potential vacancies. Financially, it is doable but tight.

I have considered doing an early withdrawal from my 401K which would give me significant cash and a safe cushion to start the business, especially with having a partner.

However, I would be subject to 10% penalty, 25% federal, and 6% state tax, about 41%.

Has anyone used 401K money to start, and how did you finance?