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Updated 11 months ago,
401k Withdraw for first REI? Good idea or stay away?
Hello all and thanks for clicking on my very first post! I am super new to REI and excited to learn and expand my knowledge to build generational wealth for my family. I might be jumping the gun here but I am in the early stages of searching and placing my first offer on a property. My plan is buy and hold a long term rental first and then slowly evolve into short term rentals. I do not have a large down payment saved up but I have been considering making a large withdrawal from my 401k, about 35k worth. I know there will be taxes and fees I must pay to do this. Is this a very bad idea? My thinking is this...my 401k is there for my retirement but if I use that money now for REI wouldn't it be building my retirement savings anyways? Why let that money sit there with such a small return when I can use it to start my portfolio? I'm really interested in your thoughts on this. Thanks for your input!