Maxing out 401k or buy Real Estate instead?

[Mary Jay]

Hi guys,

Can you please help me out?

Ive been struggling with figuring out what to do. I have been putting 18K into my 401K for the last 4 years and now have 100K in it. Ive been thinking that may be I should instead be buying real estate that cash flows?

I just keep going back and forth and cant seem to figure out what to do
 

What do you think?

Thank you so much!

[Account Closed]

@Mary Jay

It looks like your ROI is about 8% per year, which is not bad. Think of it this way, the only thing you did was sit back and relax (or work). Pretty passive right? Are you maxing out your Roth IRA?

I think you should look at your entire financial picture and then consider real estate.  Do you have cash reserves?  If so, do you have enough reserves for RE post-purchase?  What is your goal?  Do you have other income streams?  There are a lot of factors that you need to consider.  

Try your best to do both.