Should I Conteibute to a 401K??

[Eric Sipe]

Hi BP!

My question is pretty simple. I am about to start my first full-time job after graduating college (whoops) and want to start investing in RE in one year after saving 65% of my income for a year. My job offers a 403B (just pretend it is 401K for all intents) that has 100% match for 4% and 50% match for up to 6%. Essentially if I contribute 6%, I'll get 5% matched.

Should I do it or no?

In one corner, my thoughts say "Do it, it is free money" and in the other corner my thoughts say "Dont do it, you will lose out on opportunity cost if you throw that money into the retirement account instead of putting it towards your first REI."

Advice is much appreciated!

[Brandon Roof]

If I were in the same position, I absolutely contribute the 6%, another $6,000 in a Roth IRA and the rest towards real estate. I'd never leave any employer match on the table. In your case, you essentially receive a 83% return on your investment almost instantly with future opportunity for capital appreciation and dividends. There are only so many RE investments that would have the same outcome.