Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago,
Cash Out Roth 401k to buy more units
Wondering what folks think about cashing out a Roth 401k to put that money to work in RE.
I currently have a fully vested Roth 401k through my employer that has a sizable chunk of cash (definitely 2 down payments in my market). I stopped contributing a few months ago to start funneling more cash toward purchasing properties. I am now thinking about leaving my Job to take another higher paying W2 opportunity. I am considering taking the 10% penalty for early withdrawal from a Roth 401k so that I can unlock that money and put it to work in RE. My reasoning here is two-fold
- I am more bullish on RE long term than the Market (and even more bullish on RE vs Market short term).
- The consistency of the cash flows coming from rentals could expedite my being able to leave my 9-5 faster, therefore focusing more time on RE, therefore building a portfolio that provides something closer to financial freedom faster.
For additional context I have an SDIRA already that I invest through, and I know I could potentially roll the 401k into that and possibly avoid the penalty, but I am hoping to have this cash in my personal accounts so that once the money is invested I can be closer to quitting my 9-5 and focusing on RE full time.