Retirement Account 10% Penalty to Access Real Estate

[Isaac Hayes]

I plan to purchase a four-plex in Columbus, Ohio within the next two months. I had planned on liquidating a standard brokerage account for the down payment. However, because I plan to retire and live off passive income within the next 5 years (age 33), I don't like the idea of money sitting in retirement accounts gaining returns that are inferior to what I could get if invested in buy and hold real estate while not being accessible until ~ age 60. In all cases I've found, the math works out that it makes more sense to invest post tax dollars in real estate rather than pre-tax dollars in the stock market (article links below). Because of this, paying taxes and a 10% penalty on my retirement accounts today will actually allow me to retire on passive cashflow sooner than if I kept the money in the retirement accounts (even if I invested in real estate).

Does anybody disagree and think that the money in my retirement accounts should remain there until ~ age 60 based on my goal to retire by age 33 on passive income.

https://financialfreedomcountd...

https://www.fortunebuilders.co...

[Peter Mckernan]

@Isaac Hayes a lot of people and investors here have the struggle back and forth on what to do with their retirement accounts once they are awhile into contributing. I have always been the advocate for increase your Vertical income, stop paying into your retirement accounts if that is what you want to do leave it where it is then take that increase vertical income by side hustle etc. and put it into REI.

I have a good amount of money placed in retirement accounts and hold that without getting hit with taxes and 10% because the taxes with the 10% would be significant for me. The benefit now may seem nice of getting that money, what could you do in the next 6 months to year that will increase your income for a life time and have higher returns, and the ability to grow massively instead of singlehandedly focused on something that would lose you money now and later down the road. 

The best process that I would do would be reap what you sow in the next 6months to year. Just some thoughts on it and how I have invested throughout the years.