optimize money in different accounts to buy different properties?

[Yan Yan]

Hi BPers,

I am interested in apt investments. The question I have right now is that how to best utilize my money in different accounts (bank account, current 401k account, former 401k account, Roth IRA account) to buy different properties (cash flow property, property mainly for appreciation). The goal here is to maximize the tax benefit and also meet my liquidity needs.

My thought process is as follows, please let me know whether this is the right way to look at it:

1. current 401k: can't rolled over to self-directed IRA, therefore only used to buy financial assets (stocks, bonds etc)

2. Roth IRA is tax exempted，so I should roll the money in this account to self-directed IRA and invest in assets that are mainly bet on appreciation. Of course, it can be real estate investments and financial assets(then I don't have to roll into self-directed IRA)

3. For cash flow properties, it's better I use the money from my bank accounts, the reason being: 1) I need the cash flow to support my daily life; 2) get the depreciation benefit

4.  401k from former employer is tax deferred，I still don't have a good idea what's the best use for this money.

Any advice?

Thank you for your inputs!