401K

[Shawn H.]

What does everyone think of 401k's, ROTH IRA's, etc? Would anyone cash in a 401k to pay off an investment property? Some doom & gloomers predict a 5000 dow by years end. Is it better to diversify with 401k and RE? Paid-off properties, even in a down economy, should have positive cash flow albeit at a lower ROI. Financial advisers teach dollar-cost avg, tax-free growth, etc. Cross your fingers and at 59 1/2 you may have made money(after fees of course). Is any value given that cash flow from REI is realized now, not at a later date. I've always thought diversify. Maybe the diversification should be across several of your own businesses and not stocks, bonds, etc. Any thoughts?

[Shawn H.]

I am not taking money out of my 401. I do not receive any matching contributions. My investment properties do stand on their own. I was simply getting a feel for the general opinion of 401K's on this site. I also wanted to see if other RE investors feel more secure with free and clear properties during times like these, or if having debt on them is of no concern. My 401 has returned to its former glory, but we only have so much control over these type of investments even when managed. With RE, I feel we have more control and receive more benefits(and headaches). Every investor site or show repeats stock market averages 11% or so over the long haul and RE is less. I'm sure they are correct, but over the past 3 years my RE has outperformed my 401 considerably. And I can actually use the profits for future investments or whatever now. I am not against stocks, I just feel sometimes landlords and REI don't get credit where credit is due. Thanks for your responses.