Opportunity knocking? Taking the 401k withdrawal?

[Christopher Fougere]

I'm curious as to whether investors are viewing the early 401k withdrawal as an opportunity to gain access to pre tax dollars, pay tax on them now at a lower rate and move them out of the market and into real estate.

About a year ago we each moved half of our 401k into stable value waiting for an opportunity to buy back into the SP500 as our FA advised us the market was far above the historical average and was due for correction.  Seeing as there is no real end in sight or confidence in the market, the early 401k withdrawal is  intriguing.

We currently own 10 SFH properties (5 notes each) in B+ neighborhoods in MO and OH, and we are considering taking the 200k from the stable value and picking up some similar homes once the dust settles and opportunity arises.

Thoughts?

[Jacob Sampson]

I definitely would not be looking at accessing my 401k at this point.  Why draw out after taking a hit like this.  I am increasing the amount I put into 401k.  I have 38 units but still fully fund a couple of IRAs and my 401k.  The market has 200+ years of proof that it can turn a profit.  I only have 15 years of real estate investing.  

That being said, like you about 1 year ago I moved 50k of my 401k into a fixed fund account.  I likely won't ever do it again.  I needed a pandemic to happen to make it a good move.  I have moved about 30k back in when dow was around 19k.  Just anxious to get it back into the market.  That way I can forget about it and focus on my real estate.