Should I be looking at retirement vehicles other than RE?

Question

My name is Hayden Wright I graduated from the University of Houston this past May and began my first full time job about a month ago. I have been researching RE investing for the last two or three years and am finally ready to take action and purchase my first property. I have been been debating a lot recently whether I should be putting money into other retirement vehicles such has a Roth IRA, 401k, mutual fund, index fund or should I be staying liquid saving my money to buy my first property? Is this something I should be deciding on my own or should I meet with a financial advisor?

I appreciate your advice and wisdom in advance!

Hayden Wright · Answer

@Lynnette E. Thank you Lynnette! I like the idea if diversifying! Sorry it took so long to respond!

Hayden Wright · Answer

@Wale Lawal thank you Wale! That sounds like great advice and that is what I have been doing for the last couple months! I appreciate you taking the time to reach out to me, sorry I am just now replying. Wish you the best!

Hayden Wright · Answer

@Theresa Harris thank you!

Lynnette E. · Answer

Put as much as you legally can into  a Roth for the next ten years and leave it there until you are 70.  Compounding is the process that builds this wealth, so saving during the first ten years of your career is the key.  Later is good too, but the first ten years is what makes it.  You will retire as a millionaire.  This is your safety net.

Aside from that, save to start investing in real estate.  It will let you become a multi millionaire.  It is your more risky investment.

Diversify.

Wale Lawal · Answer

@Hayden Wright I am not a CPA but I will suggest you establish a solid 401k/Roth IRA account since you just graduated in May 2020.

You probably don't have enough savings, I will suggest you actively increase your knowledge of Real Estate Investing for the next 4-6 months then take action after then.

That will allow you to have enough money to invest while also building your 401k/Roth IRA account.

Goodluck man!

Theresa Harris · Answer

Never put all of your eggs in one basket.  If your job doesn't have a pension plan, put money aside and do real estate on the side.  With a house that is fully paid off, about half of the rent will normally go to expenses (property taxes, insurance, etc).  Then you have to pay income taxes on any profit.