Borrow against 401k for real estate?

[Arnold Caceres]

Hello all,

As many others in corporate America, I have some savings tied up in a 401k. I still have many years before I can retire and withdraw penalty free, but I was investigating and saw I’m able to take out a loan against my savings and could use it for a home purchase.

This gives me a bit a cash to play with but wanted to check if others have considered the same? My view is that I can get a higher return by parking that cash in real estate as opposed to having some fund manager get me marginal returns on my savings.

Appreciate any thoughts or comments. I’m scrapping up money to invest and this 401k just sitting there barely appreciating (I actually lost money with inflation) .

Thanks