My Dad drawing from his 401k

[Ryan Cleary]

So I have had great luck building a small portfolio of rentals. My dad doesn’t have much of a financial education but I know he has around 700k in his 401k that he doesn’t feel like touching because, according to him, he will be taxed on what he touches.

He has just started to show interest in investing and I was wondering (since I also know nothing about drawing from a 401k) if he does in fact pay taxes on what he takes out, would there be any tax advantages from buying real estate with that money?

He is still working full time during retirement and is 62 years old.

[Joe Homs]

@Ryan Cleary your dad needs to look into a Self Directed account.  For that reach out to @Dmitriy Fomichenko who is a local expert on this.  I use a Self Directed account myself and the money is not taxed until you take it out permanently.  If he invests in Real Estate then all the funds/profits at the end of the day must go back to his account.  It is a great way to increase his 401K so that he can live off that when he must withdraw it at, I believe 72 now.

Good Investing...