Should I Use My Company's 401k for Real Estate Investing

[Matthew Phillips]

I'm wondering if I should pull my 401k money early, which my current employer has been matching, and use that money to invest in real estate as my future retirement fund.

I've heard mixed opinions. Some individuals have told me to do both, keep the 401k and keep my current employer matching it. Others have told me to withdraw the money and put it into something more sustainable such as real estate.

So my question is, is it worth keeping the 401k option, or can that money be better invested through real estate? Any thoughts or advice?

[Brad Dubis]

Quote from @Matthew Phillips:

I'm wondering if I should pull my 401k money early, which my current employer has been matching, and use that money to invest in real estate as my future retirement fund.

I've heard mixed opinions. Some individuals have told me to do both, keep the 401k and keep my current employer matching it. Others have told me to withdraw the money and put it into something more sustainable such as real estate.

So my question is, is it worth keeping the 401k option, or can that money be better invested through real estate? Any thoughts or advice?

Hey Matthew -

I'm on my 2nd house hack right now in CO Springs area. Regarding your question I think it comes down to preference & probably how much you have in savings already to invest.

I did a 401k loan for my first house hack & paid it back in about 6 months. I did another one for my current house hack & I'm paying it back in the next couple of months (also 6 months). It's totally a #s game in my opinion. 

I've accessed it bc I didn't have quite enough in savings to cover everything & I was determined to get in my next property asap. It's basically been my own bank (paying yourself back). 

I max out my 401k & HSA yearly & also started house hacking so I can have a diversified portfolio. 

Depends on what your goals are though with real estate. That's what I love about this way of investing. There's many different strategies & it all comes down to your current financial situation & preferences. 

Feel free to reach out with any questions. Hope this helps!