Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago, 08/15/2015

User Stats

33
Posts
7
Votes
Jim Herbst
  • Investor
  • Powell, OH
7
Votes |
33
Posts

Contributing to 401k or 403b or ROTH vs. Saving for Down Payment on Investment Property

Jim Herbst
  • Investor
  • Powell, OH
Posted

I have been inspired by the podcasts and insight on BP and appreciate how a LONG-TERM buy and hold approach (my niche and strategy) can lead to quite significant 'passive' income streams over time. I also understand the importance of diversification and respect the long-term annualized rates of return in the stock market over the last 50+ years.

I suggest reading Lifestyles Unlimited's article on 'How 22 rental properties can retire you faster than a 401k' and their previous article on 'How 15 rental properties can retire you faster than a million dollar 401k'.

As fellow real estate investors, I was wondering how others approach this situation. Obviously the less you contribute to your 401k, the longer it takes to produce a down payment on your next investment property. Also, it's difficult to rationalize allocating funds to a retirement account which may yield 7-9% annualized when you could get 20% cash on cash in a rental property which also has the potential to appreciate.

Personally, I contribute 8% pre-tax to a 401k and I also get a company match. What are your strategies? Do you contribute the minimum to receive the company match (if offered)? Do you contribute nothing? Certainly, I understand that many may not have a company 401k to invest in at all (what are your retirement planning strategies). I am quite interested in people's strategies.

Loading replies...