Contribute to 401K or Not?

[Jay Helms]

Afternoon BP Community. Listening to several podcasts and reading many blog articles, there is a constant debate on whether someone should contribute to a 401K or take those contributions and direct them to RE. Unless your company matches on the 401K, I agree, don't contribute, but what if they do?  

Here's my scoop: W2 full-time job, part time investor (6 units). I'm entering into year 2 of a 7 yr plan to acquire 50 units. Due to positive cash-flow our acquisition fund is increasing steadily and I'm beginning to wonder if I should stop contributing to my 401K and redirect those monies to our acquisition fund. 

Returns on my 401K for the last couple of years have been horrible, especially when comparing it to our RE portfolio. However, this year looks like I'll have my best return yet around 8% (RE portfolio is @ 16%). 

More details:

• Personal Monthly Contributions: $250/month 
• Employer Match Contributions: $62.50/month
• 100% vested - meaning if I were to leave my W2 job today, I could take full advantage of the Employer match to date

I think I've answered my own question by typing this out, but part of me can't get past the "free money" from the employer contribution (my employer matches a quarter on the dollar). 

What are your thoughts? If you were in my shoes, would you continue to contribute to the 401K or not? 

Thanks for the help!