Thoughts on Corporate 401k Contributions?

[Nick Gray]

I joined the full-time workforce in January and I have begun to contribute to my company's Roth 401k, in large part because I am enticed by the concept of tax-free earnings and a corporate match (a standard 60% of the first 6% of salary contributed). However, I wish that I had access to this money for investments in real estate, which I view as my primary path to financial freedom. I have heard that one can invest in real estate through IRAs, but still I would like access to my properties' positive cash flows and equity gains earlier in life.

To those who have access to such 401k plans, do you contribute? If not, where do you invest or park money between real estate deals?

[Greg Scott]

I have worked 21 years with the same company.  One major regret is that I put almost all my savings into the 401(K).    I dutifully maxed it out ever year.  Now that I have learned how to successfully invest in real estate, I wish I hadn't.

With real estate I can consistently get 20%+ returns, and if I manage them well, I can defer taxes indefinitely.  I have greater control over my money and how it grows.  I would gladly pay the 10% penalty to get to my money, but the government won't allow me to get at it until I quit my job.   Funny thing is, I would already be retired if I hadn't put that money into the 401(k) in the first place.