Pension and 401k Options

[Jonathan Doescher]

I have a pension and 401k from a company I just separated from. My goal is to make enough passive income to “retire” in my 40’s ( 7-10 years) My wife and I are still employed, but my wife no longer can work overtime.

We have money to invest in our first rental property, but should I use the Cares Act to pull money from my 401k without penalty and invest in more properties?

My pension plan was switched to a 4% annuity. Should I transfer it to an IRA or take a lump sum payout to invest in another rental? I would probably have to pay the 10% penalty for the lump sum payout, but I believe I could do a 72t down the road for Cashflow if I switched it to an IRA.

I realize some of this may push me into a higher tax bracket, but based on historically tax rates they are pretty reasonable right now. I am also not interested in going the route of a self directed IRA.

Thank you in advance for your insight!