Cash Out Retirement 401K Early

[Michael McCloud]

Getting right down to it, I am contemplating cashing out my 401k and taking the early cash out penalty, to fund my first step into the BRRRR strategy. I have been self directing 50% of my account for about 3 years and grew it over 500%. I have already pulled a first time home buyer loan that I am paying back into for the next 9 years. That amount would only be about 15% of what I would get back after penalty and taxes. I do not see a lot of viable options that I can confidently invest my money in the stock market and a raise in capitol gains tax is almost certain. This is in an effort to fund the first step into BRRR.

Thoughts and experiences anyone?????

P.s. I am 36

[Bill Fitzgerald]

@Michael McCloud

About 3 years ago, I withdrew all of the money from my IRA account, paid the taxes and penalties, and used the proceeds to purchase an existing business.

It was the best decision I’ve ever made. I was a Finance major in college and heard every argument not to do it.

The increase in yearly income and the increase in value of the business since I purchased far out way the taxes and penalties I paid.

I will probably never put another dime into a retirement account.

I believe that you cannot save your way to wealth. Need to create massive income and value.

Just my 2 cents!!