New Member-First time posting

[John Kernen]

Hello! So glad to to have found this resource! I look forward to learning and hopefully sharing some experiences as i go! I am just starting to get my feet wet!  I have been doing lots of research and am trying to figure out the best way to get started.  I have been saving $ toward down on the purchase of my first investment property, but in order to build that faster I am considering reducing my 401K contribution from 9% currently down to 4% (company match).  If can can take this excess $ every month and save to build a down payment it would get me there much quicker, and i know would result long term in a greater rate of return than the 401k.  My only concern is this money will no longer be pre- taxed so the 5% i am skimming is now closer to 3% i would guess, and i just gave 2% to the government.  My question is, is there a better way to take advantage of this money without so much loss to taxes?  Maybe I am way off base?  Thanks in advance for all your suggestions.   

[Abel Curiel]

Originally posted by @John Kernen:

Hello! So glad to to have found this resource! I look forward to learning and hopefully sharing some experiences as i go! I am just starting to get my feet wet!  I have been doing lots of research and am trying to figure out the best way to get started.  I have been saving $ toward down on the purchase of my first investment property, but in order to build that faster I am considering reducing my 401K contribution from 9% currently down to 4% (company match).  If can can take this excess $ every month and save to build a down payment it would get me there much quicker, and i know would result long term in a greater rate of return than the 401k.  My only concern is this money will no longer be pre- taxed so the 5% i am skimming is now closer to 3% i would guess, and i just gave 2% to the government.  My question is, is there a better way to take advantage of this money without so much loss to taxes?  Maybe I am way off base?  Thanks in advance for all your suggestions.   

Hey John,

I totally understand your concern with reducing your 401K input to 4% and potentially being subject to taxes on those funds.

There may be another way, hopefully someone else on the forums can chime in. I recommend speaking with a lender and CPA about your options regarding using 401K funds for investment properties. 

Best of luck to you moving forward!

Abel