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Updated about 5 years ago on . Most recent reply
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New Member-First time posting
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.
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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
- Abel Curiel
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