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Updated over 3 years ago on . Most recent reply

User Stats

34
Posts
12
Votes
Greg Maden
  • Investor
  • Kingston NY
12
Votes |
34
Posts

Ditch 401K at W2 to create more cash on hand?

Greg Maden
  • Investor
  • Kingston NY
Posted

Hello, 

Would like to get some advice on the thought of ditching my 401K at my W2 in order to create more cash on hand month to month. I am at the beginning of my real estate investor journey, I am currently house hacking and am looking for my 2nd property. My goal is to retire in 5 years from the W2 so would it make sense to stop the 401K? I am currently putting in about $400 a month in to it and there is a company match. I have enough cash for a decent down payment but thinking more cash is always a good thing. Would love to gain some insight from others. 

  • Greg Maden
  • Most Popular Reply

    User Stats

    227
    Posts
    133
    Votes
    Connor Dunham
    • Investor
    • Anchorage, AK
    133
    Votes |
    227
    Posts
    Connor Dunham
    • Investor
    • Anchorage, AK
    Replied

    You're better off keeping the match and then pay the early withdrawal penalty. Also worth noting: you can put back what you took out if it's within 60 days.

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