would you cash in your 401k (penalty & all) to invest?

[R V]

really curious to know what your response is.
i'm a NOVICE investor. i just purchased my second home last monday and rehab starts this week. i made a cash purchase and will also pay the rehab cash. then i intend to refi.

should i decide to cash in my 401k (i'm in my 40's), i'm doing so in a down market where my next egg has already lost 35% of it's value. still, with penalties and tax consequences, i'll have about $140 in liquid.

what would you do?

thanks...

[Debbie B.]

There's no need to cash in your 401(k) and pay the penalties. Convert it to a self directed IRA. Then you can invest your savings in real estate and still reap the retirement benefits. There are many posts on here about self directed IRA's. Do a search on BP or google it.

I hope you mean $140K. $140 won't get you far.