All Forum Posts by: Hemant C.

I too work in tech in the Bay Area and I chose to always max out my 401(k) as the loan options are actually pretty good if you take taxes into account.

My plan allows me to borrow 50% of the value of my portfolio paid back over 10 years for the purchase of a house. At my marginal tax rate of 24% federal and 9.3% state, I would have only seen 66.7% of the money if I chose not to contribute. At the current yearly limit of $19,500 - the loan would let me access $9,750 and not contributing would let me access $13,000 on top of not having an extra payment. Your actual numbers

With the Bay Area prices, I didn't think an extra $3,250 an year would have made a difference to me while I would still have another $9,750 invested in the market. Plus, the repayment is not considered by lenders in your DTI.

Of course, your actual numbers may vary based on your 401(k) plan, tax rates and investing goals.

Hello BP,

I am Hemant from San Jose, CA - a newbie looking to start off in the world of REI with a house hack. After a few weeks of lurking around and researching, I figured I should pop in and say hi.

Looking forward to connecting with you folks and learning a lot!