All Forum Posts by: John Solotarow

I am 64 years old, working and am saving 401K offered my my employer. I'm planning to retire in one year but instead of depending on my 401K as my sole retirement fund, I wanted to buy a rental property to supplement my income. I currently have $475,000 in my 401K (pre-taxed). I am looking to purchase a multi-family house for approximately $275,000 to $300,000. I do not want a mortgage and wanted to use the 401K to pay for the home. I was told by the custodian of the 401K, that I would pay approximately 27% federal taxes at time of withdrawal and at the end of the year city and state taxes. I know the custodian has an interest in keeping the 401K and my be trying to discourage me from cashing out without showing me options. 

I was hoping that maybe someone could tell me the best way to use these funds with the minimal loss. Is there any exceptions to withdraw the funds for investment property or ways that I can funnel my money to avoid a huge loss in taxes? 

Thank you for the feedback...Looks like I will pass on the Poconos. 

I am two years from retirement and as an avid fisherman. I was hoping to buy a house in the Poconos for my own pleasure and also a source of income as a Short Term Rental business. I was all ready to dive into my dream house until I started hearing about how troublesome the business can be in this area. I will be living on a limited pension and thought that my rental income could subsidize my retirement income. I plan on doing a cash purchase (trying to avoid bank loan and mortgage) which I am not sure if that is a good idea.

I was always under the impression that the Poconos is a vacation area and I was quite surprised to think that STR would be restricted.

I guess that I am interested in:

1. Is there any trouble with STR in the Poconos?

2. Are there areas in the Poconos that are more friendly to STR?

3. If STR's are not an issue, does it look like it will be soon?

4. What are homeowners of STR doing now to avoid problems?

5. What should I do to protect my business? 

Bonus Question: What are some great lakes to fish other than Wallenpaupack that produce a nice variety of fish.

Sorry for the lengthy question but any feedback will help me with my decision.