Should You Cash Out Your 401k to Buy Real Estate?

One of my favorite strategies for purchasing cash flowing real estate is taking a loan from my 401k plan. But today, I want to talk about something different: totally withdrawing from your 401k in order to purchase a rental property.

In this video, you’ll learn about the big problem with 401ks. You’ll also learn how to best weigh your options if you’re thinking about cashing out your retirement account. I’ll share the advice I received from my tax accountant, and discuss the fees associated with withdrawing from your 401k.

This video is for you if you are assessing all your options in order to become a real estate investor. You’ll learn about the differing guidelines for 401k policies, as well as how to change the Wall Street mindset around 401ks.

BOOK A FREE CALL WITH OUR TEAM TODAY AT MORRIS INVEST:

CHECK OUT OUR OTHER GREAT VIDEO PLAYLISTS LIKE:

VIDEOS ABOUT TURNKEY REAL ESTATE INVESTING:

OR

VIDEOS ABOUT GETTING STARTED IN REAL ESTATE

OR

VIDEOS ABOUT REAL ESTATE NEWS

SUBSCRIBE AND JOIN OUR AWESOME COMMUNITY:

LISTEN TO THE PODCAST:
iTunes:

FOLLOW ME ON SOCIAL MEDIA:
Twitter:
Facebook:
Instagram:
DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals….(read more)

LEARN MORE ABOUT: 401k Plans

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

There comes a time in many individuals’ lives when they begin to explore the possibilities of investing in real estate. It’s a lucrative venture that promises long-term financial security and passive income. However, for some, the biggest barrier to entry is lacking the necessary capital to make such an investment. This is where the idea of cashing out a 401k to buy real estate may become appealing.

A 401k is a retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their income for retirement. Cashing out a 401k before reaching retirement age (usually 59 and a half) can have serious financial consequences. Not only will you face heavy penalties and taxes, but you will also lose the potential growth of your investments over time.

Despite these drawbacks, some individuals may still consider cashing out their 401k to buy real estate because of the potential for high returns and the ability to diversify their investment portfolio. Real estate is often seen as a stable investment with the potential for appreciation and rental income. By investing in real estate, individuals can build wealth and generate passive income over time.

Before making the decision to cash out your 401k to buy real estate, it’s important to consider the following factors:

1. Consult with a financial advisor: Before making any major financial decisions, it is crucial to speak with a financial advisor who can assess your situation and provide tailored advice.

2. Evaluate the potential returns: Consider the potential returns and risks of investing in real estate compared to keeping your money invested in your 401k. Real estate investments can yield high returns, but they also come with risks such as market fluctuations and property maintenance costs.

3. Assess your financial situation: Take a realistic look at your current financial situation and determine if cashing out your 401k is a necessary step to achieve your investment goals. Make sure you have a solid financial plan in place before making any decisions.

4. Consider alternative financing options: Explore other financing options such as taking out a loan or partnering with other investors to purchase real estate without cashing out your 401k.

In conclusion, cashing out your 401k to buy real estate is a decision that should not be taken lightly. While investing in real estate can be a lucrative venture, it is important to weigh the potential risks and rewards and consider alternative financing options. Consulting with a financial advisor and thoroughly evaluating your financial situation can help you make an informed decision that aligns with your long-term financial goals.