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old 401k vs rent
Posted on 1/20/16 at 3:10 am
Posted on 1/20/16 at 3:10 am
Question to throw out there.
Have an old 401k with a bit of cash sitting in it in a money market account (liquidated positions last May), trying to decide whether keeping it there to reinvest or pulling it out, paying the penalty and buying a few pieces of rental property would be a better decision.
what say ye?
Have an old 401k with a bit of cash sitting in it in a money market account (liquidated positions last May), trying to decide whether keeping it there to reinvest or pulling it out, paying the penalty and buying a few pieces of rental property would be a better decision.
what say ye?
1
Posted on 1/20/16 at 5:41 am to cave canem
I'll say this. There might be a way to get the funds out without penalty or tax consequence and get it into real estate. I'd check this if your heart is set on rental property.
I own residential rentals. I'll likely sell some of these starting next spring. This has been good for me both in terms of income and appreciation. Having said this, the reason I'm selling is that sometimes this can be a large pain in your ear. Property management companies are very good at one thing. Collecting their fees. Not so good at being proactive. There can be some pain involved. I suspect there usually is for almost everyone that owns these. These are headaches I no longer want, and my real state is transition towards other types of income producing properties.
But generally I do think real estate has a place at some percentage in one's portfolio of asset classes. So if I were you, I'd look at percentages allocated to real estate, precious metals, bonds, stocks etc.
I own residential rentals. I'll likely sell some of these starting next spring. This has been good for me both in terms of income and appreciation. Having said this, the reason I'm selling is that sometimes this can be a large pain in your ear. Property management companies are very good at one thing. Collecting their fees. Not so good at being proactive. There can be some pain involved. I suspect there usually is for almost everyone that owns these. These are headaches I no longer want, and my real state is transition towards other types of income producing properties.
But generally I do think real estate has a place at some percentage in one's portfolio of asset classes. So if I were you, I'd look at percentages allocated to real estate, precious metals, bonds, stocks etc.
This post was edited on 1/20/16 at 5:45 am
Posted on 1/20/16 at 8:14 am to Iowa Golfer
quote:
But generally I do think real estate has a place at some percentage in one's portfolio of asset classes. So if I were you, I'd look at percentages allocated to real estate, precious metals, bonds, stocks etc.
Pretty much what my plan was, I would say I am well covered in every other asset class. I honestly forget about that money from time to time until I get an e-mail from Fidelity reminding me of my options.
Sold all positions last year and it is doing nothing right now in all honesty, not a huge pile of cash but enough to purchase a few low to mid class range rental properties.
I am thinking a constant income might be preferable to reinvesting it in the market. Who knows everything is a gamble in some way. I would not be using a property management company as this would be local and I am somewhat handy myself.
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