The company that I work for is allowing employees to take out loans on their 401k accounts due to C0VlD-19. The money doesn't have to be paid back.
However, the money will also be taxed heavily. For instance, my plan is to withdraw $15k which will end up being around $13,300 after state and federal taxes. I could take out up to $40k but don't want to pay a lot in taxes.
I plan on adding it to my current savings which will total to around $30k.
My goal is to invest in multifamily real estate down the road... (perhaps take out an FHA loan). I'm also interested in commercial real estate such as warehouses. I see more businesses needing extra storage and warehousing seems like a good option as well.
Do you think taking money out of my 401K for such investments would be a good idea? Also, for those of you in real estate, which would be a better option for someone in my situation?
Thanks in advance!
However, the money will also be taxed heavily. For instance, my plan is to withdraw $15k which will end up being around $13,300 after state and federal taxes. I could take out up to $40k but don't want to pay a lot in taxes.
I plan on adding it to my current savings which will total to around $30k.
My goal is to invest in multifamily real estate down the road... (perhaps take out an FHA loan). I'm also interested in commercial real estate such as warehouses. I see more businesses needing extra storage and warehousing seems like a good option as well.
Do you think taking money out of my 401K for such investments would be a good idea? Also, for those of you in real estate, which would be a better option for someone in my situation?
Thanks in advance!
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