401K vs Income Property
Terry, I’m an commercial investor and I have the opportunity to purchase a few more properties. I don’t want to refinance my properties because my interest rates are at 3%. I was thinking of taking out money from my 401K as a down payment to purchase these other properties and I don’t want to delete my personal savings account either. What are your thoughts and do you have any suggestions.
Terry Says
I think you’re about to become overextended in a very iffy market. I would advise against. If for some reason you can’t repay the loan from your 40l(k) it becomes ordinary income, subject to taxes — and a 10% penalty if you’re under age 59-1/2).
