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

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

Title	:	Should You Cash Out Your 401k to Buy Real Estate?
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Views	:	86 rb

This makes so much sense Im really starting to hate the stock market as it is so manipulated I mean somebody sneezes and the market panics! It only seems to work for those who have the time to constantly study/follow the the market all day or who have "insider" info
Comment from : Tony DeBusk

I took the 3 to buy my Home At 56 a little late in the game I still have my 401k I just need to generate more wealth in the next 10 years
Comment from : James Hilton

Thank you 🎉
Comment from : Myndfulness

I liked Clay when he was doing Real Estate Videos Now he is a Fake Newscaster
Comment from : Oscar Canepa

Well dam how much 401k you have once you get taxes penalty that you can afford 7 rental properties 😂
Comment from : datboot jerk

Thanks!!
Comment from : Fer du Port

$450K Home with optimistic $2750 Mo Rental - $300 Taxes, - $100 Insurance, -$200 Maint That's a 5 Return which when factoring in the real-world rental scenario will be closer to 3-4 Ohh, ya, and you have to pay taxes on that income right;) You can get Treasury Bond well over $3 or just leave it in your 401K And I will happily pay taxes on it as I need to draw down on it This advice is BS for most
Comment from : B Runner

I’m 56 years old widow, can I buy my 2nd home and rent my current one
Comment from : Sandra OConnor

Valuable information
Comment from : leechocolate1

Thank you !!!! Great info and ideas
Comment from : PRSJDS

Great advise thank you
Comment from : Nicky Garcia

401k is a terrible investment unless your employer plan allows self directed investment or when you have a large sum to do a rollover to a business startup
Comment from : Andy V

When my job cancelled my health insurance after 15 years I left Instead of rolling over my 401k and locking it up this is my plan Taking charge of my wealth
Comment from : KO Medic

What about taking a loan out of 401K to invest in Bitcoin and payoff the loan quickly with the Bitcoin profits??
Comment from : koolvideos4sho

Wow! I know this is an old video, but THANK YOU! TALKING about this topic is so "against the rules" I never even heard of this idea Thank you for the insight!
Comment from : MrJetsAllDay

Hell of an argument I'm buying it
Comment from : EG

You are smart!!! I'm doing it!!!
Comment from : cindyglevine

Thank you
Comment from : Dominate

Clayton thank you for explaining this so clearlyI’m Finally going for itbeen wanting to do this for so long Thanks!
Comment from : Greg Galustian

Thank you very informative ,you are a smart man we admire you sir ,
Comment from : Aja_60

Great video I never understood why someone would want to invest pretax in a 401k and pay taxes later at 65 when the amount you're paying taxes for is against a much larger balance in the future For ex Paying taxes on $100k now(cash out 401k and invest in real estate) vs (401k plan option)paying taxes 30 years later when your retirement balance is say $750k
Comment from : Mike Nguyen

How about with a Roth 401k?
Comment from : Brandon Bouchereau

Wow, I’m glad I came across this video I’m definitely thinking about doing this My 401k been sitting at 40k for about 5 months now while the market going up and down With Covid -19 around, my company will let me take out the full 40k with no penalty Just 10 tax 🤔 🤔 I’m really really really thinking about grabbing a rental or 2
Comment from : Jason Williams

I agree, I pulled out of my 401k to cover a 5 down payment Made 26 in equity in 3 years and cash flow about $577 a month since 2017 I would advocate this, just time it when the housing pricing is right
Comment from : AS0386

Thank you so much for getting this information out there for us! For all of you out there, listen!! Make your money work for you Its not overly difficult to do and its very much a rewarding experience
Comment from : teunder

I like it!
Comment from : Emmanuel

I just want to own a home 😭
Comment from : sandwich_in_wonderland

this is why I am leaving the 401k ang going towards the rental property business I have been maxing out for years I am done with that crap
Comment from : 404_error

If I take a hardship distribution right now and use that money for eventually get a bigger downpayment to an nvestment property can i still receiving my unemployment every weeek or I will get in trouble ? Not even my 401k broker was able to answer and I don’t want to take that money if I will get in trouble with the IRS or labor department, so, do you thing I can take the distribution right now, buy another condo and still receiving the unemployment check until I can come back to my regular job (hotel ) ?? Thank you !!!
Comment from : Mauricio Bertola

How is 96k the average at retirement Ive been with a company for only 6 years, im 36 and i have 85k already
Comment from : Dynamite Slick

Very informative! Bullet proof reasoning! I now have a plan Thank you
Comment from : SUNSTRIKE DANCESPORT JYMCOLE

Just what you said I've done It works
Comment from : Randy Garcia

Some of these arguments make no sense The 401K will only have an amount as a relation to what you put in it Who cares what the average amount of the typical 401K is? If I max out my contributions every year, I'm going to have a lot more than the average And taking about 40K to buy a rental property (assuming that's just a down payment)? No way you are getting $700 net from that
Comment from : Marc Elliott

So I don’t have $40,000 in my 401k because not long with the company so do u recommend still taking out if it’s only $10,000?
Comment from : Boss Babe Resale

Already took out the loan to buy a property brbrI wish i could take out more but im too young😢
Comment from : ZOHCOLD

Do not do it
Comment from : Chase Zhao

We have a house that is paid off and I have a 401k, which would you take money from to purchase a rental property? and why? thanks
Comment from : Mark D

Hard to do when your company sits rules that you can’t take the money out unless its your primary residence
Comment from : Rich Poor

You are making so much sense right now
Comment from : Beatchewup

In case there are any doubters - 2 years ago I pulled out my 401k to buy my 1st rental house I had to pay a small penalty but now I have property that is gaining equity and I cash flow about $400 a month! Why in the hell would I save in a 401k if I can do that? Now I save up in a savings account until I can buy another rental When I retire I will have all the equity if I wanted to cash out for some reason but my intention is to just have my renters fund my retirement and pass the shares of my company to my kids when I croak Way way better than a stupid "retirement" plan
Comment from : Jim of Wisconsin

WOW!!! brThis was fire, thank you for sharing this with us I have a question for you, I took a loan out of my 401k to use it as a down payment for my house With that being said, can I still withdrawal some money from my 401k? Or do I have to pay it off before I can withdrawal more money from my 401k? Would you happen to know? Any comments will be greatly appreciated 🙏
Comment from : Jorge Mora Castillo

Do I need to persue some college education to become a Real Estate investor?
Comment from : Jon T

Clayton!! I don’t think what people think of you especially on the news You have value so I appreciate all your tips Bless you!!!
Comment from : Dsok0314

good info
Comment from : carlos Franco

Awesome advice!
Comment from : KiKi L

Always taking money from the 401k is the best solution to buy a property even you have to pay taxes at the moment when you cash that money
Comment from : Luis Ugarte

I know this video is about 401k But I have a 401k Roth I wouldn’t be taxed at 63 So I should not close it right ? Should I borrow from it to purchase properties?
Comment from : redgear4566

Hi Morris, love the content and the channel, incredibly helpful! A question thoughbrbrbrDo you presently use a 401k to purchase real estate now? If so, why? I've assumed through your videos that your company Morris Invest is your only/primary source of income If not (and if you don't mind sharing), who is the employer that offers your 401k? And do you foresee a point in time where you won't want to/need to use your 401k to purchase real estate?
Comment from : Chinedu Ezebuiroh

I have a 401(K) but am not allowed to transfer the money because I am still employed This should NOT be legal!!!! I am no longer contributing to it and the thought of leaving it in there waiting for the stock market to crash makes me sick!! What right do they have to do this to us???
Comment from : M Betancourt

Scoured the tubes for months to support my hunch This is all I need to hear! Subbed
Comment from : DLR Foto

Put it this way, the fees will be paid with the percentage your employeer contributed on 🤷‍♂️ and the end you will be getting most of the money you i vested in your 401k 🤔no?
Comment from : Ange Guti

This is an older video and you have more vids on SDIRA now Do you still think it's a good idea to cash out your 401k to invest in real estate? Is it more situational? I'm interested in starting to invest and possibly use my 401k either cashed out or SDIRA
Comment from : Ben Chan

Very interesting
Comment from : Godspeed Ts

Would love to take out money so I send to Kenya for my retirement home how about 401b(3)
Comment from : Love& Kindness

Oh my gosh thank you for your words I’m about to buy a property with for rental units in Indiana where I’m from and I was struggling to gather the 20 required and now I know where to get it considering my income will increase in the future and I thought I was out of options
Comment from : H B

I recently pulled money from 401K in order to pay off our house mortgage After watching this video I'm not sure if we would be better investing this money in other properties or paying off our home? An advice would be highly appreciated
Comment from : Anna B

Excellent 🤙
Comment from : D M

Thank you You answered my question
Comment from : redchevy4

If you take/withdraw money out of your 401k, yes there will be a 10 penalty fee but there is more to it You’ll also pay capital gains tax, assuming if accrued interest and grew, and that money withdrawn will most likely put you in a higher tax bracket at the end of the year which you will have to pay o the IRS It’s not just 10
Comment from : Anton Crowley

Very Informative and Entertaining Thank You
Comment from : Craig Roberts

Contribute to a roth ira before you contribute to a 401k unless your employer matches contributions
Comment from : Chase Davidson

This is great! I do this myself and my company matches so all the penalties and fees have actually been paid by my companygreat strategy!!
Comment from : Matthew Angelette

Aren’t taxes closer to 40 from a withdrawal?
Comment from : Joel Johnson

Another great common sense video Thank you
Comment from : Bill Robinson

Cash that shit out and buy some real estate!
Comment from : jay c

Not being sarcastic but where do you find a property that you pay $40,000 that generates $700 of monthly incomebrI have two properties One appraised about $600k and another at about $300k and neither makes me $700 per month By the time I pay taxes, maintenance, insurance and pay the mortgage I break even I also have 401K money but as you explain we've been taught to stash it away On the plus side both my properties are about 3 years from being paid and we live in a little home that is paid offbrI truly admire people that figure it out and I will continue to research information so thank you
Comment from : J Ramos

No thanks I have over $900k in the Roth 401k and $450k in before taxbrIm debt free and not paycheck to paycheckbrAlso $800k in my Roth IRA and other investments,savings,passive income,etcbrAnd no mortgage so my total living expenses is less than $1500/mo In upper middle class area on a $135k-$160k/yr incomebrI'm not stupid
Comment from : BlackWorldTraveler

That was right on point, very well information
Comment from : Chris Torres

How cau you cash out 401k ??
Comment from : Joe Guzman

Did that 3 years ago best thing I’ve ever done in my life
Comment from : Everything

Wait how much do you have going into your 401k that allows you to buy a house a year
Comment from : Allen Banks

WHAT? Why not a self-directed 401KEntrust or Equity Trust both allow self directed 401k's that allow you to buy real estate A great way to build your 401k
Comment from : George Valente

Clayton said "I love ya, I doSOME of ya"! Funny!
Comment from : Robin Cobb

Our company has a pension plus a 401K option Over the last 20 years I have also invested in rental properties and have 10 units My 401k has grown enough if I cash it out to pay off my units and now produce 100 cash flow I am only 45 and still have several years of work ahead of me but thinking of withdrawing the 401k and securing the cash flow by paying off the rentals If I wait and the stock market goes down and I lose the 401k option It will take me about 15 years to pay off the rentals Do I cut the cord now or hope the economy does well and let the rentals pay off them selves in 15 years and still have 401k?
Comment from : RJTWIN

Great infoI was thinking about thisAnd boy did put in perspectiveThank you
Comment from : ANDRES ETHRIDGE

Your awesome man!! Who ever gets offended is because they dont invest smart like u
Comment from : Gerardo Trujillo

Just spoke to my 401k investment company and they don't allow me full withdrawal I already have my 1st property So I am just able to get up to 50 payback loan that's it
Comment from : Frank Carreno

I have almost $100k in my 401k I'll be 57 in Dec I'm debating on whether to wait until I'm 595 to pull it out or to pull it out now My biggest concern is whether that 10 is going to be eaten up by the upcoming stock market crash anyway I'm definitely taking at least $50k out, but that might be as a loan so I can buy RE with that I still have a couple of months to decidebrThe other option is to convert it out to a solo 401k and use the WHOLE thing to buy real estate
Comment from : Dienekes

Please tell others that they can not do this while still employed and under 595
Comment from : Michael hamel

The penalty would not be just 10 - the amount you withdraw is taxed as ordinary income
Comment from : Warren Peece

agree with you 100
Comment from : UX UI Product Designer

This is great I plan to start buying rental properties in January of 2019 I've been thinking a lot about my 401k and either withdrawing or taking a loan (i cant fully cash out) What I have decided to do is to reduce my contributions from 10 to 1 because my companies contributes 8 of my annual salary as long as I contribute So it would be silly of me to stop investing since that would be free money I would be losing Also, I've decided to take a loan out on my 401k And contribute back the minimum during the life of the loan while I build and invest into realestate brbrClayton, what are your thoughts on investing in New York for 1st timers ive been looking in syraccuse Found some houses that look good but I want to know what is your experience with the market in New York Thanks
Comment from : Franklyn Gutierrez

this is the most idiotic advice I have ever heard, most of it was pure nonsense don't touch your 401k folks, it's a really bad idea
Comment from : sbkpilot11

I just cashed mine out completely at 40 Oh well Thanks for the tip
Comment from : Horizen3872

How can I get in touch with you?
Comment from : mijolomusik

shorin-ryu Matsumura Seito karatedo Nanbokukan

Thanks, I've been thinking about this and now can act Education is on my side, thanks for the jump start
Comment from : shorin-ryu Matsumura Seito karatedo Nanbokukan