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when exactly is the ey split happening??
Anonymous User
Do you always need an MBA to get into MBB?
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Can I get a commercial loan without 25% down?
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With the penalty if you don't need it for the down payment I wouldn't. You could roll it to a new 401k or IRA, take a loan from yourself and repay it so you avoid the penalty and pay yourself interest. Also, run your numbers taking the penalty into account, keeping it in the market compounding may pay you similar or higher return with less headache (tenant, repairs and vacancy considerations)
Assuming you have a personal home so can't use that exception to avoid the penalty. Reach out to your CFP for another qualified view too.
Oh shi there is a penalty
Subject Expert
I wouldn’t take the hit on retirement funds for only $40k. Have you calculated what the taxes and penalties would be, and then weighed that against the cashflow you would be generating? That’s basically your opportunity cost to buy the property. You’d probably have $15k in taxes and penalties, which means even if you’re cashflowing at $1k per month, you’d have 15 months of cashflow as opportunity cost. Cashflow is probably way less, which jacks that number up (especially if you’re properly saving for capex / vacancy / repairs).
Penalty plus tax will reduce it a lot (youll pay that early next year). When getting mortgage banks want to see you have back up for 6-12 months. Use your 401k for that if that’s an option
They do actually. (I was an underwriter in my prior life). But - if you have $100,000 in your 401k, it’s considered 60,000. You only get credit for 60%.
If the rule of 55 applies to you, or you are over 59 and a half, you could consider it as the 10% penalty may not apply, but you may get hit with a tax bill. You likely have cheaper sources of funding available.