Cashing out 401K to payoff mortgage

[Anonymous]

terrible idea

[Anonymous]

Anonymous wrote:We would pay the 10% penalty and then whatever income taxes are due when we file.

Actually you might have to go back and adjust prior tax returns to remove the deduction as well. You will have to pay taxes on that portion of the income that wasn't taxed.

[Anonymous]

Anonymous wrote:Bump

Any update from anyone on this thread who were investing in real estate instead of 401ks or other taxable investments?

Reading this thread from 2012, today in 2018 with people calling a 401k a scam is pretty hilarious.

[Anonymous]

Bad idea Einstein.

[Anonymous]

Anonymous wrote:

Anonymous wrote:well sort of a bad idea. IF you were able to buy a house and pay the MAXIMUM amount of points against the 401k withdraw you could deduct away most of the penalty. Try to minimize the loss by finding a way to deduct against it that tax year.

FYI we are doing this and plan to liquidate current 401k that has remained stagnant for the last 12 years. Our new plan is to continue to buy rental homes and use future income of paid off homes for retirement.

Please don't take any financial advice from someone who has had a stagnant 401k for the last 12 years.

Real estate should NEVER be an investment. Just ask all those who were planning to sell and retire now -- and have lost 30%+ on their home values.

Who has lost 30% of their home value?