Reply to Cashing out 401K to payoff mortgage

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[quote=Anonymous]You will be hit with a 10% penalty and income taxes. You can deduct against income taxes by buying points and closing costs. You will lose 10% but employer match and the fact you will be taxed more than that in the future and fund managers take up to 2% a year,  makes it not that big of a lost. The market hasn't really moved at all in the last 10 years and another dip would continue the cycle, especially with the recent predictions from OMB stating unemployment will be stagnant for 10 years http://www.politico.com/politico44/2012/07/omb-report-says-recession-will-cost-decade-of-high-130371.html . Rather than using 401k for retirement, another plan is to buy multiple properties, rent them out and pay them off by the time you retire. This is a good idea especially in our area where rents are high, jobs are good and people are flocking from the rest of the country to live here and need housing. Personally I have always advocated Real estate because it is like gold, a physical investment whereas stocks are theoretical. I want to be able to touch my investments.
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