Pulling or borrowing against your retirement is starting to becoming more and more popular, but is it something you should do? Taking money away from your future can be scary, but the benefits of using that money to invest into real estate might make it worth it. Even when the market was going through a bit of a rough patch, investing in real estate has a better long term effect according to financial experts.
What is a 401(k)? Simply put a 401(k) plan is a means for you to take funds out of your paycheck, pre-tax, and put them into a specialized savings account with certain rules and restrictions.
Here are a few advantages investing in real estate has;
- Owning property has tax benefits
- Renting out your property can pay for maintenance and bring in some extra income
- The housing prices are lower but the economy is slowly improving
- Properties appreciate over time
It is important to speak with a financial adviser with any questions regarding using your retirement for investing*