Liquidating 401k to buy home
In this informative video, he explains why liquidating your 401(k) won’t necessarily solve the “real” problem that your inefficient and limiting 401(k) was merely a symptom of: As Andy points out, the reason that many employees are in 401(k)s in the first place is that they don’t know how to do better on their own – in other words, In spite of some limited and rather skewed “investment education” programs from plan administrators, a 401(k) won’t solve the problem of teaching people to invest.(Ironically, the plans are designed so that this problem CAN’T be solved, as truly educating employees how to invest would lead them to choose different options than a 401(k)!As a result, they are subject to unreasonable risk and many end up “raiding” their 401(k) when the unexpected strikes, with costly results.Interestingly enough, when Benna tells the history of 401(k) plans, he reveals that they began with a mere 2 options: one for .
We agree with Andy Tanner, author of , liquidating your 401(k) without having a sound strategy for what to do NEXT is not a good plan.FA single person can make a contribution of up to ,000 a year to a plan, and with a spouse involved in the business, that contribution can be up to ,500 a year to any independent 401k plan.This amount is about 10 times larger than a traditional IRA plan.A self employed business owner may choose to invest in a variety of resources. Being able to purchase real estate and claim it as an “investment” is one of the major perks of having a self directed IRA real estate plan.Other types of investments that can be made under a Roth IRA plan are tax liens, precious metals, businesses, and foreign currency.