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51596945 No.51596945 [Reply] [Original]

If I cash out $24,000 (my entire 401k) how much would I roughly be able to keep after the penalty and taxes?

>23 years old
>Live in south California

Basically I don't think 401k is a good investment anymore and want to pull out to invest in real estate.

>> No.51596964

>>51596945
what the fuck are you going to buy with 24k in cali

>> No.51597109

>>51596964
Wholesale, it's risky but scared money makes no money, and I've been researching strategies for several years.

>> No.51597309

>>51596964
For example if I make 3k-8k profit per property and I get 10 contract's a year that'll open up the door for me several other real estate investments besides wholesale

>> No.51597420

>>51597109
can't talk much about real estate -- so you'll just have to trust your gut on that. I would feel more comfy if you had a network you could rely on too

on general investing here are some pro cons:

Pros:
You're young, risk is better and if you lose it all, you have time to recover

If you really are ahead of the game in knowledge AND network, you're likely to catch differences in perceived and actual value better than the current market

Cons:
I think your perception of 401ks and stocks isn't necessarily good -- you can make a LOT of money if you know what you're doing with your roth

I think you're focused on max profit and not max loss, you need to balance between both to make good risk assessments, and housing is a much heftier investment than stocks, even wholesale


To answer your original question, you'll lose 10 percent penalty immediately, then income tax so

24000 - 2400 = 21600
then you bracket that in CA so you'll end up with around 18k, hope that helps

What makes you so confident in this specific market? that you'll hit 100 percent on your trades? I don't know much about it

>> No.51597545

>>51597420
Addon -- this is assuming you don't have a job -- if you get a salary you also get taxed on that in addition so add the 21600 to your yearly salary then tax that

>> No.51597720

>>51597420
Orange County is a Sellers Housing Market, which means prices tend to be higher and homes sell faster.

My brother is a real estate agent and I've networked with several successful seller's in my area they all think I'm on the right path. For my first couple houses I'll partner with one of them to get actual experience on how to properly pick and sell contracts instead of being an arm rest expert

>> No.51597850

>>51597720
Ok gotcha, that actually makes a lot of sense then -- are you doing a career switch or just starting out? Regardless, I agree with them then, I think you're ahead of the game if you already have a network willing to help you out, just watch your back lol and be ready to go on your own if it comes to it

>> No.51598622
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51598622

> wholesaling
Sorry anon, you've been sold a lie. The vast majority of people do not make money by wholesaling real estate. The ones that DO make good money are basically full corporate entities, not mom-and-pop shops, and ESPECIALLY not in one of the biggest real estate markets in the world. You'll just be picking amongst the scraps left by the big boys.