Most of the time, we at Empowered Investor Network would tell you that taking out a loan against your 401k retirement plan would be a bad idea. The reason is that the majority of people would waste the proceeds on the trappings of wealth – boats, cars, expensive vacations. If that describes what you would likely do with a 401k loan, you have our permission to skip the rest of this blog.
For those of you still with us, there is one situation where we think it’s a great idea to borrow against your retirement nest egg if you are absolutely certain you can follow the plan. The plan is to employ a prudent but uniquely effective real estate investment strategy. In short, we’re talking about income properties, which is when you buy single family residential homes and rent them out. In case you haven’t heard it before, this has been proven historically to be the best investment. It’s how the majority of wealthy Americans got that way.
But DON’T just run out and start buying up properties nilly willy. That could be worse than leaving your money in the stock market. Get an education first and do it right from the beginning. A good, free resource is the Creating Wealth podcast found at www.JasonHartman.com. Jason Hartman has devoted much, time, energy, and expense into making this a premium, no cost education for both savvy and first time real estate investors.
Try it. You might like it. It’s probably your best chance to get wealthy in this life.
The Platinum Team
