My Dad is revisiting his will next week and asked me if I wanted the house, car, and about $20-40,000 cash to help me move into it OR 1/2 of his 401k, which has a little over 1mil in it.
Now, the house I see as an investment opportunity. It's a 3 bedroom, 2 bath with a pool in a great neighborhood in Southern California. Great schools in the area, low crime, and I think the last time he had the house valued (over 3 years ago) it was about $480,000. Similar houses in the area have sold for over $500,000, but I would use it as a rental property. Rent in the area is around $3,000/mo.
I'm 22 currently and have 8 rental properties inherited from my Mom, though they are not generating more than $2,000/mo. They're in bad shape, in a small town, in Missouri. Not very lucrative.
My question is, would it be more beneficial over my life time to take the house and rent it out or take the lump sum and put it into a 401k and start looking into stocks?
I'm not very well versed in what exactly is changing, but I do know that there are new regulations/changes coming to the way 401ks are handled that is going into effect next year. From what I've gathered from my dad and his financial manager, it's screwing a lot of people and it makes me wary to start one, though again I'm not exactly sure what's going on with it and I could be wrong.
Any advice is welcomed!
Submitted September 14, 2017 at 02:54PM by Blazed-nd-Confused http://ift.tt/2wsFLiO
