Hi all,

I’ve been mulling the idea of closing out my wife’s and my 401ks from previous employers and purchasing 2-3 bank owned homes. after the 20% IRS hit and 10% cash out penalty it would leave us with about 150k. In our neck of the woods there are plenty of 3 bedroom 2 bath homes in the 100k range that were selling a few years ago for 200-250k plusAhmedabad Stock. Rents are going for about 900-1100/month depending on the town in which the house isJaipur Wealth Management. Here is my rationale: If I keep the money where it’s at or transfer to current employers etc. it will grow (maybe) and I won’t be taxed. Let’s say it gets to 750,000 in 15 years (probably not but maybe) then I start to pull out and get taxed on it (who knows what taxes will be then??) and I pull out 5% a year. (basically 37,500/year). Or…If I cash out now I take the 150k buy 3 (100k houses (I finance the rest)) that in 15 years will certainly be paid off and worth maybe 175k each??Bangalore Stock Exchange?conservatively. I put 50% down on each house and carry a mortgage on the other 50k for each house which the renter will certainly cover. So in 15 years… I will have made what I got from the renter (less the outstanding mortgage) probably 400 per house or 1200 per month (14,000/year in income (210k over the 15 years)) and in 15 years I’ll own out right 3 homes worth 175 to 200k a piece or moreUdabur Investment. Rent will probably average 1200/month each house. so (43,200/yr in income). I’ll have approx 600k in assets (if not more/maybe less but doubtful) and 40k plus a year in rental income…all because I decided to cash out my 401k’s, take the hit now and take advantage of the lowest housing prices and lowest interest rates we probably ever will see. By the way we currently max out our 401k’s at our new employers so I beleive in the markets and the 401k idea…just wondering if my thinking (about cashing out the old 401k’s) is flawed.

Any thoughts on this? Am I crazy? I think the numbers are somewhat realistic and conservative. Thanks for anyone’s input.Bangalore Investment

Indore Stock