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Discuss Latest WCI Blog Post: Should You Raid Retirement to Invest in Real Estate?

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  • Discuss Latest WCI Blog Post: Should You Raid Retirement to Invest in Real Estate?

    I worry when someone takes money out of their retirement accounts to invest in real estate. But, could it be the right move for some docs?

    The post Should You Raid Retirement to Invest in Real Estate? appeared first on The White Coat Investor - Investing & Personal Finance for Doctors.

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  • #2
    Did anyone read this? Where did he dig this guy up?
    #1Real estate professional status? Come on who has time for that. Maybe a unique couple with a interested spouse but that seems uncommon.

    2- Uh contribute more... You are not limited to your retirement account.

    3LOL money jail. Let your money work for you in jail

    4 Not a bad point but I would not steal retirement money to do it.

    5 Plenty of ways to get the money out and most early retirees will have some taxable savings.

    6 crystal ball

    7 I do not get the point of this point


    • #3
      I thought Jim did a great job of providing an articulate counter-arguement here. Undoubtedly this is a very rare situation where this might make sense, but for 99.99% of us it never will (kind of like whole life insurance?).

      As you said, none of us are going to get real estate professional status unless we leave medicine.

      The idea of "money jail" is silly to me for the reasons Jim states.

      I think most importantly for me, however, is that the implicit argument in the "for" column is that the returns are going to be substantially higher than they are with equities. In general, this just is not true. If you are getting higher returns, you are probably either:
      -Using leverage (not apples-to-apples comparison for risk)
      -Doing a lot of work (hence the professional status)

      Show me a buy and hold real estate investment that is unleveraged and requires minimal work and has expected returns much higher than the market, and sure, I'll be all in.