Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli. Hello, my friends, and welcome to another episode of Ask Marco,

where I answer your investing related questions.

Today's question comes from Sarah.

Sarah says, hi, I stumbled across your article on IRAs in real estate investing.

I'm wondering if you have information on the pros and cons for using my 401k from a job 15 years ago for investing in rental properties.

We currently have two rentals.

Wondering if it's even an option to use the 401k investment for purchasing rental properties and the pros and cons in doing so.

I'm assuming one major contributing factor is how the 401k is growing currently.

Okay, Sarah, well thanks for the question. There's some things I just don't know

that you haven't given me as far as information to be able to thoroughly answer your question,

but I'll give you a 30,000 foot view answer to the question because you're going to have to check with your tax advisor about some of the

options you have but it's good to know what some of those options are. So I'm

assuming from your question that when you mentioned a job 15 years ago, I'm

assuming that you don't mean that you've been in this job for 15 years. You just have held

on to the 401k from a previous job and you haven't done anything with the funds and that's all well and fine if you are getting a good rate of return and you've just kept it in there.

So one option is to roll the funds over into an IRA, individual retirement account.

Here's what I mean by that.

So 401k plans are essentially long-term savings account and they offer tax advantages, at least during

the growth period of it, to grow whatever savings you put in there between you and your employer.

But with a 401k you typically can make

transfers or take loans against the 401k to access the funds and the

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