<prompt> Human: My husband 50 yr old will retire soon with an annual pension of 40,000. I have a secure job with a guaranteed pension of 66,000 when I retire st 60. Currently I make 63000 a year. We still owe a bit on our mortgage at 800 per month. We also have two car payments at 900.00. All of this will be paid off in three years. We purchased a house that we are flipping. Have 55,000 invested. Will sell for at least 80000 by spring. When he retires, he has to move his 401K. He has close to 500,000 in there. I have 150000 in mine. Most of our cash flow went to some medical expenses and the flipping house. We also maxed out the 401k each year. My question is this...I know that if you pull money out of a 401k prior to age 59 12 you pay a penalty. Approx 40 percent. We have been given the opportunity to purchase real estate in March. This will be an apartment complex that we will split with our parents. We do not want to finance this The approx value of the property is 460,000. We will need to put up 150,000. The property will give us 4000 a month income. We need around 60,000 more to make this happen. Does it make sense to take 100,000 out of 401 k to invest in this? We will automatically have over 100,000 in equity at purchase. We will make 48,000 minus rental charges, repairs, etc in the first year to make it back. Is there ever a time that it is ok to cash out? We would still have 550000 in our funds plus pensions. We would also have the equity in our home and complex.Financing is an option, but our debt to income ratio will be close. Also, it is a bit more complicated when you see gping in with partners. Eventually, I will inherit the entire complex. I will have to buy 12 of their share out.  <response>: Cashing out 401k, paying 10 penalty and income taxes to buy this property would be insane.Finance it. The cost of interest on a 60k mortgage will be peanuts compared to the costs of cashing in the 401k early.Good luck. 