Picked a 401k over buying a duplex in 2016 and I am still thinking about it

Back in 2016 I had about $25k saved up and I was looking at two options. One was to put it in my company 401k like everyone said was the smart move. The other was to use it as a down payment on a duplex in Phoenix where my buddy was flipping houses. He kept telling me the rental market was about to blow up. I went with the 401k because my dad always said max out retirement first. That duplex my friend bought for $180k is now worth over $400k and rents for $2,200 a month. My 401k did gain like 8% a year but it did not change my life. Has anyone else picked the safe route and watched the risky play pay off big?

2 comments

2 Comments

vera_campbell5d ago

My buddy bought bitcoin instead of a house in 2013. Still hurts to hear about.

reesemiller5d ago

I mean, technically he did buy an asset, just a digital one. A house in 2013 would have gone up maybe 30-50% by now in most places, but Bitcoin went up like 1,000% or more just in the first few years. Though I guess it depends on the market. Some friends of mine bought in late 2013 and watched it crash to almost nothing before it bounced back. So yeah, it hurts when you pick the wrong thing, but at least he didn't buy a house that then needed a new roof and foundation the next year.