CalculateRealEstateROI

Wealth Building

How does real estate compare to a 401(k) for retirement?

Real estate offers higher cash flow, inflation hedge, leverage, and tax advantages — but requires active management.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Real estate offers higher cash flow, inflation hedge, leverage, and tax advantages — but requires active management.

Expanded explanation

401(k) is passive; rentals demand systems. Best mix: max 401(k) match + build rental portfolio in parallel for true diversification.

Examples

  • $1M 401(k) at 4% SWR = $40k vs 10 rentals at $4k each = $40k + appreciation.

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