Dip into 'stash to buy retirement RE ??

[albireo13]

I've been looking into retirement communities for my parents and thought about this idea ...   buy someplace using my savings and rent it out to my parents.
We could rent it out afterwards until we retire there.  It is on the Maine seacoast, very desirable area.
I personally have ~$800K in tax deferred savings (IRA, 401K) so I could swing it.  The problem is the big tax hit I'd take by disbursing funds.

I am 61yo and see ourselves selling our home in 10-15 yrs.

[waltworks]

Combining large amounts of money and family is always a bad idea, and taking a big tax hit to do it is even worse.

So, no. Emphatically no.

-W

[Scortius]

Definitely not.  If you want to invest in real estate, go find a property that makes sense financially and rent it to strangers.  If you want to buy a house for when you retire, buy a house when you retire.  If you want to help your parents, offer to pay some of their rent or gift them money in some other way.

[albireo13]

Thanks.  I guess it was a dumb idea.

[Scortius]

Thanks.  I guess it was a dumb idea.

Eh, it's a nice idea, and I like the idea of helping your parents settle into retirement.  Just be wary of entering into a business relationship with immediate family.  What happens if they can't pay you?  What happens if they themselves don't really like the place, or want you to fix things up in a way that lowers its value?

In the end, you're trying to do two things at once, invest and help your family.  You can still do both things, just don't do them together!