His 401(k) Swung $80,000 In A Month. Now He Wants A Different Kind Of Investment

Caroline Lubinsky

Mon, August 10, 2026 at 5:46 PM GMT+3 8 min read

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A reader wrote in after a rough stretch in the market caused his 401(k) balance to fall from roughly $620,000 to $540,000 before recovering within a few weeks. He is 55, plans to retire at 65, and is considering whether adding real estate exposure could help diversify his retirement strategy.

The challenge: He does not want to become a landlord. Between tenant calls, repairs, maintenance and managing a property from a distance, he has no interest in turning retirement planning into a second job. The good news is that investors today have more options than simply buying an entire rental property themselves. Some platforms allow investors to purchase fractional interests in professionally managed rental homes, providing exposure to real estate without directly handling tenants or maintenance.

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A $75,000 Move, Not A Full Rebuild

Moving $75,000 out of a $620,000 portfolio would represent roughly 12% of his current retirement savings. For some investors, adding exposure to another asset class may be worth considering as part of a broader diversification strategy.

Real estate and stocks are influenced by different factors. Public companies are often driven by earnings growth, investor sentiment and economic conditions, while real estate returns can be affected by factors such as local housing demand, rental markets, interest rates and supply constraints.

That does not mean real estate always moves independently of stocks. During certain economic periods, multiple asset classes can decline at the same time. But some investors include real estate in their portfolios because it may provide exposure to a different set of market drivers.

With about a decade until his target retirement age, he has time to evaluate how different investments fit into his overall plan. At the same time, retirement planning becomes increasingly focused on managing risk, liquidity and the possibility of needing income from investments sooner rather than later.

Why The Swing Felt So Significant At 55

An $80,000 move on a $620,000 account represents roughly a 13% change. Market fluctuations of that size can occur during periods of increased volatility, especially for portfolios heavily exposed to stocks.

The difference at 55 is that investors generally have fewer working years remaining to recover from a major decline before retirement withdrawals begin. This is one reason financial planners often discuss sequence-of-returns risk, which refers to the potential impact of experiencing significant losses shortly before or after starting to withdraw money from a portfolio.

Diversification, cash planning and a clear retirement income strategy can all play a role in preparing for that transition.

Trending: The Wealthy Have Long Used Private Real Estate To Diversify Beyond Stocks. Here's One Platform Opening That Door.

Why He Is Right To Skip Being A Landlord

Owning a rental property directly can provide benefits, including rental income and potential appreciation, but it also comes with responsibilities. Owners are typically responsible for finding tenants, handling maintenance, paying insurance and property taxes, and dealing with unexpected repairs.

For someone approaching retirement, the time commitment alone may be enough reason to consider alternatives. Wanting real estate exposure does not necessarily mean wanting the responsibilities of being a property manager.

Fractional real estate investing can address some of those challenges. Investors purchase shares of individual rental homes or vacation properties, while professional management teams typically handle leasing, maintenance and tenant communications.

Understanding What Real Estate Income Could Look Like

Investors considering fractional real estate should understand that returns can come from multiple sources, including rental income distributions, when available, and potential appreciation if properties increase in value and are eventually sold.

The amount investors receive depends on factors such as the performance of the underlying properties, expenses, occupancy rates, market conditions and platform-specific structures. Like any investment, fractional real estate carries risks, including the potential loss of principal, reduced rental income and limited liquidity.

For some investors, the appeal is not replacing stocks entirely, but adding another type of asset to a broader portfolio.

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Building Real Estate Exposure Without Becoming A Landlord

Investors who want real estate exposure without directly owning and managing properties can explore options such as fractional ownership platforms. Arrived allows investors to purchase shares of rental homes and vacation properties across different markets, subject to current investment minimums.

Spreading exposure across multiple properties may help investors avoid relying on a single home, neighborhood or local market. However, investors should evaluate each opportunity based on their own goals, risk tolerance and overall financial situation.

If retirement funds are currently held in a 401(k), investors should also understand the rules before moving money elsewhere. Whether retirement assets can be transferred depends on factors such as whether the account is from a current or former employer, plan rules and applicable tax considerations.

The Bigger Question Is How He Wants To Retire

The decision is not necessarily about choosing between stocks and real estate. For many investors, the bigger question is finding the right mix of assets, income sources and risk management strategies for the years ahead.

At 55, watching a retirement account move by $80,000 in a matter of weeks can be a powerful reminder that volatility is part of investing. Building a plan that matches his goals, timeline and comfort level may help him approach retirement with more confidence—without taking on a second career as a landlord.

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Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Arrived

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Realberry

Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests.

FarmTogether

Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.

Immersed

Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.

Fundrise

Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.

Mode Mobile

Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte's fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.

EquityMultiple

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.

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This article His 401(k) Swung $80,000 In A Month. Now He Wants A Different Kind Of Investment originally appeared on Benzinga.com