Author Topic: Best Account Type Allocation for Early Retirement?  (Read 1756 times)

2RCL1

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Best Account Type Allocation for Early Retirement?
« on: June 03, 2014, 12:23:33 PM »
Hello,

I'm 32 and looking to retire around 47. My wife and I have $70,000 saved for retirement in a combination of work retirement plans and ROTH IRAs. I'm wondering how much I should keep contributing to these accounts (past the employer match) and how much I should shift to accounts we can access before we're 60.  Thanks for your help!

Eric

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Re: Best Account Type Allocation for Early Retirement?
« Reply #1 on: June 03, 2014, 12:42:59 PM »
The short answer is contribute as much to your 401k as possible for as long as possible as this reduces your tax burden leaving you more to save.

http://www.madfientist.com/retire-even-earlier/

Also, you can access that 401k money prior to 60 without penalty.

http://jlcollinsnh.com/2013/12/05/stocks-part-xx-early-retirement-withdrawal-strategies-and-roth-conversion-ladders-from-a-mad-fientist/

Cheddar Stacker

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Re: Best Account Type Allocation for Early Retirement?
« Reply #2 on: June 03, 2014, 01:25:18 PM »
+1.

At 42 (if 47 is still your projected retirement age after reading Eric's links) then you would need to start thinking about where to save for the "early years" of retirement. It might become more important then to make sure you have enough built up in non-tax deferred accounts to quickly access until the 401K conversions have time to "season".

2RCL1

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Re: Best Account Type Allocation for Early Retirement?
« Reply #3 on: June 03, 2014, 07:51:41 PM »
Easy enough. Thanks for the advice!