Author Topic: How to RE? Will have $, how to access?  (Read 1867 times)

Rustyfa

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How to RE? Will have $, how to access?
« on: January 30, 2016, 10:23:26 PM »
This is probably a basic question but I do not know the answer.  My wife and I are 35ish and have saved since 20. Should  we continue to invest at current rates we should be able to RE between 50-55.  We live simply but enjoy life and will continue to live modestly.

Our money is in our 401ks.  My understanding is we cannot access this until we are 59.5.  How do we get at this money?  Or should we start investing a different way?   Help on this matter is appreciated.  Tia

Frankies Girl

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boarder42

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Re: How to RE? Will have $, how to access?
« Reply #2 on: January 31, 2016, 04:32:53 AM »
are you sure you have to wait another 15 years to retire.  If you've been "living modestly" and saving for 15 years have you done the math.  Do you know your real expenses.  You should do a case study. 

GrOW

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Re: How to RE? Will have $, how to access?
« Reply #3 on: January 31, 2016, 05:42:24 AM »
15 years of solid savings at age 35. Congrats. That is an awesome start to your RE plan.

There is a wealth of info here on the RE withdrawal topic as well as other popular blogs. Check out RootOfGood, GoCurryCracker, MillionaireEducator as just a few of my favorites that focus on building FI and converting to RE.

Popular RE withdrawal/income methods include:
Roth IRA conversion - RootOfGood has a fantastic article on this http://rootofgood.com/roth-ira-conversion-ladder-early-retirement/
457 Plan - IF you have access to one, MillionaireEducator discusses these in a few articles
Taxable Accounts - drive your savings rate high enough and you will eventually build up a nice balance here
72t IRA Withdrawals - rigid plan but one of the above bloggers uses it
Real Estate - rental property income
Sell Primary Residence - significantly downsize and rent, covert equity from the sale to taxable investment account
Inheritance - tough to plan around but some people can so it is worth a mention

Rustyfa

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Re: How to RE? Will have $, how to access?
« Reply #4 on: February 02, 2016, 05:03:03 PM »
Thank you very much for the responses.  Much appreciated.  This was exactly what I was looking for.