Author Topic: Should I be investing in taxable accounts instead?  (Read 1499 times)

snuka

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Should I be investing in taxable accounts instead?
« on: September 30, 2016, 01:15:42 PM »
Should I be investing in taxable accounts instead of a tIRA if I plan to retire at 55 and need to start drawing that sweet 4% without incurring the 10% penalty?

No Name Guy

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Re: Should I be investing in taxable accounts instead?
« Reply #1 on: September 30, 2016, 01:21:11 PM »
72(t).  SEPP.

Google 'em. 

Also discussed repeatedly here on the forum.  I don't happen to have links.

TL/DR - you can get to the money before 59 1/2 without the 10% penalty if you follow the special rules.

boarder42

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Re: Should I be investing in taxable accounts instead?
« Reply #2 on: September 30, 2016, 02:03:48 PM »
plus

Roth conversion ladder much more flexible than 72t

also here's an article by madfientist where he shows even paying the 10% penalty is better than saving in taxable.

http://www.madfientist.com/how-to-access-retirement-funds-early/#ck_modal2

i was quite surprised how well it came out ahead of taxable investing to take a 10% penaly hit

MDM

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snuka

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Re: Should I be investing in taxable accounts instead?
« Reply #4 on: October 01, 2016, 01:25:34 PM »
Thanks everyone!