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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: snuka on September 30, 2016, 01:15:42 PM

Title: Should I be investing in taxable accounts instead?
Post by: snuka 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?

Title: Re: Should I be investing in taxable accounts instead?
Post by: No Name Guy 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.

Title: Re: Should I be investing in taxable accounts instead?
Post by: boarder42 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

Title: Re: Should I be investing in taxable accounts instead?
Post by: MDM on September 30, 2016, 06:02:55 PM

How to withdraw funds from your IRA and 401k without penalty before age 59.5 (http://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/) might be of interest.

Title: Re: Should I be investing in taxable accounts instead?
Post by: snuka on October 01, 2016, 01:25:34 PM

Thanks everyone!