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Should I be investing in taxable accounts instead?
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Topic: Should I be investing in taxable accounts instead? (Read 2126 times)
snuka
5 O'Clock Shadow
Posts: 12
Age: 54
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?
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No Name Guy
Bristles
Posts: 448
Location: Western Washington
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.
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boarder42
Walrus Stache
Posts: 9332
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
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MDM
Senior Mustachian
Posts: 11493
Re: Should I be investing in taxable accounts instead?
«
Reply #3 on:
September 30, 2016, 06:02:55 PM »
How to withdraw funds from your IRA and 401k without penalty before age 59.5
might be of interest.
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snuka
5 O'Clock Shadow
Posts: 12
Age: 54
Re: Should I be investing in taxable accounts instead?
«
Reply #4 on:
October 01, 2016, 01:25:34 PM »
Thanks everyone!
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Should I be investing in taxable accounts instead?