Retire at 40, but most of my money is in retirement accounts?

[StinkyGoalieGuy]

Suppose I need $100K per year to live on.  With a SWR of 4%, that means I need a total of 2.5 million in savings.   Now supposed I have 2 million in retirement accounts and $500K in taxable brokerage accounts, and I'm currently at age 40.  How do I make this work, given that I should only withdraw from my taxable brokerage accounts until age 59.5?

[Frankies Girl]

https://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/

[AdrianC]

I'm surprised that you could have 80% in retirement accounts. Is that typical for FIRE types?

We're 40% in tax-deferred, 60% taxable.

[DadJokes]

I'm surprised that you could have 80% in retirement accounts. Is that typical for FIRE types?

We're 40% in tax-deferred, 60% taxable.

I expect to have almost everything in retirement accounts. I don't expect my household income to ever be so high that I'm maxing them all out. That's in part because I'm a government employee with access to a 457(b), so our current max is $76k (two 401(k)s, 457(b), two IRAs, HSA).

I assume it's normal for dual income households who don't have $150k+ combined income.

[terran]

I'm surprised that you could have 80% in retirement accounts. Is that typical for FIRE types?

We're 40% in tax-deferred, 60% taxable.

I expect to have almost everything in retirement accounts. I don't expect my household income to ever be so high that I'm maxing them all out. That's in part because I'm a government employee with access to a 457(b), so our current max is $76k (two 401(k)s, 457(b), two IRAs, HSA).

I assume it's normal for dual income households who don't have $150k+ combined income.

Same here. My family has access to a 403(b) that's mega backdoor Roth capable ($56k), 457(b) ($19k), HSA ($7k), IRA x 2 ($12k), and solo 401(k) ($19k) which adds up to $113k of tax advantaged space plus 20% of business income that can go into the solo 401(k).

Back to the OP, @Frankies Girl posted the answer, but here's another source with a good explanation: https://www.madfientist.com/how-to-access-retirement-funds-early/

[simonsez]

I'm surprised that you could have 80% in retirement accounts. Is that typical for FIRE types?

We're 40% in tax-deferred, 60% taxable.

I expect to have almost everything in retirement accounts. I don't expect my household income to ever be so high that I'm maxing them all out. That's in part because I'm a government employee with access to a 457(b), so our current max is $76k (two 401(k)s, 457(b), two IRAs, HSA).

I assume it's normal for dual income households who don't have $150k+ combined income.

Same here. My family has access to a 403(b) that's mega backdoor Roth capable ($56k), 457(b) ($19k), HSA ($7k), IRA x 2 ($12k), and solo 401(k) ($19k) which adds up to $113k of tax advantaged space plus 20% of business income that can go into the solo 401(k).

Back to the OP, @Frankies Girl posted the answer, but here's another source with a good explanation: https://www.madfientist.com/how-to-access-retirement-funds-early/

Similar here for a household of a federal employee and a teacher.  The tax-advantaged space available to us covers a majority proportion of the dollars we earn.

[Mississippi Mudstache]

I don't have a drop of money in taxable accounts. I'm on a coast-FIRE path at this point. My retirement savings should grow to the point where I can fully retire around age 50. Currently I'm living off of money I make from a business that I started doing what I love (woodworking). Life is good. I'll be rolling the retirement accounts little by little over into Roth IRAs over the next 10-15 years, at which point I can pull the money out penalty-free, and retire if I wish. Or just scale back the business and do only the jobs I really want.

[AdrianC]

I'm surprised that you could have 80% in retirement accounts. Is that typical for FIRE types?

We're 40% in tax-deferred, 60% taxable.

I expect to have almost everything in retirement accounts. I don't expect my household income to ever be so high that I'm maxing them all out. That's in part because I'm a government employee with access to a 457(b), so our current max is $76k (two 401(k)s, 457(b), two IRAs, HSA).

I assume it's normal for dual income households who don't have $150k+ combined income.

Same here. My family has access to a 403(b) that's mega backdoor Roth capable ($56k), 457(b) ($19k), HSA ($7k), IRA x 2 ($12k), and solo 401(k) ($19k) which adds up to $113k of tax advantaged space plus 20% of business income that can go into the solo 401(k).

Interesting. That's great you get so much tax advantaged space.

We've always maxed out 401k, SEP-IRA/solo 401k and tIRAs, but we did it with one income for about half of our accumulation time.

[nsmall]

Those are great links.  Its hard to beat you all to the good answers. 

[the_fixer]

Roth ladder?

Gocurrycracker might be worth a read for you

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