Hi all. Now that I'm shifting my retirement focus to retiring early, it really changes the investing strategy.
Previously I was focusing on my 401k but I won't be able to draw on that without penalty until I'm 55. I'm not too up on IRA's, Roth IRAs, ROTH 401k etc.
As I understand it, the Mustachian plan is to live off the interest of your nest egg but if ANY of my retirement is in a 401k, I won't be able to use that interest to live until 55+ so it really changes things.
At the same time, when I DO turn 55, and can start drawing on the various retirement funds, I do understand that they provide a bit of a tax shelter because your taxable income ends up being lower, so I feel like I should not miss that opportunity (as well as the obvious perks of better interest compounding in a 401k).
Example, say I figure if my house is paid off and I can get $500k in savings, that means assuming a 6% return rate, I'd have $30k per year to live on. But that would require me to have 100% of my savings in a taxable account. If half of that were in a 401k, I'd still earn $30k but couldn't touch $15k of that since it would be locked away until 55.
So for the Mustachian plan, what is the very high-level strategy? It seems like the only way to make it work verbatim to the plan is to put 100% of your savings into a taxable investing account and forgo all 401k, IRA, Roth, etc.
Thanks in advance for any input.