FIRE withdrawal strategy

[mr.whitefang]

I haven't come across a simple strategy for withdrawing money before 59 1/2 from traditional retirement accounts- 401k, Roth/Traditional IRA. How do you plan for this? Assuming a retirement at 45 and income need level of 35,000 a year with a balance of 1.2M between 401k, tradional/roth IRA, what do you do to live between 45 and 59 1/2?

[Mr. Green]

https://www.madfientist.com/how-to-access-retirement-funds-early/

[boarder42]

What he^^ said - feel free to ask more questions once you've read that.

really need a sticky with a link to that article mods.

[DS]

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

[terran]

What he^^ said - feel free to ask more questions once you've read that.

really need a sticky with a link to that article mods.

That's the sticky. It's in the investor alley forum. The problem with stickies is I think people learn to ignore them.
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https://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/

[boarder42]

What he^^ said - feel free to ask more questions once you've read that.

really need a sticky with a link to that article mods.

That's the sticky. It's in the investor alley forum. The problem with stickies is I think people learn to ignore them.
         V
         V

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

thanks good point!

[mr.whitefang]

Those links are great...gives me something to think about. Because I work a job with a 401k(company matched 3%) I will take advantage of the tax benefits, but it got me thinking about investing in single home real estate instead of the complicated process of doing penalty free withdraws,  converting large sums and paying income tax etc. IF I save money to invest in real estate for cash flow positive properties, I could keep investing in homes for my pre-retirement( pre age 59 1/2) for my cash flow. It's  like I have to decide now for how I want to distribute my wealth in 10+ years for living during that limbo period of an additional 10+ years.

[Rocketman]

I think the real advantage of moving money from ira/401k to Roth’s is lower taxes. If you move the money then you are paying 0%,10% or 12%.  If you wait, then it may be higher because you will have your social security plus your RMD’s - which will probably use all that low percentage rate room.

You need to think of taxes over a lifetime- not just in a one year vacuum.