Money to Live on before reaching retirement age?

[Jules13]

I'm sure there is a thread or post about this likely very basic questions somewhere, but I can't find it.  Feel free to point me in the right direction!

So, here's my question....all of our retirement savings is being directed to Roth IRAs and 401k.  We could potentially hit our retirement goal by the time I am 57 (I am currently 43, so a ways to go).  But, then everything is in accounts that you can't access without penalty until a later age.

So, I'm guessing we'd need to put some money elsewhere to live off of until we hit retirement age?  Is that right?  Or am I missing something?

I hope that makes sense.  Thanks in advance for the help!

[tonysemail]

you're probably looking for this stickied thread
http://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/

[Miss Piggy]

I have similar questions myself. Most (but not all) of our investments are in 401ks and IRAs. Curious to see the answers here...

[KarefulKactus15]

WTF ! 

I sprinted over to the investing thread to find :
http://forum.mrmoneymustache.com/investor-alley/how-to-withdraw-funds-from-your-ira-and-401k-without-penalty-before-age-59-5/

as fast as i could, but someone beat me to it!

[Late_Bloomer]

If you are retiring in your 30's then yea, the conversion makes sense. But at Age 57, you only have 2 1/2 yrs until you can withdraw the money so why not just start a find now to float you for that time? You got 14 years to build that stache. I'm in a similar situation, plan to RE at age 57.

[aceyou]

Brandon at The MadFientist has a good article here as well:  http://www.madfientist.com/how-to-access-retirement-funds-early/

[seattlecyclone]

Retiring at 57, it wouldn't be the end of the world to pay a 10% penalty on your withdrawals for two years until you're old enough for unlimited penalty-free withdrawals.

Also keep in mind that you can withdraw from your 401(k) without penalty if you leave the company after age 55. Withdraw from that account for a couple of years (without rolling over to an IRA first) until you get to 59½ where all retirement accounts are penalty-free.

[mizzourah2006]

If you have been contributing to your Roth IRA you could just live off your contributions for 2.5 years. Assuming 2 individuals contributing to a Roth IRA for the next 14 years and assuming no increases to the amount allowed to be contributed you are looking at $154k that you can draw on from your Roth penalty and tax free.