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Message
Early Retirement
Posted on 4/28/16 at 8:35 pm
Posted on 4/28/16 at 8:35 pm
Has anyone successfully planned an early retirement?
I'm still 20+ years away from eligibility with my current employer, but my current 10 year plan should have me with sufficient savings (albeit within 401k/IRA), and a paid for house (axles and everything....)
The main question I have is finding a suitable investment vehicle to draw from between the time periods in which I could retire early, and the age in which I could legally draw from my retirement accounts. I would still freelance for some income, but I want the freedom to work when and where I want.
The only thing I have come up with is withdrawing principle from IRA's, but that has a limited life.
I'll hang up and listen. ...
I'm still 20+ years away from eligibility with my current employer, but my current 10 year plan should have me with sufficient savings (albeit within 401k/IRA), and a paid for house (axles and everything....)
The main question I have is finding a suitable investment vehicle to draw from between the time periods in which I could retire early, and the age in which I could legally draw from my retirement accounts. I would still freelance for some income, but I want the freedom to work when and where I want.
The only thing I have come up with is withdrawing principle from IRA's, but that has a limited life.
I'll hang up and listen. ...
This post was edited on 4/28/16 at 9:09 pm
15
Posted on 4/28/16 at 10:31 pm to dragginass
I've been thinking about the same thing. The best I've come up with is Roth contributions (pre-59.5), real estate, and just plain taxable.
Posted on 4/29/16 at 7:24 am to dragginass
Have a job you enjoy, then it's a nonissue.
Posted on 4/29/16 at 7:29 am to dragginass
quote:
paid for house (axles and everything....)
Tires will dry rot on your doublewide the longer it sits. Plan for that.
I'm doing the same thing. I'm 51, plan to retire at 55. I'm basically in the mode of saving 4.5 years of expenses to bridge me to 59 1/2. That is my plan. Luckily for me, my wife is already retired with a pension, and we can jump on her health insurance when we want to. Right now, we are on mine. I have to allow for that as well, and am planning on that cost to be $1500/month.
The good news is I don't have to make this decision now, will make it when I'm closer to 55. The insurance will be my main indicator of retiring early.
Posted on 4/29/16 at 8:18 am to dragginass
For many the economic crashes over the past couple of decades have pushed retirement down the road. It takes years to recover from economic damage we have seen in the last 8 years
Posted on 4/29/16 at 8:40 am to dragginass
I would love to do this, but my wife wouldn't be happy with the savings % necessary for it.
Posted on 4/29/16 at 12:47 pm to dragginass
Have you looked into a 72t SEPP? This could get you around the 10% penalty if you retire early at around age 55. I believe it lasts for 5 years and ends at age 59.5. Whichever is longer.
LINK
LINK
Posted on 4/29/16 at 3:41 pm to dragginass
Find the house that you want to live in until you die. Make a mortgage deal that will be paid up when you're 55. Your decrease in income will be mitigated by the lack of a mortgage so that your disposable income remains the same forever. I did it. But it takes a savings mentality and wise investments.
Posted on 4/29/16 at 10:05 pm to dragginass
I think about it daily. And I'm only 41 and still a long way to go. I've been working for the same company since 1997. The wife and I do pretty well, great for Mississippi standards. The house should be paid off in 8yrs, however we have a soon to be 7yr old and 5yr old. I just don't see myself making it until the kids graduate from college. But the wife is 5yrs younger than me, makes about the same as I do and has a much higher income potential than I'll ever have. I can see me hanging it up in my mid 50's.
Posted on 5/1/16 at 8:55 am to dragginass
quote:
Has anyone successfully planned an early retirement?
Check out firecalc.
Posted on 5/1/16 at 9:33 am to dragginass
Retired at 57, am now 60. Work part time to stay busy and to have monopoly money. Have a pension which will continue if I should pass before my wife. We reworked our insurance coverages, paid all debt (house, credit cards, school loans on children, etc) and banked/invested the rest. Still have one car note which could go away today. We live a conservative lifestyle but do the things we enjoy without worry.
Posted on 5/1/16 at 9:40 am to dragginass
quote:
Has anyone successfully planned an early retirement?
I'm semi retired now at 38. It's kind of funny now that I think about it. I did not plan for it. It just kind of happened. But my way is not conventional way.
Posted on 5/1/16 at 6:08 pm to dragginass
Funny...I was just looking into this earlier today. what I found is that every year of early retirement will cost me one hell of a lot of cash in the scheme of things. take into consideration that income, 401K, pension, etc. all reverse directions cashflow-wise. all of that, I could deal with. what I find to be the biggest hurdle to retiring early would be healthcare costs, as there is a pretty big surcharge for every year that I retire early. basically gotta be 62 and eligible for medicare before it gets reasonable for me.
Posted on 5/2/16 at 7:20 am to dragginass
I'm in the process of doing so.
To answer your question, look into the "Roth Conversion Ladder" as explained here. Between that and a decent balance in taxable accounts, I should have those bridge years between early retirement and 59.5 covered easily.
Other tips - focus on tax efficiency and be sure to maximize your HSA now to buffer against health care outlays once you give up your employer-sponsored care.
You will find nearly any answer to early retirement questions at one of these two forums:
LINK
LINK
Best of luck.
To answer your question, look into the "Roth Conversion Ladder" as explained here. Between that and a decent balance in taxable accounts, I should have those bridge years between early retirement and 59.5 covered easily.
Other tips - focus on tax efficiency and be sure to maximize your HSA now to buffer against health care outlays once you give up your employer-sponsored care.
You will find nearly any answer to early retirement questions at one of these two forums:
LINK
LINK
Best of luck.
Posted on 5/3/16 at 7:20 am to dragginass
Look up age 55 rule regarding hour 401k
Posted on 5/3/16 at 10:19 am to dragginass
I'm a fireman, I'll be able to retire between 47-50, don't hate.
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