I'm in my early 20s and I'm about to invest a good chunk of money into Vanguard's total stock market fund, and continue to invest for years to come. This is a tax-advantaged fund.
However, I want to make my investments in a taxable account rather than a retirement account such as a Roth IRA.
I believe I fully understand the benefits of a retirement account. But I don't want to have to wait 40 years until I can take out earnings without penalty.
I'm not a big spender, and I save a lot. And when I say "take out earnings", I don't mean everything. I understand compound interest and the necessity of leaving most gains in there to continue growing exponentially for years. But I'd also like to have access to my gains whenever without being penalized because I didn't wait 4 decades.
I feel like life really isn't guaranteed. And I fear that waiting until I'm 60 before being able to take out investments is risky. Death, illness, disability, these are all serious possibilities that increase in chance the older everyone gets.
I'm self-employed but in quite a lucky position income-wise. And with starting to invest this early, I'd think I'd at least be pretty set by the time my late 30s / early 40s roll around.
Living off of investments is an ultimate goal for me, and if I have the opportunity to do so well before 60 I'd like to be able to take it without penalty.
Submitted December 04, 2020 at 09:52PM by iraautemtempus https://ift.tt/2IcRihZ
