I am going through a mini-midlife crisis and pondering financial freedom/early retirement. Wife and I both make near 6 figure salaries but are getting burned out. I figure if max my IRA contributions and 401K for several years I could have 1 to 1.5 milllion saved (depending on the market), primarily in retirement accounts, and have my house paid off.
I see very little guidance on the best way to access this though money in your 30s/40s/50s though. It makes sense to put as much as possible into tax deferred (up to 48K between 401K and IRA for a couple) if I plan on living frugally in retirement. That leaves about nothing in non-tax deferred savings if I go that route. ..
So lets say I retire at 40. I assume I start using Rule 72(t) to take out money with a SEPP? Is this easy to navigate/a smart way to plan things. My understanding is you have to continue to take the same size payments until 59.5. What if I give up on retirement and go back to work full time?
I just haven't seen much on this topic but it seems super important for well compensated people considering early retirement.
Submitted February 24, 2018 at 11:48AM by MUTiggers http://ift.tt/2EMAeN3
