[USER]

.. before 59.5 years of age, or currently retired before the age, are you investing through a 401k or IRA? or just through the normal market? What other investment vehicles are you using to live off?

If you AR investing in the 401k/IRA how are you taking funds out without being penalized?

[Kim]

I packed my 401 for years but then when I retired before FRA I sold my house and bought a small one for HALF the price, the utilities, and the taxes. I’m living off of that money and other after tax investments until FRA when I can take my pretax money.

[Wallace]

If you’re retiring early, you probably need to do both and be pretty aggressive. In theory do use your brokerage account to bridge to your IRA. The IRA money will grow faster without annual taxes.

[Sean]

Early retirement includes standard retirement, so you certainly need money in those retirement accounts. Unless you plan to not use the stock market at all, such as cashflowing real estate.

Easiest ways to get money out of retirement accounts early, are generally Roth conversion ladders, and rule 72T.

[Jiajie]

I plan to retire early. You need to invest in 401k employer matching, Roth IRA, and brokerage.

The brokerage is the bridge account you live off of til you reach age 59.5. You don’t withdrawal from the IRA and 401k during early retirement.

If you can’t do full FIRE then you can aim for Coast FIRE first which is basically just working part time instead of full and still contribute to your retirement accounts.

[Author]

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