Tag: early withdrawals

Don’t Forget About Your Later Years // Planning for Early AND Traditional Retirement

Don't Forget About Your Later Years // Planning for Early AND Traditional Retirement -- make sure your planning includes planning for early retirement, and all the considerations that go into traditional retirement planning

We know — the excitement of the *early* part of early retirement is powerful. So much so that it’s easy to focus our retirement planning mostly on those early years. The later years are also so much harder to predict — more variables, a longer time horizon, more unknown unknowns. But as we’ve seen in our own planning, it’s easy to have an inadvertent early phase bias built in — here’s how to suss that out and ensure that you’re planning for both your early retirement and traditional retirement.

Minimizing Early Withdrawals in Early Retirement // Hang On to As Much As You Can for Later

Avoid early withdrawals in early retirement // Roth conversion ladders, IRS rule 72t Substantially Equal Periodic Payments SEPP, early retirement savings

Some possible fighting words today, as we delve into the question of whether it makes sense to think of both taxable funds and tax-advantaged retirement funds as one big pool of money. Why does it matter? Because there are a bunch of potentially huge downsides to withdrawing traditional retirement funds early through Roth conversions or rule 72t distributions (or different approaches that exist in other countries). Fortunately, there’s another great option if you’re willing to do a little more math.