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1) If I were to take a 4% distribution annually (from funds/stocks that has been invested for over 2 years), what are my tax liabilities at the time of withdrawl? Do I still pay FICA, etc? Is my Federal tax capped at 20%? What about State (VA) taxes? Is there an advantage to getting a part-time job?

2) If the 4% withdrawl is a good assumption and I have a $250K mortgage with annual payments of $30K, should I not pay off the mortgage (25 years left) since the $250K would only generate about $10K long term? This would allow me to withdraw less than 4% annually since my salary requirements would be reduced drastically.


Just a couple of thoughts: Any interest in moving to a less expensive cost of living area in a state with no income tax? Also, have you considered selling your house and moving into something smaller/less expensive. In general, I would think a few changes in lifestyle might help for early retirement.

Having said that, how you spend your money and time is entirely your decision.

Congrats on the ability to consider early retirement!

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