No. of Recommendations: 0
I've scanned back thru the posts, and I can't see anything that goes to my question... I'm 43 and have been investing heavily for a number of years. I was lucky and left a company and rolled my 401k to a brokered IRA account. The magic spreadsheet I created says at my average ROI I'm “done” in 4 years, quicker if I hit the last two-year average ROI. I'm assuming 5% inflation, a reduced ROI on the total of my account after retirement, and a 6% of total withdraw per year. I'm using 100% of my current salary as an income figure, since I'm young. I've checked the math, and it all correct.

My question is, other than the 10% Uncle Sugar penalty on earlier withdraw, am I missing something? While I started early, this seems too easy!

I'm considering a second career in teaching, so I'll even have supplemental income. The close I get, the more concerned I get I'm missing something. I'm starting to plan for my retirement location/home and all that. What advice do you have for puching out this early?


Print the post Back To Top
No. of Recommendations: 0
My question is, other than the 10% Uncle Sugar penalty on earlier withdraw, am I missing something?

YES. You can actually avoid the 10% surtax (leaving regular federal & usually state income tax to be paid) by making a §72(t)(2)(A)(iv) "substantially equal periodic payments" election. You should get Pubd 575 & 590 and Notice 89-25 and study them thoroughly.

The Badger




Print the post Back To Top
No. of Recommendations: 0
jbzoner wrote,

I've scanned back thru the posts, and I can't see anything that goes to my question... I'm 43 and have been investing heavily for a number of years. I was lucky and left a company and rolled my 401k to a brokered IRA account. The magic spreadsheet I created says at my average ROI I'm “done” in 4 years, quicker if I hit the last two-year average ROI. I'm assuming 5% inflation, a reduced ROI on the total of my account after retirement, and a 6% of total withdraw per year. I'm using 100% of my current salary as an income figure, since I'm young. I've checked the math, and it all correct.

My question is, other than the 10% Uncle Sugar penalty on earlier withdraw, am I missing something? While I started early, this seems too easy!


There is much information on the Retire Early Home Page that might assist you, see link:

http://home.earthlink.net/~intercst/reindex.html

There is a study on "safe" withdrawal rates that suggests something along the line of 4% to 5% per year is enough risk for most people.

As TheBadger points out, you can take SEPP withdrawals from your IRA to avoid the 10% penalty. There is a free calculator at the following link that you can use to determine the amount of your IRA withdrawal:

http://www.geocities.com/WallStreet/8257/wdraw59.html

intercst

Print the post Back To Top
No. of Recommendations: 0
JB:

You are one of the "lucky" persons who can make a difference in the world. You can do consulting work to use your special skills. You can volunteer to teach others. You can share your fortune with those less fortunate. By all means do not consider that your life is over. Make sure that your life has positive benefits for you and others. You are now in the position to do what you REALLY have wanted to do, but were not able to do because of work commitments.

Best wishes!
Print the post Back To Top
Advertisement