No. of Recommendations: 13
FAQ Revised: February 02, 2000


Questions answered below:

What's the Retire Early Home Page?
What are some commonly used acronyms on this board?
What are some good books on early retirement?
What are some related Motley Fool message boards?
What are some of the "best threads" on this board?
How will retiring early effect my Social Security benefits?
Where can I find the Internal Revenue Code (IRC)?
Where can I find the Applicable Federal Rates (AFR)?
What are some commonly used IRS Forms and acronyms pertaining to early retirement.

What's the Retire Early Home Page?

See link,

“The online magazine for people who used to work for a living.”

Created by John Greaney (aka “intercst”) in April 1996, The Retire Early Home Page is a repository for the research he complied as a result of retiring in 1994 at age 38. There are also a number of Excel spreadsheets that you can download for free. New articles are posted at least monthly.

Note: There is also a mirror site at

My ISP provider is starting to charge me for excessive traffic, so I'll likely be redirecting folks to the second "" link near the end of each month before I exceed my "free bandwith" quota. <grin>

The best summary of intercst's strategy for retiring before age 40 is "Career Advice for Budding Early Retirees", see link:

Several people have asked, "How do you pronounce, 'intercst?'" It's pronounced "Inter Cost." That's the name of a computer program I wrote in the early 1990's to estimate the engineering and construction cost for building oil refineries and chemical plants in foreign locations. (Get it? International Cost.) When I first got on the Web in 1994, you had to limit your user name to 8 letters, so I dropped the "o" to make it fit. Now I'm stuck with an unpronounceable screen name.

Commonly Used Acronyms

AFR Applicable Federal Rate (for calculating SEPP withdrawals)

COLA Cost of Living Allowance

DIA Stock Index Mirroring the Dow Jones Industrial Average

IMHO In my honest (or humble) opinion

IRA Individual Retirement Arrangement

IRS Internal Revenue Service

LBYM Living Below Your Means

LTB&H Long-Term Buy & Hold

MMF Money Market Funds

PLR IRS Private Letter Ruling

QQQ Stock index mirroring NASDAQ 100

REHP Retire Early Home Page

RMD Required Minimum Distribution (from IRA at age 70 1/2)

SEPP Substantially Equal Periodic Payment

SPY Stock Index mirroring S&P500

TCM Tax Court Memorandum

TTJASI Take This Job and Shove It.

YMOYL Book Title: Your Money or Your Life, by Joe Dominguez & Vicki Robin

Books on Early Retirement

The Retire Early Home Page has reviewed several books on the subject, see link:

Related Motley Fool message boards:

Estate Planning and the Fool

Inheritance Strategies

Living Below Your Means (LBYM)

Retired Fools

Retirement Investing

Tax Strategies

Retire Early Home Page Greatest Hits (i.e., best threads to date)

Feasibility of Early Retirement (post #110)

Rent vs. Buy (your home) (post #590)

Also any post by hocus is well worth reading. Just click on the "Recs" link on the list of posts for the Retire Early board. His are all at the top.

How will retiring early effect my Social Security benefits?

Explaination of how your Social Security benefit is calculated, see link:

The Social Security Administration also has a program for your PC which will calculate it for you, if you know all your yearly incomes, see link:

Post #740 explains why high income earners shouldn't worry it.

Also, it's not a good idea to retire early at age 62-70 and earn income. If you want to read more about the impact of earning income during retirement on your Social Security benefits, see link:

Internal Revenue Code (IRC)

Internal Revenue Code, Revenue Rulings, Revenue Procedures, etc:

Applicable Federal Rates (AFR)

Current Monthly Rates (AFRs for SEPP are in Table 1)

Historical AFRs (Years 1985 to 2000)

TheBadger has also made several informative and well documented posts on the subject:

General info on PLRs pertaining to 72(t) and "substantially equal periodic payments" SEPP

A study of PLRs pertaining to "reasonable interest rates"

Internal Revenue Service (IRS) Acronyms

1099-R IRS form showing annual retirement distributions

401(k) Corporate tax-deferred retirement plan

403(b) Non-profit organization tax-deferred retirement plan (similar to 401(k))

5329 IRS form used to calculate 10% penalty on early withdrawals

89-25 IRS Notice containing guidelines for avoiding 10% early penalty

§72(t)(1) imposes the 10% penalty.

§72(t)(2) defines the exceptions to the 10% penalty.

§72(t)(4) re-imposes the 10% penalty when you screw up.

§72(q) is the companion to §72(t) for annuities.

§401(a) umbrella code section that creates a multitude of different tax deferred retirement plans.

§401(k) is strictly an employee contributed "CODA" meaning cash or deferred arrangement.

AFR Applicable Federal Rate (of interest)

C.B. Cumulative Bulletin

GCM General Counsel Memorandum

REG. IRS regulation

Rev. Proc. IRS Revenue Procedure

RMD Required Minimum Distribution from IRA/401(k) at age 70 1/2.

TAM Technical Advice Memorandum

end FAQ list
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