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Author: creekhill Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6725  
Subject: Retirement Date: 8/13/2000 4:47 PM
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i would like to retire before 65 and am 35 right now. My wife and I have about $225K in 401k and about $40k in savings. We put about about $ 800 monthly in American Century Ultra but I feel like I need some sort of plan. Obviously we can't touch the 401k till 591/2, so how do people retire early!

Thanks for the input....

fellow fool.
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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3132 of 6725
Subject: Re: Retirement Date: 8/13/2000 5:48 PM
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creekhill: "I would like to retire before 65 and am 35 right now. My wife and I have about $225K in 401k and about $40k in savings. We put about about $ 800 monthly in American Century Ultra but I feel like I need some sort of plan. Obviously we can't touch the 401k till 591/2, so how do people retire early!"

Whenever you leave your current job (or possibly earlier, if you have a very favorable plan), you can roll the 401-k plan to an IRA.

Money can be taken from an IRA without penalty pursuant to section 72(t) [IIRC] of the IRC, also know as SEPP -- Substanitally Equal Periodic Payment [IIRC]. This is a highly detailed procedure and it is not intuitive. This topic has been discussed ad nauseum on The Retire Early board here on TMF in Speakers' Corner and on The Retire Early Home Page (which URL can found from the other board).

In addition, if you retire during the year in which you turn 55, then 401-k plans can be accessed without penalty.

If your 401-k plan contains highly appreciated company stock, then a direct distribution, with income tax dues on its basis, and hold and sell for long-term capital gain may be viable. Either TMFPixy (the Retirement board) or TMFTaxes (the Tax board), or both, have written about this topic. I would check each boards' FAQ.

Teh rough rule of thumb from The Retire Early board, is that capital equal to 25x desired income is necessary to support the "safe" withdrawal rate of 4%, which is about the highest rate that should be used for remaining expected life spans exceeding 30 years. This topic, too, is and has been discussed on The Retier Early board and The Retire Early Home Page.

Watch your expenses, save your money, and invest Foolishly (wisely [in the non-pejorative sense of the word]) and good luck.

You now have plenty of good reading material to keep you busy for awhile.

Regards, JAFO




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Author: creekhill Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3134 of 6725
Subject: Re: Retirement Date: 8/13/2000 10:37 PM
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Thanks for the info....i will use it wisely. I did not see a Retire Early Board here though..

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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3135 of 6725
Subject: Re: Retirement Date: 8/14/2000 1:44 AM
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creekhill: "Thanks for the info....i will use it wisely. I did not see a Retire Early Board here though."

Your welcome. Make sure that you find The Retire Early board, and it is in Speakers' Corner, not Managing Your Finances. Go to Discussion boards, look for Speakers' Corner, then find The Retire Early board.

Hope this helps. If you cannot find it with my directions, you are probably better served by asking TMF.

Regards, JAFO


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Author: jbking Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3136 of 6725
Subject: Re: Retirement Date: 8/14/2000 2:13 AM
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Here's a link to that board:

http://boards.fool.com/Messages.asp?bid=112992&mid=13119047

This is actually the Retire Early Home Page board which has ALOT more messages than the other Retire Early board.

JB

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Author: scottfm Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3146 of 6725
Subject: Re: Retirement Date: 8/16/2000 11:02 AM
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We put about about $ 800 monthly in American Century Ultra

great fund. I've been contributing to the Ultra fund for over 5 years now and its been great.

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Author: creekhill Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3147 of 6725
Subject: Re: Retirement Date: 8/17/2000 6:20 AM
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your dedication is an inspiration!!!!

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Author: WEBassett Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3495 of 6725
Subject: Re: Retirement Date: 2/26/2001 7:11 AM
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I too am with american century and have been putting away 45% to the Ultra and 45% to the Vista funds. But lately, these funds have been taken a beating.

How do most of you feel about american century as a whole for investment in mutual funds. Sometimes I think Smith Barney Mutual Fund Family would be better.




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Author: scottfm Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3499 of 6725
Subject: Re: Retirement Date: 3/1/2001 8:42 AM
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I too am with american century and have been putting away 45% to the Ultra and 45% to the Vista funds. But lately, these funds have been taken a beating.

can't argue with that (unfortunately)! :-(

How do most of you feel about american century as a whole for investment in mutual funds. Sometimes I think Smith Barney Mutual Fund Family would be better.

I actually invest with both- am cent on my own and SSB through my employer's 401K plan. I've been moderately satisfied with the returns- they're down, but what isn't right now. I believe the fund selection is good for both- it's just a point of picking what's right for you based on your financial goals.

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