I am looking for why it is not a good idea. And viewed as a last resort to access money. I want to retire a few years earlier than 59.5. I have a done a good job saving. I don't see why I shouldn't take advantage of that. Am I missing something? I know there are different calculations to come up with the distribution you need to take, but if it can buy a few years of earlier retirement it seems like a no-brainer.
I listened to a podcast featuring Ed Slott. He and the other host debated both sides. But neither talked about using it as a vehicle for early retirement.
Thanks for any input!
Eric
72t is a great way to retire early. You will read a lot of takes about how risky it is and how one mistake can cause you to owe tons in fees. Ignore all of that.
Now that the SEEP can be based on 5% as a reasonable interest rate, the attractiveness of it is much greater than it was when it was pegged to the fed rate and rates were 1-2%.
The key is to do the calculation correctly. Double and triple check it. Then take out the amount annually - not monthly - from your IRA . By taking it annually you eliminate the risk of making a mistake with withdrawals. Do it in January of each year. For example, if your annual amount is $67,729 , withdraw exactly that amount. Put it in your brokerage account in SGOV or other high yield, low risk investment and draw from that throughout the year as needed.
Statistics: Posted by ez_mode — Sun Jul 21, 2024 12:56 pm — Replies 2 — Views 136