@mariahakinbi: 💰 THE COSTS OF THIS APPROACH: no tax deduction going in, capital gains on the way out, and our employer (this was a coworker) does not do a 401k match, so they’re not turning down any match $$ and technically the government has a say in a brokerage account too. no contribution limits and no age restrictions, but capital gains rates are also written by congress and they've changed before. there isn't really an account that's outside the rules. there's just different rules for different accounts. 🚧 THE WORKAROUNDS: There are a couple work arounds around the retirement age limitations of tax-advantaged retirement accounts. 1️⃣ Roth contributions (not growth/profit) can come out anytime without penalty. 2️⃣ the rule of 55 lets you tap a 401k early if you leave your job at 55 or later. (assuming your employer’s plan allows this) 3️⃣ 72(t), or substantially equal periodic payments: you can pull from an IRA at any age with no penalty, but you commit to a fixed withdrawal schedule for five years or until you turn 59½, whichever is longer. there are three IRS-approved ways to calculate the amount and you're locked into it once you start. break the schedule early and the 10% penalty comes back retroactively on everything you already withdrew, plus interest. it works, it's just rigid. 4️⃣ the Roth conversion ladder: you move money from a traditional 401k or traditional IRA into a Roth, pay ordinary income tax on it that year, then wait five years and withdraw that converted amount completely penalty-free. each conversion starts its own five-year clock, so you convert a chunk every year and by year six you have a rolling supply. this is the one people actually use for early retirement, because your income is low in those first years, which means you convert at a lower tax rate than you got the deduction at. ultimately personal finance is truly personal!!! #PersonalFinance #retireearly #investing #financialindependence

mariahakinbi

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Friday 14 August 2026 00:48:23 GMT