@c_buildingquietwealth: Work optional by 45? Let’s expose the numbers…👀 Here’s 3 ways you can reach early retirement from your investments without paying the 10% penalty: 1️⃣ Roth IRA contributions You can withdraw these at any time penalty-free. You’ve already paid taxes on this money so it’s yours. Only the earnings inside a Roth IRA are locked until age 59 1/2 and having the account open at least 5 years. 2️⃣ Rule of 55 (federal employees) If you work for the federal government, the year you turn 55, if you retire or leave government service, you can withdraw traditional retirement account funds without paying the 10% penalty. You will still owe income taxes on the amount you withdraw. 3️⃣ Roth conversion ladder You move money from a pre-tax, traditional account into a Roth account. You pay income tax on the money you move in the calendar year you move it. Wait 5 years and that money comes out tax and penalty-free. The best time to do this is when you’re in a low tax bracket so you owe less on each conversion. 4️⃣ Rule of 72 Also known as SEPP (Substantially Equal Payments Pretax). Take money from a pre-tax account at any age, penalty free. But you’ll have to follow a strict payment schedule for years so don’t go into this lightly. 5️⃣ Roth Rollover After Employment If you leave an employer, you can roll your Roth 401k into a private Roth IRA which makes the money more accessible. So while I haven’t technically hit CoastFI yet, I have no plans to ever have zero income. Just no income from a traditional 9-5. And this $576K didn’t come from stock picking or day trading. I invest most of my money in boring, broad, low-cost ETFs and index funds. If you want my exact investment strategy sign up for my free weekly newsletter in my profile👆🏼. Let me know what questions you have! #personalfinanceforwomen #financialliteracy #earlyretirement #investingforbeginners #PersonalFinance

Charlie- Building Quiet Wealth

Open In TikTok:

Region: US

Wednesday 19 August 2026 10:30:58 GMT