Intro

This chapter explores the 'middle-class trap' and the difficulties individuals face in accessing their wealth due to retirement account restrictions. Featuring a discussion on the 72T rule and a success story of withdrawing from a 401(k) early, it provides practical insights for achieving financial freedom.

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Episode notes

Did you know you can use your 401(k) to retire early? Yep, it’s possible. And today’s guest, Eric Cooper, is doing it atage 47! Most FIRE chasers search for how to withdraw from a 401(k) early but know that doing so will hit them with substantial penalties. The best way around this? The 72(t) rule—which is precisely what Eric has been taking advantage of. Eric uses the 72(t) rule’s “substantially equal periodic payments” to take early withdrawals from his 401(k) of $30K per year, starting at age 47. But how does it work?

Eric comes on the show to describe exactly how this early withdrawal rule works, how much you can take out, the regulations to follow so you avoid penalties, and why early retirement may be much closer than you think. But this isn’t the only early retirement income Eric has got. We’ll review his substantial real estate portfolio and detail Eric's almostunbelievable tax savings from combining tax-advantaged rental properties with rule 72(t).

Plus, Eric shares how he built a multimillion-dollar nest egg by his mid-forties and why those starting young on the path to early retirement can repeat his strategy to be much richer in retirement. Do you have money sitting in retirement accounts that you’re ready to use? The 72(t) rule might be just what you need.

In This Episode We Cover

How to access retirement funds early with the often overlooked 72(t) rule

Escaping the “middle-class trap” that stops you from retiring on your terms

Avoiding 401(k) penalties and using retirement accounts to actually retire early

The rules and regulations you MUST follow to withdraw penalty-free

How Eric amassed such a massive retirement account balance (and how you can, too)

Early retirement healthcare and how to lower your taxable income to greatly reduce premium costs

And So Much More!

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