Your Money, Your Wealth 48 and Worried About Early Retirement? This Changes the Math - 565
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Jan 20, 2026 Lucky Lou contemplates early retirement at 50 with a hefty $4.5M, but can he bridge the gap until pensions kick in? Discover the Rule of 55 and 72(t) to access funds penalty-free. Young earners Alexei and Anna weigh aggressive saving against homeownership. Meanwhile, Jay and Gloria grapple with Roth vs. traditional 401(k) contributions in a tax-friendly state. Sleepless in Seattle analyzes if her daughter can afford a condo amidst rising prices. Plus, learn how to manage an inherited IRA to minimize taxes!
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Model The Bridge To Early Retirement
- If you want to retire at 50, run concrete cash-flow scenarios and confirm your true after-tax spending needs.
- Consider 72(t) SEPPs or other strategies to bridge access gaps to avoid depleting your taxable cushion too fast.
Withdrawals Can Be Sustainable Short-Term
- A conservative growth assumption can show your portfolio still rising even while spending heavily for a limited period.
- Small distribution rates from a larger nest egg can make an early exit financially feasible.
Use 72(t) To Access IRA Income Early
- Use a 72(t) SEPP to access IRA funds penalty-free if you need predictable income before 59½.
- Follow the required calculation method and commit to the schedule until age 59½ or five years, whichever is longer.
