Considerations for Early Retirement and Bridge Accounts

When considering early retirement, individuals may wonder about options to bridge the gap between the ages of 52 and 59.5. While high-yield savings accounts are commonly suggested, there are other possibilities. One approach is to allocate funds to taxable brokerage accounts, where individuals can invest in index funds and let the money grow over time. These accounts offer flexibility and potential tax advantages, such as zero capital gains if income is low. Additionally, they can serve as bridge accounts and provide opportunities for future planning, such as Roth conversions. It is essential to consider the financial order of operations and ensure a solid financial foundation before focusing on bridge accounts.