Episode #26: Tips For Retiring Early


The Principle:

Retiring early can be rewarding, but it presents a unique set of challenges. Make sure you’re prepared should you choose to retire early.

(Click the featured times below to jump forward in the episode)

Honest Takes:

[00:15] – Americans Are Unprepared For Retirement.  

  • We hear all the time how Americans are unprepared for retirement. We hear less often of people retiring early. Regardless of when your time comes to walk out of the office, we want you to be prepared.

[00:30] – Thoughts From Melody Hahm.  

  • Yahoo Finance Reporter Melody Hahm was on CBS News recently. She shared her wisdom on how to retire early and spoke to the importance of maxing out your retirement contributions.

[1:09] – What Counts As An Early Retirement?

  • The IRS says that age 59 1/2 is when you can begin to withdraw from your accounts without any kind of penalty. For our purposes, we’ll say anything prior to that is considered an early retirement.

[1:38] – Don’t Put Everything In Pre-Tax Accounts.

  • We worry so much about tax advantages. Don’t focus on that to the point where you’re missing out on the flexibility that comes with investing in brokerage accounts. If you retire prior to that magic age, and your money is in a pre-tax, qualified retirement account, you’re going to be penalized.

[2:41] – A Recent Example.  

  • Brian worked with a gentleman who received an $8,800 penalty for withdrawing early from his qualified retirement account.

Today’s Truth:

Other Virtues:

The host: Brian Bowen – Contact

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