3035: [Part 1] Generating Retirement Income Before Age 59 by Darrow Kirkpatrick of Can I Retire Yet

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Investing, Business, Education, Self-improvement

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🗓️ 9 February 2025

⏱️ 11 minutes

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Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 3035: Darrow Kirkpatrick explores various strategies, from leveraging taxable investment accounts to taking advantage of Roth contributions and employer-based 401(k) rules. With careful planning, it's possible to generate income while preserving long-term financial security. Read along with the original article(s) here: https://www.caniretireyet.com/generating-retirement-income-before-age-59/ Quotes to ponder: "You can withdraw the contributions you made to your Roth at any time, and you pay neither taxes nor penalties." "Taxable accounts are the unsung heroes of retirement saving." "Depending on the timing, this rule could give you more than four years of penalty-free retirement income before reaching age 59-½." Episode references: Oblivious Investor post on the Age 55 Rule: https://obliviousinvestor.com/ How to Access Retirement Funds Early by Mad Fientist: https://www.madfientist.com/how-to-access-retirement-funds-early/ Learn more about your ad choices. Visit megaphone.fm/adchoices

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0:30.6	This is Optimal Finance Daily, generating retirement income before age 59.5 part one, by Darrow Kirkpatrick of
0:39.4	Can I Retire Yet.com. You've saved diligently your entire working career. You've maxed out your
0:46.7	retirement savings accounts, and it's paid off. You've reached the point of financial independence,
0:52.1	early, or maybe you were laid off or took an early
0:54.8	severance package. Whatever the reason, like me, you got to retirement ahead of the usual schedule,
1:00.7	maybe in your 50s, maybe even younger. But you could still have a big problem, even if you have
1:07.3	enough money saved in your retirement accounts. Why? Because you can't generally
1:12.2	touch those tax-sheltered accounts without a penalty before age 59 and a half. If you take money out
1:18.2	before then, you fork over 10% of it to the government, in addition to paying taxes on the income.
1:24.0	That's a huge potential drag on your retirement savings withdrawals and your retirement
1:28.5	lifestyle. So even if you have enough savings to retire, in theory, how and where do you get the
1:35.3	cash to live on until you reach that threshold age of 59.5. In this article, I'm going to
1:41.6	explore your options for making ends meet until you can dip into
1:45.1	your retirement accounts freely. Some of these techniques are simple and well known. Some are more
1:50.8	obscure and complicated, but taken together, they give you the means to finance an early retirement
1:56.1	long before the government allows unhindered access to your dedicated retirement accounts. But please
2:02.2	beware, this topic is heavily impacted by tax considerations, and I'm not even close to being a tax
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