Tax Jailbreak Early Retirement Strategy: Sense or Nonsense? - 432
Your Money, Your Wealth
Your Money, Your Wealth
4.6 • 792 Ratings
🗓️ 6 June 2023
⏱️ 34 minutes
🧾️ Download transcript
Summary
Can you retire early - before age 55 - simply by contributing to your 401(k) only up to the company match and then saving to a brokerage account? Joe and Big Al spitball on using this so-called tax "jailbreak" strategy to retire early. Plus, is Christine on track to have $150,000 present value to live on in retirement? Is John stuck just watching his money grow and turn into big required minimum distributions (RMDs)? Can Jackie contribute to a SEP IRA and convert it all to Roth? And what do the fellas think of Lee's I-Bond emergency fund?
Timestamps:
- 00:49 - Is the Tax "Jailbreak" Early Retirement Strategy Nonsense? (William)
- 04:31 - Retirement Spitball: Can I Spend $150K Present Value in Retirement? (Christine, Seattle)
- 13:18 - Am I Stuck Watching My Money Grow and Being Saddled With Big RMDs? (John, TX - voice)
- 18:10 - Can I Contribute to SEP IRA and Convert it All to Roth, or Roll it to 401(k)? (Jackie, Bethesda, MD)
- 23:19 - How is My I-Bond Emergency Fund Strategy? (Lee, Jacksonville, FL)
- 28:12 - The Derails: One of YMYW's Most Brutal One-Star Reviews Ever
Access this week's free financial resources in the podcast show notes at https://bit.ly/ymyw-432
- How to Build a Recession-Proof Portfolio - The latest episode of YMYW TV
- Recession Protection Guide
- SECURE Act 2.0 webinar (on demand) and companion guide
- Episode Transcript
- Ask Joe & Big Al On Air
Transcript
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| 0:00.0 | Can you retire before age 55 simply by contributing to your 401k only up to the company match |
| 0:07.6 | and then saving to a brokerage account? Today on your money, Your Wealth podcast number 432, |
| 0:13.2 | join Big Al spitball on using this so-called tax jailbreak strategy to retire early. Plus is Christine on track to have $150,000 present value |
| 0:24.4 | to live on in retirement? Is John stuck just watching his money grow and turn into big old |
| 0:29.9 | required minimum distributions? Can Jackie contribute to a SEP IRA and then convert it all to Roth? |
| 0:36.2 | And what did a fellas think of Lee's I-Bond emergency fund? |
| 0:40.1 | I'm producer Andy Last, and here are the hosts of Your Money, Your Wealth, Joe Anderson, |
| 0:44.7 | CFP, and Big Al-Clopine CPA. |
| 0:48.1 | An advisor published this early retirement guide. |
| 0:52.5 | In a short, curious, is this nonsense or sensible thank you long time listener of |
| 0:58.4 | the show william okay that's it andy uh why don't you go's highlights so the article i think you can |
| 1:04.3 | send it to me okay oh you said well i was going to say it's just basically his two things are |
| 1:08.8 | stop overfunding your 401k and to open a |
| 1:11.3 | brokerage account okay those are the points okay well if you want to retire early is that the premise behind |
| 1:17.3 | it yep yeah it's called how to retire earlier than 55 it save a ton of money right yeah but the premise is right. |
| 1:27.6 | I mean, you can't access your retirement accounts until 50, well, 72T, but let's not |
| 1:32.4 | talk. |
| 1:33.3 | Let's not make this too complicated. |
| 1:35.5 | But let's just say if you want to retire before age 59 and a half, or if you have a 401k |
| 1:40.3 | before age 55, without penalty, then you should have money outside of retirement plan. |
| 1:46.9 | Correct. |
| 1:47.9 | But the problem is, if you're going to retire at 50, you need to understand how much money that |
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