What the best way to save for early retirement? | 401k Questions

Question

Asked 6/14/2007

What the best way to save for early retirement?

I'm in my early 20's and I wanting to retire as early as possible say between 40 and 45. I know its a bit of a stretch but it could be done. Should I put all that i can into my 401k and IRA or should I put most in an account where there isn't any penalty for withdrawals since i would be retiring any where form 14 to 19 years before i start withdrawing from my 401k and IRA. If so what kind of account should i look into?

Answers

Answer 1/5 - Submitted 6/14/2007

You probably aren't going to be retiring by 45 even if you were to put every cent you earn into investments.

Unless you are making a ridiculous amount of money, expect to work for quite a while. It's a nice dream to retire at 40, but not very realistic. Maybe try to find a business opportunity - that way at least you can be running your own business when you are 40 instead of working for someone else.

Answer 2/5 - Submitted 6/14/2007

please dont take the advise of a bunch of strangers on this..get yourself a trusted financial advisor who can show you all the options available and who will tke these dreams of your into account and show you how to make them a possibility..there are so many options available today and so many tax laws that go with them..do it the right way the first time..you only get one chance

Answer 3/5 - Submitted 6/14/2007

Try a Roth IRA. You can't withdraw the interest until you're retirement age, but you can get all your deposits out.

Have you checked your life expectancy? If it's 90, can you make enough in the next 20 years to support yourself for 45 years, with inflation? At 4% inflation, if you need $200K/a year at 45, you'll need $400K at 63 and $800K at 81. That's a lot of money.

Answer 4/5 - Submitted 6/14/2007

Go to your bank and speak with a financial adviser. They are there to help you set up things like that. You can tell them all the details you don't want to share on line ya know?

Answer 5/5 - Submitted 6/14/2007

Talk with a financial advisor. I am 46, retiring in 2009. It can be done.

There are a number of IRA funds, you specific situation dictates which are best for you.

Despite what most people think. You can start withdrawing from an IRA before 65 without penalty. Again talk with a good advisor that you can relate to and truse. You might need to "interview" a few until you find the right one.

401k Related Topics

Related Questions (Ask a New Question)

401k loan

I am 66 years old but still working full time. i am planning to get a loan from my 401k. my question is, do i have to pay back the loan, or am i allowed to get a partial amount without paying it back?

See Answers

401k loan repayment

I took out a loan from my 401k a couple of years ago and last year the facility closed where i worked. i'm now unemployed. i decided to take out the remainder of my 401k. the question is will the company deduct the balance of my loan out of my 401k before sending me a check. it has been 30 days...

See Answers

Can i cancel my 401k if i have a loan out on it?

I have about $4,000 dollars in my 401k,i live in oregon. i have a loan balance of $1,300 dollars on it. can i still cancel my 401k? i broke my leg and need the money too keep my house! please advise! thank you,and how long does it usually take if you can cancel to get your money?

See Answers