{ "media_type": "text", "post_content": "Anyone else in the FIRE camp (Financial Independence, Retire Early)?\n\nStarted second guessing 401k contributions, since I'll likely want to start drawing on it well before 59.5. \n\nI know there's an exception for the early withdrawal penalty (72t) for equal payments, but I'm wondering if there's a better investment vehicle than the 401k if early retirement is the goal\n\nWould be interested to hear others' suggestions/experiences \n\nThanks!", "post_id": "5f89ce3d48cc82001afdf298", "reply_count": 9, "vote_count": 2, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting", "feed_type": "crowd" }

Anyone else in the FIRE camp (Financial Independence, Retire Early)? Started second guessing 401k contributions, since I'll likely want to start drawing on it well before 59.5. I know there's an exception for the early withdrawal penalty (72t) for equal payments, but I'm wondering if there's a better investment vehicle than the 401k if early retirement is the goal Would be interested to hear others' suggestions/experiences Thanks!

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Real estate

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Yeah, pretty heavily invested in real estate already for the passive income, but want to have cash assets as well, should have mentioned.

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Several options. Roth IRA or back door Roth IRA depending on your income will allow you to withdraw contributions at any time with no penalty. Similarly can convert an existing traditional Ira or 401k to a Roth and get the same effect. There is also a FIRE bowl which you’d probably find helpful.

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I haven’t done it, but I’d imagine there’s no real tracking of where the money comes from, just the aggregate amount. They know how much you’ve contributed, so as long as you withdraw less than that I don’t think it matters. Certainly worth checking before you try though.

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There is a roth conversion ladder to help with withdrawals. 401k is one of the best tax advantages you can get I wouldn’t give it up if you have the income to support maxing it out each year

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