{ "media_type": "text", "post_content": "I want to FIRE. IRA and 401k are beyond my definition of the ‘RE’ idea since they can only be withdrawn without penalty at 55. Is the only other way to save for retiring at 40-55 an individual brokerage account and just accept the tax upon withdrawal?", "post_id": "602ad3ba066bff002fa37fbe", "reply_count": 6, "vote_count": 2, "bowl_id": "5b3f7377ab53db00136f7b4c", "bowl_name": "FIRE Financial Independence Retire Early" }

I want to FIRE. IRA and 401k are beyond my definition of the ‘RE’ idea since they can only be withdrawn without penalty at 55. Is the only other way to save for retiring at 40-55 an individual brokerage account and just accept the tax upon withdrawal?

like
Posting as :
works at
You are currently posting as works at

You can withdraw retirement account contributions early without penalty via 72t distributions, Roth ladder, or withdrawing Roth contributions. With the tax advantages of a 401k it is still often worth it even if you eat the penalty.

like

Sure, that link I posted is the best write up I’ve found for the actual $ advantages of the options. It was not intuitive to me that taking the 10% penalty could be better than just putting the money in taxable, but the math is all there.

like

There are ways to access funds in retirement accounts before the age of 55. Look up Roth conversion ladder

like

In addition to the above, even if you retire at 40 you'll likely live more years after than years before you are able to access those funds so you'll be best off with a combination Roth and traditional retirement accounts and non retirement accounts.

Related Posts

Fishbowl parents! Did you take the full parental leave? How much time off? Did you feel there were any repercussions? First time dad here - currently on paternity leave and loving it!

like

Early 20s. Have amassed around 100k in my 401k. I have been contributing pre tax and just recently this year did both pre tax 19,500 and 6k in my Roth IRA as well. Am I doing this correctly? Should I be contributing into the after tax bucket vs. pre tax going forward for next year?

like

Any Deloitters can share a little bit on how the pension works? From what I see 401k is 25% match of 6% of salary. Then pension is 1.5% of base?

like

What are partners going to do with the massive amount of senior turnover? Considering changing anything? Upping pay, benefits, hours? Less understaffing? Anything?

likehelpful

Healthcare fish community - my firm is looking for a SME in the healthcare Provider IT space for a near term contract opportunity. Please DM me if this is of interest. TIA!

Has anyone done the Caesar Diamond status match and taken advantage of those benefits? I’m curious as to the requirement to unlock things like the Atlantis trip etc.

Does anyone have anecdata as to whether there is a waiting period (and if so, how long) before maternity leave benefits kick in for laterals in biglaw? I know in other industries, a year is common, but not sure if that is the case among large law firms.

like

How much money is enough? We fish come from a wide variety of backgrounds and have taken a multitude of career paths around the world. I’m curious to hear how high of an annual pretax income (cont’d)

like

How many Bitcon would one need to retire in the next 2-4 years?

like

How much more should someone ask for if a competing firm has less pto (7 days), less 401k match...401k doesnt kick in until 1st yr is over. Initially asked for 140k.

like

23YO, saved 90K, 70k salary, been working for 1 year. Started investing in crypto and stocks a few months ago, maxing out 401k and Roth IRA. Any advice for investment or saving strategy?

like

How much do you guys keep in cash/checking? I have 60k in 401k/ira/investments and 45k accessible in checking. What’s your portfolio looking like?

like

Anyone at KPMG willing to talk about their Healthcare practice and potentially refer?

like

What brokerage does Deloitte use for 401k?

like

How long after leaving Deloitte can I expect to get my pension payout?

like

Had my 401k in all VINIX last year, and it served me well. I rebalanced to 20% large cap, 20% mid cap, 20% small cap, 20% Int’l, and 20% bonds. The Int’l diversification is pulling me down significantly. Would you shift that 20% back to large cap or just say it will payoff later to diversify? My IRA is pretty yeah heavy, so trying to be mindful.

like

I left my former employer in Q4 2019 but didn’t rollover my Roth 401k prior to the crash, so I’ve left it there this whole time and it’s rebuilt nicely (not back to where it was, but closer)...cont

like

Traditional vs. Roth? starting with 401k & request advice. Inclined to traditional coz: 1) unemployed @ 60 will be a lower tax bracket 2) putting all the tax deferred amount now to grow compounded

like

Apple Watch owners: why do you have an Apple Watch? What are the benefits/downsides and is it worth it? From what I read, it seems mostly beneficial to track health like a Fitbit?

like

No judgements please :( need advice! I am nearing 30, and have over 100k. I have no idea how to invest! I am maxing my 401K, have a few high profile stocks, and some money in crypto - but on holding pattern on all! How do I invest the rest of my money wisely?

like

Additional Posts

Discovered that my salary is below the prevailing wage (level 4). Does it mean the company is violating the law by hiring me at below-prevailing-wage rate? What should I do about it?

like

Differences among benefits across MBB?

like

Culture check- Venables Bell in@SF. Diverse staff- people of color and ages? Long hours?

Just got United global services... what does this get me?

like

What would a role working with the founders of a startup on anything from marketing, operations, to hr be called?

New hire- I’m making my employer 401k match, and have money sitting around. Can I put a lump sum into a Roth IRA or something before the year ends?

like
like

Thinking about getting into valuations. Anyone have any insights about this path in Big4 and in industry? Specifically I’m wondering: 1) what’s the scope of work like at Big 4? (Is the service line split into industry sector groups, or do some groups do Valuation for tangibles and another does intangibles) 2) how are the hours like? Working 9am - 3am consistently? 3) what exit opportunities exit after the Big 4 experience? 4) how does Compensationfor HCOL seniors/ manager look this year?

like

What's the average raise and bonus % for a manager at AFS?

like

Flight Attendant this morning: We’re only boarding first class or MVP Elite right now. Me: Great! I’m both! ... anyone else judged by how they look while traveling? 😒

likefunny

What's the process of experienced hiring after giving technical interview, registered on ibegin too? I have interview (15+ years Exp) on 30-sep and on ibegin, this status says "Evaluation in Progress". What are next steps and how much time it usually takes? Also my all documents are uploaded, but they are in "Pending Verification", usually when do they verify them?

like

Looks like market is going down again, lost 2k out of my 401k in a week. Do you guys think we’ll hit the bottom soon?

like

Has anyone transitioned from Deloitte to McKinsey as a non-MBA masters? How did you make the transition? How is the culture different? What are the pros/cons?

likehelpfulfunny

Partners, what would be a typical monthly pension check be for MBB / Big 4? All firms welcome.

likefunny

State of Strategy at Grey? Saw they might be hiring?

like

How do bonuses work if you took parental leave during the year? Do hours get prorated or do you still need to hit the normal threshold?

like

What is the salary for technical specialist in mind tree YOE 3.2

What would you value more when deciding between jobs (both non-PA) - a company w/ prestige or with work life balance & good benefits. Let’s say same salary and potential for growth. I’m ambitious but also totally burnt out and over public accounting.

like

do any consulting firms in the US (MBB, Big 4) sponsor MBA programs outside of the country (e.g. London Business School, HEC Paris, INSEAD)

like

TFW your parents say they don't know where you live so you book them into a Westin on points. Welcome home, mom and dad

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal