Age 59-1/2 is when the IRS says you can finally begin to access the hard-earned retirement savings you’ve got in your tax-sheltered accounts like your 401(k) and IRA.
For most people who retire at age 62, the age 59-1/2 requirement is no problem. But if you’re a diligent saver and on track to reach financial freedom long before then, this can be a huge log in the road!
I had this problem for years. In my twenties when I first started learning more about personal finance, I began to realize how powerful compounding returns were and started making strives to save more and more into my 401(k) and IRA every year.
I kept re-running the numbers, and found I could retire as soon as age 55 … then age 50 … and now as soon as age 46!
But then I hit a wall! I noticed that almost every type of retirement account did not allow withdrawals until age 59-1/2. If you did try to take out your money early, then you’d have to pay an annoying 10% penalty (which would really dig into your gains).
I was frustrated … and there had to be a way around this!
Finding the Solutions
I knew that other people from online blogs and books I had read had somehow been able to pull off this whole “retire early” thing. And so I began to do my research.
For the next few years, I immersed myself in the stories of early retirees and carefully paid attention to how they were able to pull it off. I dissected the finances they reported and took note of any strategy they used to create income streams before age 59-1/2.
Sometimes their techniques used little-known IRS loopholes to gain early access to their savings. Other times it included creating alternative ways to make money. Everything was on the table for evaluation!
That is what my latest ebook (#4) “Early Retirement Solutions: How to Unlock Your Savings Before Age 59 ½ Without Penalty” is all about. It’s my collection of all the best tricks and techniques I’ve found for tapping your money when YOU want to.
Each of the strategies we’ll go through are ones that are used by real retirees found on personal blogs and other online forums. Wherever it’s applicable, I’ve also included links back to the actual IRS pages that also highlight certain rules and exceptions that will help you along the way.
Knowing what your options are and that you have the ability to exercise them can make years of difference in when you decide to declare your financial independence. As you’ll find out, your money isn’t truly “locked up”. There are actually quite a few different ways you can get access to it and start making withdrawals as you need them. There will, of course, be some rules and things to watch out for. But if you’re clever enough to have come this far on the path to early retirement, then you should have no problem following along and being successful.
Get your copy from Amazon now! And as a favor to me, if you enjoy this book, please leave some honest feedback on Amazon. By doing so, you’ll make it easier for other people just like you to find this title within the Kindle bookstore and learn about the same useful strategies.
The Start of the “Early Retirement Solutions” Series
The title “Early Retirement Solutions” is the name I’ll be giving to a series of other ebooks I plan to write over the next few years targeting other specific questions you might have about early retirement and how to get there.
When it comes to financial freedom, there are so many things that can trip you along the way. Everything from the best ways to save your money to tax avoidance and knowing just how much is the right amount to withdraw safely. I plan to spend a little bit of time with many of these sorts of topics and do a deep-dive into each one individually.
If there are any special questions or topics you’d like to see me cover, please feel free to let me know by commenting below or sending me an email. I’d be glad to hear what you’re interested in knowing more about.
In case you’re wondering how I was able to write another ebook so quickly after the release of my third ebook “Retire Sooner”, the truth is: I didn’t!
The contents of this book are notes I’ve been collecting for years. I started drafting them into an ebook format in the late Fall of 2015, but then hesitated to finalize it because I was considering using the content to start a new website instead. In the end, I concluded that information was better suited as a ebook, and so I went ahead with the publishing.
One other fun fact: For this ebook and my last one, I’ve actually learned how to format ebooks for Kindle myself. As it turns out, it’s not that complicated. This is a big advantage for me because it means that I’ll now be able to revise and release ebooks whenever I want without having to wait for someone to format it for me.
Readers – What strategies are you using to fund your early retirement? How are you going to bridge those years between when you declare financial freedom and age 59-1/2?
Featured image courtesy of Amazon