So, you want to retire early? Good. That makes two of us, but as you already know, it’s a lot easier to envision your wants and desires than it is to actually attain them.
Let’s say you’ve already gotten the hard work out the way and built yourself a solid retirement savings account. BRAVO!
The only problem now is you can’t touch a penny of these funds before age 59 ½ without coming face-to-face with the 10% early withdrawal fee.
So much for an early retirement…
In reality, there’s still hope for accessing this money prior to the full retirement age without having to pay a penalty. Here’s how it all works.
If you’re confident that you’ve already accumulated enough cash to support yourself throughout retirement, then it’s time for phase two.
The tricky part is getting your hands on these savings without tacking on the 10% penalty fee that often comes included.
With that said, you do have a few feeless options at your disposal. These exceptions include: death, disability, education expenses and a first time home purchase.
Outside of that, things are a bit more complicated; however, if you don’t qualify for any of the above, DON’T PANIC.
You can always result to dipping into an employer funded 401(k) as long as you’ve reached the magic age of 55 or older as there are no penalties involved.
Many early retirees choose this option because it can act as a great source of income to hold you over until you’re eligible for a fee-free withdrawal from the real retirement savings you’re holding out for.
It’s not worth coughing up the 10% fee that comes along with an early withdrawal from a retirement savings account. At the same time, you may consider another day at the office to be just as penalizing…
Either way, it doesn’t hurt to be aware of the FREE withdrawal options you have available.
Even if you don’t qualify with death, disability, education expenses or a first time home purchase, you can still empty out your 401(k) as long as you’re at least 55-years-old.
Even though these funds most likely won’t be enough to carry you through retirement, they can still expedite this long awaited date.
If you feel like you’ve already waited long enough for retirement to arrive and you’re ready to speed things up a bit, you can use these simple tactics to keep you afloat in the meantime until you’re eligible for the real savings to arrive.