OT: Early Retirement by Tapping IRA

[sdduuuude]

[quote=ice9]No, my job isn’t bad.

I just think I would be overall happier if I didn’t have to work. I would have more time to spend with my family, and pursue my own interests.

I’m not sure I see the point of working another 15-20 years just to end up with more possessions and money than I need.

You’re probably right about the 5.5% yield being difficult to achieve. Apparently a 4% withdrawal rate is “safe”. However, I could sleep just fine at night with all the IRA in MO.

Also, my point is I do have enough saved, assuming I can tap income from the IRA.[/quote]

I can’t say if you have enough or not. Here is an idea, though.

What if you pulled out more than just interest from your non_IRA investments until you can take IRA money without penalty ? Take interest plus some captial from your non-IRA investment to give you the income you need.

Obviously, this will deplete the capital, but I’m suggesting you manage it such that after you are allowed to tap into the IRA, you would then take IRA money plus interest on the remaining non-IRA capital.

It all sounds risky to me, but if you can get it to pencil out, it would be a way to avoid the 10% hit.

[earlyretirement]

[quote=UCGal]
I’ve got an option most don’t have… My husband and kids are in process of being recognized as dual Italian citizens… and some (not all) of the southern regions let you buy into the national healthcare for a very low amount ($1200/year vs per month). But as most of us know… Italy (and the other PIIGS countries) isn’t in the best fiscal shape… so I don’t feel confident banking on that solution to the budget busting healthcare.

[/quote]

UCGal,

I dont’ know about Italy but I’m also in the same position as my kids have dual citizenship in the USA and also other countries as my wife is not from the USA and also my kids were born outside of the USA so they have 3 passports. In some countries there is guaranteed healthcare but to be honest the healthcare can be HORRIBLE so you still have to buy private insurance so best to check that out.

Also, it would be tough to work out the logistics if they had an emergency and needed healthcare. But definitely there are benefits to having dual citizenship. With my kids and where they were born, they can go to college free there if they wanted. But I doubt they would want to but always a nice option…. 🙂

[earlyretirement]

[quote=UCGal]
I’ve got an option most don’t have… My husband and kids are in process of being recognized as dual Italian citizens… and some (not all) of the southern regions let you buy into the national healthcare for a very low amount ($1200/year vs per month). But as most of us know… Italy (and the other PIIGS countries) isn’t in the best fiscal shape… so I don’t feel confident banking on that solution to the budget busting healthcare.

[/quote]

UCGal,

I dont’ know about Italy but I’m also in the same position as my kids have dual citizenship in the USA and also other countries as my wife is not from the USA and also my kids were born outside of the USA so they have 3 passports. In some countries there is guaranteed healthcare but to be honest the healthcare can be HORRIBLE so you still have to buy private insurance so best to check that out.

Also, it would be tough to work out the logistics if they had an emergency and needed healthcare. But definitely there are benefits to having dual citizenship. With my kids and where they were born, they can go to college free there if they wanted. But I doubt they would want to but always a nice option…. 🙂

[earlyretirement]

[quote=UCGal]
I’ve got an option most don’t have… My husband and kids are in process of being recognized as dual Italian citizens… and some (not all) of the southern regions let you buy into the national healthcare for a very low amount ($1200/year vs per month). But as most of us know… Italy (and the other PIIGS countries) isn’t in the best fiscal shape… so I don’t feel confident banking on that solution to the budget busting healthcare.

[/quote]

UCGal,

I dont’ know about Italy but I’m also in the same position as my kids have dual citizenship in the USA and also other countries as my wife is not from the USA and also my kids were born outside of the USA so they have 3 passports. In some countries there is guaranteed healthcare but to be honest the healthcare can be HORRIBLE so you still have to buy private insurance so best to check that out.

Also, it would be tough to work out the logistics if they had an emergency and needed healthcare. But definitely there are benefits to having dual citizenship. With my kids and where they were born, they can go to college free there if they wanted. But I doubt they would want to but always a nice option…. 🙂

[earlyretirement]

[quote=UCGal]
I’ve got an option most don’t have… My husband and kids are in process of being recognized as dual Italian citizens… and some (not all) of the southern regions let you buy into the national healthcare for a very low amount ($1200/year vs per month). But as most of us know… Italy (and the other PIIGS countries) isn’t in the best fiscal shape… so I don’t feel confident banking on that solution to the budget busting healthcare.

[/quote]

UCGal,

I dont’ know about Italy but I’m also in the same position as my kids have dual citizenship in the USA and also other countries as my wife is not from the USA and also my kids were born outside of the USA so they have 3 passports. In some countries there is guaranteed healthcare but to be honest the healthcare can be HORRIBLE so you still have to buy private insurance so best to check that out.

Also, it would be tough to work out the logistics if they had an emergency and needed healthcare. But definitely there are benefits to having dual citizenship. With my kids and where they were born, they can go to college free there if they wanted. But I doubt they would want to but always a nice option…. 🙂

[earlyretirement]

[quote=UCGal]
I’ve got an option most don’t have… My husband and kids are in process of being recognized as dual Italian citizens… and some (not all) of the southern regions let you buy into the national healthcare for a very low amount ($1200/year vs per month). But as most of us know… Italy (and the other PIIGS countries) isn’t in the best fiscal shape… so I don’t feel confident banking on that solution to the budget busting healthcare.

[/quote]

UCGal,

I dont’ know about Italy but I’m also in the same position as my kids have dual citizenship in the USA and also other countries as my wife is not from the USA and also my kids were born outside of the USA so they have 3 passports. In some countries there is guaranteed healthcare but to be honest the healthcare can be HORRIBLE so you still have to buy private insurance so best to check that out.

Also, it would be tough to work out the logistics if they had an emergency and needed healthcare. But definitely there are benefits to having dual citizenship. With my kids and where they were born, they can go to college free there if they wanted. But I doubt they would want to but always a nice option…. 🙂

[disimilar1]

I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.

[disimilar1]

I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.

[disimilar1]

I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.

[disimilar1]

I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.

[disimilar1]

I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.

[CA renter]

[quote=disimilar1]I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.[/quote]

Thank you for providing us with your real-life experiences here. It sounds like you’ve been hit with multiple “worst case” scenarios. I’m especially sorry to hear about your family’s illnesses — this is the big “what if” that too many young people don’t factor in.

Best wishes to you and your family. I hope that everyone gets better soon.

[CA renter]

[quote=disimilar1]I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.[/quote]

Thank you for providing us with your real-life experiences here. It sounds like you’ve been hit with multiple “worst case” scenarios. I’m especially sorry to hear about your family’s illnesses — this is the big “what if” that too many young people don’t factor in.

Best wishes to you and your family. I hope that everyone gets better soon.

[CA renter]

[quote=disimilar1]I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.[/quote]

Thank you for providing us with your real-life experiences here. It sounds like you’ve been hit with multiple “worst case” scenarios. I’m especially sorry to hear about your family’s illnesses — this is the big “what if” that too many young people don’t factor in.

Best wishes to you and your family. I hope that everyone gets better soon.

[CA renter]

[quote=disimilar1]I retired at 50. You do not have enough, nor did I as it turned out. Life can throw you curve balls – things you cannot even imagine happening.
I hope you do not think you will spend less when you retire because that is not likely. Eventually you or a family member will need medical services that may not be covered or fully covered. It adds up – the slow drip.
Life in this world is too uncertain now – even if your home is fully paid for.
I retired early after an illness woke me up. Life is precious. So is the ability to sustain yourself.
Here are some things I did not count on happening:
September 2008
The resulting BK of one of my credit tenants (100 year old company) and 2 other tenants.
A family member gets a devastating long term illness.
Parents need help and father with Alzheimers comes to live with us for a while.
uninsured loss due to exclusions in policy.
The travel was great during the first few years. You could accomplish that with an extended vacation. I wish you the best.[/quote]

Thank you for providing us with your real-life experiences here. It sounds like you’ve been hit with multiple “worst case” scenarios. I’m especially sorry to hear about your family’s illnesses — this is the big “what if” that too many young people don’t factor in.

Best wishes to you and your family. I hope that everyone gets better soon.

[Author]

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