Tag Archives: early retirement

Why $420,000 Dollars?

We’ve talked about what retirement means to us before, but we’ve never really addressed how we came up with $420,000 dollars as our target early retirement nest egg.

In this video we discuss why we chose $420k, why it’s probably not enough, and why that’s OK. Hopefully it answers some of your questions.

Links:
Retire Comfortably? https://goo.gl/ufZFR7
What Retirement Means To Us – https://goo.gl/VAeXfx
4% Rule – http://goo.gl/3LdxFy
Internet Retirement Police – http://goo.gl/eKdVmS

Financial Rules Meant to Be Broken

Sometimes common financial wisdom isn’t so wise. Occasionally, rules of thumb are meant to be broken. In this video we discuss the personal finance rules that we break.

Most of the time, the money advice you’ll hear on TV and magazines is so bad you’ll end up in debt because debt is normal for most Americans. We think just because it’s normal doesn’t make it OK.

If you follow the golden rule, spend less than you earn, you have a much better argument for breaking traditional advice.

What About Health Care!?!

One of the biggest criticisms of early retirement is health care. How are we going to afford it? What about getting older? Now we’re forced to buy it!

Our plan for health care in early retirement is the ACA (Obamacare), medical tourism, and preventative care. What most people don’t know is that the United States is not a forerunner in quality of health care. By utilizing our ability to travel, we can get better care overseas for less money.

Why is Health Care So Expensive? https://goo.gl/oSafux
Go Curry Cracker – http://goo.gl/m5hyZx
Retire Early Lifestyle – http://goo.gl/R8n8lj

Retiring Before 59.5 – What About Penalties?

Ever wonder how you can access your retirement accounts without paying the 10% penalty? In this video we share our plan for avoiding IRA and 401k penalties by setting up a Roth Conversion Ladder.

Credit is due to the MadFientist who introduced us to the idea. Basically you rollover your old 401k into a traditional IRA, then convert that to a Roth IRA. The converted funds are considered “income” and therefore “contributions” so you may withdraw them at any time (after 5 years has passed) without tax or penalty.

More information can be found on his website:
http://www.madfientist.com/after-tax-contributions/
http://www.madfientist.com/retire-even-earlier/

Interestingly, President Obama’s 2016 budget proposal might close that loophole despite the IRS just putting out notice 2014-54 which seemed to confirm this is a viable and lawful strategy.

Link to the IRS Notice 2014-54:
http://www.irs.gov/pub/irs-drop/n-14-54.pdf

How Do I Get My Money When I Retire?

The question we get asked most often is ‘how do I get income from my retirement accounts into my checking account when I retire’? Most people understand the 4% rule, but few ask how investments pay the bills.

The reason is likely because phrases like withdrawal and drawdown strategy are not very sexy. Well, this isn’t going to be sexy. But it will be short and to the point.

The second most popular question is, ‘what about penalties if I retire before 59.5’? That will have to wait until next week!

Fitting in Is the Hard Part

How could someone making $60k a year can say living on 50% of their income is impossible, yet there are many people who earn far less than that. We think it’s because fitting in is the hard part.

We discuss a few reasons why being frugal doesn’t mean you’re an outcast, as well as our weaknesses in fitting in.

We’re Falling Behind! Net Worth Update

It’s been one year since making plans for extreme early retirement. How are we doing? In short, we’re falling behind for the first time this month. But don’t worry, there’s a reason.

We decided to simplify our lives and focus our efforts on our jobs and making YouTube videos. Unfortunately that meant making some tough decisions.

Watch the video to see how far behind we are, and how we plan to get back on top!