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.
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.
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!