Early retirement is a popular goal for many, but actually making it happen can be challenging.  One major obstacle is the early withdrawal penalty imposed to distributions from IRAs & 401ks before 59 ½ years of age.

This week on the show we answer a listener question about how to navigate this landscape and a few possible workarounds.  We also cover whether index investing has impacted the markets, and an article about how inflows to hot investment funds can falsely influence performance numbers

 

Resources:

GMO: Passive Investing’s Impact Has Been Overblown, But It’s Not Negligible

institutionalinvestor.com/article/2dgy5jctx2rb7g3wv2juo/portfolio/gmo-passive-investings-impact-has-been-overblown-but-its-not-negligible

 

Hot Funds and the Curse of ‘Self-Inflated Returns’

wsj.com/finance/investing/etf-self-inflated-returns-258e875e

 

Strategies For Maximizing (Or Minimizing!) Rule 72(t) Early Distribution Payments Using IRS Notice 2022-6

kitces.com/blog/rule-72t-sepp-calculate-payments-rmd-avoid-penalty-tax-early-ira-withdrawals-notice-2022-6/