Welcome to a new week here on the Retirement Quick Tips podcast. I’m your host Ashley Micciche, co-owner of True North Retirement Advisors, an independent financial advisory practice managing $325 million in client assets. I’m a Chartered Retirement Planning Counselor, and I started this podcast because I love helping people just like you gain clarity and make a plan for the retirement you envision. 

The theme this week on the podcast is: Penalty-Free Early Withdrawals For Retirement

One of the main challenges for people who retire early in their 50s is figuring out how you’ll handle your portfolio withdrawals. How do you access the funds needed in your investment and retirement accounts to pay for healthcare before medicare kicks in and cover your living expenses while you wait to start social security? And how do you avoid penalties on early withdrawals in retirement accounts when you access your IRA and 401k accounts before 59 ½?

These are all important questions to ask if you’re contemplating an early retirement. So this week on the podcast, I’ll talk about:

• Why taking withdrawals is especially problematic from IRA or 401k accounts when retiring in your 50s
• Typical recommended sequence of withdrawals 
• 72t withdrawal rules
• Rule of 55 
• Situations where you might want to access your Roth IRA or 401k and why you usually want to avoid the temptation to access your Roth accounts too early. 

My hope is that if you’re part of the wave of people who plan to retire in their 50s that you’ll gain a better understanding for how you can optimize your withdrawals while minimizing taxes, which is even more critical if you retire early. You might spend an extra decade in retirement when you retire early, so it’s absolutely critical that you understand withdrawal strategies and how they apply to you in early retirement. 

I hope what I have to share with you this week will help you make smart and thoughtful decisions with your retirement. And while I am careful to not lead you astray, personal finance is not an exact science. There is no one-size-fits-all solution for everyone, so I encourage you to disregard anything I say that may not be helpful for you, and to consult your own financial, tax, and legal advisors regarding your own individual situation. 

That’s it for today. Come on back tomorrow, where I’ll dive into why it’s a problem to tap into your retirement accounts before age 59 ½ and what you can do about it. 

Thanks for listening! My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance