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TinyClayballs t1_j2agvo6 wrote

Reply to comment by ChiSquare1963 in Is my strategy missing anything? by McCallistersFurnace

> The Roth IRA adds [...] and flexibility to retire a bit earlier

Can you expand on this a bit? Is this because you can withdraw contributions without tax consequences?

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xanadu111 t1_j2bn1t6 wrote

I believe the amount you contribute to a Roth IRA can we withdrawn penalty-free at any time. If you plan to retire a few years early, maxing a Roth IRA and funneling any excess into a regular brokerage account is the way to go. You'll want to leave your 401k alone until you reach traditional retirement age.

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ChiSquare1963 t1_j2c2t8z wrote

General guideline is to invest at least 15% of income to retire in your 60s. OP is investing 14% plus 6% max, which meets the guideline. The Roth IRA is exceeding the guideline, so OP should be able to retire before their 60s.

You can withdraw Roth IRA contributions at any age, as xanadu111 commented, but you can also do Substantially Equal Periodic Payments under Rule 72t to withdraw from other retirement accounts without incurring penalties. The critical bit is accumulating enough to be able to retire early, which requires investing more than 15% of income.

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