# What savings options for retiring early?

**URL:** <https://boards.straightdope.com/t/what-savings-options-for-retiring-early/505685>\
**Category:** Factual Questions\
**Created:** [August 7, 2009, 8:25pm UTC](https://boards.straightdope.com/t/what-savings-options-for-retiring-early/505685 "2009-08-07T20:25:12Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![WorkInProgress](https://avatars.discourse-cdn.com/v4/letter/w/f04885/32.png) [@WorkInProgress](https://boards.straightdope.com/u/WorkInProgress)\
**Post date:** [August 7, 2009, 8:25pm UTC](https://boards.straightdope.com/t/what-savings-options-for-retiring-early/505685/1 "2009-08-07T20:25:12Z")

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I plan on retiring sometime soon after I turn 50. I started putting money away in a 401K when I started working 14 years ago. I am concerned about investing too much more money in a system that won’t pay out until almost 10 years after I retire. I assume that I will have the same early withdrawal issues with a Roth IRA. Are there tax deferred options that don’t have the 59.5 age requirement?

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**Author:** ![kurilla](https://avatars.discourse-cdn.com/v4/letter/k/ea5d25/32.png) [@kurilla](https://boards.straightdope.com/u/kurilla)\
**Post date:** [August 7, 2009, 8:29pm UTC](https://boards.straightdope.com/t/what-savings-options-for-retiring-early/505685/2 "2009-08-07T20:29:02Z")

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You can withdraw money from tax-sheltered accounts (IRAs, etc.) before age 59 1/2 under the SEP (Substantially Equal Payments) provisions in the law. Consult your financial advisor for details.

Other than that, my and the hubby’s strategy has been to look for tax-efficient funds. One that we were in for a while generated a taxable event only once every five years, for example.

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**Author:** ![jasg](https://avatars.discourse-cdn.com/v4/letter/j/f0a364/32.png) [@jasg](https://boards.straightdope.com/u/jasg)\
**Post date:** [August 7, 2009, 8:48pm UTC](https://boards.straightdope.com/t/what-savings-options-for-retiring-early/505685/3 "2009-08-07T20:48:58Z")

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Since there are contribution limits to 401k/IRA accounts, to retire at that age you will have to be saving/investing in taxable accounts as well.

When calculating your expenses, don’t forget to factor in medical insurance for 15 years.

An earlier thread on this topic recommended this forum: [Early Retirement & Financial Independence Community](http://early-retirement.org/forums/)

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**Author:** ![Harriet\_the\_Spry](https://avatars.discourse-cdn.com/v4/letter/h/e56c9b/32.png) [@Harriet\_the\_Spry](https://boards.straightdope.com/u/Harriet_the_Spry)\
**Post date:** [August 7, 2009, 9:27pm UTC](https://boards.straightdope.com/t/what-savings-options-for-retiring-early/505685/4 "2009-08-07T21:27:27Z")

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You can always withdraw your principal from a Roth IRA. You paid tax on that before you contributed it. The rules on withdrawal penalties for Roth IRA earnings are explained here: [What is an Individual Retirement Account (IRA)? | The Motley Fool](http://www.fool.com/Money/AllAboutIRAs/allaboutiras07.htm)