Do early retirees rely on brokerage accounts, Roth ladders, or 72t?

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  • #113943 Reply
    Jeanette

      I am wondering if most people who retire early live off their brokerage accounts or use the Roth conversion ladder or 72t before they have access to their retirement accounts penalty free.

      how do you structure your income before traditional retirement account access?

      Do you rely on strategies like brokerage accounts, Roth IRA conversion ladders, or 72(t) distributions?

      Are there any pros and cons you’ve experienced with these methods, or do you have alternative approaches that work better for you?

      #113944 Reply
      Jonathan

        Everyone is different but the majority of people I see that retire early aren’t really retired, they have some sort of non traditional job and claim they’re retired.

        Not sure why they claim they’re retired

        For example I know a guy that is “retired” and lives off his investments but reality is he spends more time researching, trading, etc. than I do at my regular job.

        #113945 Reply
        Jim

          Out at 55. Existing Roth IRAs, Roth 401K (Rule of 55) and brokerage accounts.

          #113946 Reply
          Laurie

            Using Rule of 55 for my last 401k, cash savings, brokerage accounts and Roth conversions available after their 5 year mark.

            Also occasionally reimbursing old purchases from my HSA.

            #113947 Reply
            Tim

              Neither. Living solely off rental income for the last 9 years. Won’t need to ever touch my brokerage or ira accounts.

              #113948 Reply
              Jenn

                It’s a mix of brokerage and savings for these next 5 years until I can tap retirement accounts.

                Zero debt is the key.

                #113949 Reply
                Stephanie

                  Everyone will have a different strategy specific to their needs and portfolio.

                  A lot of people don’t have large brokerage accounts so they have to do the Roth conversion ladder and/or SEPP.

                  #113950 Reply
                  George

                    I have two savings buckets:
                    * Retirement account to cover from age 62 (with social security)
                    * Regular brokerage account to cover before 62.

                    Each bucket has its own FIRE number.

                    I use my regular brokerage account to cover before 62.

                    #113951 Reply
                    Scott

                      Rentals and a brokerage account. Invested for growth. I use stop orders when I need cash.

                      #113952 Reply
                      Al

                        Yes. Look up the “wheel strategy”. It’s using your brokerage account to generate income through simple options techniques.

                        You can also buy JEPQ as an alternative for monthly distributions and not sacrifice as much growth as you would with just dividend stocks it ETFs.

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