On this week’s episode of Tape Talk, Quint and Daniel breakdown some of the headwinds to early retirement as well as tips to navigate the journey strategically.


Before we get into the meat and potatoes of this week’s show topic it’s time to take a look at some of the headlines moving the markets this week. The trade war with China seems to have come to a screeching halt, does this mean the trade war trades will start to reverse? The North Korea Summit gets canceled, the market barely blinks, were these proposed peace talks more show than substance? The Fed casts a dovish tone sending interest rates lower, should investors be more concerned about higher interest rates or higher inflation coming down the pike from the Fed?

What Is Early Retirement?

When it comes to retirement there are a lot of numbers thrown around. You can’t tap into your IRAs “without penalty” until 59 1/2. You can’t take social security until 62. Medicare starts at 65. Your RMD and maximum social security begin at 70. All of these numbers beg the question, when does retirement actually start? Well, for some people who’ve saved prudently and wish to retire earlier that number may be a bit lower.

Healthcare On Your Own

When you decide to retire before you’re eligible for Medicare, you’ll need to have a plan for keeping yourself healthy for retirement. Unfortunately, gone are the days when most companies paid for a pension and healthcare when their employees retire. Today, you may just need to figure out healthcare on your own. Luckily, whether you like it or not, the health insurance exchange is a very viable option for early retirees. Add in fact with some prudent tax planning you might save significantly on your premiums making you want to start retirement sooner than you expected!

Social Security, Can You Live Without It?

One of the largest components of most retirees’ income is their social security check. This amount significantly reduces what’s needed to withdraw from investments or other sources. However, for those that retire early social security may still be a long way off. Furthermore, all those years of no income between when you think you should retire and when the social security office considers “normal” may penalize your future earnings. Still, with proper planning, you may just be able to navigate this retirement curveball safely.

Retirement Account Withdraws

Most investors are aware that withdrawing from an IRA, 401k, or another retirement plan prior to 59 1/2 comes with a steep penalty. However, we rarely talk to people who are aware of some of the ways around this. We take a look at the “Rule of 55” and Rule 72(t) to examine how both of these exceptions may make your early retirement much more comfortable. One disclaimer though, especially with Rule 72(t), you will need to ensure you have a good tax professional on your side as mistakes in this area can be disastrous for your plan!

It All Starts With A Plan

Regardless of when you retire, you need to have a plan for the journey ahead. Comprehensive financial and retirement planning gives you the opportunity to examine your entire financial roadmap for the journey ahead so you can make the most of opportunities and prepare for some of the roadblocks. You can learn more about our financial planning services HERE or Contact Us for more information on what the process entails.