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So my friend brought up a good question that I didn't have an answer for regarding early retirement. If all of my money is essentially locked away in a 401k and Roth IRA, how do I survive until I hit 60? I know you can take out the money you contribute from your Roth IRA before 60 penatly-free, but I feel like you don't want to do that to let your money grow right?
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Nov 6, 2013 17:01
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| # ¿ May 6, 2024 08:28 |
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So I'm only 23 and I just started my first job 6 months ago, so I'm fairly new to all this. I'm currently working on saving enough money for a 6month emergency fund which I plan to just keep in a savings/checking account and paying off my student loans (which were a modest 7k). Once I've got those 2 things done, where are some places I can put my money where it will still grow at a good rate but is liquid enough to pull from?
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Nov 6, 2013 17:14
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Jeffrey posted:Just buy index funds and pull from/replenish that emergency fund that you keep in cash, no reason to sell investments and eat fees for quick cash. If you are constantly pulling from it, revise your spending or make your budget more realistic. So would I do this through Vanguard I assume? Just open a general savings account? Also, a slightly related question, but can you divert the gains from a 401k/Roth IRA to your own personal account instead of having them reinvested? I wouldn't do this right now obviously since I want those accounts to grow as fast as possible, but is that something I could do down the line for some passive income?
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Nov 6, 2013 17:39
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No Wave posted:You can't (and, well, it already is passive income, but I get what you mean). This is something I will be able to do with my other accounts though, correct? Trying to make sure I understand how all this works correctly.
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Nov 6, 2013 18:32
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I mean, I keep my emergency fund in my checking account because that's where my money gets wired to from my company. It's another step to have to move it a different account, but I guess it's probably worth it for even the small amount of interest a savings/money market account will generate.
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Nov 6, 2013 19:13
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