I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@LiamOlivia-4 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
Yuppers, I did retire at 52, but it is okay. I have other accounts that we are using until 59 1/2. My wife still works and I am working on a side gig as we speak.
I too have had epiphanies while listening to the music of Shaggy. Bless Shaggy and his heavenly music. As referenced in the song Angel, I believe Father Shaggy is “sent from up above”. Amen.
That sucks dude. Thanks for sharing so others dont make the same mistake. He retired prior to the calendar year he turned 55 so he can't access withdraw from that company's 401k without incurring the 10% penalty (plus taxes) now until he is 59.5 years old. It is an odd rule that you got caught up in. If you leave or get terminated from a job at 54 why should it be any different than if leaving at 55? You should have access the same at 55 regardless, but that's not how it is written. Honestly that kind of restricts us 45-55 from changing companies if we are planning to retire early at 55 using that rule to gain access penalty free before 59.5
Thank you you and you are welcome. I agree the 55 rule should be when you are 55 regardless not 55 and tight additional rules to prevent or keep you some where you are not happy at etc.. In my mind it is modern day slavery to prevent you from going somewhere and to keep you working for them because they hold all the cards and us none. The best we can do is share our stories, information and help one another which is why I always have said Sharing Is Caring.
A way around it is to get another job that has a 401K with that same rule of 55. You can roll your old 401K into that new 401K and then retire again in that year of 55. The down side is that you have to go back to work at some point before 55 to be able to do that.🤭
That was a really long video to explain that you did not understand the rule of 55. There are a few caveats to that rule that many do not understand. 1. You have to leave or be fired, etc in the year you would turn 55. 2. You can do this anytime after the year. So 55, 56, 57, ... 3. You can only access the 401k of the company you just left. 4. To do this easily. The companies 401k plan has to allow partial withdrawals before 59.5. this is not always the case. 6. If the 401k does not allow partial withdrawals, you can take out a portion penalty free under the rule of 55 and move the rest to an IRA. If you then need to access the IRA money, you could use the 72t rule to get money penalty free for 5 years or until you turn 59.5. whichever is the greater of the 2.
I am not mad, sorry if it came off that way. Just a little disappointed in something I missed and a change of plans. But all is good. I have back up plans Incase of miscalculated things like this
@@TigerOnFIRE411 ohhhhhhhhh i see what happened lol. I was wondering the same thing until i started watching the video. The video has a a typo; i read it as "I Mad.... a mistake with rule of 55"
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@LiamOlivia-4 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@IbrahimIsabella-00 My advisor is MARGARET MOLLI ALVEY;
You can look her up online
@@LiamOlivia-4 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
If you leave the same calendar year or later. Small detail but important 😀
Thank you for the shout out. I will add a link to your channel in a week or so, when I give you a shout out.
@@FIRE_DrNinjaTurtle anytime....sharing is caring
@@TigerOnFIRE411 I added a section to my 8-9 video to give you a shout out :)
@@FIRE_DrNinjaTurtle thank you
Ask your financial advisor about the 72t rule. And for rule of 55, as long as you are with your company when you turn 55 or after.
Yuppers, I did retire at 52, but it is okay. I have other accounts that we are using until 59 1/2. My wife still works and I am working on a side gig as we speak.
I wish i had a time machine to back in time and fix all my mistakes
We all do ☺️
I retired last Sept at 55 1/2. We use the rule of 55 for my 401k. My wife is younger than me so we use the 72t rule to access her 401k.
Interesting very interesting
Was this because you both needed the money or something else???
I too have had epiphanies while listening to the music of Shaggy. Bless Shaggy and his heavenly music. As referenced in the song Angel, I believe Father Shaggy is “sent from up above”. Amen.
@@FrozenGrapes-y4b Amen brother!!!
That sucks dude. Thanks for sharing so others dont make the same mistake. He retired prior to the calendar year he turned 55 so he can't access withdraw from that company's 401k without incurring the 10% penalty (plus taxes) now until he is 59.5 years old.
It is an odd rule that you got caught up in. If you leave or get terminated from a job at 54 why should it be any different than if leaving at 55? You should have access the same at 55 regardless, but that's not how it is written. Honestly that kind of restricts us 45-55 from changing companies if we are planning to retire early at 55 using that rule to gain access penalty free before 59.5
Thank you you and you are welcome. I agree the 55 rule should be when you are 55 regardless not 55 and tight additional rules to prevent or keep you some where you are not happy at etc.. In my mind it is modern day slavery to prevent you from going somewhere and to keep you working for them because they hold all the cards and us none.
The best we can do is share our stories, information and help one another which is why I always have said Sharing Is Caring.
A way around it is to get another job that has a 401K with that same rule of 55. You can roll your old 401K into that new 401K and then retire again in that year of 55. The down side is that you have to go back to work at some point before 55 to be able to do that.🤭
Right!!! I ain't trying to work like that anymore for sure.
That was a really long video to explain that you did not understand the rule of 55.
There are a few caveats to that rule that many do not understand.
1. You have to leave or be fired, etc in the year you would turn 55.
2. You can do this anytime after the year. So 55, 56, 57, ...
3. You can only access the 401k of the company you just left.
4. To do this easily. The companies 401k plan has to allow partial withdrawals before 59.5. this is not always the case.
6. If the 401k does not allow partial withdrawals, you can take out a portion penalty free under the rule of 55 and move the rest to an IRA. If you then need to access the IRA money, you could use the 72t rule to get money penalty free for 5 years or until you turn 59.5. whichever is the greater of the 2.
Learning lesson with stories
Why are you mad?
I am not mad, sorry if it came off that way. Just a little disappointed in something I missed and a change of plans. But all is good. I have back up plans Incase of miscalculated things like this
@@TigerOnFIRE411 ohhhhhhhhh i see what happened lol. I was wondering the same thing until i started watching the video. The video has a a typo; i read it as "I Mad.... a mistake with rule of 55"
@@funguy1086 oH GOOD GRAVEY, lol...i will fix that, fat fingers lol. good catch. Sometime my brain is faster than I am.