Few concepts are as misunderstood in the FIRE community as the (ominous voice) “early withdrawal penalty.” More accurately described as section one of tax code §72(t)*, this is the additional 10% income tax that applies to withdrawals from tax deferred retirement accounts taken before age 59½. As I browse the various financial independence forums, I … Continue reading Don’t Fear The “Penalty”!
Last week, I read along on twitter and bit my lip as MMM tried to talk some sense into a mainstream finance writer & editor who tweeted a link to a New York Times article. Above the link, she wrote: “The basic flaw at heart of so many retirement calculations: you cannot possibly save enough … Continue reading Why You Can’t Retire
“I know I need to save more… it’s just that I never have any money left over at the end of the month!” I hear this often. Most people don’t earn enough to save money. Some people are barely scraping by. Life is expensive. The truth is though, we adjust our spending subconsciously all the … Continue reading You’re a Hazard To Your Money
Investing is a topic that confounds many of us. The financial industry has taught us that investing is inherently complex, and we therefore need professionals to handle it for us. But it doesn’t have to be this way! For those pursuing financial independence, almost everything you need to know about low-cost index investing can be … Continue reading Investing Can Be Simple