Setting Up Your FIRE Calculator

Setting Up Your FIRE Calculator

Financial Independence, Retire Early (FIRE) isn’t just a dream - it’s a mathematically achievable goal. PopaDex’s FIRE calculator helps you understand exactly when you can reach financial independence based on your unique situation, and shows you how different decisions impact your timeline.

What is FIRE?

FIRE stands for Financial Independence, Retire Early - a movement focused on aggressive saving and investing to retire decades earlier than traditional retirement age.

The Core Concept

The foundation of FIRE is the 4% safe withdrawal rule, based on the Trinity Study from 1998. The study found that retirees can safely withdraw 4% of their portfolio annually (adjusted for inflation) with a high probability (>95%) of their money lasting 30+ years.

The math is simple:

FIRE Number = Annual Expenses × 25

Why 25? Because 4% withdrawal rate means you need 25 years of expenses saved (1 ÷ 0.04 = 25).

Example:

• Annual expenses: $40,000
• FIRE number: $40,000 × 25 = $1,000,000
• Safe annual withdrawal: $1,000,000 × 4% = $40,000

Once you have $1,000,000 invested, you can theoretically live off investment returns indefinitely without working.

Different FIRE Types

The FIRE community has evolved to include several variations:

Lean FIRE

• Minimalist lifestyle with low expenses
• Annual expenses: $20,000-$35,000
• FIRE number: $500,000-$875,000
• Focus on frugality and simple living
• Common among minimalists and lifestyle hackers

Regular FIRE

• Moderate lifestyle similar to working years
• Annual expenses: $40,000-$60,000
• FIRE number: $1M-$1.5M
• Balance between comfort and saving
• Most common FIRE target

Fat FIRE

• Comfortable/luxurious retirement lifestyle
• Annual expenses: $80,000-$150,000+
• FIRE number: $2M-$3.75M+
• Travel, hobbies, no budget constraints
• Popular among high earners

Barista FIRE

• Partial financial independence
• Cover basic expenses with portfolio
• Work part-time for healthcare and extras
• Lower FIRE number needed
• Reduces pressure while maintaining purpose

Coast FIRE

• Save enough that compound growth reaches FIRE number by traditional retirement age
• Can stop saving and just cover living expenses
• Example: $300k at age 35 grows to $1.2M by 65 (7% return, 30 years)
• Work becomes optional, not financially necessary

PopaDex’s calculator supports all these FIRE variations through customizable parameters.

Setting Your Retirement Calculator Parameters

Let’s walk through setting up your personalized retirement plan in PopaDex.

Navigate to the Retirement Calculator

1. Log into your PopaDex account
2. Navigate to Help in the main menu
3. Look for the Retirement Calculator section

You’ll see a form with seven key inputs. Let’s break down each one.

Current Age

What it is: Your age today (e.g., 32 years old)

Why it matters: This is your starting point and determines how many years you have until retirement. The earlier you start planning, the more time compound growth has to work in your favor.

Typical ranges:

• 20s: Maximum time horizon, aggressive growth potential
• 30s: Strong accumulation phase, balance growth and stability
• 40s: Mid-career, increased focus on catch-up contributions
• 50s+: Pre-retirement, shift toward capital preservation

Retirement Age

What it is: The age at which you want to retire (e.g., 65 years old)

Why it matters: This determines your time horizon - how many years you have to build your retirement savings.

Common retirement ages:

• Early (50-55): FIRE enthusiasts, requires aggressive saving
• Standard (60-65): Traditional retirement, balanced approach
• Late (65-70): Extended career, more time to save, higher Social Security benefits

Considerations:

• Retiring earlier means more years needing income
• Retiring later allows more accumulation time
• Consider healthcare costs if retiring before Medicare (age 65 in US)
• Social Security benefits increase the longer you wait (up to age 70)

Note: This isn’t necessarily when you stop all work - it’s when you want the financial freedom to make work optional.

Current Savings ($)

What it is: Your total retirement savings right now (e.g., $150,000)

Include:

• 401(k) and IRA balances
• Other investment accounts earmarked for retirement
• Taxable brokerage accounts
• Cash savings for retirement

Don’t include:

• Emergency fund (separate purpose)
• Money for near-term goals (house down payment, car, etc.)
• Primary residence value (unless you plan to downsize)

Benchmarks by age: | Age | Suggested Savings | |—–|——————| | 30 | 1× annual salary | | 40 | 3× annual salary | | 50 | 6× annual salary | | 60 | 8× annual salary | | 67 | 10× annual salary |

Source: Fidelity retirement savings guidelines

Starting from zero? That’s okay! The most important step is starting now. Even small contributions grow significantly over decades.

Annual Contributions ($)

What it is: How much you plan to save each year for retirement (e.g., $18,000/year)

Include:

• Your 401(k)/403(b) contributions (employee portion)
• Employer match (free money!)
• IRA contributions
• Additional investment contributions

Example calculation:

Your 401(k) contribution: $12,000/year (10% of $120k salary)
Employer match: $6,000/year (50% match on first 10%)
Total annual contributions: $18,000/year

Contribution limits (2025):

• 401(k): $23,000 ($30,500 if age 50+)
• IRA: $7,000 ($8,000 if age 50+)
• Total possible: $30,000+ per year

Savings rate target: Aim for 15-20% of gross income (including employer match) for comfortable retirement.

Higher contributions:

• Accelerate wealth building through compound growth
• Reach retirement goals faster
• Provide cushion for market downturns

Rate of Return (%)

What it is: Your expected average annual investment return (e.g., 7%)

Why it matters: This significantly impacts projections - even 1-2% difference compounds dramatically over decades.

Typical rates by allocation:

Conservative (4-5%):

• 70% bonds, 30% stocks
• Lower risk, lower growth
• Good for: Risk-averse investors, those near retirement

Moderate (6-7%):

• 60% stocks, 40% bonds
• Balanced risk/return
• Good for: Most retirement savers, diversified approach

Aggressive (8-9%):

• 90% stocks, 10% bonds
• Higher volatility, higher potential
• Good for: Young investors, high risk tolerance, long time horizon

Historical context:

• S&P 500 historical average: ~10% (nominal), ~7% (after inflation)
• Balanced 60/40 portfolio: ~8% (nominal), ~5% (after inflation)
• Bonds: ~4-5% (nominal), ~2-3% (after inflation)

PopaDex recommendation: Use 7% for realistic planning. This assumes:

• Diversified portfolio (stocks + bonds)
• Low-cost index funds
• Returns after inflation
• Long-term average (smooths out market volatility)

Conservative planning: Use 5-6% to build in a safety margin.

Post-Retirement Annual Expenses ($)

What it is: How much you expect to spend per year in retirement (e.g., $50,000/year)

Why it matters: This is what your retirement savings needs to support. Your “retirement number” is calculated from this figure.

Estimating retirement expenses:

Rule of thumb: Most people need 70-80% of pre-retirement income

Example:

• Current income: $100,000
• Expected retirement expenses: $70,000-$80,000

Expenses that typically decrease in retirement:

• ✅ Retirement contributions (no longer saving)
• ✅ Commuting costs
• ✅ Work wardrobe
• ✅ Mortgage (if paid off)
• ✅ Taxes (lower income bracket)
• ✅ Childcare/education expenses

Expenses that may increase:

• ❌ Healthcare (significant, especially before Medicare)
• ❌ Travel and leisure (more free time)
• ❌ Hobbies
• ❌ Insurance (supplemental health coverage)

Your retirement number (4% rule):

Retirement Number = Annual Expenses × 25
$50,000 × 25 = $1,250,000

This is based on the 4% safe withdrawal rule - you can withdraw 4% of your portfolio annually with high confidence it will last 30+ years.

Life Expectancy (Years)

What it is: How long you expect to live (e.g., 90 years old)

Why it matters: Your savings need to last your entire retirement. Living longer than expected is a significant financial risk.

Average life expectancy:

• US: 78 years (overall)
• US: 76 years (men), 81 years (women)
• Europe: 80-84 years (varies by country)

Planning recommendation: Add 5-10 years to average life expectancy to be safe

Conservative planning: Use 90-95 years to ensure you don’t outlive your money

Factors affecting life expectancy:

• Family history (genetics)
• Health and lifestyle
• Access to healthcare
• Socioeconomic factors

The longevity risk: Running out of money in your 80s or 90s is a serious concern. It’s better to plan conservatively and have excess than to fall short.

For couples: Plan for the longer-living spouse’s life expectancy

Understanding Your Results

Once you’ve entered all seven parameters, click Calculate or Submit to see your personalized retirement projection. The results section will display key metrics and visualizations to help you understand your retirement plan.

What the Results Show You

The calculator analyzes your inputs and provides projections based on compound growth formulas:

Future Value Formula:

FV = PV × (1 + r)^n + PMT × [((1 + r)^n - 1) / r]

Where:
FV = Future Value (retirement savings at retirement age)
PV = Present Value (current savings)
r = Rate of return (annual)
n = Number of years until retirement
PMT = Annual contributions

Key Results Metrics

Total Retirement Savings at Retirement

This shows how much you’ll have accumulated by your target retirement age.

Example:

Total Savings at Age 65: $1,850,000

This includes:

• Your current savings grown at the expected rate
• All annual contributions plus their growth
• Compound interest over the time horizon

Retirement Income Projection

Based on the 4% safe withdrawal rule, the calculator shows how much annual income your savings can generate.

Example:

Annual Retirement Income: $74,000
(Based on 4% withdrawal from $1,850,000)

Years Your Money Will Last

Using your life expectancy and post-retirement expenses, the calculator estimates whether your savings will last your entire retirement.

Example scenarios:

✅ Sufficient:

Your savings will last through age 95
Surplus: 5 years beyond life expectancy

⚠️ Shortfall:

Your savings will run out at age 82
Shortfall: 8 years before life expectancy of 90

Visualization: Savings Growth Chart

The calculator typically displays a chart showing:

Projection over time:

• X-axis: Years from now until retirement
• Y-axis: Total savings value
• Growth curve showing accumulation path

Key features:

• Starting point (current savings)
• Annual contribution impact
• Compound growth acceleration
• Target retirement age marker
• Projected final value

What to look for:

• Steep upward curve = compound growth working well
• Flatter line early, steep later = power of compounding
• Contribution vs. growth breakdown

Understanding the Gap

If your projected savings fall short of your needs:

Shortfall indicators:

• Money runs out before life expectancy
• Retirement income < post-retirement expenses
• Total savings < retirement number (expenses × 25)

Example shortfall:

Projected savings: $800,000
Needed (at 4% rule): $1,250,000 ($50k expenses × 25)
Gap: $450,000

What If You’re Not on Track?

If the calculator shows a shortfall, don’t panic. You have several levers to pull.

Adjusting Your Plan

The retirement calculator is a planning tool - use it to experiment with different scenarios and see how changes impact your retirement readiness.

Strategy 1: Increase Annual Contributions

Scenario: Increase annual savings by 20%

Current: Contributing $18,000/year Adjusted: Contributing $21,600/year (+$3,600)

Impact on 30-year projection:

• Additional contributions: $108,000
• Growth on additional contributions: ~$250,000
• Total extra savings: ~$358,000

How to achieve:

• Direct raises/bonuses to retirement accounts
• Reduce one major expense category
• Start a side hustle ($300/month = $3,600/year)
• Increase 401(k) contribution by 3%

Result: Significantly larger nest egg or ability to retire earlier

Strategy 2: Work Longer (Delay Retirement)

Scenario: Retire at 67 instead of 65

Impact of 2 extra years:

• 2 more years of contributions: $36,000
• 2 more years of compound growth: ~$400,000 (on $1M portfolio at 7%)
• 2 fewer years of withdrawals: $100,000
• Higher Social Security benefits: ~10-15% increase
• Total impact: ~$536,000+

The retirement math:

Every year you delay retirement:
- Adds contributions + growth
- Removes a withdrawal year
- Increases Social Security (up to age 70)
= Triple benefit

When this makes sense:

• You enjoy your work
• Healthcare before Medicare is expensive
• Want more financial cushion
• Late start on retirement savings

Strategy 3: Reduce Retirement Expenses

Scenario: Reduce annual retirement expenses by 15%

Current: $50,000/year expenses Adjusted: $42,500/year expenses (-$7,500)

Impact:

• Need 15% less savings (4% rule: $42,500 × 25 = $1,062,500 vs $1,250,000)
• Reduces retirement goal by $187,500
• Money lasts longer
• More flexibility in retirement

How to achieve:

• Pay off mortgage before retirement
• Downsize home (geographic arbitrage)
• Optimize healthcare (Medicare + supplemental)
• Reduce discretionary spending
• Move to lower cost-of-living area

Geographic arbitrage example:

• San Francisco: $50,000 expenses → Lisbon: $32,500 (35% reduction)
• Retirement number drops from $1.25M to $812,500

Strategy 4: Adjust Expected Returns

Scenario: Compare conservative vs. aggressive investment strategy

Conservative (5% return):

Current: $150,000
Contributions: $18,000/year for 30 years
Result: $1,576,000

Moderate (7% return):

Current: $150,000
Contributions: $18,000/year for 30 years
Result: $2,214,000

Aggressive (9% return):

Current: $150,000
Contributions: $18,000/year for 30 years  
Result: $3,141,000

Return impact: 2% higher return = ~$700k more over 30 years!

Trade-off:

• Higher returns = higher risk/volatility
• Need stomach for market swings
• Longer time horizon allows more risk

Recommendation:

• Young (20s-30s): 80-90% stocks (aim for 8-9%)
• Mid-career (40s-50s): 60-70% stocks (aim for 7-8%)
• Near retirement (55+): 40-50% stocks (aim for 5-6%)

Strategy 5: Combination Approach

Most effective: Combine multiple levers

Example “Retirement Rescue Plan”:

• Increase contributions by $3,000/year ✓
• Work 2 extra years (67 instead of 65) ✓
• Reduce expenses by 10% ($5,000/year) ✓

Combined impact:

• Retirement savings increases by ~$500,000+
• Retirement needs decrease by ~$125,000
• Total improvement: $625,000+

This can turn a shortfall into a surplus.

When to Re-run the Calculator

Regular updates recommended:

Annually:

• Update current savings balance
• Adjust contribution amount (raises, bonuses)
• Reassess retirement age plans
• Review expense estimates

After major life events:

• Job change (income change)
• Marriage/divorce (combined/split finances)
• Home purchase/payoff (expense change)
• Inheritance or windfall
• Health changes (expense/longevity impact)

Market events:

• Major market downturn (reassess risk tolerance)
• Portfolio rebalancing
• Pension/Social Security changes

Best Practices for Retirement Planning

Start Early

The power of time:

• $5,000 invested at age 25 → $76,000 at age 65 (7% return)
• $5,000 invested at age 45 → $19,000 at age 65 (7% return)
• 4× difference!

Even if you’re late: It’s never too late to start. A 50-year-old saving aggressively can still build a solid retirement.

Maximize Employer Match

Free money: If your employer offers a 401(k) match, always contribute enough to get the full match.

Example:

• Employer matches 50% up to 6% of salary
• Your salary: $80,000
• You contribute 6%: $4,800
• Employer contributes: $2,400
• Instant 50% return!

Not taking the match = leaving money on the table.

Use Tax-Advantaged Accounts

Priority order:

1. 401(k) up to match (instant return)
2. HSA if available (triple tax advantage)
3. IRA (Roth if income allows, Traditional otherwise)
4. 401(k) beyond match (up to limit)
5. Taxable accounts (after maxing tax-advantaged)

Diversify Investments

Don’t put all eggs in one basket:

• Mix of stocks and bonds
• Domestic and international
• Large cap, small cap, mid cap
• Consider target-date funds (automatic rebalancing)

Rule of thumb: Stocks % = 120 - your age

• Age 30: 90% stocks, 10% bonds
• Age 50: 70% stocks, 30% bonds
• Age 65: 55% stocks, 45% bonds

Plan for Healthcare

Biggest unknown: Healthcare costs in retirement can be substantial.

Strategies:

• Max out HSA contributions (save for medical expenses)
• Understand Medicare (coverage starts at 65)
• Budget for supplemental insurance (Medigap)
• Plan for long-term care costs

Estimate: Average couple needs $315,000 for healthcare in retirement (Fidelity, 2024)

Consider Inflation

Purchasing power erosion:

• At 3% inflation, $50,000 today = $27,000 in 25 years
• Your retirement expenses will increase over time
• Plan for rising costs

Inflation protection:

• Equities (stocks) historically outpace inflation
• TIPS (Treasury Inflation-Protected Securities)
• Real estate
• Keep some growth assets even in retirement

Build Emergency Fund First

Before aggressive retirement saving:

• 3-6 months expenses in liquid savings
• Prevents retirement account withdrawals (penalties + taxes)
• Protects against job loss, emergencies

Then: Maximize retirement contributions

Don’t Rely Solely on Social Security

Social Security is supplemental, not sufficient:

• Average benefit: ~$1,800/month ($21,600/year)
• Replaces only ~40% of pre-retirement income
• Future benefits may be reduced (trust fund concerns)

Plan as if Social Security is bonus, not foundation

Review and Adjust Regularly

Set calendar reminders:

• Review retirement plan annually
• Rebalance portfolio (keep target allocation)
• Update calculator with new information
• Adjust for life changes

Progress indicators:

• Are you on track?
• Is your asset allocation still appropriate?
• Have expenses changed?
• Is retirement age still realistic?

Common Mistakes to Avoid

Mistake 1: Starting Too Late

Problem: “I’ll start saving in my 40s” Reality: Lose decades of compound growth

Solution: Start now, even if small. $100/month starting at 25 » $500/month starting at 45

Mistake 2: Underestimating Expenses

Problem: “I’ll need less in retirement” Reality: Many expenses stay the same or increase (healthcare, travel)

Solution: Use 80% of current expenses as baseline, not 50%

Mistake 3: Too Conservative Too Early

Problem: Young person in 100% bonds Reality: Miss out on growth during best accumulation years

Solution: Take appropriate risk for your age. You can afford volatility in your 20s-30s.

Mistake 4: Panic Selling in Downturns

Problem: Sell stocks when market crashes Reality: Lock in losses, miss recovery

Solution: Stay the course. Markets always recover over long term. 2008 crash: recovered by 2013.

Mistake 5: Ignoring Fees

Problem: High-fee mutual funds (1-2% annual fees) Reality: Fees compound against you

Example over 30 years:

• $500k portfolio at 0.1% fees: $2.2M
• $500k portfolio at 1% fees: $1.8M
• $400k difference!

Solution: Use low-cost index funds (Vanguard, Fidelity)

Mistake 6: Not Diversifying

Problem: All money in employer stock Reality: Company-specific risk (Enron, Lehman Brothers)

Solution: Spread across multiple asset classes and sectors

Mistake 7: Withdrawing Early

Problem: Raid 401(k) for non-emergency Reality: 10% penalty + taxes + lost growth

Example:

• Withdraw $10,000 at age 35
• Pay $1,000 penalty + $2,200 taxes = $6,800 received
• Lost growth by age 65: $6,800 → $52,000
• Real cost: $52,000!

Solution: Only withdraw in true emergencies. Use emergency fund first.

Additional Resources

Retirement Planning Tools

• PopaDex Retirement Calculator - This tool (in Help section)
• Social Security Calculator - ssa.gov/benefits/retirement/estimator.html
• 401(k) Calculator - Most employer sites have projections

Recommended Reading

• Books:
  • “The Simple Path to Wealth” by JL Collins
  • “The Bogleheads’ Guide to Retirement Planning”
  • “Your Money or Your Life” by Vicki Robin
• Blogs/Communities:
  • Mr. Money Mustache (mrmoneymustache.com)
  • Financial Independence subreddit (r/financialindependence)
  • Bogleheads Forum (bogleheads.org)

Government Resources

• IRS Retirement Plans: irs.gov/retirement-plans
• Social Security: ssa.gov
• Medicare: medicare.gov

Next Steps

Now that you understand how to use the retirement calculator, take action on your retirement planning:

Immediate Actions (Today)

1. Run the calculator with your current numbers
2. Check your retirement accounts - know your current balance
3. Review your 401(k) contribution - are you getting full employer match?
4. Calculate your savings rate - what % of income are you saving?

This Week

1. Review investment allocation - appropriate risk for your age?
2. Increase 401(k) contribution by 1-2% if possible
3. Set up automatic contributions - make saving effortless
4. Open an IRA if you don’t have one

This Month

1. Create a retirement budget - estimate post-retirement expenses
2. Calculate Social Security estimate - ssa.gov
3. Review insurance needs - life, disability, health
4. Build/maintain emergency fund - 3-6 months expenses

This Year

1. Max out tax-advantaged accounts if possible
2. Meet with financial advisor for personalized plan (optional)
3. Create estate plan - will, beneficiaries, power of attorney
4. Review annually - update calculator with new information

Related PopaDex Resources

• Multi-Currency Management - Track international retirement accounts
• FIRE Planning Guide - Accelerated retirement strategies
• Tax Optimization - Maximize tax-advantaged savings
• Portfolio Rebalancing - Maintain target allocation
• Savings Interest Calculator - Compare savings growth

Financial Independence Resources

Interested in retiring earlier than traditional retirement age?

• FIRE Community - Learn from others pursuing FI
• Mr. Money Mustache - Popular FIRE blog
• ChooseFI Podcast - Financial independence strategies
• The Mad Fientist - Tax optimization for early retirement

Need Help?

Questions about the calculator? Email [email protected]

Want personalized advice? Consider consulting:

• Certified Financial Planner (CFP)
• Fee-only financial advisor (avoid commission-based)
• CPA for tax strategy

General information: Visit our FAQs or Blog

---

Example Scenarios

Scenario 1: The Early Starter

Profile:

• Age: 25
• Retirement age: 65 (40 years)
• Current savings: $10,000
• Annual contributions: $15,000
• Expected return: 8%
• Retirement expenses: $40,000/year
• Life expectancy: 90

Results:

• Retirement savings: ~$4,100,000
• Annual income (4%): $164,000
• Status: Well-funded, could retire earlier or spend more

Key lesson: Starting early = massive compound growth advantage

Scenario 2: The Late Starter

Profile:

• Age: 45
• Retirement age: 67 (22 years)
• Current savings: $100,000
• Annual contributions: $30,000
• Expected return: 7%
• Retirement expenses: $50,000/year
• Life expectancy: 85

Results:

• Retirement savings: ~$1,550,000
• Annual income (4%): $62,000
• Status: On track with high savings rate

Key lesson: Late start requires aggressive saving, but still achievable

Scenario 3: The FIRE Seeker

Profile:

• Age: 32
• Target retirement: 45 (13 years)
• Current savings: $150,000
• Annual contributions: $50,000 (high savings rate!)
• Expected return: 8%
• Retirement expenses: $35,000/year
• Life expectancy: 90

Results:

• Retirement savings at 45: ~$1,050,000
• Annual income (4%): $42,000
• Needed for expenses: $35,000
• Status: Achievable with 50%+ savings rate

Key lesson: FIRE requires extreme saving, but 10-15 year timeline is possible

Scenario 4: The Conservative Planner

Profile:

• Age: 40
• Retirement age: 70 (30 years)
• Current savings: $200,000
• Annual contributions: $20,000
• Expected return: 5% (conservative)
• Retirement expenses: $45,000/year
• Life expectancy: 95

Results:

• Retirement savings: ~$1,880,000
• Annual income (4%): $75,000
• Status: Very secure with long working career + conservative planning

Key lesson: Working longer + conservative estimates = high confidence

---

Frequently Asked Questions

How accurate is the retirement calculator?

The calculator provides estimates based on the assumptions you input. Real life includes variables like:

• Market volatility (returns vary year to year)
• Unexpected expenses
• Income changes
• Healthcare costs
• Inflation fluctuations

Use it as a planning tool, not a guarantee. Update regularly and plan conservatively.

Should I include Social Security in my calculations?

The calculator doesn’t automatically include Social Security. Here’s how to factor it in:

1. Estimate your benefit at ssa.gov
2. Reduce your “Post-Retirement Expenses” by expected SS amount
3. This shows how much your savings need to cover

Example:

• Total expenses: $50,000
• Expected Social Security: $20,000
• Calculator input: $30,000 (what you need from savings)

What if I’m self-employed?

Self-employed individuals have different retirement account options:

• Solo 401(k): Up to $69,000 contribution (2025)
• SEP IRA: Up to 25% of net income
• SIMPLE IRA: Up to $16,000 + 3% match

Use your actual contributions in the “Annual Contributions” field.

How do I account for a pension?

Like Social Security, reduce your retirement expense needs by expected pension amount.

Example:

• Retirement expenses: $60,000
• Expected pension: $25,000
• Calculator input: $35,000

What about taxes in retirement?

The calculator doesn’t factor in taxes. Consider:

• Traditional 401(k)/IRA withdrawals are taxed as income
• Roth withdrawals are tax-free
• Social Security may be partially taxable
• Capital gains on taxable accounts

General rule: Plan for 10-20% of retirement income going to taxes.

Can I retire before 59.5 without penalties?

Yes, several strategies allow early access:

• Roth IRA contributions (not earnings) can be withdrawn anytime
• 72(t) SEPP - Substantially Equal Periodic Payments
• Roth conversion ladder - Convert traditional → Roth, wait 5 years
• Rule of 55 - Leave employer at 55+, access that 401(k)

See Early Retirement Tax Strategies for details.

---

Your retirement success starts with a plan. Use this calculator to build yours.