Early retirement is a popular goal for many, but actually making it happen can be challenging. One major obstacle is the early withdrawal penalty imposed to distributions from IRAs & 401ks before 59 ½ years of age.
This week on the show we answer a listener question about how to navigate this landscape and a few possible workarounds. We also cover whether index investing has impacted the markets, and an article about how inflows to hot investment funds can falsely influence performance numbers.
Show Notes
[04.32] Market update – Index investments and its impact on the market.
[10.38] Mega-cap stocks – Grant explains how the transition from active investing to passive investing caused the difference in performance between big and small companies.
[14.00] Article of the week – The Wall Street Journal’s article about ‘Self-Inflated Returns’.
[20.45] Early retirement – Grant explains how you can avoid getting withdrawal penalties if you’re going to retire early.
[28.11] SEPP – Grant defines ‘Substantially Equal Periodic Payments’ and how it can help you avoid getting early withdrawal penalties.
Resources
GMO: Passive Investing’s Impact Has Been Overblown, But It’s Not Negligible
Hot Funds and the Curse of ‘Self-Inflated Returns’
wsj.com/finance/investing/etf-self-inflated-returns-258e875e
Strategies For Maximizing (Or Minimizing!) Rule 72(t) Early Distribution Payments Using IRS Notice 2022-6