Maximize Your Early Retirement: Should You Save to 401k or Brokerage Accounts?

Maximize Your Early Retirement: Should You Save to 401k or Brokerage Accounts? James Conole, CFP® 32:08

Typical Retirement strategies assume a Retirement age of over 60. With an earlier Retirement goal, a careful look is required to determine what strategies will create the best outcome. James responds to a listener’s question about where to invest as he anticipates an early Retirement. James walks through the steps of Root’s Sequoia System to explore options for early Retirement scenarios.

Questions Answered:
How does early Retirement impact traditional Retirement planning strategies, such as the 4% rule?

When deciding between Retirement accounts (e.g., 401k) or brokerage accounts for pre-60 funds in early Retirement, what factors should be considered?

Timestamps:
0:00 – Question about early Retirement
2:21 – Is early Retirement possible?
3:30 – Why the 4% rule doesn’t apply
6:08 – Assessment of Juan’s situation
8:11 – The Sequoia system Step 1 – purpose
10:16 – Step 2 – Retirement income
12:49 – Relying on SS benefit?
14:09 – Withdrawal strategy
15:32 – Sourcing funds from age 50-59
17:20 – Brokerage vs 401K
20:22 – A part-time income scenario
23:04 – Consider how expenses might change
25:14 – Step 3 – investment planning
28:09 – Steps 4 & 5- taxes and protection

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