Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Why use an IRA?
Old 04-07-2010, 07:42 AM   #1
Dryer sheet wannabe
Join Date: Apr 2010
Posts: 17
Why use an IRA?


I'm just getting started in planning for an early retirement. I have about 15K right now and trying to find the best way to get it invested. I see a lot of people talking about using an IRA but my goal is to build a large lump sum and then live off the interest. If I use an IRA I can't touch the money until 59 1/2, while I'd like to retire around 45. I'm aware of the 72T rule but again I really don't want to touch the lump sum once I retire.

Am I missing something about the IRA or am I right to stay away from it for what my plan is? Any insight will help. Thanks in advance!

usafLT is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-07-2010, 08:13 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
Join Date: Aug 2006
Posts: 12,484
Instead of an IRA, you could build up a tax efficient non-qualified account. Do you have a 401K or something at work?

You could still do a Roth IRA if you qualify based on AGI. Something to check into.......

Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 04-07-2010, 08:31 AM   #3
Thinks s/he gets paid by the post
walkinwood's Avatar
Join Date: Jul 2006
Location: Denver
Posts: 2,433
Originally Posted by usafLT View Post
Am I missing something about the IRA or am I right to stay away from it for what my plan is? Any insight will help. Thanks in advance!
You still need to fund the years after you turn 59 1/2, so an IRA does have a place in your plans. You should fund both tax deferred and taxable accounts. Build a spreadsheet and play around with different funding scenarios - funding IRA first & letting it grow while funding taxable accounts, the other way around and also funding both accounts simultaneously. My guess is that you will find it most beneficial to fund an IRA first and then let it grow tax-free, while building funds to support your ER from 45 to 59 1/2.
walkinwood is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
403(b), 457, SEP IRA, Roth IRA bank5 FIRE and Money 28 09-10-2009 08:15 AM
Just opened a Roth IRA :) Opinion on two target date funds in an IRA? Effect FIRE and Money 3 05-12-2008 08:05 AM
Can I max out my Roth IRA, Trad. IRA, and SIMPLE IRA? thefed FIRE and Money 9 09-24-2007 04:52 PM
?? for uber-savers, non-deductible IRA to Roth IRA in 2010 LOL! FIRE and Money 8 12-21-2006 12:25 AM
Help! SEP IRA was transferred into a Traditional IRA...bad? soupcxan FIRE and Money 5 12-19-2006 11:19 AM


All times are GMT -6. The time now is 07:08 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.