8 How To Retirement? 401k, Roth IRA, Fire Movement, How To Create a Budget?

Retirement Math

$60,000 x 25 = $1,500,000

I have a blog post that goes into more detail http://dorianfinance.com/how-to-retire-how-to-decide-when-to-retire

401k

• Employer-Sponsored: A 401(k) is an employer-sponsored retirement account, where you can contribute a portion of your pre-tax income, and many employers offer matching contributions.

• Tax Benefits: Contributions to a traditional 401(k) are tax-deductible, reducing your current taxable income, but you'll pay taxes when you withdraw the money in retirement.

• Early Withdrawal Penalties: Typically, you face penalties for withdrawing funds from a 401(k) before age 59.5, which can limit your flexibility if you want to retire early.

• Limited Investment Choices: 401(k) plans often have a limited selection of investment options chosen by your employer.

I think that you can have the 401k as backup funds when you turn 59.5. 

I have a blog post that goes into more detail 

http://dorianfinance.com/401k-vs-fire-movement

Roth IRA

• Individual Account: A Roth IRA is an individual retirement account that allows you to contribute after-tax income. Qualified withdrawals in retirement are tax-free.

• Limited Annual Contributions: Roth IRAs have annual contribution limits, which may be insufficient for early retirement savings, especially for high earners.

• Early Withdrawals: Roth IRAs allow you to withdraw your contributions (not earnings) at any time without penalties, making them appealing for FIRE enthusiasts.

I think that you can have the Roth IRA as backup funds but no penalties on early withdrawal 

I have a blog post that goes into more detail 

http://dorianfinance.com/roth-ira-vs-fire-movement

How To Create a Budget?

http://dorianfinance.com/how-to-make-a-budget-50-30-20-method

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