joma417 OP t1_iuju243 wrote on October 31, 2022 at 9:38 PM

Reply to comment by Casterial in Advice regarding stocks, 401k, early retirement. by joma417

saving up that much should be fairly doable. Thats a lot of money to put into the 401k tho, should I be putting most of my money into my roth then? And not my tda? This is the most confusing part for me. Also any info/sources on learning about buying rental houses would be great.

nkyguy1988 t1_iujunvx wrote on October 31, 2022 at 9:43 PM

If you want to early retire, you need to be targeting 20-25% gross income savings rate, or more, for retirement purposes. The 1x salary at 30 is a traditional retirement plan marker.

joma417 OP t1_iujw7fh wrote on October 31, 2022 at 9:54 PM

This feels doable. Good to know. Thank you!

Casterial t1_iujz6t5 wrote on October 31, 2022 at 10:17 PM

Oh also noting for early retirement - taxes / pulling money out of accounts before a certain age could have a negative affect like additional fees or taxes. Be sure to read into your accounts :)

mrbrsman t1_iuk2h3q wrote on October 31, 2022 at 10:43 PM

MrMoneyMoustache is kinda the OG regarding the FIRE movement and this article opened my eyes to early retirement as even a possibility.

MMM Shockingly Simple Math for Early Retirement

joma417 OP t1_iuk2syv wrote on October 31, 2022 at 10:46 PM

Thats how I just learned about this! He’s fantastic!

Casterial t1_iujuiag wrote on October 31, 2022 at 9:42 PM

Most on this reddit will say roth because tax laws can change and its untaxed income in the future. For me I did 401k because I need the tax break and I assume I'll make less in retirement.

joma417 OP t1_iujw4or wrote on October 31, 2022 at 9:54 PM

Hmm ok I see what you mean (i think).