How Do You Withdraw Savings?

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When you're ready to retire, you'll need a withdrawal strategy. It's especially important if you've retired early to avoid early withdrawal penalties, since most tax advantaged accounts require you to be 59.5 years old. A rough order of withdrawal is:

  1. Live off any side project or real estate income for as long as you can
  2. Withdraw from your taxable account
  3. Five years before you need it, start a Roth Conversion Ladder and withdraw penalty free
  4. Withdraw from tax-advantaged accounts in this order: traditional 401k, traditional IRA, HSA, Roth IRA, Roth 401k

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