🏝 How to retire early without hefty penalties
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Here’s what’s in today’s newsletter:
📝 Main topic: How to know if you can retire early
❓ Weekly Q&A: Where should I invest after a 401(k)?
✅ Things to Do: Lock in a high APY, check out a new money manual to save more, take a Money Challenge & register for my Smart Investing Masterclass
🗞 In the News: Stay up to date on personal finance news
📩 ICYMI: Recent newsletters you shouldn’t miss
🎙 Recent podcasts: Dig into loads of topics in the Money Girl archive (846+)
Hi, Friend -
Whether you're feeling stressed out by a high-pressure job or dreaming of a different lifestyle, getting ready for retirement sooner rather than later is a wise money move!
Most people qualify for Social Security retirement benefits as early as 62, and some get pensions, but you likely also need your own assets to cover future expenses once you no longer earn an income. But what if you want to retire early?
🎙 This week on Money Girl 845, How to Know If You Can Retire Early, I cover tips for knowing if you can retire early and how to avoid paying hefty penalties when tapping a retirement account before 59.5.
As always, you can listen to the audio podcast or read the show transcript.
❓ I answered a question this week on Money Girl episode 846, How Should I Invest for Retirement After a 401(k)?, from Andrea, who says:
"I'm 45 and have arranged my lifestyle to live on about $18,000 per year. Since I don't have a mortgage, any other debt, or kids at home, this income covers my expenses, barring any surprises.
After receiving a cash windfall, I put most of it in a high-yield savings account and CDs. I also have a couple of retirement accounts from previous jobs and a Roth IRA that I plan to max out every year. After that, If I have more money, where should I invest it?"
I really appreciate Andrea’s focus on investing, even though her lifestyle includes a relatively low income. In the podcast, I review the best places to regularly invest or stash a cash windfall, whether you have a retirement plan at work, don’t have one, or are self-employed.
You can listen to the show or read the transcript.
☎️ I’d love to cover your money question here and on the podcast! Just leave it on my voicemail: 302-364-0308. You can also hit reply to this email or use my contact page at LauraDAdams.com.
💵 Lock in 5.25% APY or higher with a certificate of deposit or CD before the Fed is expected to cut rates by September.
📙 Check out my friend Matt Schulz’s new money manual, Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life. It answers 45 fiscal questions about credit and debt, healthcare, housing, shopping, travel, work, and relationships. You’ll get helpful tools, fill-in-the-blank scripts, decision trees, success stories, and many tips for saving money and earning more!
✅ Take this week’s MONEY CHALLENGE: If you haven’t created your my Social Security account, take a few minutes to open it, review the accuracy of your earnings history, and see your estimated future benefits.
🗓 Sign up for the Smart Investing Masterclass: Make Money & Achieve Financial Freedom While You Sleep! 💤 The Event is free for paid subscribers, but you can also register for the Masterclass without subscribing!
🗞 Mortgage rates dipped this week, with the 30-year rate averaging 6.77%, the lowest level since mid-March.
🗞 Interest rate cuts may be near since Fed Chair Jerome Powell indicated that he’s somewhat confident that inflation is easing closer to the 2% target rate.
🗞 Federal student loan interest rates jumped on July 1 to 6.53% (from 5.5% last school year) for undergraduates and 8.08% (from 7.05%) for graduates—the highest students have paid for education loans in over a decade.
🗞 Social Security COLA of 2.7% may be coming for its 68 million recipients in 2025 based on June’s inflation data; however, the cost-of-living-adjustment won’t be finalized until October.
🗞 The minimum wage increased on July 1 in more than a dozen cities, two states, and Washington D.C., where workers can earn significantly more than the federal minimum wage of $7.25 per hour.
🎧 846: How should I invest for retirement after a 401(k)?
🎧 845: How to know if you can retire early
🎧 844: What should I do with an old 401(k)?
🎧 843: Solopreneur Success: Tips for running a one-person business
🎧 842: How many Roth accounts can I have?
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