7 Tools to help you retire earlier

What are 7 tools that will help you retire earlier? Find out here on this episode. Then download your FREE Queer Money Kickstarter, a 9-step Guide to Kickstart Your Journey to Financial Independence.

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Why these 7 tools will help you retire earlier

On this Queer Money®, we’re discussing 7 tools to help you retire earlier. Does retirement seem like a million years away? Want to retire earlier? We tap into the desire to retire earlier or more confidently. Check out these seven tools to help you retire earlier and more fabulously than you ever dreamed.

The first tool or tools that can help you retire early are all the Roths + Roth Conversions. These accounts allow your contributions to grow tax-free; qualified withdrawals are not taxed. You can withdraw contributions (not earnings) at any time without penalties. The other thing is Roth Conversion Ladders. Roth Conversion Ladders is basically a strategic way to convert traditional retirement funds into Roth IRAs over a several-year period; you can access the converted funds penalty-free after 5 years. Taxable brokerage account investing. No age restrictions for withdrawals. Near immediate liquidity.

Tool number two is taxable brokerage accounts, which can generate dividend income or interest payments, providing a steady cash flow stream for early retirees. Or, by drawing from taxable accounts early, you can allow Roth funds to grow tax-free longer, optimizing your portfolio’s overall performance. You can do tax law harvesting or strategic tax bracketing, which is basically when you sell investments strategically to “realize” just enough income to stay within favorable tax brackets. This lets early retirees minimize overall tax burdens. If taxable income is low enough (like in early retirement), you may qualify for a 0% capital gains tax rate, further enhancing your savings. This is a tool the very wealthy use, so they don’t have to pay a large amount of taxes, but also something you can tap into. One of these things this can do is get you to a point where you don’t have to pay any taxes at all.

The third tool is HSA accts. We love Health Savings accounts. They give you triple-tax-advantaged savings for healthcare expenses. Tax-deductible contributions. Tax-free growth, as long as it’s invested. Tax-free withdrawals for qualified medical expenses. Check with your employer, or if you are going on an open exchange, look for ones that will allow you to contribute to an HSA.

The number four tool is low-cost cities. The reality is getting more expensive everywhere, but there are still beautiful cities that are more affordable. We did an entire series on affordable LGBTQ cities to live in, so feel free to go back and check out those episodes.

The number five tool is house hacking. Multiple ways: rent out a room in the current home, buy a multiplex, and rent out the other half.  Check out our Queer Money® episode #312 – 7 varieties of house hacking. If you are not into sharing your space or buying another property,  the storage industry is a 44 billion-dollar industry. Tap into it using your attack, garage, or basement space to store other people’s goods. We see it advertised on places like FB Marketplace and Neighbor App.

The number six tool is to estimate market volatility’s effect on your retirement savings. Are you concerned about Trump tariffs and how they will affect your portfolio? There’s a calculator for that. Simulate withdrawal strategies in various market conditions. Analyze strategies to mitigate risks (e.g., dynamic spending). Two tools that can help are Portfolio Visualizer, which has a monthly fee but offers a 14-day free trial, and Morningstar Portfolio Analysis, which offers a 7-day free trial. These tools help you understand when is the best time or the best amount to withdraw from your accounts.

The number seven tool is different types of FIRE. Financial Independence Retire Early, Retire Entrepreneur,  Retire Investor,  Lean FIRE, Fat FIRE, Coast FIRE, and Barista FIRE. Why is this a tool? Because they are strategies that you can use to guide your spending and saving for retirement.

For the resources and to connect with our guests, get the show notes at: https://queermoneypodcast.com/subscribe. 

 

 

Previous Bonus Podcast Episodes

• 5 Reasons Why You Won’t Retire Outside the US in 2025
• We F’d This Up about Retirement!
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