Did you know you can use your 401(k) to retire early? Yep, it’s possible. And today’s guest, Eric Cooper, is doing it atage 47! Most FIRE chasers search for how to withdraw from a 401(k) early but know that doing so will hit them with substantial penalties. The best way around this? The 72(t) rule—which is precisely what Eric has been taking advantage of. Eric uses the 72(t) rule’s “substantially equal periodic payments” to take early withdrawals from his 401(k) of $30K per year, starting at age 47. But how does it work?Eric comes on the show to describe exactly how this early withdrawal rule works, how much you can take out, the regulations to follow so you avoid penalties, and why early retirement may be much closer than you think. But this isn’t the only early retirement income Eric has got. We’ll review his substantial real estate portfolio and detail Eric's almostunbelievable tax savings from combining tax-advantaged rental properties with rule 72(t).Plus, Eric shares how he built a multimillion-dollar nest egg by his mid-forties and why those starting young on the path to early retirement can repeat his strategy to be much richer in retirement. Do you have money sitting in retirement accounts that you’re ready to use? The 72(t) rule might be just what you need.In This Episode We CoverHow to access retirement funds early with the often overlooked 72(t) ruleEscaping the “middle-class trap” that stops you from retiring on your termsAvoiding 401(k) penalties and using retirement accounts to actually retire early The rules and regulations you MUST follow to withdraw penalty-free How Eric amassed such a massive retirement account balance (and how you can, too)Early retirement healthcare and how to lower your taxable income to greatly reduce premium costsAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupNetwork with Other Investors on The Path to FIRE Through the BiggerPockets ForumsFinance Review Guest OnboardingJoin BiggerPockets for FREEMindy on BiggerPocketsScott on BiggerPocketsListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Find an Investor-Friendly Agent in Your AreaFind Investor-Friendly LendersBiggerPockets Money GroupHow to Access Retirement Funds Early72(t) Calculator See Mindy and Scott at BPCON2024 in Cancun!How the “Middle-Class Trap” Stops Your Early Retirement00:00 intro01:14 What is Rule 72(t)?05:30 Avoiding Early Withdrawal Penalties 11:12 Building a BIG Nest Egg17:14 Retiring Early at 47!18:00 Different Investment Accounts21:41 Why Withdraw Early?24:52 Rental Income and Healthcare 30:44 Selling the Rentals?32:54 Calculating Your 72(t) Income 38:40 Advice for Early Retirement 41:18 Connect with Eric!Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-560Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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