Social Security ....The monthly Check...yes or no

[Ken]

Yes, but you are just guessing that your tax burden will be higher at age 30 when you put money into the IRA than it will be at age 70 when you take the money back out. That might be true for some people but untrue for others. Also the income tax rates can change during those intervening 40 years (tax rates can go up or down). So it is really just a roll of the dice.

What is actually happening is that you are taking the money that you would owe in taxes today and the government is letting you keep that money for 40 years and let you invest it and then pay taxes 40 years later when you take it back out. It is like a free loan from the government that you can invest and earn money on.

For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs.

It's entirely possible to contribute to an IRA at a time when no dice are necessary. Perhaps even simultaneously making contributions and taking RMDs.

Well sure. In fact a common tactic is to withdraw money from your traditional IRA and roll it over into a Roth. Especially if you don't need the money right away. This is super common, google "Roth Conversions"

But the vast majority of Americans are saving money during their working lives and spending it later in retirement. However you can actually use these accounts in different ways. For example, you can withdraw a Roth penalty free to use for a down payment on a house if you have had the money in the Roth for at least 5 years. Same for funding children's college educations. So they aren't exclusively for retirement savings even though the word retirement is in the name.

And there are ways to get the money out of a traditional IRA early as well without paying penalties. But they are more complicated. You can always get the money out of any account before retirement if you are willing to eat the 10% penalties.

[ohio jones]

And there are ways to get the money out of a traditional IRA early as well without paying penalties. But they are more complicated. You can always get the money out of any account before retirement if you are willing to eat the 10% penalties.

Or wait until you're old enough but not yet retired, which isn't complicated at all.

[Ken]

And there are ways to get the money out of a traditional IRA early as well without paying penalties. But they are more complicated. You can always get the money out of any account before retirement if you are willing to eat the 10% penalties.

Or wait until you're old enough but not yet retired, which isn't complicated at all.

You can also get it out much earlier than 59 1/2 if you retire early and schedule indefinite uniform payments: There are FAQs about this on various early retirement forums.

[ohio jones]

And there are ways to get the money out of a traditional IRA early as well without paying penalties. But they are more complicated. You can always get the money out of any account before retirement if you are willing to eat the 10% penalties.

Or wait until you're old enough but not yet retired, which isn't complicated at all.

You can also get it out much earlier than 59 1/2 if you retire early and schedule indefinite uniform payments: There are FAQs about this on various early retirement forums.

That's not getting money out of the account before retirement.

[Ken]

Or wait until you're old enough but not yet retired, which isn't complicated at all.

You can also get it out much earlier than 59 1/2 if you retire early and schedule indefinite uniform payments: There are FAQs about this on various early retirement forums.

That's not getting money out of the account before retirement.

Retirement is not a legal term. Anyone can declare themselves "retired" at any moment in time, even if they keep working. A whole bunch of people in the FIRE (financial independence retire early) community seem to be working harder in "retirement" than they did when they had jobs. They are just doing different jobs like real estate investing and property management and various side gigs.

And there are vast numbers of people who are retired when it comes to Social Security but still working in various jobs. I see "retired" teachers here at school who are drawing social security and pensions and still working as substitute teachers in "retirement"

The only instances when retirement means something legal is when you are working in a job with a pension. You can't start drawing your pension until you put in your retirement papers because they generally don't allow you to double-dip and draw both a paycheck and pension. But there are exceptions to that as well. You can often come back to the same employer in retirement in a different capacity that isn't earning a pension. Like teachers who come back and work as substitutes. Or cops that come back and work for the city as "consultants".

[Josh]

My impression of "FIRE" people is that they all get jobs operating a vlog, blog, etc. on TikTok and elsewhere promoting their lifestyle and their "coaching services" so that you, too, can "retire early". Oh, and how to live out of a van.