Funds before age 60

[MadManofBethesda]

Originally Posted by Tallysmom

I think the other criteria is that you can't be employed in the same profession. Like -- we worked in banks for years, and we can get our hands on our retirement funds from banking, because we are now own a janitorial company. If we had gone back into banking, we couldn't get at those old banking funds.

Sorry, I have absolutely no idea to what you're referring. Nothing that you've written has anything to do with my comment about accessing TSP or Roth IRA monies.

[jghorton]

Originally Posted by rjwassink67

Like many others, why would I want to pay penalties on my saved money if I didn't have to, so I will just leave IRA and TSP there until I'm 60.

I am looking for good solid places to put money to fill the gap from retirement to 60 to payoff big expenses...house and whatever else. The faster I pay off the mortgage the less money I just throw away. So yes I think we will be close at 45, just trying to find best ideas to do that.

While you can avoid the early withdrawal penalties by waiting until 60, you cannot avoid the taxes ... on both the initial principle AND any GAIN. The latter is, in effect, a penalty, since you could convert to a ROTH with a reasonable expectation that the 'gain' over 15-years, will exceed the immediate taxes and penalty.

Since you do not anticipate needing the money between 45 and 60, you might seriously consider an annuity. Some of the initial fees are high, but, the long-term, guaranteed payback beyond 10-15 years (at the relatively young age of 60, could really be significant. (In fact, you could roll-over your IRA/TSA into an annuity, without withdrawing it ... thus avoiding taxes and penalties; But, again, you will eventually have to pay taxes on the income/gain.

[sware2cod]

You can get an indiviual account at any of the brokerage houses (same ones that have 401Ks) and invest in mutual funds as well as stocks. It's like your 401K for the mutual funds, by 100 times as many choices of mutual unds. Plus add the brokerage acct where you can buy/sell stocks and ETCs from same acct.

It's just a taxable acct and that's how it differs from an IRA. You pay taxes on the dividends/capital gains every year.

You can set the acct up quickly and easily. Heck, if you have IRAs and 401Ks at same brokerage firm, you can see all your investments on the main page even though they are different accounts...one being taxable and others tax deferred (or tax free if Roth IRA).