On today's episode, Ready for Retirement, we're going to be talking about the changes you need to make if you plan to retire early.

Most people assume that maybe one or two things changes when you plan on an early retirement.

Maybe you need to plan for health care and maybe you need to invest a bit differently because of the way that you're going to take money out of your portfolio.

But there's actually a whole slew of changes that you need to be aware of.

And in today's episode, we're going to go through Juan's case. Juan is a listener. He submitted a question. We're going to use his example or his

scenario as a sample to show you what are the changes that you need to make if you're planning

on retiring early. This is another episode of Ready for Retirement. I'm your host, James Cannell, and I'm here to teach you how to get the most of the life with your money.

And now, on to the episode.

Let's jump right into Juan's question.

Juan says this.

I'm planning for retirement around age 50.

I plan to save enough to cover anywhere from 25 to 50% of my expenses before age 55. I might work another part-time

job and a less stressful job just enough to cover my expenses. My employer offers a traditional

and an after-tax Roth implant option through my 401k plan. Should I use this for my pre-60

funds by using the principal or is a brokerage account better. I already

have both, but I'm wondering if I should focus on one over the other. What are the pros and cons?

Here's some information about me. I'm 45 years old. I have a $175,000 salary that comes out to

$250,000 after bonuses and RSUs. I have $1.2 million in my 401k plan. I'm saving around $40,000 per

year. I have $200,000 in a brokerage account that's half in a U.S. market fund and half in

treasury bills. I estimate $100,000 per year of expenses to maintain my current lifestyle.

I'm married and have a single income.

Gracious, Juan.

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