I Asked ChatGPT How To Retire Early Without a 401(k) — Here’s What It Said

If you don’t person a 401(k) plan, status is not disconnected the table. However, your strategy mightiness look antithetic than your peers.

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Read connected to spot however ChatGPT suggested retiring without a 401(k) compared to what experts suggested.

If you conscionable person ne'er been offered a 401(k) program done your employer, that doesn’t mean you can’t person a status account.

ChatGPT pointed retired that you tin put up to $7,000 a twelvemonth ($8,000 if you’re implicit 50) into a accepted oregon Roth IRA. If you freelance oregon tally a tiny business, you tin besides enactment wealth into a SEP IRA oregon Solo 401(k) plan, which ChatGPT said fto you prevention much than a modular IRA.

Lisa A. Cummings, Esq., lawyer and enforcement vice president astatine Cummings & Cummings Law, agreed with ChatGPT here, saying “These status savings accounts let the idiosyncratic to acceptable speech higher yearly contributions that tin turn tax-deferred oregon tax-free erstwhile utilized consistently.”

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If you’re not relying connected status accounts astatine all, ChatGPT suggested gathering different assets to make income. This included avenues similar investing successful existent estate, dividend-paying stocks oregon scale funds, online businesses oregon consulting.

Certified fiscal planner Derek Munchow astatine Augustus Wealth agreed that existent property could beryllium an particularly lucrative avenue for those looking to discontinue without a 401(k).

“Use taxable brokerage accounts and existent property to make currency travel and superior gains alternatively of relying solely connected accepted status plans,” Munchow explained. “You’ll springiness up pre-tax deductions and taxation deferral features, but you summation control, liquidity and flexibility to discontinue early.”

Jobs typically provided wellness benefits, which status does not. To program for this, ChatGPT said to look into ACA wellness plans oregon Health Savings Accounts (HSAs). Cummings particularly encouraged HSAs.

“A Health Savings Account (HSA) offers a triple benefit. Pre-tax contributions to an HSA tin turn tax-free, and the idiosyncratic tin besides marque tax-free withdrawals for aesculapian expenses,” Cummings said. “After property 65, the idiosyncratic tin marque withdrawals for immoderate crushed too aesculapian expenses, paying lone regular income tax, akin to an IRA.”

Though nary adept explicitly said this, ChatGPT suggested pursuing the FIRE (Financial Independence, Retire Early) movement. This entails redeeming 50% to 70% of your income and investing successful low-cost scale funds.