BiggerPockets Money15 Apr 2025

Early Retirement “Traps” That Delayed My FIRE by a Decade

Early retirement in your 50s is a dream for most Americans, but today’s guest is sharing how she could have retired in her 40s, a decade earlier, if she had avoided these FIRE “traps.” Yes, it IS possible to FIRE in your 40s even with much of your money in retirement accounts. “But I thought you couldn’t take out that money until you’re 59.5?” That’s where you’re wrong, and today, Diana Hummel is showing YOU how to withdraw from your retirement accounts even earlier.

In her mid-30s, Diana had a huge wake-up call. Her parents, who had just retired, suddenly passed away. This lit a flame that would eventually ignite a full FIRE under Diana to live life on her terms well before the standard retirement age. She and her husband saved diligently, invested heavily, and were able to quit their jobs at 45, starting two businesses, one of which broke even while the other turned a profit.

The problem? Diana most likely had enough money to retire once she quit her W2, but she didn’t realize she could FIRE so early. Thanks to Roth conversions, 72(t) strategies, and smart tax planning, Diana is fully retired and ready to teach you how to FIRE faster!

In This Episode We Cover

How to withdraw from retirement accounts early and FIRE in your 40s or 50s

The 72(t) strategy explained and using your 401(k) to retire early (seriously!)

Early retirement healthcare and how Diana is covering it with pre-existing conditions

Retiring during a stock market crash and how new retirees can handle 2025’s bumpy market

The biggest FIRE regret Diana has and a lesson you should learn before you retire (early)

And So Much More!

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