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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The real hidden cost of retiring early is losing 401k catchup contributions.

this year I did the $23,500 and the new $11,250 catch up for 60-63. So a total of $34,750. And that is before match. For instance Fannie Mae pays a 8 percent match and they match on bonus too.

Someon making lets say $225K with a 75K bonus will get a $24,000 match.

So that would be $58,750 in 401k in one year.

60-63 alone doing max can massively increase 401k

Now imagine you work till 67 vs retiring early at 59.5 when you can first take your 401k penalty free and and did max each year with catch up at a place with a 8 percent match. Given the new 60-63 super catch ups it would grow a ton those last 7.5 years and you will be compounding your current funds too. Most likely it may double or even triple in size those last 7.5 years.

My BIL early retired at 62 in 2020. He had been pulling from his 401k the last 5 years and missed most of bull market Fall 2022 to today. By time he hits RMDs at 73 he will have used up a ton of his 401k already.    [/quote]

Right, but if you started early and have millions in your 401K / TSP by retirement, catchup contributions are small change.  It's not worth forfeiting your healthy years of retirement for another million if you already saved enough.[/quote]

This

you shouldn't be retiring early if you actually need to add that much more to retirement and have it grow tax free.  If that's the case, you are not ready to retire.

But yes, retire early if you can and just enjoy life and your good health (hopefully).  You never know when things will decline (hint: in your 50s, even if you exercise and are healthy, shit starts to happen for many, it's natural decline of your body, so don't wait until 67 to travel and do things you want, you might not be able to)
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And who is traveling with you when you retire early. At 55 nearly everyone on my block had a housefull of kids at home all in school and pets. My new nieghbor I just met who is 55 has a 11, 13, 17 and 20 year old at home.  Her husband is 58. Exactly how are they retiring and traveling the world young?  [/quote]

Well if you still have kids at home at that age, that was your choice.  We are 55 and last kid is senior in college (undergrad and grad school fully funded).  So we are retired.  So for now, it's mostly us traveling---strange that we as a couple like to spend time together, right?  Many friends can "work from anywhere" so we also travel with some of our friends for parts of the trips---they work 5-6 hours and by 3pm we have rest of day together to do things with them.

But I don't need to travel with a group---we like spending time togehter and when possible the kids join for 1-2 trips a year.  
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