Wealth & Well-Being
Your brain might need a little help
The Martyrdom Effect
Human beings admire hard work and in that, we admire physical effort in giving even when less physically arduous efforts may have a greater impact.
Many of us choose to give in ways that require a great deal of physical or emotional energy. We run marathons for cancer research or take part in the 21 day push up challenge for PTSD awareness.
Transitions can take on many forms. Taking stock of who you are and what you envision can make all the difference.
Making a shift from one life path to another is both challenging and exciting. While the financial considerations of making a career change, selling a business or pursuing a "life-calling" should not be dismissed, the emotional and psychological implications of such a major life change can often go unnoticed or unaddressed. Understanding both the benefits as well as the drawbacks of a mid-life course correction will only serve to have a positive effect on the experience as a whole.
As we look back on a year filled with surprises (from its opening days onward), it's natural to wonder what to expect in 2017. This is especially so, since most of those surprising events have yet to play out in full – from the political climate in the U.S., to the Brexit referendum in the U.K. to uncertainty in government bond and oil prices around the world.
We are reminded of a favorite quote from The Wall Street Journal personal financial columnist Jason Zweig, who once observed that "Wall Street often resembles a blindfolded person looking in a darkened closet for a pair of black shoes that isn't there."
So, you've worked hard and you've saved well...really well. Well enough to retire early from your career and embark upon new endeavors. It is exciting, and with a little strategy, it can be financially stress-free as well.
You may be wondering how to go about drawing a paycheck from your savings to pay for these new endeavors. If your investments are held within a traditional IRA account, withdrawing any amount from your IRA prior to age 59 ½ will require an early withdrawal penalty of 10% in addition to regular income taxes due on each withdrawal. If you are considering using your IRA savings to begin funding your early retirement, here are ways to avoid the 10% penalty if you are below the age of 59 ½.