Is it Possible to Retire by 40?
These days, a large number of workers are exiting the workforce extremely early -- as early as age 40, in fact. Retiring at 40 is far from easy, but it is possible. You just need to commit to that goal -- and make sure the sacrifice to get there is worth it.
If your goal is to leave the workforce by age 40, you'll need to start saving for retirement the moment you start collecting a paycheck. You'll also need to house your savings strategically to avoid being penalized for tapping your nest egg prematurely.
Though there are tax benefits to funding a 401(k) or IRA, in exchange, the IRS wants your money left alone until you turn 59 1/2. That's fine for most retirees, but it's not going to work if your goal is to stop working by the time you turn 40. Therefore, think about where you'll put your money. A traditional brokerage account may be your best bet, because that way, you'll get to invest your money to grow it into a larger sum, but you'll also maintain complete flexibility over your savings.
Source Fool.com
