After rolling over my 401(k) into an IRA, I’d like to focus on potentially the single most beneficial reason why everyone should convert their 401(k) into an IRA after they leave their jobs: Rule 72(t). Rule 72(t) allows for penalty-free withdrawals of your IRA account before the age of 59.5 provided that the IRA holder take […]
Use Rule 72(t) To Withdraw Money Penalty Free From An IRA Read More »
I love index funds and ETFs for their low-cost nature and simplicity of ownership. However, if you want to build generational wealth before traditional retirement age, consider looking beyond just index funds and index ETFs. Since starting Financial Samurai in 2009, I’ve written extensively about investment strategies, financial independence, and retiring earlier to do what
The Richest People Are Not Index Fund Fanatics – Why Are You? Read More »
When it comes to buying a home, most people focus on location, the ideal layout and square footage—which are all important. But one factor that’s often overlooked, yet has a major impact on both cost and experience, is timing. The better you can time your home purchase, the greater the returns and the less stressed you’ll
Why Timing Your Home Purchase Matters More Than You Think Read More »
Imagine spending your life building wealth, investing in real estate, stocks, or your business, with the hope of leaving a legacy for your children. Then one day, you find yourself wondering: Will the government take a massive chunk of it anyway? If your estate is well above the federal estate tax exemption threshold — $30 million
The Step-Up In Cost Basis And Its Relation To The Estate Tax Threshold Read More »
The value of owning a big, beautiful home is underappreciated. Somewhere along the way, the personal finance world began favoring minimalism and smaller living spaces, often dismissing larger homes as “McMansions.” But after spending five weeks living in a much smaller space again, I’ve gained a renewed appreciation for the comfort, privacy, and functionality that
In Defense Of Owning A Big Beautiful Home Over A Small One Read More »
Dear Financial Samurais, The One Big Beautiful Bill Act (OBBBA) reminded me of a key financial principle: it’s better to have a high net worth and low income than a high income and modest net worth. While researching how OBBBA affects FIRE seekers, I realized something encouraging: there is no longer a hard subsidy cliff. Under the enhanced premium
Newsletter for July 12, 2025: Subsidies For Millionaires Read More »
One of the things that gives me great comfort about the health of the U.S. economy is our historically low household leverage (liabilities to net worth). According to the Federal Reserve Board, household leverage is now at an 80-year low—a remarkable sign of financial discipline. So let me be the first to congratulate you for not loading up
Low US Household Leverage Bodes Well For The Economy Read More »
A typical supercommuter spends 90 minutes or more one way commuting to work or school. As the cost of living continues to outpace wage growth, supercommuting is growing in popularity. According to a recent U.S. Census Bureau report, an estimated 5 million people are now supercommuters—up from roughly 3.42 million in 2012. I hate long commutes. Taking
The Cost of Supercommuting: Way More Than Just Gas Money Read More »
On July 3, the House narrowly passed the One Big Beautiful Bill Act (OBBBA) with a 218–214 vote. According to the nonpartisan Congressional Budget Office (CBO), the bill will add an estimated $3.3 trillion to the budget deficit over the next 10 years. Trump signed the bill the next day on July 4. To help pay for it, OBBBA
The One Big Beautiful Bill Act’s (OBBBA) Impact On FIRE Seekers Read More »
Dear Financial Samurais, Every Fourth of July weekend, I like to take a moment to reflect on where I stand on the freedom meter. Am I doing things that increase my freedom, or am I slowly giving it away? This year, I decided to stay with my parents in Honolulu—a choice that came with restrictions I
Newsletter for July 6, 2025: Freedom Is Always The Best Choice Read More »
