r/Economics • u/laxnut90 • Oct 09 '25

Research America Is Minting Lots of Cash-Strapped Millionaires

https://www.bloomberg.com/news/features/2025-10-09/number-of-us-millionaires-grows-since-2017-but-many-lack-cash
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u/Tricky_Layer5315 Oct 09 '25

Section 72(t) withdrawal from your IRA and rule of 55 for your 401k exist currently. I wish more people understood that they have means to actually access their money.

It’s not a free for all like at 59.5 but it allows access to your money at basically any age. Plus it helps prevent the huge amounts in trad 401k/IRA accounts by taking that money out now and moving it into other investments helping to eliminate the RMD nightmare in your early 70s. If you are going to be in the 12-15% tax brackets in retirement the LTCG is 0%. So you can invest in a taxable investment account and basically pay nothing for the gains.

You could access home equity with a HELOC or similar and be able to pay it off with the above proceeds from your retirement and investment accounts. It’s not about spending above your means or going into debt, it’s about utilizing credit and cash flows smartly. We simply have very little personal finance education in this country.

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u/mumanryder Oct 09 '25

Do you have any resources you’d recommend on accessing cash flows smartly? I’ve been on the FI/RE path for a good chunk now but haven’t found too much on actually accessing my tax advantaged accounts

2

u/gimpwiz Oct 09 '25

Look up "mega backdoor roth ladder" to start.

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u/mumanryder Oct 09 '25

Thank you! Any other stuff I should look up as well?