- **Investment Focus**: Invest in **stocks and ETFs** in a taxable brokerage account for flexibility, even if the tax burden is higher. - **Emergency Fund**: Maintain a **separate liquid savings** for unexpected expenses (3-6 months of expenses). - **Avoid Early Withdrawals from Roth Accounts**: Keep Roth IRA contributions accessible but prioritize taxable account investments for flexibility. ## Phase 2: Aggressive Roth Investing (Age 59.5 - 65) - **Maximize Roth IRA & Roth 403(b) Contributions**: Now that penalty-free withdrawals are available, invest heavily in tax-free growth. - **Continue Investing in Stocks & ETFs**: Shift focus to Roth accounts for long-term tax-free compounding. - **Start Rolling Over Roth 403(b) into Roth IRA**: If employer allows, move money yearly to avoid RMDs. - **Withdraw as Needed, Tax-Free**: Roth IRA and Roth 403(b) contributions can be accessed **without penalty**. ## Phase 3: Retirement & Beyond (Age 65+) - **Continue Rolling Over Roth 403(b) to Roth IRA**: Ensure all funds are in **Roth IRA to avoid RMDs at 73**. - **Tax-Free Withdrawals**: Take as needed while letting the balance grow tax-free. - **Optional Stock & Dividend Income**: If extra cash is available, invest in **dividend-paying stocks** for passive income. - **Estate Planning**: Ensure Roth IRA is set up for **tax-free inheritance** to beneficiaries. ## Final Takeaways ✔ **Prioritize taxable stock investments before 59.5 for withdrawal flexibility**. ✔ **Aggressively invest in Roth IRA & Roth 403(b) starting at 59.5**. ✔ **Roll over Roth 403(b) into Roth IRA annually to eliminate RMDs**. ✔ **Use a combination of tax-free and taxable accounts to optimize flexibility and growth**.