Ask Money

How to Semi-Retire Early

Marketplace Staff May 3, 2013


My husband and I are striving to “semi-retire” in about 10 years at the age of 40, where both of us will drop to working part time (20 hrs a week) until age 65.

We have a “rainy day” fund of about $28,000, and currently feel very secure with our 401(k) and Roth IRA savings plans, but we don’t want to take the penalty that goes along with withdrawing these funds before age of 59-1/2 years old.

We are now trying to figure out the best place to save the money that we will need to live between age 40 and age 65. The options we have considered so far are a money market account, investing in index funds or a “safe” mix of mutual funds and stocks. What is the best way to save/grow our money?

Thank you for your advice!


Paddy Hirsch May 3, 2013 Senior Editor, Marketplace
Hey Marketplace Money Fans! While we wait for our experts to chime in on this question, share your thoughts in our comments section. What advice would you give to someone trying to “semi-retire” at the age of 40?

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.