If you’ve ever thought, “I need my 401k money now,” you’re not alone. Many people face financial situations that make them consider tapping into their retirement funds early. Americans between the ages of 45 and 58, have an estimated $23 T invested in retirement accounts. However, taking money out of a 401(k) for early retirement before age 59½ usually triggers taxes and a 10% early withdrawal penalty.

If you’re planning Early Retirement, understanding how to maximize your 401k performance is crucial. One of the most enlightening resources for this is the SPIVA report (S&P Indices vs Active), which compares the performance of actively managed funds to the S&P 500 index for over more than two decades. The findings are clear and eye-opening: Over the long term, index investing beats active management funds after factoring costs..

A Practical Guide to Automated Portfolios with Fidelity, Schwab, and Vanguard