I wish I could tell you that this alone could lead to an early retirement, but there's one caveat that can dash the dreams of many super-savers: penalties incurred for withdrawing your tax-advantaged savings early. Though there are some circumstances in which you can withdraw money from your 401(k) or IRA early, you generally need to wait until you reach age 59-1/2 before taking your money out penalty-free.
No matter what, you simply can't avoid paying some taxes on your retirement savings. But there are ways to reduce them. More importantly, there is a way to get your money far before you turn 59-1/2 and never pay a dime in penalties. In the slideshow below, you'll see how this process works. Thanks to the Mad Fientist blog, which first brought this method to my attention.