My personal plan is another 3-5 years of full time work, then 2-3 days/week part time for 10-20yrs, followed by full retirement in my late 40s to late 50s, depending on how the nest egg and real estate cashflow is working out at the time. If retirement is decades away, the big picture changes drastically. Let's say you have a family of five, and you think $2 million will probably be enough to retire on, but feel really confident that $3 million will definitely be enough. In this blog piece we use the WealthTrace Financial & Retirement Planner, which is available to the public as well, to analyze a retirement plan. And that’s assuming you were saving in a Roth 401(k) or a Roth IRA, which are tax-free in retirement. Don’t have $2 million? So I don’t really need $3 million to retire. That’s a reasonable expectation on a safe investment, such as a bond.” Kalen thinks $2 million is more than enough, especially after getting a military retirement benefit and their kids moving out by the time they retire. In fact, when planning for retirement, many people assume a $1 million nest egg (not $3 million, a piddling one million!) And, of course, none of the income requires spending/drawing down any of the assets. Another adviser in the story says that, in fact, $4 million to $5 million is the new goal for many. On average, Americans believe they need as much as $1.7 million to retire, according to a separate survey from Charles Schwab, which looked at 1,000 … $1.5 million deployed the correct way is fine. Key Points. Assuming that your house, your car, and any other expensive possessions have already been paid off, then that's totally do-able. and counsel the 4% rule, meaning that they expect retirees to live on about $40,000 per year. Tapering into retirement, you might call it. Currently early 30s. ; It is important to make sure that your retirement income covers your expenses. If I wanted to apply the 4% rule, I could have another $120k in annual spending. Yet many … Accumulating $1,000,000 in after-tax investments sounds great if you’ve been diligently saving and investing since you entered the workforce, but it’s only going to spit out about $40,000 a year in gross income. It's easy to never run out of money — work until you drop dead!! If you don't watch your spending, $2 million might not be enough for retirement. “I need $2 million to produce an annual retirement income of $60,000 assuming a 6% gain. For example, to cover the same $66,000 in expenses 25 years from now, you’ll need to have more than $2 million, thanks to inflation. With the 1.5 million investments, you'll be at $60k/year with a 4% safe withdrawal rate. Wow, I don’t know how I’d ever spend all of that. 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