[USER]

well, can 55yr old retire with 2.5m? assume no debt. also with good health.

I’m considering early retirement at 55 and wondering if a $2.5 million portfolio would be enough. My expected expenses include housing, healthcare, travel, and general living costs.

I want to ensure my savings last through retirement without running out.

For context, I plan to invest in a mix of stocks, bonds, and other assets to generate income. I’d also like to factor in inflation, market risks, and potential unexpected expenses.

Have any of you retired early with a similar amount? What strategies did you use to make it work?

Any advice on budgeting, withdrawal rates, or investment approaches would be greatly appreciated!

[Ronald]

If you can live like you want to at $100,000 per year or less then yes you can, especially with Social Security benefits added in at year 62

[Valerie]

It depends. Are your assets in accounts that will cause penalties if withdrawn before age 59.5? What are your monthly expenses?

Also, good health doesn’t mean much.

My husband was 53 and in good health, very active, healthy body weight and died of a heart attack.

You could die tomorrow or you could live to be 100.

[Sanju]

I know people who have retired with 800K what are you talking about?

[Derek]

I have a friend who retired at 40 with 2.5m. It all depends on your lifestyle.

[David]

That’s completely dependent on your expenses. As a shortcut, with a 4% withdrawal rate that’s 100,000 dollars a year. That’s significantly more than the median income in the US.

So, for most people, that’s probably great.

However, for some people 100,000 a year (especially pre-Medicare age) would be a significant decrease in lifestyle.

You need to break out your expenses and see what you need to live happily.

[Matt]

The only thing that matters is spending. Under 100k a year you should be good.

[Kerry]

Only you know your expenses, your health insurance options/strategy, your marital status, whether or not you have dependents, and other important factors

[Josh]

Umm what are your expenses? You can’t retire if you spend $2.5 million a year.

Expenses are the key to any retirement question.

[Dion]

Depends on how it’s invested. I invested 320,000 from my W-2 and 300,000 from my rental income.

This generates over $240,000 a year in profit after all expenses after taxes and after future expenses.

I am able to retire on that, could you?

[Lorrie]

How much do you desire to retire? Enough to limit your expenses to $100,000 a year?

If so, you’re good to go.

[Author]

Posts