Retiring with $1 Million at 55: Planning for a Secure Financial Future
By Retiring at 65 is a common goal, but it takes careful planning and a large enough nest egg to make it a reality.[0] If you accrue $2 million during your career, you can pay yourself $80,000 annually without touching your principal and likely receive Social Security benefits in the range of $1,500 to $2,000.[0] However, everyone's financial situation and expenses are unique, so you may need to adjust your budget or savings goal. [0]In order to retire well, you'll need to create a detailed plan, even if you have a robust investment account.[1]
The 4% rule is a helpful way to determine if your nest egg is sufficient for retirement.[2] This rule states that you can withdraw 4% from a balanced portfolio in your first year of retirement and then adjust withdrawals for inflation in subsequent years.[2] Additionally, investing in a Roth IRA or Roth 401(k) can help you avoid taxes on retirement income.[0] You should also factor in other taxes you may be subject to, such as capital gains taxes, property taxes, and income taxes on retirement accounts.
It's possible to retire with $1 million at 55, but it requires smart financial planning. Consider working with a financial advisor to help you understand the advantages and disadvantages of investment properties, as well as what type of taxes you'll pay in retirement.[3] SmartAsset's free tool can match you with up to three financial advisors who serve your area.[4]
You can also use SmartAsset's comprehensive retirement calculator and Social Security Calculator to get an estimate of how much money you'll need to retire and how much you can expect to collect from Social Security.[4] By accounting for your location, expenses, income, and allocations, you can better plan for retirement.[4] With the right guidance and planning, you can retire with $1 million at 55.
0. “Can I Retire at 65 with $2 Million?” AOL, 17 Mar. 2023, https://www.aol.com/finance/retire-65-2-million-130038820.html
1. “Can I Retire With $1 Million at 55?” msnNOW, 18 Mar. 2023, https://www.msn.com/en-us/money/retirement/can-i-retire-with-dollar1-million-at-55/ar-AA18MY1e
2. “Is $2 Million Enough to Retire at 70?” msnNOW, 15 Mar. 2023, https://www.msn.com/en-us/money/retirement/is-dollar2-million-enough-to-retire-at-70/ar-AA18FqWV
3. “People Retire Without Any Money” msnNOW, 18 Mar. 2023, https://www.msn.com/en-us/money/personalfinance/people-retire-without-any-money/ar-AA18MTVH
4. “Is $3 Million Enough to Retire at 50?” Yahoo News, 17 Mar. 2023, https://news.yahoo.com/3-million-enough-retire-50-130022627.html
