Retiring at 67 with $2 million dollars is possible, according to the 4% rule. This rule suggests withdrawing 4% of retirement savings each year to ensure that money lasts throughout retirement. This could provide around $80,000 per year, which is more than the average 65-year-old spends in retirement. However, a comprehensive retirement plan is necessary, taking into account all expenses and income sources, as well as investment strategy. Consultation with a financial advisor can help create a tailored retirement plan.
Can I Retire at 67 with $2 Million Dollars?
Retirement is a time when you should be able to relax and enjoy the fruits of your labor. But to do that, you need to have a plan. One of the most important things to consider is how much money you will need to retire comfortably. The 4 percent rule is a popular guideline that suggests withdrawing 4 percent of your retirement savings each year to ensure that your money lasts throughout your retirement.
The 4 Percent Rule
Following the 4 percent rule for retirement spending, $2 million could provide about $80,000 per year. That’s more than average. The Bureau of Labor Statistics reports that the average 65-year-old spends roughly $4,345 per month in retirement — or $52,141 per year. Feb 8, 2023.
However, it’s important to note that the 4 percent rule is just a guideline. Your actual retirement expenses may be higher or lower depending on your lifestyle, health, and other factors. It’s important to have a comprehensive retirement plan that takes into account all of your expenses and income sources.
Creating a Retirement Plan
Creating a retirement plan can be overwhelming, but it doesn’t have to be. Start by assessing your current financial situation and determining how much you will need to save for retirement. Consider your current expenses and how they may change in retirement. Will you have a mortgage or other debts to pay off? Will you need to pay for healthcare expenses?
Next, consider your income sources in retirement. Will you have a pension or Social Security benefits? How much will you need to withdraw from your retirement savings each year?
It’s also important to consider your investment strategy. How will you invest your retirement savings to ensure that your money lasts throughout your retirement? A financial advisor can help you create a comprehensive retirement plan that takes into account all of these factors.
In conclusion, retiring at 67 with $2 million dollars is possible, but it’s important to have a comprehensive retirement plan that takes into account all of your expenses and income sources. The 4 percent rule is a useful guideline, but it’s important to remember that your actual retirement expenses may be higher or lower depending on your lifestyle and other factors. Consult with a financial advisor to create a retirement plan that is tailored to your individual needs and goals.
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