Can I retire on $2 million at 65?

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By Nick

Quick Peek:

Thinking about retiring at 65? It’s important to plan ahead and save enough money to ensure a comfortable retirement. A good rule of thumb is to aim for a retirement income of 70-80% of your pre-retirement income. If you accrue $2 million during your career, you can pay yourself $80,000 annually without touching your principal. However, it’s important to consider other factors that can impact your retirement and to start planning early. Don’t wait until it’s too late!

Can I Retire on $2 Million at 65?

Retiring at 65 seems like a typical target, but it takes careful planning and a sufficient nest egg to pull off. With the rising cost of living and increasing life expectancy, it’s important to have a solid plan in place to ensure a comfortable retirement.

The Importance of Planning

Planning for retirement can be a daunting task, but it’s essential for a stress-free future. The first step is to determine how much money you’ll need to live on each year. A general rule of thumb is to aim for a retirement income of 70-80% of your pre-retirement income.

How Much Money Do You Need?

If you accrue $2 million during your career, you can pay yourself $80,000 annually without touching your principal, which translates to a healthy monthly budget. This amount is based on a 4% withdrawal rate, which is a commonly used benchmark for retirement planning.

Other Factors to Consider

While $2 million may seem like a substantial amount of money, it’s important to consider other factors that can impact your retirement. These include your lifestyle, health, and unexpected expenses such as medical bills or home repairs.

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The Benefits of Starting Early

The earlier you start planning for retirement, the better off you’ll be. By starting early, you can take advantage of compound interest and maximize your savings potential. It’s also important to regularly review and adjust your retirement plan as needed.

In Conclusion

Retirement planning can be overwhelming, but it’s essential for a secure future. By accruing $2 million during your career, you can pay yourself $80,000 annually without touching your principal. However, it’s important to consider other factors that can impact your retirement and to start planning early. With careful planning and a solid retirement strategy, you can enjoy a comfortable and stress-free retirement.

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