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. “I need $2 million to produce an annual retirement income of $60,000 assuming a 6% gain. and counsel the 4% rule, meaning that they expect retirees to live on about $40,000 per year. 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. In fact, when planning for retirement, many people assume a $1 million nest egg (not $3 million, a piddling one million!) Yet many … $1.5 million deployed the correct way is fine. Don’t have $2 million? If retirement is decades away, the big picture changes drastically. ; It is important to make sure that your retirement income covers your expenses. It's easy to never run out of money — work until you drop dead!! 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 … And, of course, none of the income requires spending/drawing down any of the assets. And that’s assuming you were saving in a Roth 401(k) or a Roth IRA, which are tax-free in retirement. According to TD Ameritrade's 2019 Retirement Pulse Survey, 58% of Americans think that $1 million in retirement savings will be enough. So I don’t really need $3 million to retire. 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. Another adviser in the story says that, in fact, $4 million to $5 million is the new goal for many. Yes, congratulations you can retire! Retiring at 40: 40 is the earliest I’d recommend anybody retire. Or as the r/financialindependence community would say: go fuck yourself!. Tapering into retirement, you might call it. You’ve worked at least 18 years and have given your investments a good enough amount of time to compound. In this blog piece we use the WealthTrace Financial & Retirement Planner, which is available to the public as well, to analyze a retirement plan. Currently early 30s. Author and personal-finance guru Suze Orman ruffled a lot of feathers in a recent podcast, saying that people need $5 million — maybe even $10 million — in order to retire. Key Points. You're also definitely not too old for this community. Assuming that your house, your car, and any other expensive possessions have already been paid off, then that's totally do-able. Don’t worry. 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. 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