Yes, congratulations you can retire! And that’s assuming you were saving in a Roth 401(k) or a Roth IRA, which are tax-free in retirement. Yet many … Don’t worry. For example, to cover the same $66,000 in expenses 25 years from now, you’ll need to have more than $2 million, thanks to inflation. If retirement is decades away, the big picture changes drastically. 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. Assuming that your house, your car, and any other expensive possessions have already been paid off, then that's totally do-able. $1.5 million deployed the correct way is fine. Or as the r/financialindependence community would say: go fuck yourself!. 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. Currently early 30s. 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 … Wow, I don’t know how I’d ever spend all of that. Another adviser in the story says that, in fact, $4 million to $5 million is the new goal for many. 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. You’ve worked at least 18 years and have given your investments a good enough amount of time to compound. If you don't watch your spending, $2 million might not be enough for retirement. Don’t have $2 million? 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. It's easy to never run out of money — work until you drop dead!! and counsel the 4% rule, meaning that they expect retirees to live on about $40,000 per year. “I need $2 million to produce an annual retirement income of $60,000 assuming a 6% gain. 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. According to TD Ameritrade's 2019 Retirement Pulse Survey, 58% of Americans think that $1 million in retirement savings will be enough. With the 1.5 million investments, you'll be at $60k/year with a 4% safe withdrawal rate. And, of course, none of the income requires spending/drawing down any of the assets. 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