Can I Retire at 60 with $500,000?
Millions of baby boomers and Gen-Xers are in or nearing retirement age and wonder what their magic number is. Plenty of middle-aged folks wonder whether they can retire at 60 with $500k in retirement assets.
Can I Retire at 60 with $500,000?
The answer to this question depends entirely on where you live, your lifestyle, types of investments, other income sources and whether you want to work part-time in retirement. If you see retirement including travel, some hobbies or interests that consume a lot of money, then you should budget for them ahead of time.
→ How Much Money Do I Need to Live On?
When deciding how much you need to live on in retirement, you’ll need to consider a number of factors unique to your situation and ideal retirement: - How much money you spend on housing every month - How much money you spend on food every month - What types of transportation and health insurance you want to budget for (You’ll need health coverage if retiring before Medicare eligibility and possibly supplemental coverage to Medicare in retirement) - Types of leisure activities that are important to your retirement plan
→ Social Security Payments: How Much Can I Expect?
Social Security is the single largest source of retirement income for millions of Americans. Many depend on this income to pay their bills in retirement, so knowing how much you can expect plays a major role in how you can prepare for retirement.
→ Investment Assumptions Around Assets Needed to Retire on $500k
Some good rules of thumb for the investment assumptions needed for retiring on $500k, consider the following items: - Investing in a diversified portfolio of 60% stock investments and 40% bond fund investments - Using more conservative historical returns, also accounting for potential economic uncertainties ahead - Expect to earn 5-7% on this portfolio with a rough 8% per year average in stocks and 4% in bonds- be cautious of overly aggressive return projections and also know that these are annual averages
How Much Do I Need to Retire at 60 Comfortably?
When thinking about retirement, you’ve got to project a lot of things into the future, often decades. Fortunately, you’ve developed a sense of your financial needs to this point in life, know what your lifestyle affords and how you can handle money.
→ Slash Your Living Expenses, Pay Off All Debt
How Much Do I Need to Retire at 60 Comfortably?
Another option to shed expenses and the overall bloat of a budget is move to a lower-cost-of-living area. This allows you to live more cheaply and unlock any savings you’ve accumulated in a home or assets you no longer need in your current location.
→ Consider Moving to a Low-Cost-of-Living Area
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