Retire at 60 with $1M? What To Expect

It is the dream for many of us. Retire early and live off of your investments. But what does life look like for those that pursue "the dream". What are some of their biggest challenges?

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The decisions on how to invest, when to retire and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the decision that is right for you and your family.

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[ryanwilliams]

40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $900k, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.

[georgestone]

I am retiring next yr at 55 with 3 houses paid off worth 4.5 million. One is my place of residence the other 2 properties will give me $80, 000per/yr rent. I will have an income stream of $20, 000 per yr through my super which gives me total $100, 000 a yr to live comfortably. I have no debts ... Stay Motivated!!

[Riggsnic_co]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[David-hzrj]

You do a fantastic job ! Very laid back and smiling all the time ! You are the best on YouTube!

[carolbradley]

Just FYI, in case anyone is watching this video and they are kinda on the fence about retiring now vs later…….no one on their death bed has EVER said, “ I wished I would have worked longer.”

[aztecforlife]

Wise perspective. I just "retired" a year before planned due to a RIFF. Luckily I was prepared. At 57 I have no plan to go back. Time for a new chapter.

[gben]

Retiring this summer at almost 60, but my wife plans to work four more years. Won't have to touch the portfolio for several years. We have no debt. Looking forward to being in the 12% bracket.

[n-da-bunka]

Finally decided to subscribe as this one is worthy. The 4 year younger wife has worked for the largest regional hospital so we can remain on her healthcare for a reasonable costs far, far, FAR LESS than Cobra or any private plan. I turned 60 last year and picked up an 18 month consulting gig (no insurance as it's covered on my wife's plan). Will probably take 90 days off and then return to that same role for another 18 months before making a decision on whether to retire (on investments) and delay taking SS until 65 or maybe even 67...

[HeritageFarmsTexas]

Thanks for the advice. I’m 55 and think about it daily.

[situated]

If you feel like retiring in your early or mid-50s, you should likely, on average, use the 3% rule to be safe. That's what I'm doing.

[Bob-yhir]

We are going at 58 years old. We have everything paid for. House and all. Buy cars with cash. Debt has been dead in our house for more than a decade and will never re-enter our lives. We have 4 years expenses in cash to ride out market downturns since the longest bear market was 3 years so far in the history of the markets. Investments only have to carry us until we turn on SS which then covers all our household expenses. We are going to do ACA until medicare. We will get stipends most years and in some years pay 0 to 100 a month for a silver plan. We are healthy so that helps. In years where we pull some gains off the table to back feed the cash, we will pay more for health insurance but it is not a deal breaker by any means.

[comeon_man]

I’m 60. I do Physical work here I enjoy but I’m
Taking SS at 62.and plan
Working part time along w monthly SS benefit.
There’s a cap how much you can work.
I have everything paid for I.e. house cars etc.
Crux is maintaining health
Got a half m to cover unseen expenses till I’m real old

If it lasts it lasts. Damn the torpedoes I’m out!

[inikidaisy]

By choice, I am still working at 66. My employer lets me take off any time and for any length of time. My husband and I love wild animals and we have seen them all in their habitats around the world. I have been with the same employer for 33 years (yikes). For me, work provides discipline and structure, and I am not sure how I would make it work. I would encourage those who love to travel to start early because the body does wear out a bit and those hikes up the Everest trail or wherever become a little difficult. As an aside, I just love looking at your pleasant face and sparkly eyes. Blessings to you.

[maxflight]

I utterly love your content.
You have a good sense of fairness and your observations are crystal clear.

In the US the healthcare costs are frightening! (Even with a good policy the deductibles are high)

[stephtraveler]

Props to you for properly referencing the architect of the 4% rule. A university tried to claim they created it and posted all over Google their claim. They were flat out lying. Drives me crazy when I hear young people site the source based on a google search....

[sandielefant]

Thanks Azul for this helpful advice. It's so good to be prepared, isn't it?! What a beautiful walk you're on. Thanks for the sharing the happy brook and the interesting shoe story :)

[MemphisMike]

I will be 60 in October 2023 and retired last year. Fortunately At UPS, I walked away with a Pension and continue my insurance for $400/month for wife and I. Wife still works 2 days a week. so for now, we are doing good and have no plans to have to tap into retirement accounts for a while

[maxflight]

We used to use the 4% figure in Europe too…

But .. boy! It’s getting hard to take 4% with current investment returns.

[aaronmanning]

For healthcare the price all depends on your income, the number of folks on your tax return, and the number of people getting coverage. Most people qualify for a subsidy for health insurance, but the amount of help is based primarily on these three criteria. Would definitely be an important consideration if you retire before Medicare age of 65.

[papasmurf]

I admit that I'm new to running the retirement numbers. What I found is that if I take Social Security at 62, my money will last longer than if I wait until I'm 65 or 67 -- because it protects the investment portfolio. There probably is a simple formula "if you're investments return more than X, take SSI at 62. If you're making less than X, wait until 65 or 67." The simple concept that "wait and you'll have more money" doesn't appear to be completely true.