June 29, 2022

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I’m 41, and my partner is 50. We have $800,000 in retirement savings and make $250,000. We want to retire ASAP but know our money won’t last. What can we do?

2 min read

I love reading your responses to everyone’s retirement questions but realized that I haven’t seen one that matches up closely to what I’m hoping to do.

I am 41, and my partner is 50. We are both employed and make around $250,000 a year. We’re in an expensive cost-of-living area and have no plans to move away, but we live pretty simply. 

We currently have about $800,000 in retirement accounts, and nearly max out both of our 401(k)s annually. The main investments are in target-date funds (aiming for age 65).

In addition, we have about $400,000 in nonretirement savings and investments that we can tap into for living expenses if needed, and we continually contribute about $5,000 to $6,000 monthly to investments. Our strategy is largely a mix of index, value and growth funds, with very little individual stock exposure. 

We don’t have a mortgage or car payment, and our monthly expenses are generously estimated around $3,000 (usually less). This includes standard bills and discretionary spending, plus estimated property taxes spread out over 12 months. 

We would both love to stop working now or soon, but recognize our finances wouldn’t stretch far enough (if we just estimate to age 90). But I’m having a hard time figuring out when is a reasonable time frame we can hope for, particularly if we continue on the savings trajectory we currently are on as well as stagger our retirement so one continues to work for a few years after the other stops.

Thanks!

See: We are in our late 50s and have retired with less than $1 million: ‘Did I jump the gun?’

Dear reader, 

This is a tough question for just about everyone. You are certainly far from alone in wanting to retire as soon as you can but not knowing when it would be appropriate, or how much money is enough.  

What you do have going for you, however, is how you’re both saving — you both sound diligent about preparing for the future, and your incomes and spending habits definitely help. 



2022-04-05 21:48:00

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