From Yahoo Finance: 2025-03-22 08:30:00

With a $1.6 million net worth and $4,500 in monthly expenses, retiring at 63 is possible depending on your circumstances. Factors like liquid assets, risk tolerance, other income sources, tax situation, and life expectancy play a role. Using the 4% withdrawal rule, you could withdraw $64,000 the first year, adjusting for inflation annually. However, risks such as high inflation, low investment returns, or unexpected expenses could impact your financial plan.

The good news is that retirees often have other income sources like Social Security benefits, pension benefits, annuities, or part-time work earnings. The average Social Security benefit was $1,860 in January 2024. If you qualify for this, you would need an additional $2,640 from investments or other sources to cover your $4,500 monthly expense.

To cover $4,500 in monthly expenses, consider delaying retirement, delaying Social Security benefits, or increasing investment income through asset allocation changes. A financial advisor can help build a comprehensive retirement plan tailored to your needs. Emergency funds are crucial for unexpected expenses and should be kept in liquid accounts.

If you’re considering retirement, run your numbers through SmartAsset’s retirement calculator and compare savings accounts for emergency funds. It’s important to plan carefully and seek professional advice to ensure a comfortable retirement.



Read more at Yahoo Finance: Am I Ready to Retire at 63 With $1.6M and $4,500 in Monthly Expenses?