A 48-year-old divorcee with $550,000 in an IRA and $110,000 in a 401(k) may be able to retire in 10 years with careful planning. Considering factors like healthcare costs, portfolio returns, and withdrawal rates is crucial. Speaking with a financial advisor and creating a solid plan is recommended.

Early retirement requires careful financial management. The 4% rule suggests portfolios can dispense 4% of savings annually for at least 30 years. Estimating future expenses, especially healthcare costs, is essential. Private health coverage must be paid for until Medicare eligibility at 65.

Life expectancy is a key factor in retirement planning. According to the Social Security Administration, 60-year-old men and women can expect to live to 80 and 83, respectively. It’s important to consider that you may outlive your savings, reinforcing the need for careful planning with a financial advisor.

Careful calculations show that with a 4% annual rate of return, a retirement portfolio could potentially reach $976,961 in 10 years. Applying the 4% rule, initial withdrawals could be around $39,078 annually. Consideration of early withdrawal penalties and income replacement rates is crucial for a successful retirement plan.

Read more at Yahoo Finance: Can I Retire in 10 Years With $550k in an IRA and $110k in a 401(k) at 48?