From Yahoo Finance: 2025-05-10 08:30:00

Retiring at 60 with $1 million in a 401(k) and no mortgage on a $500,000 home is possible, but requires careful planning around healthcare, taxes, and more. Understanding your financial situation, assets, expenses, and income sources is crucial to determine if you can retire comfortably.

Deciding to retire early at 60 means relying more on savings before Social Security and Medicare eligibility. Understanding how retirement age affects future income and expenses, including healthcare costs, is key in planning for early retirement.

Early retirement at 60 requires diligent preparation, including understanding the rules around retirement accounts like 401(k)s and self-funding healthcare until Medicare at 65. Delaying Social Security benefits can significantly boost monthly benefits.

Paying off a mortgage before retiring at 60 can reduce annual expenses significantly, making it easier to preserve assets over the duration of retirement. Working with a financial advisor can provide professional advice tailored to your specific situation.

A hypothetical example demonstrates how early retirement might work with $1 million in 401(k) accounts, a paid-off home, and careful budgeting for expenses like healthcare and taxes. Understanding risks like unexpected costs or underperformance is crucial in early retirement planning.



Read more at Yahoo Finance: Can I Retire at 60 in 5 Years With $1 Million in a 401(k) and a Paid-Off $500K Home?