At 57 With $1.8 Million Saved, the Math Tilts Toward the Low-Stress Job More Than You'd Expect

"According to Morningstar's annual withdrawal rate research, a new retiree with a 30-year time horizon can safely withdraw 3.9% of a portfolio annually. On $1.8 million, that works out to roughly $70,200 per year before Social Security enters the picture."

"The traditional 4% rule produces $72,000 per year from the same base. Neither figure is lavish, but both are workable, especially if a low-stress job adds $30,000 to $50,000 in income during the transition years."

"The 10-year Treasury yield is currently around 4%, which means the fixed-income portion of your portfolio can generate meaningful income without touching equities. That works in your favor."

"A low-stress job that covers living expenses lets the $1.8 million compound largely untouched, which is exactly the right posture during this transitional phase."

At 57, with $1.8 million saved, a choice between continuing work or transitioning to a lower-stress job arises. The financial math supports retirement, with safe withdrawal rates suggesting annual withdrawals of approximately $70,200 to $72,000. Concerns about money running out often stem from spousal anxiety rather than actual financial gaps. A low-stress job could supplement income by $30,000 to $50,000, allowing the portfolio to grow while covering living expenses. Current market conditions favor this approach, with fixed-income investments generating income without depleting equities.

Read at 24/7 Wall St.