I am planning to retire at age 66 with $800K in my IRA and $2,900 a month from Social Security. Is this possible?

A 66-year-old contemplating retirement should evaluate their financial situation, including an $800k nest egg and $2,900 in monthly Social Security payments. Understanding monthly expenses is crucial to determine retirement readiness. The 4% withdrawal rule suggests that they can withdraw $32,000 annually from their IRA. When combined with Social Security, their total monthly income before taxes would be $5,567. If that covers expenses, retirement may be feasible; if not, working longer could be beneficial. Additionally, high-yield assets may offer safer investment options as one ages, and consulting with a financial advisor can provide tailored advice.

It's important to know your monthly expenses and consider speaking with a professional to determine if you are ready.

For an $800k IRA, you can withdraw $32,000 per year, which comes to $2,667 per month.

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