Retiring early in your 50s with $4 million is possible, providing an income of around $120,000 yearly with conservative withdrawals. However, if funds are in a traditional 401(k), early withdrawal penalties complicate access to retirement savings before age 59.5. It's vital to evaluate personal expenses and consult financial advisors to determine readiness for retirement, ensuring that you understand potential Social Security benefits and how they may supplement your income later.
If you tap a $4 million portfolio to the tune of 3% a year, you're looking at about $120,000 a year in income.
But if your entire $4 million nest egg is tied up in a 401(k), you might run into some challenges with early retirement.
Talk to a financial advisor for guidance on your transition into retirement, especially if you're considering retiring early.
Retiring early at 50 with $4 million saved might be possible if your living costs are manageable and you plan correctly.
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