If You've Banked $3 Million By 40, Is It Possible to Retire?

Retiring at 40 with $3 million requires careful financial planning. Key factors include calculating the income that investments generate at a safe withdrawal rate and estimating future spending needs, especially healthcare expenses. If the wealth is tied up in illiquid assets like a house or tax-advantaged accounts, accessing it can be challenging before certain age thresholds. Ensuring that $3 million is in easily accessible investments is crucial for achieving a comfortable and sustainable retirement.

Before you retire, calculate the income your investments will produce at a safe withdrawal rate—a critical step to ensure financial stability during retirement.

You need to estimate spending needs, including healthcare, as you decide if $3 million will suffice for retirement at 40. Strong planning is essential.

Read at 24/7 Wall St.