Determining retirement savings is subjective, influenced by lifestyle and cost of living. For instance, $4 million can be sufficient for retirees in moderate-cost areas like North Carolina. Utilizing the 4% withdrawal rule allows approximately $160,000 annually pre-tax. In Asheville, a retiree with $65,000 in annual expenses, plus additional costs, could still have excess cash to spare after expenses. Therefore, $4 million may suffice for a comfortable retirement, especially when factoring potential Social Security benefits into the equation, which could provide additional disposable income.
When it comes to retirement, the dollar amount you need to be comfortable is very much a personal thing.
Based on various retirement scenarios, we can see if $4 million is still enough to retire in the United States.
If you have $4 million available for retirement and utilize the widely accepted 4% rule, you are likely looking at around $160,000 annually pre-tax.
In conclusion, $4 million is enough to retire if you live in a moderate-cost region like North Carolina.
#retirement-planning #financial-independence #cost-of-living #investment-strategies #lifestyle-choices
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