Reaching a $2 million nest egg by the age of 40 positions you for potential early retirement. With this amount, you could safely withdraw about $80,000 a year under the 4% withdrawal rate guideline, potentially allowing for a comfortable lifestyle until age 70. It is essential to consider the structure of your savings and investments, as some funds could be in tax-advantaged accounts, impacting accessibility. Additionally, planning for Social Security benefits at age 62 is critical for long-term financial health.
If you have achieved a $2 million nest egg by 40, you may be able to retire early, enjoying life without the usual work grind.
The safe withdrawal rate of 4% from a $2 million principal yields about $80,000 annually, allowing for comfortable living and investment.
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