A couple in their mid-30s is contemplating retirement with a projected $4.5 million net worth. Although their current net worth is $4.2 million, financial assessments reveal challenges due to high living expenses of $160,000 annually and a risky withdrawal rate of 7%. A significant portion of their assets is tied up in retirement accounts and real estate equity, prompting experts to advise against retiring early. Seeking guidance from financial advisors is recommended for proper retirement planning.
While a $4.2 million net worth sounds good on paper, it's still a little too early to retire.
The couple has $2.1 million in their investment account and another $100,000 in accessible cash.
A financial advisor can help you answer the question of whether you're ahead or behind on retirement.
Their current living expenses are $160,000 per year, and they have to withdraw from $2.2 million to cover it.
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