How much you'd need invested to retire at 55
According to Fry's calculations, an investor who leaves work at age 55 would need $3.45 million in a taxable investment account on the day they retire if they want an annual post-tax income of $100,000. If the investor reduced their target annual income to $65,000, they would need only $2.2 million invested on the day they retire. If you plan to live on even less or expect to reduce your spending as you age, you'd likely need a smaller lump sum to start.beginning at age 59-and-a-half — less than five years after leaving work — would need an even smaller lump sum in the taxable account.
"Investors tend to be their own worst enemy when experiencing investment losses," Fry said. "If you don't have the time, interest, discipline, and expertise, it's better to work with a fee-only certified financial planner that can tailor your investments to track to your financial plan." It's worth noting that many early retirees continue to earn income after leaving their 9-to-5. In fact, some who earn passive income through
Your chart suggesting initial portfolio size to retire at various ages shows an approximately linear increase in starting balance needed with younger age. That should not be the case. Once you're living on 'interest only,' the retirement length rapidly spikes to infinity.
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