Retire At 62 With $400000 In 401k

walletwhizkid

I'm considering retiring at 62 and currently have $400,000 saved in my 401k. I'm trying to figure out if this amount is realistic for a comfortable retirement. Here are some details that might help provide context:

My estimated monthly expenses are around $3,500.
I'm expecting to receive Social Security benefits at 62, but I'm debating whether or not to wait until full retirement age or later to start claiming.
I have no major debts, but do own my home, which has maintenance and property taxes included in my monthly costs.
I don't have any significant health issues at the moment, but I know unexpected medical expenses can arise.

Is it feasible to retire with this amount, or should I consider working a few more years to save more? Any strategies for managing withdrawals from my 401k, or other investment options to look into? Would love to hear from those who have been in a similar situation or have experience in planning for retirement.

themoneytrail

Retiring at 62 with $400,000 and monthly expenses of $3,500 is possible, but there are some important considerations. If you start Social Security at 62, your benefits will be reduced compared to waiting until full retirement age, which could impact your long-term financial situation. You might want to use tools like the 4% rule to estimate safe withdrawal rates from your 401k, though remember this is a guideline, not a guarantee. Also, consider potential medical costs as you age and factor in inflation. Working a few more years could enhance your savings and delay Social Security for larger benefits. Consulting with a financial advisor could provide a tailored plan for your specific situation.

loanwise101

It's doable, but consider working a bit longer to boost your savings and delay Social Security for higher benefits. Keep an eye on your expenses, especially healthcare, and maybe consult a financial advisor for a personalized plan.

CashGrower19

Retiring at 62 with your current savings can work, but there are important factors to consider. Starting Social Security early means lower benefits, so if you can hold off, it could significantly enhance your financial security later. Using a withdrawal strategy like the 4% rule is a good starting point, but remember it's just a guideline. Unexpected expenses, particularly healthcare, are important to plan for. If possible, working a few more years might allow you to save more and increase your Social Security benefits. Consider speaking with a financial advisor to tailor a strategy that fits your needs and goals.