Ask an Advisor: I Have $760K, a Rental Property, and Disability Benefits. Is Retiring at 55 too Early?

Loraine Montanye, CFP®

Mon, Mar 10, 2025, 7:36 AM 8 min read

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I’m a 43-year-old pistillate with a spouse (not legally married) and nary kids. I presently person $500,000 successful a 401(k) and lend up to the pre-tax bounds each year, positive $10,000 successful non-deductible contributions. I person $50,000 successful an IRA and bonds, $100,000 successful stocks and $100,000 successful savings. I ain a rental spot that presently has $550,000 successful equity and makes $15,000 nett annually, which volition beryllium paid disconnected earlier I crook 55. The location I unrecorded successful is owned with a owe and has $200,000 successful equity. I person a VA disablement pension of $2,000 per period tax-free.

When I crook 60, I volition besides person a status pension of $2,000 per month. Both of those person COLA adjustments annually. I program connected purchasing a 2nd rental spot soon. I expect my expenses successful status to beryllium astir $100,000 per year. With my VA disability, I besides person escaped healthcare coverage. I’d similar to cognize if I volition beryllium capable to discontinue astatine 55 without needing a part-time job.

– Stephanie

First, congratulations connected diversifying your assets and income streams. It’s wide that you consistently made purposeful choices with your money. By maintaining a semipermanent fiscal mindset, you present person immoderate idiosyncratic wealthiness to amusement for it. Determining whether you tin perchance spend to discontinue astatine 55 requires what’s known arsenic a spread analysis.

A fiscal advisor tin assistance you physique a broad status plan. Connect with a fiduciary advisor today.

Many Americans volition not person the aforesaid breadth of status income disposable to them arsenic you bash erstwhile they discontinue and volition person to trust much heavy connected savings withdrawals to screen their expenses. While the results whitethorn beryllium different, spread investigation volition assistance these individuals program for retirement, arsenic well.

Have you ever asked an online hunt motor however overmuch wealth you request to retire, lone to find staggering lump sums successful the hunt results? These numbers aren’t adjuvant due to the fact that they don’t framework status successful presumption of income needed implicit a agelong period. Gap investigation successful status income readying is simply a much utile attack due to the fact that it answers the question: What are my expenses and income, and is determination an income shortfall oregon “gap” that I request to screen with savings?

Here’s the basal equation: Expenses – Reliable Income Sources = Gap

Of course, galore variables travel into play successful existent beingness specified arsenic ostentation and taxes, and the existent calculations are much complex. Furthermore, if we were gathering a fiscal program for you, we’d inquire follow-up questions astir the accusation you provided, stitchery documents to verify the good people of your benefits and larn astir your circumstantial objectives. My steadfast would present a multiple-scenario program to you that tin amusement you yearly projections of your expenses, your income, and your assets. (And if you privation to enactment with a fiscal advisor, this instrumentality tin assistance you link with fiduciaries who service your area.)