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    When can I relax / retire early ?

    Hi,

    Age 47
    Monthly expense: less than $3k
    No pension
    No debt
    Mortgage paid off

    $440k in total investment
    $198k 401k
    $82k Roth IRA
    $96k CMA | emergency fund
    $30k in brokerage account

    How much do I expect my 401k, Roth IRA, and HSA to grow by age 60?

    I like to retire earlier or at least relax and enjoy life.

    When can I relax / retire early ?
    byu/theindepndnt inpersonalfinance



    Posted by theindepndnt

    12 Comments

    1. ChuckJA on

      You can relax whenever you like. You have made a great safety net for yourself. You are on your way and can absorb pretty much any typical financial shock.

      You can RETIRE when your investable assets are 300x your monthly spending. Right now have ~146x your monthly expenses saved/invested. You need twice this amount.

      EDIT: For anyone confused, 300 is 12 x 25: it’s just a simple way to calculate the 4% rule starting with monthly spend.

    2. IndyEpi5127 on

      Plug your numbers into a calculator and see. For a really simple one you can use [https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator](https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator)

      With your current numbers, after 13 years at a 6.5% return (assuming 9.5% return on your investments minus 3% inflation) you’d have a little over $1 million at 60. Taking 4% withdrawal (which should last you until you’re 90), that’s $40k/year. You can determine if that’s enough for you. You have to account for increased expenses like healthcare until your 65, house maintenance, etc etc. The calculator can also model if you are going to continue to make contributions during the next 13 years.

    3. space_manatee on

      Make more money than you are currently making and invest the delta. Or if you think you will make the same amount for the next decade, calculate with those numbers in mind. Make sure your portfolios are invested aggressively as you still have 13 years of income. 

      Otherwise, this is just how the system is set up. They get you until you cant work any more and then put you out to pasture. 

    4. TheCostofWaiting on

      Having a paid-off house and under $3k monthly expenses in 2026 is basically a financial superpower 😭

    5. Ragnar_Hrafn on

      It is a good setup at 47 but you should run the numbers through something like Projection Lab. My impression is you have a good chance for retiring at 60. Your 401k could be accessible to you by age 54/55 (Rule of 55). With your expenses your brokerage can function practically like a Roth in early retirement. It’s worth focusing on that too if you might retire before 59 1/2 (Roth) or potentially 54/55. Be aware of the SORR (sequence of returns risk). At the “right time”, not too early and not too late, you will have to pivot towards some bond allocations. Your expenses, factor in also real estate and property taxes / insurances, will allow you to get good ACA tax subsidies.

    6. Common-Coyote9375 on

      having a monthly expense of 3k and less means you are relaxing at home already.

    7. pewqokrsf on

      Assuming you currently get healthcare through your employer, you probably need about $1.5 million to retire comfortably early.

      If you’re looking to coast and not contribute anything you’ll hit that number at around 65.

      Contributing 1800 a month will get you there by 60.

      6000 a month will get you there by 55.

    8. MarcableFluke on

      > How much do I expect my 401k, Roth IRA, and HSA to grow by age 60?

      Rough rule of thumb is 7% per year (which accounts for inflation). So $440k invested over 13 years would be a bit above $1M

    10. SolomonGrumpy on

      $3600 a year would require about $900,000 to offer a 90% chance of a successfully managing a 30 year retirement.

      Many would round up to $1 million to be “safe”

      You are a lot 1/2 way there.

      Hypothetically, at a 7.5% average growth rate, your $400k will hit $1m in 11-12 years. However, inflation will make your costs/spending higher as well.

      By 60 you will have fully caught up with your expenses accounting for inflation.

    11. GeorgeRetire on

      Your portfolio should grow to more than $1m to as much as $1.8m by age 60. And that’s not even knowing if you are continuing to contribute anything monthly.

      Have you looked at [ssa.gov](http://ssa.gov) to see what your social security benefit will be?

      if you can actually maintain your very low expense level, you should be able to retire well before 60.

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