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You might easily be able to retire on $1 million. Then again, you might not. It all comes down to your personal situation.

Many financial professionals say 4% is the amount a retiree should be able to withdraw each year while expecting his portfolio to survive at least 30 years. That’s $40,000 a year from $1 million that should last from ages 65 to 95. Add Social Security, and that’s around $70,000 a year.

If your lifestyle in retirement will require more, you can’t retire on $1 million. Knowing how much you need for retirement boils down to projecting all future expenses, which is tricky. You can come up with a budget that accounts for every penny you’ll need to maintain a desired lifestyle, but what if something happens? $1 million is not enough for many retirees.

It’s extra-risky to retire early, before Social Security and Medicare kick in, with only $1 million. You limit your options. More money set aside provides added flexibility, and increases the chances that you’re able to do what you want until you die. Once you reach $1 million, focus on what you can control, or at least affect, like your health and variable costs.

Matching future income estimates with expenses requires accounting for everything. That includes wedding gifts for grandkids, vacations, car repairs or whatever need arises.

If you want to retire with $1 million, define what your retirement will be, take stock of your assets, debts and expenses, and look at what the future holds. $2 million might be a better goal to strive for.

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