Retirement Example
Retire on $1,000,000 — The Million Dollar Retirement
How a $1 million retirement portfolio provides income and how long it lasts.
Scenario
$1,000,000 retirement portfolio. 4% withdrawal rule.
Inputs
Portfolio$1,000,000
Withdrawal4%
Results
Year 1 withdrawal (4%)$40,000/year ($3,333/month)
Lasts (at 6% return, 3% inflation)35+ years
Portfolio at age 90 (retire at 65)~$600,000 remaining
Explanation
$1 million at 4% withdrawal rate provides $40k/year — sustainable for 35+ years with typical market returns. Combined with Social Security ($15–25k/year), $1M can fund a comfortable retirement of $55–65k/year.
Key Takeaways
- $1M is achievable: $500/month at 7% for 35 years grows to over $1M.
- Roth IRA withdrawals are tax-free — a $1M Roth is worth more than a $1M traditional IRA.