Can They Afford to Retire Now?
Brandi is 65 years old, and after decades of hard work, she’s ready to slow down. Her original plan was to work a few more years — but life had other plans. Her mother’s health has declined, and Brandi wants to spend as much time with her as possible.
The big question: Can Brandi and her husband, Brian, afford to retire now without jeopardizing their long-term financial security?
As a financial advisor, I see this exact scenario all the time. Retirement decisions aren’t always driven by money. More often, they’re triggered by life events — aging parents, health challenges, or simply the realization that time is precious.
So, let’s look at Brandi and Brian’s situation and see if they can confidently retire now while meeting their goals.
Their Financial Snapshot
Brandi and Brian live in Texas and have done a great job saving for retirement. Here’s where they stand:
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Total Savings: $1 million
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$750,000 in an IRA
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$250,000 in a brokerage account
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Expected Inheritance: $150,000 from the sale of Brandi’s mother’s home
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Social Security Income (at full retirement age):
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Brian: $4,000/month
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Brandi: $2,500/month
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They currently live comfortably on less than $10,000 per month and feel that $7,000–$8,000 would more than cover their retirement expenses.
How Much Income Can They Sustainably Draw?
When we ran the numbers, Brandi and Brian’s plan looked strong. With $1 million in savings and Social Security income, they can sustain about $10,000 per month (inflation-adjusted) throughout their retirement.
We stress-tested their plan against 150 years of market data, and in 83% of the scenarios, their income held steady or exceeded their goal. In the few less favorable outcomes, only small adjustments were needed — around a 1–2% income reduction — to keep the plan on track.
💡 Bottom line: Their retirement plan is sustainable, with flexibility built in.
Leaving a Legacy for Their Children
Brandi expects to inherit about $150,000 and wants to honor her mother’s generosity by passing something on to their own kids.
Based on projections, if markets perform at historical averages, Brandi and Brian could still leave behind around $1.8 million after a 30-year retirement — even after enjoying a comfortable lifestyle.
In poor market conditions, that legacy might be closer to $865,000; in strong markets, it could exceed $5 million. Either way, they’ll likely leave a meaningful inheritance.
Maximizing Social Security Benefits
Timing is everything with Social Security. For Brandi and Brian, the best strategy turned out to be:
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Brian: Delay benefits until age 70 (for a 24% increase plus COLA adjustments).
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Brandi: Claim at age 65 to provide income during the early retirement years.
This combination maximizes their total lifetime benefits and keeps withdrawals from their portfolio lower in the first few years.
Tax Strategy: How Roth Conversions Help
With most of their money in a traditional IRA, Brandi and Brian wanted to reduce future taxes — especially since IRA withdrawals count as taxable income.
By using a 12% Roth conversion strategy, gradually converting part of their IRA each year, they can:
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Save roughly $446,000 in lifetime taxes
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Lower future Medicare premiums
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Leave tax-free inheritance to their kids
Interestingly, the smartest move isn’t to save the inheritance — but to spend that first while doing Roth conversions. That lets their Roth account grow tax-free, creating a more efficient legacy plan.
The Real Question: Time or Money?
Yes, they could work a few more years and increase their retirement income — but at what cost?
Retirement isn’t just about maximizing every dollar. It’s about aligning your finances with your values. In Brandi’s case, that means spending precious time with her mother while she still can.
After running the numbers, we determined that she can retire now — confidently and responsibly.
Final Thoughts
If you’re facing a similar decision, remember this:
It’s not financially irresponsible to retire when the math supports it — even if it’s earlier than you planned.
A well-structured plan gives you the confidence to make life decisions based on meaning, not money.
If you’d like to see whether your own retirement plan is ready, or to explore strategies like Social Security optimization and Roth conversions, let’s take a look together.
FAQs About $1 Million Retirement Plans
1. Can I retire with $1 million?
Yes — if your lifestyle and spending are aligned with that income level. For many couples, $1 million plus Social Security can comfortably fund a 25–30-year retirement.
2. How much can I withdraw safely from $1 million?
A sustainable withdrawal rate is typically around 4–5% annually, adjusted for inflation. That’s roughly $40,000–$50,000 per year before Social Security or other income sources.
3. Should I delay Social Security?
Delaying to age 70 increases your benefit by about 8% per year after full retirement age. It can make sense if you expect to live into your 80s or beyond.
4. How do Roth conversions reduce taxes?
They shift money from taxable accounts (traditional IRAs) into tax-free Roth IRAs. You pay taxes now at a lower rate, but future growth and withdrawals are tax-free.
5. What’s the best way to balance family priorities and finances?
Run the numbers first. When the math supports your goals, you can make emotional decisions with confidence — knowing your financial foundation is solid.
