In my 30s with $1.3 million and a family — is my retirement portfolio solid enough?

Key Points from 24/7 Wall St.

• A 36-year-old Reddit user with a $1.3 million net worth wants to know if they’re on track for retirement.
• That’s generally a good place to be by your mid-30s, but it ultimately depends on your personal goals.
• Work with a financial advisor to meet your savings target and retirement timeline.
• Also: Take this quiz to see if you’re on track to retire (Sponsored)

A lot of people retire in their 60s with little to no money saved. So when I came across this Reddit post, I knew I was looking at a strong saver who’s clearly been focused on building retirement wealth from a young age.

The poster is 36 years old and has a net worth of $1.3 million. Of that, $540,000 is a fully paid-off home, leaving them with about $750,000 worth of investments.

The one thing that jumps out at me, though, is that of their roughly $750,000 in investments, $130,000 of it is in a single stock. That’s the only red flag I see, and I’d suggest whittling down that position and branching out more.

The poster wants to know if they’re on track to retire with $3 million by age 50. And the answer is, it depends on the rate at which they keep saving and how their investments perform. But it’s the sort of situation where seeking outside help could really help them feel more secure in their financial situation.

Things look good offhand

Let’s review some of the things this Reddit poster is doing right. They’re consistently saving and investing, and they’re not spending anywhere close to their entire income. Also, they seem to have a pretty diverse investment mix outside of that $130,000 in a single stock. If they address that problem and continue on their current path, given their age, there’s really no reason they shouldn’t be able to meet their savings goal and retire early.

That said, I’d encourage them to think about what they want retirement to look like. A $3 million nest egg that’s first tapped at age 65 is different from a $3 million nest egg that’s first withdrawn from at 50. This poster will need their savings to last a long time if they’re retiring that young, so they’ll have to think about what sort of lifestyle it will buy them.

To be clear, I think it’s more than possible to retire at 50 on $3 million. And because this poster is used to living frugally relative to their income, I don’t see any major flaws in their plan.

I also think that because their home is paid off, they have a prime opportunity to keep saving and investing over the next decade and a half. There’s a good chance their income will continue to rise until they’re ready to retire. And without a mortgage monopolizing a chunk of their salary, they should have the option to increase their savings rate as their paycheck goes up.

A financial advisor could be a huge help

Given the way this poster manages their money, it’s clear they’ve got a good head on their shoulders. But I also think it would be beneficial for them to sit down with a financial advisor, discuss their plans, and see what a professional has to say.

A professional can review their investments and make sure they’re appropriate. They can also help run some projections to see what a $3 million retirement at age 50 might look like.

To be clear, this is advice I’d be giving even if the poster in question was looking at a more traditional retirement age. But I think any time early retirement is a goal, it’s important to get a reality check. And in this situation, meeting with a financial advisor might give the poster more confidence that they’re on the right track, which is likely the case.