I’m only 25 but am making $500k per year – is $7 million a reasonable retirement goal?

A lot of 20-somethings barely earn enough to cover rent and their basic needs. So when I came across this Reddit post, I was a bit blown away.

Here, we have a 25-year-old earning a rather impressive $500,000 a year. And they want to know whether retiring early with $7 million is doable.

Based on an income that large, a $7 million retirement nest egg certainly isn’t out of the question. But it all depends on a few key factors.

The numbers do work

Retiring early with $7 million is extremely doable for this person, provided they’re willing to live well below their means to save and invest a large chunk of their paycheck. But let’s say they bank half of their $500,000 salary over the next 15 years and invest it at an annual 8% return, which is a notch below the stock market’s average. That puts them at close to $7 million by age 40.

So the basic answer to their question is, yes, you can retire early with $7 million, assuming your salary doesn’t decrease and you’re able to save a large portion of it. It’s just a matter of how early.

Will burnout be a factor?

I’m not exactly sure what this 25-year-old is doing that enables them to earn $500,000 annually at such a young age. But here’s one thing I’m concerned about — burnout.

A $500,000 income likely means that this poster is putting in a lot of hours, and potentially dealing with a very stressful and demanding job. That may be sustainable for a period of time. But whether it’s sustainable for another decade or longer is questionable.

Also, this 25-year-old may be unattached and child-free for now. What happens if they marry and have kids within the next seven to 10 years? That might change their ability to work at their current level and bring in the wages they’re enjoying now. They may decide that for the sake of their family, they need to cut back and earn less.

So what I’d say to this person is if that if they really want to retire early with a $7 million nest egg, they should talk to a financial advisor sooner rather than later. A professional can help them make the most of the money they’re saving and investing so they’re more likely to meet their lofty goal. An advisor can also, if need be, help them figure out how to stay on track should they decide they can’t keep pursuing such high pay because it’s taking a mental or physical toll.

But all told, this poster is in very good shape. And even if it takes them a bit longer to get to $7 million, I think there’s a strong chance they’ll hit their number eventually.

Of course, they may also decide down the line that they’re not happy with $7 million and want to aim higher. If their income rises, that may be more than attainable. But again, this is where a financial advisor comes in handy, so I really can’t recommend that option enough.