Personal Finance

I'm 50 and plan on working at least another 5 years - will I have enough money saved to spend $300k every year in retirement?

Christy Bieber

Published: March 12, 2025 5:40 pm

A Reddit user is hoping to retire at 55 with $300K to spend in retirement. He feels fairly confident that he’s on track to do so as he plans to work for another five years and he already has a $12.5 million net worth. However, he wants to make sure he’s not missing anything when it comes to his retirement readiness. 

The key here will be for the Reddit user to run the numbers and potentially consider working with a financial advisor to create a plan for a secure future. 

Running the numbers to determine if you’re ready for retirement

The Reddit user explained that he has a $12.5 million net worth, he’s single and he has no kids, and he is in a serious relationship that he is committed to but he will not get married again. He lives in a high-cost-of-living area and he enjoys boating, fitness, and fishing.  

Right now, his assets are:

• $4.3 million in investment accounts 
• $1.4 million in retirement accounts
• $1.5 million in equity at his job, which is likely closer to $3 million but he wants to be conservative and he isn’t counting this money in his net worth since it is not officially his yet. 
• A $2 million primary residence which he is eventually planning to sell
• A $2 million secondary residence that will become his primary home and that is located in a state with no state taxes. 
• $800K invested in a rental property
• $250K in angel investments that he won’t count in his net worth until he gets the money back
• A $540K boat that he doesn’t count in his net worth

Based on these numbers, he considers his net worth to be approximately $8.5 million. He’s spending $22K a month right now but will spend around $16K once he sells his current primary home. However, after retirement, he’s hoping to have around $250K to $300K per year to spend. 

The good news is, that should easily be within reach. With the $8.5 million in invested funds he’ll have when he sells his primary home (not counting all the assets he isn’t counting), he should be able to produce $314,500 at a safe 3.7% withdrawal rate. 

Since he isn’t planning on leaving work for another five years, his money will keep growing — especially if he continues to invest more — and he should have more than enough to support himself and live the lifestyle that he wants. 

Working with a financial advisor can help to prepare for retirement

While the Reddit user is in good shape to retire, it may be worth working with a financial advisor to make a comprehensive plan. An advisor can help him to make smart decisions about what he does with his money as he readies himself for retirement, including how to minimize any tax burden on the sale of his primary home or the sale of equity in his business. 

Since he’s saved a lot of money and set himself up for retirement success, getting professional advice could be the last key step he needs to take to ensure that he makes the most of his assets and enjoys the retirement he deserves.