A Reddit user, aged 49, is contemplating early retirement with an investment portfolio of $1.3 million and an annual passive income of over $150,000 from rental properties. This individual inquired about the feasibility of retiring early, given their financial position.
According to Fidelity, by age 50, individuals should have saved six times their salary. If this user’s earnings are estimated at $150,000, they have exceeded the recommended $900,000. Moreover, average 401(k) balances for those aged 45-54 are $168,646, highlighting that this Reddit user is significantly ahead of their peers in savings.
Using a retirement calculator, it’s estimated that their initial $1.3 million could grow to approximately $6.6 million by age 67, based on an 8% annual return and reinvesting a portion of their passive income. The user’s intentions to travel and write further support the feasibility of an early retirement.
