Given that many Americans don’t manage to save any money for retirement, nearing the end of your career with $900,000 banked is something to be proud of.
But is $900,000 enough for a comfortable retirement, or will you still need to cut corners, work part-time, and make sacrifices?
The answer largely depends on what you want your retirement to look like. Let’s dig in. The annual income a $900,000 portfolio can generate While $900,000 looks like a lot of money on paper (or on your laptop screen), the reality is that you’re not going to spend it all at once — or at least you certainly shouldn’t.
So it’s important to know what $900,000 gives you on an annual basis. If you use the popular 4% rule, a $900,000 portfolio could result in $36,000 of annual income plus adjustments for inflation. By itself, $36,000 may not seem like a lot.