Is $1 million enough to retire? (10 5 25)

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For years, $1 million has been touted as the magic number for a secure retirement. But with inflation, rising costs, and shifting lifestyles, is that figure still realistic in today's economy?

Here’s what we’re covering in today’s Clark Smart Investing newsletter:

• Is $1 million enough to retire?

• 99% of Warren Buffett’s fortune was made after this age — here’s why.

• 7 ways to create a retirement “paycheck.”

• 4 simple ways to invest your money.

• Q&A: Rule of 55 and 72T: Can either/both of these be used to access Roth funds?

• Smart money move of the week: Label your credit cards.

💵 Is $1 Million Enough To Retire?

For years, $1 million has been touted as the magic number for a secure retirement — but is it still true in 2025, with inflation, rising costs, and shifting lifestyles?

The answer isn’t a simple yes or no. Whether one million dollars is enough to retire depends on factors like your age, where you live, your desired lifestyle, and how long you expect to be retired. For some, $1 million could fund decades of financial freedom; for others, it might fall short. The good news? You don’t have to guess.

The full article provides a breakdown of various real-world scenarios where a million-dollar nest egg is perfectly sufficient, and others where it falls drastically short. It also includes an interactive calculator so you can plug in your own details. Don't leave your financial security to chance. Read the full piece to see where you stand, understand the factors that truly determine your retirement number, and find out if your savings plan needs an adjustment.

📚️ Recommended Reading

✅ Poll: What’s Your Take?

Every week, we'll ask a new question to get your take on the latest financial trends and topics.

Last Week’s Poll Results

We asked: “Which of Clark's 3 favorite brokerages do you use?” Here’s how you answered:

• Vanguard: 29%

• Fidelity: 30%

• Schwab: 21%

• All Three: 10%

• None: 10%

💬 Ask an Advisor

In this recurring Q&A, we share questions that have been answered by Clark Howard or Wes Moss on the podcast. Submit your question today!

Tracey in Florida: I have a question about both Rule of 55 and 72(t). Can either/both of these be used to access Roth funds?

Wes Moss says: The simple answer here is good news for your retirement plan: The Rule of 55 absolutely works for your Roth 401(k)! You and your husband can use that rule to access both your regular traditional 401(k) and your Roth 401(k) money from the employer you're leaving, without that pesky 10% early withdrawal penalty. That's a huge benefit of the Rule of 55, and it’s a really powerful tool when you’re leaving your job at 55. Now, on the flip side, the 72(t) rule is a little different. That one really is designed for accessing funds from traditional retirement accounts, like a Traditional IRA. My understanding is you generally cannot use 72(t) to take early distributions from a Roth IRA. When you're dealing with Roth money, the main rule to remember for truly penalty- and tax-free withdrawals of both your contributions and your investment growth is the five-year rule and being 59 1/2. So, you are very close to having this all figured out! Just one last thought as you plan your exit: Since the Rule of 55 is so powerful and applies to your 401(k) (both traditional and Roth), if you haven't actually left work yet, consider rolling any outside funds you can into that 401(k). That way, you have more money sitting right there that you can access under the Rule of 55. Look, these decisions can get complex, and I'm only getting a snippet of your full financial picture, but those are the key things I'd want you to focus on right now. Keep up the great planning!

💸 Money Tip of the Week

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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