Can You Stop Saving With a $5 Million Retirement Nest Egg? Experts Weigh In

Core Insights - Achieving a $5 million retirement savings is a significant milestone, but it should be viewed as a checkpoint rather than a finish line [1][3] - The focus should be on the adaptability of the retirement plan to changing circumstances rather than just the total savings amount [2][3] Retirement Planning - Financial experts emphasize the importance of creating a retirement plan that can withstand inflation, healthcare costs, and tax changes [3][4] - A durable income stream is more critical than the account balance itself; consistent, purpose-driven income streams are recommended [4] Portfolio Management - A balanced portfolio with a withdrawal rate of 3% to 4% can support annual withdrawals of approximately $150,000 to $200,000 before taxes [5] - To stop saving at the $5 million mark, the portfolio must meet specific criteria, including coverage of near-term spending and long-term growth investments [5][6] Early Retirement Considerations - For those planning to retire early or with high spending rates, continued saving and a refined tax strategy are advised [6]