Can I Retire at 65 With $850K in an IRA and $2,800 a Month From Social Security?

Core Insights - The article discusses the financial considerations for retirees, particularly focusing on the adequacy of an $850,000 IRA combined with $2,800 in monthly Social Security benefits for retirement at age 65 [1][3]. Income Calculation - A detailed budget and income projection are recommended for retirees to assess their financial readiness rather than relying on shorthand methods [1]. - The article suggests a common withdrawal strategy of 4% from a balanced portfolio, which would allow for an initial withdrawal of $34,000 from the IRA in the first year, adjusting for inflation in subsequent years [4]. Asset Income Potential - Various asset classes can generate income for retirees, including cash, which could yield $42,500 annually at current rates for certificates of deposit, and long-term fixed-income securities like 10-year U.S. Treasury Notes, which could provide $36,400 annually [5]. - Stocks, particularly through the S&P 500 Index, have historically returned nearly 10% annually, but actual returns may be lower due to fees and volatility, suggesting that a stock-heavy portfolio could allow for higher withdrawals than the standard 4% [6].