Meet James and Renee

James (60) and Renee (58) live in Asheville, North Carolina—a charming mountain town known for its arts scene, outdoor beauty, and laid-back lifestyle. James recently wrapped up a 35-year career as a mechanical engineer, while Renee is planning to leave her job as a school counsellor in the next two years.

Together, they enjoy weekend hikes on the Blue Ridge Parkway, gardening in their backyard, and volunteering at their local food co-op. With their youngest child finishing college, they’re ready to start the next chapter.

They’ve saved diligently and want to know: Can they afford to retire now, while they’re still young enough to enjoy active years together?

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Their Financial Picture

Current Age: James 60, Renee 58
Planned Retirement Age: James now, Renee at 60
Current Savings: $2.2 million

• $1.3M in 401(k)s
• $600K in Roth IRAs
• $300K in brokerage
  Annual Retirement Spending Goal (today’s dollars): $100,000
  Healthcare Pre-Medicare: $20,000/year until 65
  Expected Investment Return (Real): 4%
  Social Security Estimates (age 67):
• James: $3,000/month
• Renee: $2,200/month
• Combined: $62,400/year

They also own their home free and clear, valued at $525,000.

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Will Their Plan Work? Let’s Run the Numbers

1. What Do They Need Before Social Security?

Renee will retire in two years, so they’ll rely on savings for 7 years before both begin collecting full Social Security.

Annual retirement spending:

• $100,000 base + $20,000 healthcare = $120,000/year

7-year bridge before full Social Security:

• $120,000 × 7 = $840,000 needed from savings

With a portfolio of $2.2 million and a 4% real return, their investments will continue to grow while they withdraw:

• Assuming conservative withdrawals, they’ll still have ~$1.9 million by the time they both hit 67.

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2. What Happens After Social Security Kicks In?

At 67, they start receiving:

• James: $36,000/year
• Renee: $26,400/year
• Total: $62,400/year

That covers more than half their retirement budget of $100,000. The remaining $37,600/year comes from their investments.

Even with that drawdown, their portfolio continues growing modestly. Over time, they can maintain this level of spending with ease, and still leave a substantial legacy or absorb unexpected costs (like long-term care or home renovations).

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The Verdict

James and Renee are more than ready to retire.

• They’ve saved well, diversified their assets, and are planning with healthcare and inflation in mind.
• With Social Security covering over 60% of their needs and a healthy balance in Roth and taxable accounts, they have flexibility in how they withdraw.
• Their paid-off home provides additional peace of mind.

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How They Made It Work

1. Balanced Accounts – Having money in traditional, Roth, and brokerage accounts gives them flexibility in managing taxes and income.
2. Early Mortgage Payoff – Eliminating housing costs made retirement more attainable.
3. Realistic Lifestyle – A $100K retirement budget allows for comfort without overspending.
4. Healthcare Bridge Planning – They set aside cash reserves and included ACA premiums in their pre-Medicare spending estimate.

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Final Thoughts

Retirement doesn’t always require hitting the jackpot. With a consistent savings strategy, balanced investments, and a clear understanding of spending needs, James and Renee were able to retire on time and on their terms.

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A Glimpse Into Their Future

James sips coffee on the porch, watching the morning fog lift over the Smoky Mountains. Renee joins him, flipping through a guide to volunteer programs. “We’ve got time now,” she says. “Time to enjoy what we worked for.”

Because that’s what retirement is about—not just stopping work, but starting life.

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Are you ready to retire with confidence? Know your numbers, build your plan, and create the future you want.

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