Meet Carlos and Dana

Carlos (60) and Dana (59) live in Boise, Idaho—a fast-growing city known for its outdoor lifestyle, family-friendly vibe, and reasonable cost of living. Carlos recently retired from his 30-year career as a civil engineer for the state, while Dana just stepped away from her role as a university librarian.

But their situation is far from “empty nest.” Their daughter Lily is just 8 years old—and raising a child during retirement comes with unique challenges.

Despite that, Carlos and Dana have one big goal: enjoy more time as a family now, not 10 years from now. With $1.75 million saved and a target spending goal of $110,000/year, they’ve decided to step into retirement while Lily is still young.

Is it possible? Let’s dig into the numbers.

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Family Snapshot

Current Age: Carlos 60, Dana 59, Lily 8
Planned Retirement Age: Both now
Total Savings: $1.75 million

• $1.1M in 401(k)/IRA
• $250K in Roth IRAs
• $400K in brokerage
• Pension: Carlos receives a $28,000/year pension starting now
• Home: Paid off; valued at $475,000
• Healthcare (pre-Medicare): $24,000/year (covers family of 3 via ACA subsidies)
• Social Security (at age 67):
  • Carlos: $2,900/month
  • Dana: $2,400/month
  • Combined: $63,600/year
• Expected Investment Return (real): 4%
• Annual Spending Target: $110,000 (today’s dollars, includes child expenses and future college savings)

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How the Retirement Plan Works

1. Income Right Now (Ages 60 & 59)

Carlos’s $28,000/year pension gives them a head start. Their remaining expenses will be funded from investments.

Spending needs:

• $110,000/year
• Minus $28,000 pension = $82,000/year withdrawal

They choose to withdraw mainly from their brokerage account first to keep taxes low and preserve retirement accounts.

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2. Bridge to Social Security (Next 7–8 Years)

From now until age 67:

• They’ll withdraw around $82,000/year from savings
• Over 8 years, that’s roughly $656,000 withdrawn
• Thanks to a 4% real return and smart drawdown strategy, their $1.75M grows modestly and ends up around $1.4M by the time they both hit 67

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3. What Happens After Social Security Starts?

At 67, they’ll receive:

• Carlos: $34,800/year
• Dana: $28,800/year
• Total SS: $63,600/year
• Plus pension: $28,000/year

Total fixed income: $91,600/year
Spending target: $110,000/year
Gap to cover from savings: $18,400/year

With $1.4M still in savings, and a sustainable withdrawal rate of 3–4%, they can easily cover that gap, even with future college expenses factored in.

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So… Can They Really Retire with a Young Kid?

Yes. Thanks to their pension, diversified accounts, and reasonable lifestyle expectations, Carlos and Dana can afford:

✅ Full retirement now
✅ Raising Lily without compromising quality of life
✅ A college fund, already partially set aside in a 529 plan
✅ Future healthcare and long-term care flexibility
✅ A potential legacy, if investment returns stay steady

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How They Made It Happen

1. Strong Pension Foundation – Carlos’s pension gives them guaranteed income for life, reducing pressure on their investments.
2. Low-Cost Living – Boise offers a great quality of life without coastal-city price tags.
3. Paid-Off Home – No mortgage = more cash flow flexibility.
4. Layered Withdrawals – They draw from brokerage now, then Roth/IRA later to optimize taxes.
5. Forward-Looking Planning – Factoring in healthcare costs, child-rearing expenses, and college savings made their plan resilient.

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Final Thoughts

Most people assume you can’t retire early if you still have a child at home—but Carlos and Dana prove otherwise. With smart planning, layered income, and a values-driven lifestyle, they’ve created the freedom to be present for Lily’s most formative years—without financial stress.

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A Glimpse Into Their New Life

It’s Tuesday morning. Carlos is helping Lily build a volcano model for science class while Dana reads on the patio. No rush-hour commute. No meetings. Just time—time to be the parents they always wanted to be, while Lily is still little.

Because retirement isn’t just about age. It’s about alignment—with your values, your goals, and your family.

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Thinking about retiring early with kids at home? Don’t assume it’s impossible. Run the numbers. Build a plan. The life you want might be closer than you think.

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