We live on a farm and have $2.2 million saved for retirement. We’re ready to retire abroad. Can we afford it?
Alessandra MalitoTue, August 11, 2026 at 11:58 PM GMT+3 7 min read
We're both 59½ and have approximately $2.2 million in our 401(k)s and IRAs. Of that, about $480,000 is in an inherited IRA with eight years remaining on the distribution period. Also, we each have a Roth IRA that I manage, with approximately $40,000. We moved to Iowa in 2018 and bought the farm, literally. We paid cash for it and own it outright so no mortgage!
We run a small bar and record store in our tiny rural town and I have a manufacturing business for my patented vinyl record holders, both of which are profitable and provide our day-to-day income (roughly $65,000, combined). I'm slowly phasing out of the bar and taking on what I hope will be a great partner to allow us some freedom to enjoy our retirement (which we're both planning on doing next year at age 60). We have no debt other than a loan for the bar building at 1%. Our Social Security at the earliest withdrawal date will be roughly $30,000 and we don't plan on waiting.
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Our biggest fear
We don't live lavishly, and sometimes we both think maybe we could upgrade a few things, but we're also pretty content. Our biggest fear is running out of money and so we haven't really travelled or even taken vacations, but both of us are really wanting to pull back a little and start enjoying the fruits of our labors. We love our 10-acre farmstead, but also often talk about moving outside the U.S. or relocating somewhere stateside, but don't know if we can afford that.
With what we've got for retirement and our assets, should we be worried? Can we stop working day-to-day and live comfortably? And should we be thinking of different ways to manage all of this? We have no children and want to start enjoying a little more of the freedom we've worked hard to save for. What should we do?
Jack of All Trades
Dear Jack,You've got many moving parts here — a farm, a bar and a record-holder business! You're certainly well-prepared for the variety that retirement can bring. And financially, it sounds like you and your spouse are in a pretty strong position as well.
The simplest way to get a general idea of whether you've saved enough for retirement is to start with one basic equation: Income minus spending equals what you need from your savings.
Estimate what you'll need each month to maintain your lifestyle — or, better yet, what your ideal retirement lifestyle will cost. Factor in the things you've been putting off, such as travel, vacations, hobbies or home improvements.
Then subtract your guaranteed income, such as Social Security and other reliable income sources. Whatever deficit remains is what your retirement savings will need to cover.
That number can give you a much clearer picture of whether your assets are sufficient — and, perhaps just as importantly, whether you can afford to spend a little more and start enjoying the life you've worked so hard to build.
For a very basic guideline, you can use the 4% withdrawal rule, which says you can take out an initial 4% distribution from your retirement savings and then adjust for inflation every year thereafter to have enough to live off of for the next 30 years.
So if we used your $2.2 million figure, that would be $88,000 in the first year of retirement. This is on top of your Social Security, for what it's worth. You might say to yourself, That's way more than I need. If so, great! Try 3% or even lower.
Keep in mind, 30 years is a long time, but you're also planning to retire around 60. That leaves you with enough money, roughly, to 90, and then you'd have only your guaranteed income to fall back on.
Maybe you don't expect to live until 90. Maybe you do. If you're worried about running out of money, err on the side of taking out less rather than more. And be mindful that this particular equation is very rough, simple math that does not include taxes, inflation or investment gains or losses. There are plenty of retirement calculators that can help you there.
And by the way, you are far from alone on worrying about running out of money. That's a top concern for many near- and current retirees.
The good news is, you have time on your side. And you have built what sounds like a lovely life for yourselves, made possible from your hard work. You should enjoy the fruits of your labor, but it will take some planning.
Logistics first
Before you get too far into the dreams, though, think logistics. Over the next few years, you'll want to get serious about your retirement budget, and taxes should be part of that planning.
You mentioned an inherited IRA. Eight years may sound like a long time, but that deadline will arrive sooner than you think. Plan for when and how you'll take those distributions. Taking too much in a single year could push you into a higher tax bracket, so spreading withdrawals out may help you manage your tax liability.
You should also take a close look at your Roth accounts. While 59½ is generally the age when you can take retirement-account distributions without the 10% early-withdrawal penalty, Roth IRAs have a separate five-year rule for qualified, tax-free distributions. Make sure you know when each Roth was established before assuming every withdrawal will be completely tax-free.
As for Social Security, I know you don't want to wait to claim, and that's perfectly reasonable. Delaying benefits means a larger monthly check, but it isn't necessarily the right choice for everyone. Still, it's worth comparing your estimated benefits at your earliest claiming age, full retirement age, and age 70.
Also compare your benefit with your spouse's and consider how spousal and survivor benefits could affect your decision. Depending on your numbers, it may make sense for one of you to claim earlier while the other lets their benefit grow. In particular, delaying the higher earner's benefit can potentially provide a larger survivor benefit for the spouse who lives longer.
You've already done the hard part by building substantial assets. Now it's about creating an income and tax strategy that allows you to enjoy those assets without compromising your long-term security.
Don't forget to dream
Logistics aside, you've worked hard, and you should enjoy your retirement years and live out some of those dreams.
Retiring outside the U.S., for example, might be more realistic than you think. You'd need to carefully research where you want to live, and ideally, "test-drive" the location during both peak and off-peak seasons. MarketWatch columnists Edd and Cynthia Staton write often about living abroad. Pay particular attention to access to healthcare, as well as the things that matter most to you — language, proximity to other U.S. expats, climate, altitude, or being near the beach.
Whatever you decide, take some time together to dream about what you want your retirement lifestyle to look like. If you're ready to wind down the farm and bar, perhaps you could keep the record-holder business if it's relatively hands-off and continues to provide good income. You'd have less day-to-day work while still maintaining another source of retirement income.
The more income sources you have in retirement, the less frightening the prospect of running out of money may feel — and the more comfortable you might be loosening the purse strings and spending on the things you've worked so hard to enjoy.
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