I'm 67 With $2 Million in an IRA. How Can I Ensure It Lasts Throughout Retirement?

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If you had $2 million saved in an individual retirement account (IRA) by age 67, could you make it last the rest of your life? With some wise planning and investing, stretching a $2 million nest egg over several decades is entirely possible. A sensible approach could be to focus on budgeting prudently, balancing investment risk and return, and securing additional sources of income if needed. These moves could further boost your chances of not outliving your savings. Talk to a financial advisor today about securing your retirement.Making a $2 million IRA balance last for up to three decades involves considering several factors, only some of which are under your control. To start with something you can control, look first at how you can limit withdrawals from your IRA to a sustainable rate.The often-cited 4% rule offers a baseline for a sustainable withdrawal rate. In your case, using it with a $2 million IRA would allow for $80,000 in withdrawals in the first year of retirement, with adjustments for inflation in the following years.An annual income of $80,000 is likely enough to fund a comfortable, if not luxurious lifestyle, for most retirees. Data from the Federal Reserve Bank of St. Louis shows, on average, people ages 65 to 74 spend about $61,000 per year, while those 75 and older spend over $53,000 per year. But if you needed more than $80,000 to support your lifestyle, you could use a higher withdrawal rate or invest more aggressively to generate higher returns. Keep in mind, that you’ll also have Social Security benefits to rely upon, assuming you paid into the system throughout your career.Concerning the investment approach, the goal is to earn solid returns while controlling risk. This will help you maintain purchasing power over time. Generally speaking, a diversified, 60/40 portfolio of stocks and bonds using low-fee index funds is a well-tested way to get market-matching growth without undue volatility. However, it’s only one of several paths you could take.If you have other common retirement income sources like Social Security, pensions or part-time work, tapping them to pay expenses first can help you limit withdrawals from your savings. Preserving principal in your nest egg provides a cushion against possible negative events such as a market downturn, and increases the chances it will last the rest of your life.A financial advisor can help you build a retirement income plan suited to your needs, including calculating how much you can afford to withdraw from your savings.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 72,913.36 +1,117.09 (+1.56%)AVGO Broadcom Inc. 371.55 +16.64 (+4.69%)ETH-USD Ethereum USD 2,244.12 +48.24 (+2.20%)DOCU DocuSign, Inc. 42.89 -2.66 (-5.84%)^GSPC S&P 500 6,816.89 -7.77 (-0.11%)PortfolioSign in to access your portfolioSign inTop gainersOGN Organon & Co. 8.83 +1.92 (+27.79%)ALAB Astera Labs, Inc. 149.05 +19.59 (+15.13%)MANE Veradermics, Incorporated 68.80 +8.82 (+14.70%)TTMI TTM Technologies, Inc. 121.49 +13.96 (+12.98%)AAOI Applied Optoelectronics, Inc. 150.60 +17.30 (+12.98%)Top losersFSLY Fastly, Inc. 23.07 -6.39 (-21.69%)AKAM Akamai Technologies, Inc. 91.35 -18.26 (-16.66%)FICO Fair Isaac Corporation 922.37 -149.98 (-13.99%)SEZL Sezzle Inc. 59.71 -9.41 (-13.62%)NET Cloudflare, Inc. 166.99 -26.06 (-13.50%)Most activeNVDA NVIDIA Corporation 188.63 +4.69 (+2.55%)PLTR Palantir Technologies Inc. 128.06 -2.48 (-1.90%)HOLX Hologic, Inc. 76.01 0.00 (0.00%)INTC Intel Corporation 62.38 +0.66 (+1.07%)NOK Nokia Oyj 9.46 -0.09 (-0.94%)Top economic eventsEarnings eventsMy earnings eventsEarnings events