Thu Nov 06 2025, by Tyler Gardner

How I'd Invest $1 Million If I Retired at 62

Here's exactly how I'd invest $1 million if I retired at 62 and lived until 85. I'm Tyler, a former financial advisor and portfolio manager. Now I make financial content for free so you don't have to pay for it.

1. Determine Annual Spending

I would first decide what I wanted to spend a year. Let's say $80,000.

2. Calculate Buffer for Unexpected Expenses

Multiply that by 1.5, which gives me $120,000. I would stick this amount in T-bills for liquidity and safety.

3. Invest the Remainder in Stocks

The remaining funds now go straight into an S&P 500 index fund. Why? Because I'm not going to sacrifice 23 years of necessary growth for the illusion of principal protection and bonds.

4. Annual Drawdown Strategy

I would draw down 6% a year by selling stocks from the index fund. That's about $52,800.

5. Social Security Benefits

Layer on $2,500 a month from my Social Security at 62, which provides an additional $30,000 annually.

6. Total Income

In total, I'm pulling in just over $82,000 a year. Plus, I have $120,000 in T-bills on the side just in case the market dips or for my low-sodium prune juice and high-stakes contract bridge circuit.

Conclusion

If any of this is helpful, sign up for my free weekly newsletter by clicking the link in my bio. Each week, I'll send you over another money playbook that actually works.

Source