Sun Feb 02 2025, by Tyler Gardner

How to Live Off $2 Million in Retirement Without Running Out of Money

Here is exactly how I’d live off of $2 million in retirement without ever running out of money. I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free to help guide your retirement journey.

1. Invest in a Total Stock Market Fund

I’d start by investing 100% of my money in a single total stock market fund.

2. Ditch the 4% Rule

I'd kiss the 4% rule goodbye because it's an overly conservative myth.

3. Adjust My Withdrawal Rate

Then, I’d draw down 6% annually, averaging anywhere from $50,000 to $100,000 a year post-tax.

4. Combine with Social Security

Next, I’d combine that with my Social Security benefits that I’d take at 62 to add another $25,000 post-tax.

5. Do the Math

Unlike those finance gurus following the 4% rule, I sit down and crunch the numbers myself.

6. Test My Strategy

And I'm not just calculating any numbers. I figured out if I could get away with this strategy if I retired at the beginning of 2000 and lived through the dot-com bubble, the subprime housing crisis, and COVID.

7. Results of the Strategy

Not only would I have managed to withdraw 6% annually during this timeframe, but even after adjusting an additional 2.5% per year for inflation, I would still have just under $1 million waiting for me in 2025. And that’s during the single worst sequence of returns events in modern history. Imagine what would have been left if you had retired during an average year as a regular person.

If any of this is helpful, please like and follow, and I'll keep sharing insights to help you achieve your financial goals.

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