5 Ways to Retire With $5 Million by Age 55

Here at Physician on FIRE, I like to help people figure out how they can set themselves up to not only retire early, but to also retire well. Five million dollars should do the trick.

How does retiring at 55 years old sound?

A 55-year old can expect to live an average of 26 (male) to 29 (female) more years, according to the Social Security Administration’s actuarial tables.

Can everyone come up with $5 Million in retirement savings by age 55? No, not everyone. Can anyone? Possibly. Can you? Absolutely.

#1 Slow and Steady Wins the Race

How much would you have to set aside per month to have $5 Million in retirement savings by age 55? 

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#2 Develop a Remarkable Talent or Product

If you happen to be exceptionally skilled at something, particularly something athletic or artistic, you may be able to follow that passion to a big payday.

#3 A Negative Net Worth at 30 (With Great Earning Potential)

It’s the path I took, and although I retired from medicine without a $5 Million net worth, I was well on my way at 43, and investment returns alone should get us well beyond that mark by 55.

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Good News / Bad News

Good news. You won the lottery! If the payout was at least $10 Million before taxes, you can now retire with $5 Million or more.

Bad News? 

Bad news. Your rich uncle has passed away and will no longer be hosting you and your extended family at his beachfront compound. However, you have inherited a sum that will allow you to build a compound of your own, if that is your wish.

#4 Build Up a Business and Cash In

When you own and operate a small business, increasing your revenue as time goes on not only brings more money in for you to spend and save each year, but it also increases the value of your business.

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