You’re 40, Single, No Kids, and Have $1–$2M: Can You Retire Early?

Jun 19

3 min read

Because when you've bought yourself freedom, the real question becomes—what do you want to do with it?

A 41-year-old client came to me recently, spreadsheet in hand, portfolio in order. Single, no dependents, had just crossed $1.6M in liquid net worth. No loans. No flashy lifestyle. No fear.

But also—no plan.

He asked, “Can I retire now?”

Then he paused, almost catching himself.

“I mean… not just stop working. But stop worrying about working.”

And that’s the real question. Can you stop working because you want to, not because you have to?

If you’re in your 40s, single, child-free, and sitting on $1M to $2M—you’re in rare air. But whether you can retire early depends less on the number—and more on the decisions you make next.

Let’s walk through it.

Step 1: Know What "Retire" Really Means (To You)

For some, retirement means never earning again. For others, it means:

Leaving corporate life
Switching to passion projects or freelancing
Slowing down, not stopping
Having enough FU money to choose work on their terms

You don’t need to “retire” to start living life differently.

You need to define the version of freedom you actually want.

Step 2: Check Your Annual Burn Rate

Start with your annual lifestyle cost. Not what you earn, but what you spend. That’s your real financial footprint.

Let’s say:

You spend $60,000/year
You have $1.5M saved
That gives you a 25x multiple (the so-called "safe withdrawal rule" uses 25x expenses as a threshold)

You’re technically financially independent. But the math isn’t the whole story.

Ask:

What’s your health insurance situation?
Do you rent or own?
How much flexibility do you want in lifestyle upgrades (travel, relocation, hobbies)?
Are you counting inflation and taxes?

Rule of thumb:

To retire early in your 40s, plan for a 3–3.5% withdrawal rate, not 4%. You’ll need the money to last 40–50 years.

Step 3: Build a Retirement Income Strategy

This isn’t just about a big number in your account. It’s about how that number works for you, every month.

You’ll need:

Stable income flows: Annuities, bonds, dividends, SWPs
Growth engines: Equity investments to keep pace with inflation
Liquidity buckets: For emergencies and lifestyle flexibility
Geographic and tax diversification, if you're living across countries

Smart early retirees build a 3-bucket portfolio:

Years 1–3: Cash and liquid instruments
Years 4–10: Debt and income-generating assets
Years 10+: Equity and long-term growth

Step 4: Guard Against Longevity Risk

At 40, you could easily live 45+ more years. That’s longer than most retirement calculators are built for.

Key risks to manage:

Healthcare inflation: Consider private plans, top-ups, or relocation to cost-efficient countries
Cognitive decline: As you age, simplify your portfolio. Complexity becomes a liability.
Sequence of returns: Early retirement is sensitive to market downturns in the first few years. Use a glidepath strategy to protect early withdrawals.

Plan for worst-case longevity, not average lifespan.

Step 5: Embrace Flexibility, Not Rigidity

Early retirement isn’t a finish line—it’s a shift in mindset.

You’re still young. Your goals will evolve. So:

Leave room for part-time income or passion work
Budget for “career sabbaticals” even post-retirement
Allow for seasons of higher and lower spending

Freedom doesn’t mean never working again—it means never being trapped by work again.

Step 6: Design a Life, Not Just a Portfolio

Once you stop working full-time, your days belong to you. That can be exhilarating—or terrifying.

Ask:

Where will I live?
What will I do daily?
What communities will I stay connected to?
What will give me energy, not just rest?

Many people overestimate money and underestimate meaning. Don’t retire from something. Retire into something.

Step 7: Talk to a Planner Who Gets It

You’re not asking whether retirement is possible.

You’re asking how to make it sustainable, joyful, and strategic.

A good financial planner won’t just show you numbers—they’ll:

Stress-test your plan
Model worst-case scenarios
Adjust for taxes, inflation, health, geography
Help you think through legacy, giving, and lifestyle flexibility

Don’t fly solo at this altitude.

TL;DR — Too Long; Didn’t Read

At 40, single, with $1–$2M and low expenses, early retirement is possible—but must be planned strategically
Your safe withdrawal rate should be closer to 3% than 4%, especially for a 40–50 year horizon
Design your portfolio to generate steady income, manage volatility, and adapt over decades
Think deeply about what retirement actually means for you—don’t retire into a void
Freedom isn't about never working again—it’s about having the choice not to