⏳ Can I afford early retirement after being laid off at 58?

A 58-year-old was unexpectedly laid off and wants to know if they can just retire now instead of finding a new job. They have $2.56M saved and need $8,000 a month to live. The catch? Most of that money is in a Traditional IRA, which normally triggers a 10% penalty if touched before age 59.5. Let's run the numbers to see if their total nest egg is large enough, and if they have enough cash outside their IRA to bridge the 1.5-year gap.

They have $2.2M in a Traditional IRA, $200k in a Roth IRA, $90k in a brokerage, and $70k in cash. That is $2.56M total, with $160k easily accessible without penalties. If you are in a similar situation, enter your accessible cash and locked retirement funds below.

They need $8,000 a month to cover living expenses and health insurance (like an ACA plan). We use the 4% rule to check if their total portfolio can sustain this spending long-term. We also check if their accessible cash can cover this spending until they reach 59.5.

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