Retiring at 65 with $500K: ways to pursue an extra $2,000 a month

A hypothetical 65-year-old with $500,000 in savings and about $1,700 a month from Social Security still needs roughly $2,000 more monthly; the article outlines options including delaying retirement, income investing, part-time work and tapping home equity.

A 65-year-old hypothetical retiree in the article has $500,000 in a 401(k) and expects roughly $1,700 a month from Social Security while seeking an extra $2,000 monthly. The piece notes that many pre-retirees worry about outliving their savings, citing a Schroders survey that found 53% express that concern. Using a common withdrawal guideline, the 4% rule, the article estimates $500,000 would yield about $1,667 a month, leaving a shortfall versus the $2,000 target. It then describes several broad approaches the person might consider. Key points: - The article reports the hypothetical retiree expects about $1,700 a month from Social Security and wants an additional $2,000 monthly. - Applying the 4% rule to $500,000 suggests withdrawals around $1,667 a month, which falls short of the $2,000 goal. - The article outlines four main options: delaying retirement, investing for income, working part time, and using home equity. - It notes that delaying retirement raises Social Security benefits (for example, roughly $1,850 at 66 and a little over $2,000 at 67, per the article). - The article says generating $2,000 a month from $500,000 would require about a 4.8% annual yield and observes that the safest assets often pay less; it mentions Coca-Cola and Johnson & Johnson as examples of large dividend-paying companies. - Home equity options covered include selling or downsizing, moving to a lower-cost area, renting part of the home, or considering a reverse mortgage, while also noting possible drawbacks such as declining equity and higher interest costs. Summary: The reported shortfall means multiple pathways are discussed to bridge the gap: delaying work to increase savings and Social Security, seeking income-generating investments, adding part-time earnings, or accessing home equity. Undetermined at this time.