Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. This compensation is how we fund our in-depth research. (read more)

Can You Afford to Retire at 60 if You have $500k of Savings 
or in Your 401k Plan

How To protect Your 401k Against Inflation
Will Covid-19 Ravage Your 401k Retirement Pot
Is the Ukraine Crisis Going To Make You A Poor Pensioner 
What Impact Will Biden's Financial Changes Make to Your Future

Find Out How to Protect Your Retirement Savings

Goldco IRA Crisis Stew Peters

Introduction - Knowing if you can retire at 60, 62, 65, 70 or any age

The answer to the question "can I retire at 60 with $500k" can be a question that is complex to answer. Retirement is complicated to plan for because it can last, on average, from 20 to 30 years. When planning your finances for retirement, many variables can change over the years.

The average life expectancy for men in the USA is 77 years; for women, 81 years; however, the oldest person in the USA lived to 115 years. If this were you, and you retired at 60, would your retirement savings last for another 55 years? You Would have to live off a little over $9k a year. For many people living off $9k a year would be impossible today. When you consider inflation would make $9k a year practically worthless in 55 years, you would probably say, no, I cannot afford to retire at 60 with a retirement savings pot of $500k.

It is likely that we will live to 115.

If you are asking this question, there are a few things you need to consider before you can determine whether it is possible to retire at age 60 with $500k.

First, if you are not already 60 and have $500k, you need to work out how you will get to this milestone.

If you are approaching 60 and already have your $500k saved, you need to look at how that savings pot might grow and what pressures might be borne on this retirement fund.

How much do you need to save for your retirement taking in inflation

Help To Hedge Inflation

Augusta Hedge Against Inflation

What Impact Will Inflation have on Your Retirement Plans? 

Now let's consider inflation rates, or instead, consider inflation itself. Inflation can be tricky because although it can mean that the dollar's value decreases over time, prices always increase. An excellent way to determine if retiring at age 60 is possible with $500k would be to compare current inflation rates with historical rates and see what they are expected to be years later. Suppose inflation rates can be expected to stay the same and not outstrip interest rates over the next 30 years, and you can live comfortably within the annual income you will have, then yes. In that case, you could retire at age 60 with $500k. However, if such can't be expected, this can pose a problem.

Inflation is one of the most significant risks to retirement savings. The amount of goods and services you can buy with a certain amount of money decreases over time – making any money saved less valuable. Many things can contribute to inflation, such as a rise in oil prices or a weakening economy, which can lead to higher consumer spending on everyday items.

If we do a straightforward calculation and assume you will live to 80 and retire at 60, you would have 20 years of retirement to fund.

Your $500k pot would then have to be divided by 20 years, giving you an annual income of $25,000. How does that compare to your current income? But it would help if you still factor in risks and inflation.

Bearing in mind if you had $25,000 in 2002, today, 20 years later, you would need over $46,000 to have the same spending power as a result of inflation, you would need to receive interest at over 3% and not to have withdrawn any of your capital to achieve this growth. Historic inflation has had a vast impact on retirees spending power in the past, and we have no reason to think it will not have a similar effect in the future.


How Much will my $500k Grow in my Retirement?

Check out some government websites and financial institutions offering interest rate calculators to determine how much your savings might grow. At the same time, they sit in your bank account, earning interest. As you draw down your retirement savings, the capital amount will decrease, and the actual amount the pot will grow will also decrease.


Other Risks

We have looked at how your saving might grow over time as you get interested in them and how inflation may erode the buying power of your savings, but what other risks could effect your retirement funds.

Other risks can erode the value of your retirement savings besides inflation. Pandemics can cause damage not just from illness but from loss of production too – primarily if you rely on people being able to work into their later life; look at how Covid-19 has impacted the US economy.

Global conflict can result in fewer countries trading and lower productivity. It can also cause mass migration that can lead to changes in the population and labour market – which can be bad for those living on their savings. We sit on a potential global war with Russia over Ukraine when writing this article.

Stock market crashes can wipe out people's years of careful savings within a few days, as can any natural disaster, such as earthquakes or floods.

Changes in the political landscape can change what types of tax you may have to pay and how much they might be. Please take a look at the proposal currently circulating from the Biden administration as just one example.

Of course, inflation is still a risk, and at the current time, inflation only seems to be heading in one direction, upwards!


Diversify To Achieve Retirement at 60 with $500k 

Whether or not you can afford to retire at 60 with $500k, you should still consider a strategy to combat the risks highlighted above, particularly as all of these risks seem real and highly likely.

You can either do something about it now or wait until the wheels fall off the wagon... but there WILL come a time when there will be no choice but to change your investment/saving habits!   And when that happens, if you haven't been proactive about diversifying your portfolio, you can kiss your retirement goodbye. 

We would only recommend putting some of your eggs in one basket by having everything in paper assets (stocks, bonds or cash), as these types of paper assets are highly susceptible to the kinds of risks we have already highlighted in this article.

As part of a strategy to diversify your retirement savings, we recommend you consider investing part of your retirement savings in precious metals like gold, silver, platinum, and palladium.

Many people invest in gold and other precious metals to help protect their retirement funds and ensure they retire when they wish. Typically, when people invest in gold and other precious metals, we see them invest between 5%-35% of their portfolio in gold/silver/platinum or palladium. Most of these people opt for the highly tax-efficient gold IRA plan

free $10,000 in silver
All you Eggs in one basket preventing retirement at 60 with $500k

How can you benefit from diversifying your retirement portfolio with Bullion or Precious Metals?

1) Deflation can spell disaster for anyone heavily invested in paper assets because they will be worth far less--or become completely worthless--when deflation kicks in.

2) Inflation can also spell disaster if your retirement portfolio or savings is heavily weighted towards paper assets. We're already seeing inflation kicking up food prices at an alarming rate. With more money being printed every day by our government, this can't help but drive inflation even further. This can be a death knell for someone heavily weighted in paper assets because the value of your investment will decrease. In contrast, anything not tied to paper assets can continue to increase in value.

3) Your investments can either be a cause of your retirement or an effect of it. If you can get past the idea that we can somehow fix this with more regulations and temporary fixes, you can see that these problems can only worsen. You can either work for as long as possible and hope things will get better OR take steps to prepare yourself for what's coming so you can still eat when others go hungry.

4) The Federal Reserve has promised to print $2 Trillion over the next couple of years and continue flooding our economy with the money supply. Flooding the economy with new money will NOT help our economic situation but will inflate prices even higher than they already are! Anyone who thinks this is a good thing and can't see beyond the end of their nose is in for a rude awakening when they can't afford to buy food or gasoline.

So, should I put it all in bullion/precious metals? No, there is no "one size fits all" for everyone. But we do suggest you diversify some of your wealth and retirement savings into precious metals; and while we can't tell you how much you should invest, we would suggest that 5% - 35% of your overall portfolio be invested in Bullion and Precious Metals (as part of a comprehensive, diversified portfolio).

If you think we're wrong about what's coming and can't read between the lines, please look at your 401(k) statements this quarter. Or ask yourself if food prices can continue to increase at an alarming rate, can you still afford to eat and fill your car with gas today, and what is the likelihood when you retire you will be able to do the same unless you move part of your savings into non-paper based assets like gold?

At any point, you can rollover part of your 401k, 403b or 457b retirement plan into a gold IRA plan and start the process of protecting your retirement wealth.

For those who aren't sure what a gold IRA is, it's a savings plan that gives you the ability to invest in precious physical metals like silver and gold (and sometimes platinum). The main difference between these plans and ordinary investment vehicles like stocks and bonds is that an IRA has much better protection against creditors – if someone tries to sue you, they can only get money from your traditional IRA. This limits exposure to associated liabilities such as those stemming from bankruptcy settlements since assets in an IRA cannot be liquidated until retirement age.


gold prices for 401k rollover

First of all, let's define the difference between a Gold IRA and regular gold investments. A Gold IRA can only be purchased in certified coins or bullion with an IRA custodian through a Self-Directed IRA LLC. The reason why is because each coin/bullion has to be specifically approved by the IRS for this type of investment. All other forms are not allowed in an IRA account, including mining shares or stocks in silver companies or any other company, even remotely related to gold, silver or other precious metals. Whereas if you invest in gold outside of an IRA, you can buy whatever coins and bullion you like.

The tax benefits of a gold IRA are like other types of IRAs. For example, at least some contributions can be deducted from your taxable income, depending on the type of IRA account you choose and your eligibility for destructibility (which depends upon whether your gold IRA provider offers full withdrawal flexibility). Therefore, this allows money to grow faster than it would otherwise be compared to investments outside of an IRA, where contributions are taxed as regular income. The primary benefit is that you will defer paying taxes until later when both gains and withdrawals are considered "qualified", which helps you avoid paying income and capital gains taxes simultaneously.

We hope this article has helped you answer the question as to whether you can retire at 60 with $500k. We are sure that diversifying part of your savings into a gold IRA either by rolling over a portion of your existing 401k or by a direct cash investment will help protect your savings and make for a more prosperous retirement.

To find out more details about gold IRA plans, request your guide to IRAs at no cost to you.


#1 Recommendation

Best Overall Precious Metal Provider



#2 Recommendation

Best  Gold IRA Based On Price



#3 Recommendation 

Most Reliable IRA Provider



Frequently Asked Questions About Retirement and the Amount of Money Your Need.

Can I retire at 60 calculator

Although there are many retirement calculators available on the internet applying the principles set out above in this article will help you make this decision. We would always suggest you seek financial or legal advise from a qualified professional.

Can I retire at 60 with $300k

With an average life expectancy of 20 years plus after your retirement at 60   it is unlikely $300k will give you a sustainable living for 20 years. Read the article above to see our reasoning for this answer.

Can I retire at 60 with $600k

Although there are many retirement calculators available on the internet applying the principles set out above in this article will help you make this decision. We would always suggest you seek financial or legal advise from a qualified professional.

Can I retire at 60 with 700k

The answer to this question is complex and is largely dependent on the factor set out in the article above.

What are the advantages of a Gold IRA?

A Gold IRA allows you to hold precious metals in a tax-efficient way. Gold IRAs special tax treatment is kin to those offered by standard IRAs: Contributions made to traditional self-directed IRAs (SDIRAs) are tax-deductible. Qualified withdrawals from Roth accounts are tax-free.

Gold IRAs are always self-directed; this means you are always in control of what you put into them and what you take out of them.

Holding precious metals as a portion of your overall retirement planning can provide a level of security and resilience. Historically we have seen the prices of Gold, Silver Platinum and Palladium rise as we are going into an economic crisis.

How Much Money is Needed to Retire at Age 60

How much money is required to retire at any given age is largely dependent on a number of things including, the lifestyle you want to have in retirement, the rate of inflation over your retirement years and the amount of risk you have where you save your retirement funds in. Please read the article above to help yopu define these factors and how they might apply to you.

How to invest in a Gold IRA?
When you have decided to start your gold IRA, and chosen your Gold IRA company from our list of the Top five Gold IRA Companies you must first open a self-directed IRA (SDIRA). Companies like our Best Gold IRA Company recommendation Goldco will help you with this process. Not every Gold IRA Custodian offers the same investment choice, which is one reason we made Goldco our Top Gold IRA Custodians for 2021.

When you have opened your SDIRA, you then have to put funds into your account. Again, Goldco will help you undertake this transaction quickly, efficiently, and securely. If you are looking to fund your SDIRA from part of the funds in an existing 401k, 403b or 457 plan, then a decent precious metals IRA company can walk you through this process step by step.

Once you have funds in your account, you can then go about selecting the precious metals you wish to hold in your gold IRA. Goldco employs an expert team that will help ensure that you get the proper selection of precious metals to meet your long term aims.

It is essential that you get the correct advice on what to purchase. There are restrictions on what precious metals can be deposited within your Gold Ira. These are mainly dependant on the finesses of the standard of purity of the precious metals you are trying to add to your plan.

To find out more information about Gold and Gold IRAs, request an information pack by clicking this link
Why should I invest in a Gold IRA?
You should invest in Gold IRA because it is a tax-efficient way to save for your retirement years. A Gold IRA is also an excellent hedge for inflation. Gold and other precious metals have primarily increased in value as inflation rises and the dollar's buying power decreases.
What types of retirement accounts qualify for a Gold IRA rollover?
Existing traditional IRAs, SEP IRAs, Simple IRA Roth IRAs and Self-directed IRAs can all be transferred into a Gold IRA. Additionally, it may be possible to rollover your 401k, 043b or 457b plan into a Gold IRA. However, we do not recommend rolling over the whole of these plans into even the Best Gold IRA Plans.
How does a Gold IRA work?
A Gold IRA works as a self-directed individual retirement account. The difference between a Gold IRA and a traditional IRA is that a Gold IRA allows you to purchase and keep a variety of qualifying precious metal bullion and precious metals coins. A Gold IRA was made possible when the US Congress allowed this in 1997.
What are your account storage and admin fees?
IRA Gold and precious metal storage fees will vary from broker to broker, and some offer free storage. It is worth requesting the Gold IRA information kits from each recommended Gold IRA provider on the bearlakeGold.com site.
How much time do I have to deposit my 401k funds into new my Gold IRA?
If you are rolling over your 401k plan into a Gold IRA, it is not a case of withdrawing the cash, holding it for a while and then purchasing your Gold or precious metals. The transaction is viewed as continuous and, therefore, should not incur any tax penalties. Withdrawing money from a 401k, 403b, or 457b can incur both State and Federal tax penalties,
How important is customer support with a Gold IRA provider?
Customer services, the quality of the information provided, the quality of advice given, and the efficiency of operation are, in our opinion, the key things to consider when choosing which Gold IRA company best suits your needs. All the companies we have shortlisted and reviewed on the BearlakesGold site have excellent customers services
How to pick the top Gold IRA investment company?
When picking a Gold IRA Investment company, we advise you to look at the levels of
Customer services, the quality of the information provided, the quality of advice given, and the efficiency of operation are, in our opinion, the key things to consider when choosing which Gold IRA company best suits your needs

What to do with your existing retirement account?
We advocate taking part of your existing retirement account a rolling it over into a Gold IRA. This has tax advantages and can helping secure your investment capital against inflation. Gold has historically been a great hedge against inflation, as the value of the dollar goes down Gold seems to have gone up more times than not.
What is the best Gold IRA rollover company?
We have reviewed 32 of the best Gold IRA rollover companies and shortlisted the top 5 Gold IRA rollover companies, we did the hard miles talking to them all, checking out their reviews so you don't have to. If you are still unsure download all of their information kits and make your own informed decision.
WWhat is the best gold investment company
We have reviewed 32 of the best Gold investment companies and by clicking the link you can see our dedicated page on our top picks

Get In Touch

This field is for validation purposes and should be left unchanged.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram