Know Your Portfolio Number
At 60, you need a portfolio that lasts 30+ years. The 4% rule works for a 30-year horizon; many planners use 3.5% to be conservative. Multiply your annual expenses by 25–28 to get your target.
$75,000/year in expenses × 25 = $1,875,000 target. At 3.5% withdrawal, that's $65,625/year — a modest buffer for unexpected costs.
Bridge Healthcare to 65
Five years without employer coverage before Medicare. ACA marketplace plans are the primary path — premiums scale with income, so keeping taxable income low in early retirement can dramatically reduce costs. A couple in their early 60s with managed income often qualifies for meaningful subsidies.
Sequence Your Income Sources
The order you tap income matters. A common sequence: draw from taxable accounts first to let tax-advantaged accounts grow, then 401(k)/IRA, then defer Social Security as long as possible.
Rule of 55: If you leave your employer at 55 or later, you can withdraw from that employer's 401(k) penalty-free — a critical bridge tool most people overlook.
Optimize Social Security Timing
At 62: receive 70–75% of full benefit. At 67 (full retirement age for most): 100%. At 70: 124%. Every year of delay between 62 and 70 increases your benefit. If you can afford to wait, waiting almost always wins.
The break-even point for delaying from 62 to 67 is typically around age 79. If you expect to live past 80, delaying is mathematically superior.
Manage Sequence-of-Returns Risk
A market crash in year 1–3 of retirement is far more damaging than one in year 15. Keep 2 years of expenses in cash or short bonds so you never have to sell equities at the worst time. Replenish the cash bucket when markets recover.