At 65, owning a paid-off house and holding $750,000 in investments gives retirement a very different starting point. Housing no longer includes a mortgage payment, but property taxes, insurance, repairs, utilities, and maintenance still consume cash. The bigger question involves how much of that $750,000 can support monthly spending without turning future retirement years into a financial squeeze.
A simple percentage provides a useful starting point. A 4% first-year withdrawal from $750,000 equals $30,000, or $2,500 per month before taxes. A more conservative 3.9% rate produces $29,250 annually, or about $2,438 per month. Morningstar’s 2026 retirement research puts 3.9% at its highest starting withdrawal rate for a retiree seeking inflation-adjusted spending over 30 years with a 90% probability of having money remaining.
