People have strongly criticized Suze Orman for saying that $2M is not enough to retire early. I think Suze was right, especially now when a lot of things cost more than double compared to 10 years ago. And nobody can predict know how much more things will cost 10 years from now; therefore, it’s better to save more than not saving enough.
You still have to pay property tax, property insurance, utility bills, landscape/pool maintenance on the house that you already paid off. These will set you back $1-2k/month, which doesn’t seem a lot to you now because you are working. You pay $1-2 k/month for your health insurance (depends on the number of members in the family) and the premium increases every year because you’re getting older. You pay another $1k/month in auto insurance…another $1k/month in grocery shopping. And you will be left with nothing to live. You can forget about having a nice vacation trip every year.
$2M may be ok if you are single. It may be enough if you still maintain steady income with a 1-2 day/week part time job. It may be enough if you retire at 65 because you have medicare and social security money. It’s not enough if you choose to retire young…like in your mid 40s, 50s. Many people, who are in their 40s, 50s, still have young kids who are in middle and high schools.