Think $1.9 Million Is Enough to Retire? Think Again

In a recent video, Certified Financial Planner Thomas Cook laid out a surprising truth: even with $1.9 million in savings, some people still don’t feel ready to retire. That’s the case for one couple Cook advised – age 60, mortgage-free, and debt-free, with solid savings. Yet, when asked why they hadn’t retired, they both hesitated. What Cook uncovered goes far deeper than the numbers on a spreadsheet. It’s a powerful example of how retirement readiness isn’t just financial – it’s psychological, emotional, and deeply personal.

The Financial Snapshot

According to Cook, the couple’s total net worth sat at $1.9 million, with $1.5 million in traditional 401(k) accounts and $400,000 saved in a high-yield savings account. They own their home outright, have no student loans or car payments, and pay off their credit cards every month. Their current income is around $150,000, but their monthly living expenses are just $5,500 – far below their means.

Using standard retirement planning models, Cook demonstrated that they could safely double their monthly spending, up to nearly $10,000, and still be financially secure. Yet they still felt unsure about taking the plunge into full retirement.

Fear of Healthcare Costs

One of the couple’s biggest concerns was healthcare. Specifically, they were nervous about the years between age 60 and 65, before Medicare eligibility kicks in. Cook explained that this is a common worry among pre-retirees, especially those who are used to employer-sponsored plans.

But here’s where things get interesting. As Cook pointed out, healthcare subsidies through the Affordable Care Act (ACA) are based on income, not assets. That means even people with high savings can qualify for reduced premiums, as long as they manage their taxable income wisely. In this case, Cook showed them how to use Roth conversions to keep their income at the right level while lowering future tax burdens.

A Tale of Two Mindsets

Cook highlighted another major factor in the couple’s hesitation: psychology. One spouse was extremely frugal and found it difficult to start spending after decades of saving. The other was more eager to enjoy life, travel, and make use of their healthy, energetic years. That difference created a subtle but important emotional divide.

This tension isn’t unusual. Cook explained that even financially secure clients often need help understanding what “enough” really means. The saver in the couple wanted to wait until age 67, when Social Security kicks in at full retirement age. The more relaxed partner saw no reason to delay enjoying life when the money was clearly there.

Strategic Roth Conversions

One of Cook’s smartest solutions was showing how Roth conversions could serve multiple goals. By converting part of their 401(k) funds into a Roth IRA, the couple could generate just enough taxable income to qualify for ACA subsidies while also reducing the future tax bite from required minimum distributions (RMDs) after age 73.

This move doesn’t just save money. It creates flexibility. Roth accounts grow tax-free and aren’t subject to RMDs, which means more control over income later in life. That kind of planning, Cook stressed, is key to maximizing retirement freedom.

Creating Certainty With a Bond Ladder

To provide even more peace of mind, Cook built a bond ladder – a structure where bonds mature at regular intervals to provide predictable income. This gave the couple clarity on where their next few years of spending money would come from.

“Even if the market crashes next year,” Cook explained, “they’re not relying on stock-based assets for their groceries.” That kind of financial structure reduces emotional panic and helps retirees feel comfortable actually spending their savings.

Easing Into Retirement With Part-Time Work

Interestingly, even after learning they could afford to retire, the couple decided to continue working part-time. Not for the money, but for the joy and social interaction. Cook noted that this is an increasingly popular path. Many retirees aren’t looking to stop working altogether – they just want to do something they enjoy, without stress.

This strategy also benefits their Social Security planning. Since one partner had a significantly higher Social Security benefit, it made sense for them to delay until age 70 while the other claimed benefits at 67. That way, the couple maximized survivor benefits later in life.

When Social Security Covers Most Expenses

Cook showed the couple that once Social Security kicked in, it would cover nearly 90% of their current monthly expenses. That meant their portfolio wouldn’t need to shoulder as much of the load later in retirement, allowing them to withdraw less and worry less.

It’s a powerful reminder: retirement isn’t one flat financial phase. Income needs shift, expenses change, and a solid plan has to account for that ebb and flow. Cook helped the couple see that drawing more early on, while they’re healthy and adventurous, made sense – and that future expenses would actually decline.

The “Die Broke” Philosophy

Cook shared that this couple didn’t have a strong desire to leave behind a large inheritance. Their goal wasn’t to die with millions – it was to use their money while they were still able to enjoy it. “If we don’t overdraft our last check,” they told him, “we miscalculated.”

It’s a mindset shift more people are embracing. Cook quoted Warren Buffett, who once said he wanted to leave his children enough to do something, but not enough to do nothing. That same idea applies to retirees: use your wealth to fund a rich life, not just a rich estate.

But $1.9 Million Still Isn’t Always Enough

In a cautionary tale, Cook described another couple with a similar amount saved, around $2 million, but who weren’t close to retiring. Why? Because their spending was far higher. They still carried a mortgage, had expensive lifestyle habits, and needed more income than their portfolio could safely support.

This contrast underscores Cook’s main point: retirement isn’t just about how much you’ve saved. It’s about how much you spend, how much you need, and whether your financial plan lines up with your values. If those things aren’t aligned, even a large savings balance can feel small.

Retirement Is Personal, Not a Number

What I appreciate about Cook’s approach is that he focuses on life first, money second. He’s not just trying to hit some arbitrary retirement goal – he’s helping people design lives that feel fulfilling and secure. That’s a powerful reminder for anyone stuck in the “I’ll never have enough” mindset.

It’s also a wake-up call. Too many people fixate on a magic number, $1 million, $2 million, $5 million, and assume that number guarantees happiness. But as Cook shows, without a clear plan, even $1.9 million can feel like not enough.

Confidence Comes From Planning, Not Just Saving

Thomas Cook’s example is a compelling case study in how retirement confidence is built, not from hitting a dollar target, but from understanding how to turn savings into income, how to navigate healthcare, and how to match your spending with your values.

If you’re in your 50s or 60s and wondering whether you’re ready, this case shows it’s not just about the numbers. It’s about the structure, the mindset, and the clarity that comes with a well-built plan. Retirement doesn’t have to be scary – even when it costs more than you expected.

The good news? You might be closer than you think.