Montana Retirement Works at 62 on $900,000 With Paid-Off Home

2 articles · Updated · 24/7 Wall St. · Aug 14

$900,000 can support retirement in Montana at 62 only if a couple owns its home outright and settles in lower-cost cities such as Helena or Billings, not pricier Bozeman or the Flathead corridor.
A workable budget runs about $60,000 to $68,000 a year—roughly $64,000—including $12,000 to $16,000 for pre-Medicare health coverage, with anything above $75,000 requiring more assets or cheaper housing.
The main strain is the five-year bridge before Social Security at 67: the analysis recommends drawing about $64,000 annually and setting aside roughly $320,000 in short-term Treasuries and CDs, leaving $580,000 invested.
Once combined Social Security reaches about $4,500 to $5,200 a month, portfolio withdrawals fall to around 2% a year, but Montana still taxes Social Security and IRA withdrawals can also reduce ACA subsidies before 65.
The conclusion fits a broader view that $900,000 can be enough for retirement, but in Montana the margin depends heavily on sub-market housing costs, tax treatment and rising western insurance premiums.