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Fifty-year-old Marilyn wants to retire when she's 56. She has worked as a sales manager at IBM for 24 years and contributes the maximum to her 401(k) plan. Marilyn pays for her daughter's college education with the money she's made from IBM stock she bought at the employee rate. But three years ago, Marilyn spent over $200,000 on a small business that failed. "I feel like I just lit a match to money," she says. That loss forced Marilyn to refinance her home and has caused her to rethink her plans for early retirement.
Marilyn's monthly income is $9,105. Her expenses are $8,191, and her retirement savings are $393,000. She has a monthly surplus of $914.
Can Marilyn afford early retirement?