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You know, I have to wonder if they are asking the right question?

With a combined income of $110,000, why haven't they been saving more all along? My income (for one person) is considerably less, yet I put the max into a 401(k) every year, as well as into a Roth.

So their house in NJ is worth $200K, and the NC condo is worth $95K. The NJ house is nearly paid off, and it seems like the NC is paid off as well. So if their house is worth $200K, assuming they bought it a while ago, their payments couldn't have been that much.

So the question doesn't seem to be "Can they retire on $1 Million?" but it seems to me, the question should be "Where is all their money going, right now?"

The husband is self-employed, but he's probably on his wife's health insurance, so there shouldn't be a huge outlay there, their house payment is probably low.... where's that $105K a year going? Answer that question, and you have a better handle on whether or not they can live on $1 million.

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