3 reasons why $2M to $5M in retirement savings can be the toughest to handle — plus an instant tip for wealthy boomers

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Having millions in retirement savings is a common dream. And according to Northwestern Mutual (1), the average American believes they need at least $1.46 million to retire comfortably in 2026.

So if you have $2 to $5 million in the bank, you’re well above target. But this level of wealth comes with its own unique challenges. Here are the three reasons why being a modest millionaire is difficult to handle.

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Someone with $30 million probably has access to an army of tax lawyers and investment advisors to handle all their complex tax issues. Someone with just $300,000 probably doesn’t have many tax complications to worry about.

But with that $2 to $5 million range, you’re in a difficult zone. This level of wealth is high enough to cause tax complications when taking withdrawals or moving money around. But it’s not high enough to justify a full team of tax professionals.