I'm a 55-year-old divorced dad with $810,000 in my 401(k) and I'm maxing out my contributions every year. Can I realistically retire in the next 10 years?

How big can your portfolio get?

In addition to your robust 401(k) account, imagine you’re able to max out contributions. At your age, that means putting away $31,000 a year ($23,500 regular cap plus $7,500 catch-up). Plus any employer-match, if your workplace offers such a program.

Contribution limits tend to rise over time, but for the sake of simplicity let’s assume they stay the same over the next decade, and that you contribute monthly ($2,583.33) with no employer match. Assuming a conservative average annual investment return of 7%, by age 65 your 401(k) should be around $2 million.

That seems like a strong number, but before you celebrate you need to figure out how much income that will translate to in retirement.

Using the 4% rule as a guide — which means withdrawing 4% of your savings in your first year of retirement and adjusting that amount annually for inflation — that would equal $80,000 in year one. Add on top of that Social Security, whether you decide to start collecting at age 62 or 70. Considering, with the right portfolio management, the 4% rule is meant to last 25-30 years, you could be sitting pretty.

Of course, there are other factors to consider.

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What about your kids and your ex?

Here’s where things get complicated because you’re not just planning for yourself.

Are your kids still minors? In college? Are you covering tuition or housing? It may be wise to budget for additional costs now. Even if you’re done with formal support, you may want to help out in different ways. If you're the primary caregiver, your household costs may stay higher for longer.

Do you pay alimony? If yes, when does that end? Also, depending on marital laws in your area, your ex may have a claim on your retirement accounts.

Divorces can splits 401(k) earnings during marriage. Make sure you know what's truly in your name before you plan around it.

Health care and taxes

Health care is one big reason Americans get strategic about retirement. Medicare becomes available at age 65, which means if you retire any earlier, you may have to pay for private insurance in the meantime. It’s also worth noting that Medicare offers individual coverage only — there are no family plans.

Also, remember that 401(k) withdrawals are taxed as ordinary income. If you're pulling $80,000 a year, remember to factor taxes into your budget from the start. A portion of your Social Security benefit — up to 85% — may also be subject to taxes.

If you have any further concerns — including care for yourself in the future — consider meeting with a financial advisor. Together you can come up with a plan to best suit your needs.

So, can you retire in 10 years? If you keep up your retirement contributions and the market is stable, it’s very possible — especially if your expenses aren’t sky-high. A $2 million nest egg sounds like a lot, but it depends on how you spend the money and who you support. It’s less about a magic number and more about a personal budget. Can your future income cover your actual costs, including kids, taxes, health care and leisure?

If you’ve got a handle on what your costs will be, and the math checks out, retirement could be a real option.