I’m currently on sabbatical and finding the idea of going back into the grinding work I was doing less than appealing. I’m considering early retirement, please help me identify any (financial) concerns.
Two caveats:
- Likelihood of me never earning a single cent again low, but that’s what I’d like to evaluate against as worst case. No need to comment on things like boredom, second career, etc - I’ll evaluate that separately!
- Numbers adjusted somewhat for privacy and ease of reading, but proportionally accurate
Me: Single early-mid 40s.
Expenses: 110-150k. Last 5 years had tracked consistently to 105 or 125k depending on if large house projects happened. Increased range accounts for added medical, some delayed project catchup, etc added in. This year tracking to ~130 including medical added in, but not (income) taxes.
Assets:
House: paid off, not planning on moving
Taxable: 4 million
Retirement (half pretax half Roth): 2 million
Intellectually seems like I should be fine, but I lean a bit conservative in terms of safety margin, and recent inflation of fixed expenses (upcoming 20% increase in healthcare premium, similar in home/car insurance) has me a bit worried, as does fact we’re at such a market run up right now. Once I’m more than 2 years out from working in my field, unlikely to be able to go back.
Any concerns, or am I over thinking it?
Two caveats:
- Likelihood of me never earning a single cent again low, but that’s what I’d like to evaluate against as worst case. No need to comment on things like boredom, second career, etc - I’ll evaluate that separately!
- Numbers adjusted somewhat for privacy and ease of reading, but proportionally accurate
Me: Single early-mid 40s.
Expenses: 110-150k. Last 5 years had tracked consistently to 105 or 125k depending on if large house projects happened. Increased range accounts for added medical, some delayed project catchup, etc added in. This year tracking to ~130 including medical added in, but not (income) taxes.
Assets:
House: paid off, not planning on moving
Taxable: 4 million
Retirement (half pretax half Roth): 2 million
Intellectually seems like I should be fine, but I lean a bit conservative in terms of safety margin, and recent inflation of fixed expenses (upcoming 20% increase in healthcare premium, similar in home/car insurance) has me a bit worried, as does fact we’re at such a market run up right now. Once I’m more than 2 years out from working in my field, unlikely to be able to go back.
Any concerns, or am I over thinking it?
Statistics: Posted by trees — Thu Oct 10, 2024 8:09 pm — Replies 4 — Views 307