I’m 42M, no kids, no debt, paid-off condo living in HCOL area. My business has not been doing so well this year because of the economy and I am stressed out and burnt out. So, I will be closing it down by December. I want to take a 2 year sabbatical to improve my health and do some traveling. 12 years of doing my business has taken a toll on me and never really got to travel because of the time constraints.
Current portfolio: $764K: $560K in VTI, $204K cash. I plan to invest $150K of the $204K cash into VXUS or QQQM and leave the rest in cash or bonds.
Paid off condo worth around ~$630K.
I have another $210K in an HYSA. I will be using some of this money for the two year sabbatical.
My annual expenses are about $35K/year but plan to spend about $70K/year during the sabbatical because of traveling. Once the two year sabbatical is over, I already have plans to start a different business that is more meaningful and doesn’t carry all the stress.
Some of my friends tell me it’s a bad idea to go on a 2 year sabbatical because a recession is looming around the corner. But I really feel like I need this for the sake of my physical and mental health. I would like to do some traveling while I’m still young too. I would like to start the 2 year sabbatical at the beginning of 2027.
I’m open to advices. Thank you.
Is it a bad idea to take a 2 year sabbatical for burnout?
byu/solo_entrepreneur infinancialindependence
Posted by solo_entrepreneur
9 Comments
Really smart move prioritizing your health over market timing – stress can mess you up way worse than any recession. With your numbers you can definitely swing this and still have solid runway for the new business afterward
Your friends mean well but they dont know your situation like you do. Two years to reset and figure out what actually matters is worth more than trying to optimize every dollar during uncertain times
I mean, you’re basically FIRE at this point. Invest the full 204k so inflation doesn’t eat your lunch. I would also invest half the HYSA, just keep at most a year’s worth of expenses in there.
Those 2 would bring you to roughly 860k invested, and at 4% that’s almost 35k, so you’re right at your FIRE line, meaning work is optional.
You won’t be able to maintain 70k/yr in expenses, but 2 years of that and then getting back to the grind is more than fine
Why not try a 1 year sabbatical first?
Any particular reason for 2 years? Seems kind of long, but regardless, you can afford it.
You can always return to doing something for pay if you need to. You can’t always return to being healthy.
Go do it! You can afford it and have no responsibilities. You already know you can run a successful business (I assume that’s where your money came from). You can do it again later if you want.
If I was you I’d be somewhere in South America or Asia enjoying myself already.
Your annual expenses are low, your portfolio could be enough to cover the $35k/y in your expenses depending on how the markets go… You’d be dipping into your cash savings to travel and have fun. Go for it dude – take a break and reflect. You might find yourself bored and wanting to get your hands on something in a year.
Do it. Fuck what anyone says. If your heart tells you to, do it. Chill the fuck out, that’s the least you deserve
Are you working on improving your health now?