Would you?
I'm really caught on what to do here…
At 33 years old, I currently gross $425K/yr fully remote. The hours are not bad, but the stress levels are insane. Just flat out burnt out.
In a committed long term relationship, separate finances.
Don't want kids, made that decision permanent already.
Current net worth 1.4M; Taxable 840k, 401K = 400K; Roth IRA 50k Cash 50k; HSA 50k; Bonds: 10k
I do not ever want to own a home and I also do not like traveling (an occasional domestic trip would satisfy my desires).
Current Annual Expenses around 50K per year (excluding health insurance AND misc. capital expenditures/luxuries). MCOL city.
Planned withdrawal rate (using fixed dollar): 3.5% = 49k per year.
Additional income: I have a side hustle that nets me an additional 12K/year. I enjoy this work and I'd want to do it in retirement for enjoyment (and the cash is nice bonus!).
Plan: live off the 3.5% portfolio value (I know this is conservative, but I plan on just sticking to it as a ceiling but not a floor so that I will hopefully have a little extra cash when I'm older). I also plan on using the 12k per year from the side hustle to pay for health insurance and random vacations etc..
What feels wrong/dumb is that I know I have such an extremely high salary and once I walk away, I'm certain that I'd never get to this level again. I don't think I have it in me to work in this same industry for a lesser salary, due to the extreme burnout. Also OMY makes a lot of sense, but I just don't want to..
Would you LeanFire?
Posted by Aware-Steak1824
5 Comments
You are too young, you are projecting too little expenses for long term, don’t own your home – I would say this has too high chance for failing.
Yup I sure would.
Listen you’re better off than a LARGE swath of America. While I’m no good at the math of this whole FIRE thing (I just hand it over to Vanguard and keep saving), I can say with certainty that you are at a phenomenal spot for 33 years old.
I just did this myself in a manner of speaking because I was so very very tired of the grind. I’m 44 and within spitting distance of 1M. I gave up roughly $200k/yr for about $150k/yr with a far better work life balance and less stress, and I don’t think I will ever go back.
You could easily drop down to the levels I’m at and be doing GREAT by the time you really want to pull chocks for good. Give yourself a break, find a gig that has a good leave policy. Trade income for more leave days if you have to and then TAKE THE LEAVE. Go hiking. Get a dog. Learn a language. Play tons of board games. Do the NY Times Mini Crossword puzzle every morning then text the results to all your friends. Stop working so hard man.
Stick it as long as you can.
Why are you stressed by your job? This is a fixable thing.
You don’t care enough to quit. Can you work on not caring now?
I think rent is the biggest question mark. Rent can rise faster than inflation pretty easily. I would not feel comfortable retiring in this situation. You could always take a break though, and reenter the workforce with a lower paying less stressful job and still be fine.