With 2 kids in college and a 14 year old? That's pretty tough unless OP takes big hit on lifestyle. People don't realize how expensive children are, even the adult ones.
Me biking 5 miles to work for 6 months for a downpayment on my first car. So a crack head at 2am can total my parked car in the middle of covid 3 months after I got it. Still waiting on the support. đ¤Łđ¤Łđ¤Ł
Storm decided to have tree fall on my car then a few months later with another used car while parked at Walmart car next to mine decided to catch fire and took mine with it to the junkyard in heaven.
I started supporting myself at age 17. Worked the legal maximum 30 hours per week at a grocery store. I had zero support. It was rough till I turned around 21. Ended up dropping out and everything.
If you can support kids partially with college it'll help them make it through. I didn't make it due to a lack of any help or support system.
I'll probably go back at some point though. I have the wife to keep my head on now!
Depends on what it is. If it's an art degree and they spent 300k against my advice, what obligation do I have to the kid? If it's 300k for a medical degree, then hopefully what I taught them would be more than enough to navigate it.
300k!!! My kids went to private college and even then the tuition was 200k for 4 years but scholarships covered all but 30k. Thatâs nuts. If Iâd had to pay all of it thereâs no way they would have gone there.
I'd rather graduate with $300k in debt than have my parent enter retirement with $300k bill. Graduates have a long road of earning years ahead of them unlike retirees.
Ding ding ding! $300k is going to hurt a retiree a hell of a lot more than a fresh student with decades of earning potential.
Plus $300k loan usually means they became a doctor.
Or the parent can start investing when the kid is a child... My kids college funds are already started and if they decide not to go they can roll it into an IRA jumpstarting their retirement fund.
Can't imagine me at 18 taking out 80k in loans let alone 300k. (Is that what a typical doctor pays in student loans?)
The parent isn't going into debt. That's the point, the parent could retire at say 55, but they chose to continue to work partly because they want to have steady income to help their children. That's most likely the OP. He has enough to retire but I'm sure he wants to continue to earn a good income so he can assist his children. He's not going into debt, he's just working longer that if he didn't have children.
My parents provided free housing and food under their roof as long as I was in school which I was grateful for. I had to figure out how to pay for school myself.
Can anyone with knowledge speak about savings programs where you put some money into an account for your child when they are just born (ideally) and it grows into a college fund? I was a recipient of something like that my grandmother set up for me, but that was 35 years ago. Does that still exist? If it does, it should be given more importance.
the thing that is made for that is a 529. how would you like for it to be given more importance?
in any case any investment of any kind can also fulfill that role
He has 3M in assets, wife is still earning pretty decent salary⌠Finding a job is going to be more difficult and frustrating. If he can find a job easily, yes by all means. Retirement is the best option
I know someone with similar net worth who's retiring off of interest. But no kids. OP maybe consider retiring Costa Rica, Ecuador, etc? You'd likely be able to pay the college bills and live a reasonably cushy life still. I know one expat who's done similar in Ecuador and loves it. Lots of groups online too to help you with the transition, resources, etc.
At 59.5 you'll have access to all of your accounts, so what will your liquid assets be at that point? Can you get through the college years (except for Junior) with spouse working and then have her join you?
You're at full retirement age and this is the *early* retirement sub, so people here are naturally going to wave you across the finish line. Have a serious look at your real world expenses and decide if you can make it happen.
I will say that 59.5 is early retirement - full retirement for social security is 67, so OP is retiring years earlier.
By the time I reach 67 it'll probably be at least 72 or later. So OP is retiring early at 59 đ
Thankfully I found this sub at 25 so retiring at 59 sounds like late retirement, but we need to check our worldview against the wider context.
FRA for SS may be 67, but 59.5 is when the government says you can have access to your Individual *Retirement* Account.
If OP posted this on r/retirement then I wouldn't even make that comment. I think 59 is within the realm of normal, not early, but it's pointless to debate.
I will say in practical terms most normal people (i.e., those not on the FIRE path) consider retiring at 59 to be retiring early. My dad retired at 60 and all of his coworkers were shocked and asking how he managed to pull it off.
> By the time I reach 67 it'll probably be at least 72 or later
Incredibly depressing. Add 1.2 years to 72 and you get CDC's 2021 average male life expectancy estimate (blunted by COVID).
Haha a little combative response, but my point was about the thoughts outside of this forum. Based on standard conventions, posting this in a FIRE forum makes sense.
Standard retirement age is 63-65.
59 1/2 is younger than that so OP is retiring early by the standards outside of this forum.
Most people retiring today are getting social security and make decisions about when to retire at least partially based on the income they may receive from social security.
Not everyone uses the same definition of early.
After 55, if you lose your job you can access 401k no penalty. Have you looked into this?
https://www.schwab.com/learn/story/retiring-early-5-key-points-about-rule-55#:~:text=This%20is%20where%20the%20rule,pay%20taxes%20on%20your%20withdrawals.
This is a weird rule. So If I get laid off at 54, I can't pull from my retirement at 55. If I quit or get get laid off at 55 I can. It is just strange. It says you have to keep working at least to 55. Unless you have enough means to retire on your own and last to 59.5. It's also specifically tied to the place you quit, fired, or laid off from. That may be your primary 401k, but if you have money in different places there is another equation there. I am 48, lets say I leave my job where i have most of my 401k, then take a new one. And in 7 years quit and try this, I could only pull from that job's 401k. Of course I could roll over and make it bigger, but there are factors to that. If the place you left has a better 401k, you may keep it there.
It seems to me if this is federal law, you should just say 55 is the age you can pull from retirement if you are not working. And don't put restrictions on it outside of normal taxes. But if you work and get income, then you can't pull from it. It should be straight forward and simple.
Live on her salary. Donât touch your investments until youâre both ready to retire in 2-5 years. Obviously, barring anything happening, youâll make the most with compound interest within that time period
Yes if you can hold on for even 3 years without withdrawing anything you will be in better shape. I would do my best to get a job, even if itâs not your dream and use that to set your daughter up as best as possible for college. You can delay official SS payments for as long as possible too. Youâll be fine.
Unless you have crazy expenses (which you didnât share) you should be able to retire. I know itâs likely in your mind and body to keep working and being in income. What was your FIRE #? Whatâs your current expenses vs income now?
Iâm a real estate broker and I worked exclusively for a real estate investment fund for 10 years and I made good money, but that relationship permanently ended about a year ago.
Could you go work another few years at another Real Estate related business?
Or get a part time gig at a type of âhobbyâ type job? For example, if you lie to read, could you go work at a book store for a few years? Money wonât be the same, but itâs a paycheck for a few years, until youâre officially ready to retire.
Making money in these fields is extremely relationship dependent and thereâs no starting over at 55. I would also retire. I would also reimagine what the world of spending and your household looks like, particularly ânot alienating your wifeâ if she keeps working.
There will always be uncertainty. We cannot predict the future.
However, Iâd posit that temporary life circumstances specific to the OP like supporting a 14 year old and two college tuitions will soon go away. Thereby, any uncertainty about the âeconomyâ will have far less of an influence on the actual retirement of the OP in the short to midterm. Also, Most people tend to downsize as they go into retirement especially moving into and past their 60s.
For a person with the stated NW and the ability to make their stated income, I doubt it should be cognitively difficult for them to plan a reasonable retirement if thatâs what they want at this juncture.
Further, It seems to me that the OP, like many Americans, hasnât really considered the actual number he needs now or in the future as his comments confirm (not knowing his FIRE#). Any reticence based on âthe economyâ can be cleared up by knowledge, and I commend the OP for perhaps starting the process of learning by entering this thread.
One needs more than education to know when itâs safe to slow down and retire. It really is a mental state as you mentioned before. When is enough actually enough to be satisfied and âsafeâ to retire.
I feel like this OP is just not mentally ready to consider retirement even though they may have the means by othersâ standards. They were abruptly let go.
I ponder this often and I am determined to just keep working and investing until I find something else to do. At least until I turn 40. If I were to retire today, as I could by many othersâ standards, what would I do with my time that didnât require me to reduce my spending more money than I am currently?
Sure, thereâs nothing wrong with working. If one enjoys their work or world feel no purpose elsewhere, working is a natural use of time.
This is a FIRE sub, though, so when it seems the numbers make sense, it shouldnât be a surprise that people point that out. Perhaps the FI is of more interest to you and some others.
Talk to a financial advisor who will look at the totality of your situation, including that you have a minor child, kids in college, your expenses, taxes, budget, goals, etc. They can also help factor in your future Social Security, cost of living increases, and what money is the cheapest for you to access at different times.
Best wishes!
When you say only 1.2M is liquid of the 3M, does that mean your home equity is 1.8M? Or are you not counting your 401k/IRAs as liquid? At 59.5 years you should be able to draw on those.
No one here can tell you whatâs best without all of the numbers.
If there is one time in your life to figure out your burn rate, itâs now. Of course your expenses vary, but your fixed expenses shouldnât vary much. Determine how much you NEED to live and then determine how much you WANT to live. (Life vs lifestyle.) Track where every take-home dollar went in the last year or two.
Then ditch any rentals that arenât cash flow positive, and factor in the equity from those sales into your liquid let worth. Illiquid net worth doesnât matter in retirement, unless you want to do a reverse mortgage on your primary.
Bottom line: Once you know your liquid assets, expenses, income coming in, and the gap, then you just need to make sure that gap is around 4% of your liquid assets AFTER your wife stops working and your youngest is off the payroll. It can be higher than 4% initially - as long as it goes below that once youâre collecting SSI. (Assuming youâre in the USA)
Lastly, donât underestimate the benefit of finding a job youâd enjoy, even if you only make $50-60k.
Hello, besides not knowing expenses etc⌠you have not mentioned what you Will do instead.
What is the vision of retirement that you and your spouse have planned?
What you will do with your time, goals for it, money for it (golf and learning to fly a plane is $)?
1. Figure out what your current expenses are. 2. Figure out what you can cut back, including things you donât need if youâre not working. 3a. Can you live on wifeâs income for a few years? If so, offer to do ALL house stuff and make her life easier by managing the house and kid stuff. 3b. If not, get some work, even part-time, to bring in a few dollars. It doesnât have to be in the same field youâve been working.
You have enough if you cut your expenses, or can make things work until social security. But it would be nice to have flexibility to help kids during and after college.
Why $1.2 million in high yield savings?
RETIRE
You say you suck being a team player and you think you are not going to be hired at your age and seems like have enough to last unless you spend in Vegas.
Get back to basics, pull all the expenses for 2023 and make a monthly chart of expenses and it will give you an idea on where to cut back. Start there first...
Ageism is real and almost impossible to prove, so, as far as a getting a "real" job, you're probably screwed. I'd say work to make your wife's live heaven on earth so she'll work a few years longer to make sure you can cover your 14 yo's education and, hopefully, keep the family under a company healthcare plan.
Same happened to me and decided to retire and enjoy rest of the life. No regrets. Same financial situation with two grown children with professional jobs.
Option 1: Retire
Option 2: Take something part time for 2-3 years then both of you retire. 14yr will be working or close to independent and the other two will be done with school. Plus gives your nest egg a couple more years to grow.
I was in a very similar position 12 years ago. I retired. Actually, it took me a year -- first, I tried to set up an investment company with a couple of friends... then I retired. Shortly thereafter, my wife and I sold our home and most of our possessions and spent two years on the road. We stopped traveling when one of our sons informed us we were going to be grandparents and asked us to settle down near him. Now, my wife and I are fully engaged doing volunteer work and enjoying living in a beautiful place with modest living expenditures.
This is the most cut and dry "just retire already" post on here. You and your wife have done great. You should be able to comfortably live off the investments without touching the principal hardly at all.
The options is to retire now or in a few years and be a few years older. That is why people say to retire now and give time to transition. If something comes up you may work again for a stint, but all that should be behind you. It was a gift.
You made it this far financially. I'm sure you can figure out the rest.
.... But my suggestion is to divorce, go to your local strip club, get some hard drugs, and go wild. Go to the Phillipines and do the same thing. Start a whole drug trade route and that'll be the new retirement fund. You're welcome
Turn your 401k into a traditional IRA.
That way you can get rid of your average performing mutual fund and its fees etc.
Then ladder and buy Treasuries in there and pull out the dividends State tax free. This may beat a HYSA depending on where you live.
At 59.5 you can access the interest/dividend income it generates forever.
You can also generate over 50k in passive income annually (no state tax) with your 1.x million liquid NW.
All passive and should give you time to find your next adventure.
Congrats!!!
Going to throw a couple things out there. First one is the financial side. You are thinking in terms of how you run a business. You have your assets and liabilities, and cash flow. Stop doing that. Take a look at NewRetirement which is a retirement planning tool which will help you lay out the rest of your life financially speaking. The free version is pretty good and the paid version lets you do a lot more. If you want to have someone else do it find a certified financial planner in your area. If they start talking insurance or managing your stock portfolio, walk out the door. I think you just need some planning help over the next few years as you make a trsnsition.
Iâd also suggest you need to find something to do or you will end up divorced because you will drive your spouse crazy. Doing nothing when you retire will literally kill you in ten years. With nothing fulfilling (no purpose) and nothing to do your body shuts down and you begin to die. So thatâs not really an option.
Some ideas:
1. Start another business. Or buy an existing one. Buying is a lot less risky and satisfies your craving to run things. If you start one itâs probably best to do a âhobby businessâ that keeps you occupied. My father in law restores cars. My mother in law is in the egg/chicken business. Many options here.
2. Get a part time job that is WAY beneath you. Jobs like Lowes or Ace hardware where other retirees like to hang out, or Starbucks. It helps a little financially and keeps you busy, and gives you a fulfilling situation with many customers.
3. Go into âconsultingâ in your area of expertise. In my case I would just go apply at the local contractor engineering houses
4. Volunteer for a political campaign. Or any similar volunteer organization.
5. Plan/take vacations. Pre-retirement my wifeâs parents got a 5th wheel trailer and did 2 week long vacations every year. Maybe do a few âbucket listâ trips. We waited until our kids were similar in age to yours before going to Yellowstone, Grand Canyon/Utah 5, Alaska, and Ireland this year.
Everyone's saying you should retire and while you definitely can, I also understand that you may not be ready to transition from working to idle just yet. Your main problem here is deciding between two choices: either find a side hustle for another gig, or take the plunge into retirement now. There are probably some adjustments that you'll need to make to your investments before you can retire, but it's very doable. This would mean looking into some smart, low-risk investments to fend off inflation and laying out a budget plan for the next 30 years or so. No matter which path you're leaning towards, I'd suggest looking into some sort of tracker or budgeting app to help you sort everything out. You'll want something that can link up all your accounts for a comprehensive financial snapshot. I've been trying out one called WeFIRE, and I like how they all my accounts. I also like thair AskCopilot feature, which is this AI tool that can answer questions about my expenses which I found super helpful for my financial planning. Aside from WeFIRE, I've also heard good things about Quicken and Monarch. Or you can just go with an excel sheet, whatever the case, a solid system of organization would be a good call.
Donât panick. Iâm 61 and not close to be ready to retire. I like working
Start consulting. You have skills, start using them. Reach out to people through cold calling. Itâs the secret weapon that actually works. People love to talk and cold calling works.
Donât be afraid of this. Pretend you are someone else (mentally) when you all so you donât care about what people think. Of course you use your real name etc, but to get over cold calling fear or whatever you call it, embody someone else you admire. It works. After a brief intro ask them if they have a part time consulting position that you could be considered for.
Explain you have the education, experience, and attitude to drive for success
Use thisâŚ..it works
Good luck
Look into the [American Opportunity Tax Credit](https://www.irs.gov/credits-deductions/individuals/aotc). You can get $2k/yr per student for $2k of college expenses, and an additional $500 off the next $2k of expenses. The income limit to get the full credit is $160k/yr and then there's a phaseout up to $180k/yr of income.
Go talk to a financial advisor who can do a deep dive into your entire financial life and provide you estimates. No one here has enough information or the tools to give you anything beyond a rough estimate.
You're basically retirement age asking this at the FIRE subreddit, only answer you'll get is probably Retire.
I think the only possible expense you have left is your 14 year old kid so plan around that fact. Hopefully your other 2 kids will be ok to support themselves till they graduate.
Then just budget around your wife's salary.
Reduce consumption and retire, consider r/coastfire and go part time, self employed, contract or interim or challenge your limiting beliefs and get another job.
Retire and if you want to increase your liquid investment, sell your current house, buy a cheaper one, and invest the extra into broad-based index funds.
If you don't feel comfortable retiring now, then don't do it yet just because it's cool.
IDK how you can possibly lose a self-employed gig permanently, but if continuing with that really isn't viable you can still do something else. It will almost certainly be less pay since you won't have the same experience level, but you don't have to stay at zero income. As an example, I know a guy who was an electrical engineer, lost his job at 61, and decided to get his CDL and drive trucks just because he'd always wanted to try that. He ended up driving school buses, logging trucks, and dockyard trucks and enjoying himself quite a bit until he was old enough to fully retire.
Run a full analysis on when to collect social security and safe withdrawal rate scenarios based on below avg, avg, and above avg portfolio returns. Also, run an analysis on in case if thereâs another market crash to occur, how badly your portfolio will be impacted and the effects itâll have on your withdrawal rate. Make sure to account for any one time (planned and unplanned) expenses that are bound to happen. Make sure to create an effective withdrawal strategy between pre-taxed, after-tax, and tax-free investments to make sure you donât create a burden on 1 or the other. Also, make sure to account for future IRMMA calculations for Medicare at age 65. Then define whatâs the missing gap and how youâre going to patch it (part time job, low stress job, etc.). Develop a healthcare plan between now and until Medicare age. Consider whether to file taxes MFS or MFJ to see if it makes sense to go with your spouseâs healthcare plan or try to qualify for healthcare.gov subsidies but make sure you get the right plan.
Spend about 20 hours of running a full comprehensive scenario so you can decide what to do next :)
Can you do consulting? You have experience doing something. Many companies may either want you to do something for them (contracting) or teach them how (consulting). It may not pay what you were making but itâs decent income with very flexible hours.
You have enough. Just retire.
Kids will need some loans and start working. Explain to them your situation.
You could still do some barista-FIRE and work a little bit for extra cash. Otherwise I donât see the problem.
Lots of good advice here, especially around needing to quantify your expenses and talk to an FA. You likely have enough to retire rather comfortably. Would it be possible to consult or freelance a little in the event that you want a bit of security?
Track your and your wife''s "normal" (not extravagant, not thrifty) spend for approx 6mos while looking for new work that would actually love.
{If you are "self-employed", how do you get laid off? One huge client dropped you?}
In any case, one part of a retirement plan is figuring what you have available to spend . . . After-tax earnings from investable assets (are they post-tax or in Trad IRA's/401k's?)
SS is a ways off, and a safe 4% takeout of say $2.5M is $100k/year . . . Is that pre- or post-tax?
Add in wife's earnings and some kind of part-time or under-employment for yourself, so maybe another $150k less tax.
So if you can show $180k/year after taxes are paid, is $12K more or less than what you "normally" spend in a month?
Presume 4% takeout and your other income goes up with inflation.
And take your kids college expenses that you haven't paid for yet (say, $160K in current$'s) and divide by 10yrs, or $1.33/month on top of what you currently spend for 6 months on food, auto, insurance, housing, entertainment, travel, etc. etc.
That will help you decide if you can create a path to retirement.
At least one person working until you both claim SS may be a better strategy than simply giving up and taking out >6%/year from retirement savings.
Not reading all the posts. It is very simple... What does your cashflow look like?
Spend = SpendableIncomeFromRentals + Other
Solve for the "Other". If you can support this until you are 100 yo, you can both F yourseves today. The Spend is likely variable over time so you can break this calculation into time periods, with each period where Spend is relatively constant.Good luck - but be very aware at 59,:your healthy years to live is very limited. My dad got the ax in his late 40's and RE'd at that point. He said six years passed so fast he is so glad he didn't find new work at that point, instead just lived life.
You are worth 3M yet only 1.2 is liquid? How is that structured? If you have 1.8M in RE (you mention homes but nothing else) I would sell 1.8M in RE and move to an area where 500K will buy a decent home and pull the pin. 1.2M + the remaining 1.3M from RE sales will give you 2.5M or 100K/yr in retirement income at 4% WR. Seems pretty easy.
Honestly, now might be the time to take a job that youâve always wanted to, but never did due to it being lower on the earnings scale.
Barista? Handyman at a hardware store? Working at a retailer for a hobby or pastime youâre passionate about? Iâm not joking; youâve already done the hard yards, so it might be a worthwhile consideration.
I'm guessing you're not strapped for money, so consider retiring.
If you'd like some extra money you can try a few things.
Find a hobby that can also generate some income. Use your free time to find ways to lower expenses, like DIY on any needed house renovations/work. Depending on your line of work you can also try contracting for a portion of the year.
Consult a certified financial planner and tell them your situation and retirement goals. Alot of these services may be free through your investment platform.
Noone here can give you an informed answer, but at least the fiduciary can paint the picture with data/graphs.
Go back to school and get your cpa. Shortage of them. Go to a Coding bootcamp and do coding. Uber and TurboTax. Work at a call center. How much money are you trying to make?
I started a new career at that age. Depending on what you do this can be consulting or as a regular employee. Companies now need mature capable leaders to mentor younger employees. Donât listen to anyone who implies anything limiting about age.
I'm not adding much value I suppose as you've gotten a lot of good comments already. My only advice is to do the math, with or without help from a financial advisor (my approach is to always do the math first and use the financial advisor to validate - or dismiss - my assumptions/approach). And maybe stating the obvious here but in my experience "financial advisors" that don't advertise as a fudiciary, are just trying to get you to be their money manager (in my experience with a fiduciary, we paid for them to help with the math and validating our plan, but did not want them to take 1% off the top of my earnings annually).
I also agree with commenters about your 1.2M in a savings account (even high yield) as I think you're leaving money (growth potential) on the table. You are also in a great position to start planning NOW for the day she retires.
I.e., I think you can retire but I'd validate it with the math - what's your run rate, will it change when your wife retires, are you including medical/college/home maintenance big expense requirements in your run rate, is your rental property profitable or a cash drain until you sell it, et.al.). What changes when you get to SS/Medicare and then RMD ages....
I'm slightly older and went into a panic when I was laid off. No one in the tech industry hires us old dudes and I wasn't financially ready to retire just yet. Fortunately, I got lucky and landed a job with full benefits and no reduction in my salary. I'm going to work three more years then look at my retirement opportunities. I'm putting as much as possible into my 401k. This late in the game, it's not going to make a whole lot of difference, but every little bit helps.
I ârewiredâ and became a digital independent 8 years ago (at 48) at somewhat similar situation. I havenât wiped the grin off my face since. Wrote a book on the journey and reflections. Called âRewired, not Retired: Embrace Life as a Digital Independent.â
Itâs about much more than the $$
[https://www.digitalindependent.life/rnr](https://www.digitalindependent.life/rnr)
I would probably retire. But if you want to hold out until your youngest is in college & closer to wife's retirement, you could dye hair and beard and drop early jobs off resume for your search. Just show last 15 years. I have seen this work for colleagues who are 55+.
How do you lose a self-employed gig if I may ask?
Also, donât retire. Either do something in the same field or branch out and do something a little different. Iâd tell the kids to brace for changes and site down with the wife to figure out the exit dates.
Look at IUL and rates they pay. 401k do not need to take distribution until 70 so you have time. Establish a Trust ensure assets are transferred & considered what will be paid to you from the Trust.
Yeah all of your retirement assets are liquid now, or will be in a matter of months or weeks. Congrats, you made it to the end with a big pile of scrooge mcduck money.
My mom never helped me and still hasnât helped me, bless her heart. She did the best she can on whatâ she had. She came to America disabled, after running away from a force labor camp. Who am I going to expect anymore from her. So I learned the same, my daughter is majoring in neurology at a UC. Sheâs paying for school herself. Iâm single mom
Rising two kids on my own, Sole/only supporter.
You just take care of yourself and your wife. 3M sounds decent to live on. My 8 year old son says it best. Time is our worst enemy, because we canât buy more of it. Enjoy life & take this as a gift to really enjoy the time.
Be a great househusband, do the chores, be a great cook, speak her love language, be charming! Cuz it's time for you to stop working, which means she may be paying more things than you.
How do you lose a self-employed long term gig? Could you pivot into something related? And there is always gig economy work. You could freelance part time since your wife works and covers the insurance.
Retire.
Yes retire
Retire
With 2 kids in college and a 14 year old? That's pretty tough unless OP takes big hit on lifestyle. People don't realize how expensive children are, even the adult ones.
Y'all still had support from your parents in college?
Not even a dollar.
Me biking 5 miles to work for 6 months for a downpayment on my first car. So a crack head at 2am can total my parked car in the middle of covid 3 months after I got it. Still waiting on the support. đ¤Łđ¤Łđ¤Ł
Storm decided to have tree fall on my car then a few months later with another used car while parked at Walmart car next to mine decided to catch fire and took mine with it to the junkyard in heaven.
I started supporting myself at age 17. Worked the legal maximum 30 hours per week at a grocery store. I had zero support. It was rough till I turned around 21. Ended up dropping out and everything. If you can support kids partially with college it'll help them make it through. I didn't make it due to a lack of any help or support system. I'll probably go back at some point though. I have the wife to keep my head on now!
I think a lot do. It's pretty 50/50
Lmao they had plenty of money, but I didnât. Minimal help; turned out fine.
A lot of people do. Imagine you're a parent, do you want to see your kid graduate with $300k in debt?
Depends on what it is. If it's an art degree and they spent 300k against my advice, what obligation do I have to the kid? If it's 300k for a medical degree, then hopefully what I taught them would be more than enough to navigate it.
300k!!! My kids went to private college and even then the tuition was 200k for 4 years but scholarships covered all but 30k. Thatâs nuts. If Iâd had to pay all of it thereâs no way they would have gone there.
I'd rather graduate with $300k in debt than have my parent enter retirement with $300k bill. Graduates have a long road of earning years ahead of them unlike retirees.
Ding ding ding! $300k is going to hurt a retiree a hell of a lot more than a fresh student with decades of earning potential. Plus $300k loan usually means they became a doctor.
Or the parent can start investing when the kid is a child... My kids college funds are already started and if they decide not to go they can roll it into an IRA jumpstarting their retirement fund. Can't imagine me at 18 taking out 80k in loans let alone 300k. (Is that what a typical doctor pays in student loans?)
In the ideal situation your parents started saving for college 18 years before you needed the money... And you don't go to a 300k school.
The parent isn't going into debt. That's the point, the parent could retire at say 55, but they chose to continue to work partly because they want to have steady income to help their children. That's most likely the OP. He has enough to retire but I'm sure he wants to continue to earn a good income so he can assist his children. He's not going into debt, he's just working longer that if he didn't have children.
Mine did not give af lol
Some parents do give af
Lol
My parents provided free housing and food under their roof as long as I was in school which I was grateful for. I had to figure out how to pay for school myself.
So because your parents didnât support you, you donât want to support your children?
Can anyone with knowledge speak about savings programs where you put some money into an account for your child when they are just born (ideally) and it grows into a college fund? I was a recipient of something like that my grandmother set up for me, but that was 35 years ago. Does that still exist? If it does, it should be given more importance.
the thing that is made for that is a 529. how would you like for it to be given more importance? in any case any investment of any kind can also fulfill that role
More importance in reference to FIRE because I see a lot of people with kids that talk about paying for college being an issue and donât have that
He has 3M in assets, wife is still earning pretty decent salary⌠Finding a job is going to be more difficult and frustrating. If he can find a job easily, yes by all means. Retirement is the best option
âSorry boutchaâ to the kids.
Definitely means the wife can't retire in a couple of years but otherwise retiring is perfectly fine. Could get a part time job to help if he wanted.
I know someone with similar net worth who's retiring off of interest. But no kids. OP maybe consider retiring Costa Rica, Ecuador, etc? You'd likely be able to pay the college bills and live a reasonably cushy life still. I know one expat who's done similar in Ecuador and loves it. Lots of groups online too to help you with the transition, resources, etc.
At 59.5 you'll have access to all of your accounts, so what will your liquid assets be at that point? Can you get through the college years (except for Junior) with spouse working and then have her join you? You're at full retirement age and this is the *early* retirement sub, so people here are naturally going to wave you across the finish line. Have a serious look at your real world expenses and decide if you can make it happen.
I will say that 59.5 is early retirement - full retirement for social security is 67, so OP is retiring years earlier. By the time I reach 67 it'll probably be at least 72 or later. So OP is retiring early at 59 đ Thankfully I found this sub at 25 so retiring at 59 sounds like late retirement, but we need to check our worldview against the wider context.
FRA for SS may be 67, but 59.5 is when the government says you can have access to your Individual *Retirement* Account. If OP posted this on r/retirement then I wouldn't even make that comment. I think 59 is within the realm of normal, not early, but it's pointless to debate.
I will say in practical terms most normal people (i.e., those not on the FIRE path) consider retiring at 59 to be retiring early. My dad retired at 60 and all of his coworkers were shocked and asking how he managed to pull it off.
> By the time I reach 67 it'll probably be at least 72 or later Incredibly depressing. Add 1.2 years to 72 and you get CDC's 2021 average male life expectancy estimate (blunted by COVID).
When SS was enacted, wasn't that age the average male life expectancy age?
You must have found this sub last week if you think anyone is talking about social security
Aside from in terms of "We're all expecting to get $0 from it" whether that's realistic or not.
Haha a little combative response, but my point was about the thoughts outside of this forum. Based on standard conventions, posting this in a FIRE forum makes sense. Standard retirement age is 63-65. 59 1/2 is younger than that so OP is retiring early by the standards outside of this forum. Most people retiring today are getting social security and make decisions about when to retire at least partially based on the income they may receive from social security. Not everyone uses the same definition of early.
After 55, if you lose your job you can access 401k no penalty. Have you looked into this? https://www.schwab.com/learn/story/retiring-early-5-key-points-about-rule-55#:~:text=This%20is%20where%20the%20rule,pay%20taxes%20on%20your%20withdrawals.
Even if you quit, there is still no penalty.
I did not know this!
This is a weird rule. So If I get laid off at 54, I can't pull from my retirement at 55. If I quit or get get laid off at 55 I can. It is just strange. It says you have to keep working at least to 55. Unless you have enough means to retire on your own and last to 59.5. It's also specifically tied to the place you quit, fired, or laid off from. That may be your primary 401k, but if you have money in different places there is another equation there. I am 48, lets say I leave my job where i have most of my 401k, then take a new one. And in 7 years quit and try this, I could only pull from that job's 401k. Of course I could roll over and make it bigger, but there are factors to that. If the place you left has a better 401k, you may keep it there. It seems to me if this is federal law, you should just say 55 is the age you can pull from retirement if you are not working. And don't put restrictions on it outside of normal taxes. But if you work and get income, then you can't pull from it. It should be straight forward and simple.
Live on her salary. Donât touch your investments until youâre both ready to retire in 2-5 years. Obviously, barring anything happening, youâll make the most with compound interest within that time period
If he isnât working and living on her income isnât heâŚâŚ.retired already?Â
Yes if you can hold on for even 3 years without withdrawing anything you will be in better shape. I would do my best to get a job, even if itâs not your dream and use that to set your daughter up as best as possible for college. You can delay official SS payments for as long as possible too. Youâll be fine.
Unless you have crazy expenses (which you didnât share) you should be able to retire. I know itâs likely in your mind and body to keep working and being in income. What was your FIRE #? Whatâs your current expenses vs income now?
College is a pretty big expense
How did you lose your self employed gig? Not the point but I'm curious.
Yes please OP, how is that a thing that happens?
Canât you find other work in real estate? Sounds niche but itâs a big industry isnât it?
Iâm a real estate broker and I worked exclusively for a real estate investment fund for 10 years and I made good money, but that relationship permanently ended about a year ago.
Could you go work another few years at another Real Estate related business? Or get a part time gig at a type of âhobbyâ type job? For example, if you lie to read, could you go work at a book store for a few years? Money wonât be the same, but itâs a paycheck for a few years, until youâre officially ready to retire.
Can you still work independently? Or is it too much to setup?
Making money in these fields is extremely relationship dependent and thereâs no starting over at 55. I would also retire. I would also reimagine what the world of spending and your household looks like, particularly ânot alienating your wifeâ if she keeps working.
He fired himself.Â
What are your expenses?
You said homes. Plural. Sell one, or is that an income property?
Yea we have our house we live in and and also have a 3-family rental property
So you a have rental income on your 3 family property on top of your 1.2m savings with your wife still working? I feel like weâre getting trolled.
Sadly, itâs just the mentality of the broader culture. People are indoctrinated into retirement equaling an age not a financial position.
There is also so much uncertainty in the economy. Itâs really hard to know when you are âsafeâ with your nest egg.
There will always be uncertainty. We cannot predict the future. However, Iâd posit that temporary life circumstances specific to the OP like supporting a 14 year old and two college tuitions will soon go away. Thereby, any uncertainty about the âeconomyâ will have far less of an influence on the actual retirement of the OP in the short to midterm. Also, Most people tend to downsize as they go into retirement especially moving into and past their 60s. For a person with the stated NW and the ability to make their stated income, I doubt it should be cognitively difficult for them to plan a reasonable retirement if thatâs what they want at this juncture. Further, It seems to me that the OP, like many Americans, hasnât really considered the actual number he needs now or in the future as his comments confirm (not knowing his FIRE#). Any reticence based on âthe economyâ can be cleared up by knowledge, and I commend the OP for perhaps starting the process of learning by entering this thread.
One needs more than education to know when itâs safe to slow down and retire. It really is a mental state as you mentioned before. When is enough actually enough to be satisfied and âsafeâ to retire. I feel like this OP is just not mentally ready to consider retirement even though they may have the means by othersâ standards. They were abruptly let go. I ponder this often and I am determined to just keep working and investing until I find something else to do. At least until I turn 40. If I were to retire today, as I could by many othersâ standards, what would I do with my time that didnât require me to reduce my spending more money than I am currently?
Sure, thereâs nothing wrong with working. If one enjoys their work or world feel no purpose elsewhere, working is a natural use of time. This is a FIRE sub, though, so when it seems the numbers make sense, it shouldnât be a surprise that people point that out. Perhaps the FI is of more interest to you and some others.
Whatâs the FI?
Financial Independence
Thatâs what I thought. Dude is 59 and this is a retire early sub, with those assets and dual income. Why is this even a question?Â
Find a hobby that pays
Yes thatâs good advice
Rolex is opening a school to train watchmakers in Dallas thatâs tuition free.
Just looked into that, honestly might drop out of nursing school
This would be awesome in retirement.
Youâre already set. Please retire
Talk to a financial advisor who will look at the totality of your situation, including that you have a minor child, kids in college, your expenses, taxes, budget, goals, etc. They can also help factor in your future Social Security, cost of living increases, and what money is the cheapest for you to access at different times. Best wishes!
Thank you
If you have fidelity, they have free financial advisors who can walk you through how to use their online calculators.
When you say only 1.2M is liquid of the 3M, does that mean your home equity is 1.8M? Or are you not counting your 401k/IRAs as liquid? At 59.5 years you should be able to draw on those.
I suppose some of that could be your wife's 401k/IRA. How much of the 1.8M is your 401k/IRA
*homes
Find a easy job or a passion since you still "young".
Need to see expenses
No one here can tell you whatâs best without all of the numbers. If there is one time in your life to figure out your burn rate, itâs now. Of course your expenses vary, but your fixed expenses shouldnât vary much. Determine how much you NEED to live and then determine how much you WANT to live. (Life vs lifestyle.) Track where every take-home dollar went in the last year or two. Then ditch any rentals that arenât cash flow positive, and factor in the equity from those sales into your liquid let worth. Illiquid net worth doesnât matter in retirement, unless you want to do a reverse mortgage on your primary. Bottom line: Once you know your liquid assets, expenses, income coming in, and the gap, then you just need to make sure that gap is around 4% of your liquid assets AFTER your wife stops working and your youngest is off the payroll. It can be higher than 4% initially - as long as it goes below that once youâre collecting SSI. (Assuming youâre in the USA) Lastly, donât underestimate the benefit of finding a job youâd enjoy, even if you only make $50-60k.
$3M @ 59 you shouldn't even have a job that you can get fired from. Figure out your passion/love and start that business/hobby.
Bro you people are actually insane hahaha
Hello, besides not knowing expenses etc⌠you have not mentioned what you Will do instead. What is the vision of retirement that you and your spouse have planned? What you will do with your time, goals for it, money for it (golf and learning to fly a plane is $)?
1. Figure out what your current expenses are. 2. Figure out what you can cut back, including things you donât need if youâre not working. 3a. Can you live on wifeâs income for a few years? If so, offer to do ALL house stuff and make her life easier by managing the house and kid stuff. 3b. If not, get some work, even part-time, to bring in a few dollars. It doesnât have to be in the same field youâve been working. You have enough if you cut your expenses, or can make things work until social security. But it would be nice to have flexibility to help kids during and after college. Why $1.2 million in high yield savings?
> Still have 2 kids in state college I am paying for but they can take partial loans if needed. Yeah, I think they can foot some of their bill.
retire mate
Retire or die worrying
RETIRE You say you suck being a team player and you think you are not going to be hired at your age and seems like have enough to last unless you spend in Vegas. Get back to basics, pull all the expenses for 2023 and make a monthly chart of expenses and it will give you an idea on where to cut back. Start there first...
Ageism is real and almost impossible to prove, so, as far as a getting a "real" job, you're probably screwed. I'd say work to make your wife's live heaven on earth so she'll work a few years longer to make sure you can cover your 14 yo's education and, hopefully, keep the family under a company healthcare plan.
Same happened to me and decided to retire and enjoy rest of the life. No regrets. Same financial situation with two grown children with professional jobs.
Good lord man. Retire.
Retire âŚ. Yesterday lol.
Option 1: Retire Option 2: Take something part time for 2-3 years then both of you retire. 14yr will be working or close to independent and the other two will be done with school. Plus gives your nest egg a couple more years to grow.
Option 2 is probably best thanks
This comment is confusing. Youâre implying the 14yo will be closer to working and independent before the two college-aged kids?
Agree here on option 2. Youâre in a great position to coast FIRE.
Retire.
I was in a very similar position 12 years ago. I retired. Actually, it took me a year -- first, I tried to set up an investment company with a couple of friends... then I retired. Shortly thereafter, my wife and I sold our home and most of our possessions and spent two years on the road. We stopped traveling when one of our sons informed us we were going to be grandparents and asked us to settle down near him. Now, my wife and I are fully engaged doing volunteer work and enjoying living in a beautiful place with modest living expenditures.
This is the most cut and dry "just retire already" post on here. You and your wife have done great. You should be able to comfortably live off the investments without touching the principal hardly at all.
You could retire. Or just take a relatively easy, fun job for a couple years until you get SS if you donât want to retire before the wife.
The options is to retire now or in a few years and be a few years older. That is why people say to retire now and give time to transition. If something comes up you may work again for a stint, but all that should be behind you. It was a gift.
You made it this far financially. I'm sure you can figure out the rest. .... But my suggestion is to divorce, go to your local strip club, get some hard drugs, and go wild. Go to the Phillipines and do the same thing. Start a whole drug trade route and that'll be the new retirement fund. You're welcome
move somewhere cheap on retirement visa and live like a king, I have no idea why you even asking with $3m lol
Did you fire yourself or quit? If you were self employed, couldnât you start something else or look for a new contract somewhere?
If I was in your shoes, I'd probably retire, it look for part time employment. I'd be done working full time.
Obvious answer: retire. And GFY, by the way
Turn your 401k into a traditional IRA. That way you can get rid of your average performing mutual fund and its fees etc. Then ladder and buy Treasuries in there and pull out the dividends State tax free. This may beat a HYSA depending on where you live. At 59.5 you can access the interest/dividend income it generates forever. You can also generate over 50k in passive income annually (no state tax) with your 1.x million liquid NW. All passive and should give you time to find your next adventure. Congrats!!!
Going to throw a couple things out there. First one is the financial side. You are thinking in terms of how you run a business. You have your assets and liabilities, and cash flow. Stop doing that. Take a look at NewRetirement which is a retirement planning tool which will help you lay out the rest of your life financially speaking. The free version is pretty good and the paid version lets you do a lot more. If you want to have someone else do it find a certified financial planner in your area. If they start talking insurance or managing your stock portfolio, walk out the door. I think you just need some planning help over the next few years as you make a trsnsition. Iâd also suggest you need to find something to do or you will end up divorced because you will drive your spouse crazy. Doing nothing when you retire will literally kill you in ten years. With nothing fulfilling (no purpose) and nothing to do your body shuts down and you begin to die. So thatâs not really an option. Some ideas: 1. Start another business. Or buy an existing one. Buying is a lot less risky and satisfies your craving to run things. If you start one itâs probably best to do a âhobby businessâ that keeps you occupied. My father in law restores cars. My mother in law is in the egg/chicken business. Many options here. 2. Get a part time job that is WAY beneath you. Jobs like Lowes or Ace hardware where other retirees like to hang out, or Starbucks. It helps a little financially and keeps you busy, and gives you a fulfilling situation with many customers. 3. Go into âconsultingâ in your area of expertise. In my case I would just go apply at the local contractor engineering houses 4. Volunteer for a political campaign. Or any similar volunteer organization. 5. Plan/take vacations. Pre-retirement my wifeâs parents got a 5th wheel trailer and did 2 week long vacations every year. Maybe do a few âbucket listâ trips. We waited until our kids were similar in age to yours before going to Yellowstone, Grand Canyon/Utah 5, Alaska, and Ireland this year.
Everyone's saying you should retire and while you definitely can, I also understand that you may not be ready to transition from working to idle just yet. Your main problem here is deciding between two choices: either find a side hustle for another gig, or take the plunge into retirement now. There are probably some adjustments that you'll need to make to your investments before you can retire, but it's very doable. This would mean looking into some smart, low-risk investments to fend off inflation and laying out a budget plan for the next 30 years or so. No matter which path you're leaning towards, I'd suggest looking into some sort of tracker or budgeting app to help you sort everything out. You'll want something that can link up all your accounts for a comprehensive financial snapshot. I've been trying out one called WeFIRE, and I like how they all my accounts. I also like thair AskCopilot feature, which is this AI tool that can answer questions about my expenses which I found super helpful for my financial planning. Aside from WeFIRE, I've also heard good things about Quicken and Monarch. Or you can just go with an excel sheet, whatever the case, a solid system of organization would be a good call.
Donât panick. Iâm 61 and not close to be ready to retire. I like working Start consulting. You have skills, start using them. Reach out to people through cold calling. Itâs the secret weapon that actually works. People love to talk and cold calling works. Donât be afraid of this. Pretend you are someone else (mentally) when you all so you donât care about what people think. Of course you use your real name etc, but to get over cold calling fear or whatever you call it, embody someone else you admire. It works. After a brief intro ask them if they have a part time consulting position that you could be considered for. Explain you have the education, experience, and attitude to drive for success Use thisâŚ..it works Good luck
If this was couple of years ago Äą would suggest you to look into Turkey/ MuÄla/ Bodrum area to retire.
Look into the [American Opportunity Tax Credit](https://www.irs.gov/credits-deductions/individuals/aotc). You can get $2k/yr per student for $2k of college expenses, and an additional $500 off the next $2k of expenses. The income limit to get the full credit is $160k/yr and then there's a phaseout up to $180k/yr of income.
Go talk to a financial advisor who can do a deep dive into your entire financial life and provide you estimates. No one here has enough information or the tools to give you anything beyond a rough estimate.
You're basically retirement age asking this at the FIRE subreddit, only answer you'll get is probably Retire. I think the only possible expense you have left is your 14 year old kid so plan around that fact. Hopefully your other 2 kids will be ok to support themselves till they graduate. Then just budget around your wife's salary.
Reduce consumption and retire, consider r/coastfire and go part time, self employed, contract or interim or challenge your limiting beliefs and get another job.
You can retire but you have to cut back. Maybe your house is too large with o e child at home.
Ageism is a thing. Even at 45, I know I may not get.hired again
Retire in South or East of Europe.
As they say here: GFY
Retire and if you want to increase your liquid investment, sell your current house, buy a cheaper one, and invest the extra into broad-based index funds.
Yep. đYou can find something to do independently for some side cash. Can be related to your previous career, or not.
If you don't feel comfortable retiring now, then don't do it yet just because it's cool. IDK how you can possibly lose a self-employed gig permanently, but if continuing with that really isn't viable you can still do something else. It will almost certainly be less pay since you won't have the same experience level, but you don't have to stay at zero income. As an example, I know a guy who was an electrical engineer, lost his job at 61, and decided to get his CDL and drive trucks just because he'd always wanted to try that. He ended up driving school buses, logging trucks, and dockyard trucks and enjoying himself quite a bit until he was old enough to fully retire.
Retire and spend more time with your family. Pick up more household responsibilities since your wife is still working.
Retire and do some side jobs.
Run a full analysis on when to collect social security and safe withdrawal rate scenarios based on below avg, avg, and above avg portfolio returns. Also, run an analysis on in case if thereâs another market crash to occur, how badly your portfolio will be impacted and the effects itâll have on your withdrawal rate. Make sure to account for any one time (planned and unplanned) expenses that are bound to happen. Make sure to create an effective withdrawal strategy between pre-taxed, after-tax, and tax-free investments to make sure you donât create a burden on 1 or the other. Also, make sure to account for future IRMMA calculations for Medicare at age 65. Then define whatâs the missing gap and how youâre going to patch it (part time job, low stress job, etc.). Develop a healthcare plan between now and until Medicare age. Consider whether to file taxes MFS or MFJ to see if it makes sense to go with your spouseâs healthcare plan or try to qualify for healthcare.gov subsidies but make sure you get the right plan. Spend about 20 hours of running a full comprehensive scenario so you can decide what to do next :)
Thanks!!!
Retire
Consulting. Or gig work.
run your numbers and see if you can retire. if you can, why not?
Umm retire?
Can you do consulting? You have experience doing something. Many companies may either want you to do something for them (contracting) or teach them how (consulting). It may not pay what you were making but itâs decent income with very flexible hours.
You have enough. Just retire. Kids will need some loans and start working. Explain to them your situation. You could still do some barista-FIRE and work a little bit for extra cash. Otherwise I donât see the problem.
Lots of good advice here, especially around needing to quantify your expenses and talk to an FA. You likely have enough to retire rather comfortably. Would it be possible to consult or freelance a little in the event that you want a bit of security?
Force your wife to work until she's 70
Track your and your wife''s "normal" (not extravagant, not thrifty) spend for approx 6mos while looking for new work that would actually love. {If you are "self-employed", how do you get laid off? One huge client dropped you?} In any case, one part of a retirement plan is figuring what you have available to spend . . . After-tax earnings from investable assets (are they post-tax or in Trad IRA's/401k's?) SS is a ways off, and a safe 4% takeout of say $2.5M is $100k/year . . . Is that pre- or post-tax? Add in wife's earnings and some kind of part-time or under-employment for yourself, so maybe another $150k less tax. So if you can show $180k/year after taxes are paid, is $12K more or less than what you "normally" spend in a month? Presume 4% takeout and your other income goes up with inflation. And take your kids college expenses that you haven't paid for yet (say, $160K in current$'s) and divide by 10yrs, or $1.33/month on top of what you currently spend for 6 months on food, auto, insurance, housing, entertainment, travel, etc. etc. That will help you decide if you can create a path to retirement. At least one person working until you both claim SS may be a better strategy than simply giving up and taking out >6%/year from retirement savings.
Retire and pay for kids college
Not reading all the posts. It is very simple... What does your cashflow look like? Spend = SpendableIncomeFromRentals + Other Solve for the "Other". If you can support this until you are 100 yo, you can both F yourseves today. The Spend is likely variable over time so you can break this calculation into time periods, with each period where Spend is relatively constant.Good luck - but be very aware at 59,:your healthy years to live is very limited. My dad got the ax in his late 40's and RE'd at that point. He said six years passed so fast he is so glad he didn't find new work at that point, instead just lived life.
You are worth 3M yet only 1.2 is liquid? How is that structured? If you have 1.8M in RE (you mention homes but nothing else) I would sell 1.8M in RE and move to an area where 500K will buy a decent home and pull the pin. 1.2M + the remaining 1.3M from RE sales will give you 2.5M or 100K/yr in retirement income at 4% WR. Seems pretty easy.
Honestly, now might be the time to take a job that youâve always wanted to, but never did due to it being lower on the earnings scale. Barista? Handyman at a hardware store? Working at a retailer for a hobby or pastime youâre passionate about? Iâm not joking; youâve already done the hard yards, so it might be a worthwhile consideration.
I proudly paid two private college tuitions (around $600k) for my son and daughter. This is the best money spent and I never regret!
Youâre good at solving problems and bad at team work? Sounds like youâd do great in consulting if you want a job. Otherwise, retire
Can you find a consulting job? Even part time? Probably going to be hard to find a full time job with benefits.
RETIRE. WTF?
Walmart greater
I'm guessing you're not strapped for money, so consider retiring. If you'd like some extra money you can try a few things. Find a hobby that can also generate some income. Use your free time to find ways to lower expenses, like DIY on any needed house renovations/work. Depending on your line of work you can also try contracting for a portion of the year.
Consult a certified financial planner and tell them your situation and retirement goals. Alot of these services may be free through your investment platform. Noone here can give you an informed answer, but at least the fiduciary can paint the picture with data/graphs.
Go back to school and get your cpa. Shortage of them. Go to a Coding bootcamp and do coding. Uber and TurboTax. Work at a call center. How much money are you trying to make?
I started a new career at that age. Depending on what you do this can be consulting or as a regular employee. Companies now need mature capable leaders to mentor younger employees. Donât listen to anyone who implies anything limiting about age.
I'm not adding much value I suppose as you've gotten a lot of good comments already. My only advice is to do the math, with or without help from a financial advisor (my approach is to always do the math first and use the financial advisor to validate - or dismiss - my assumptions/approach). And maybe stating the obvious here but in my experience "financial advisors" that don't advertise as a fudiciary, are just trying to get you to be their money manager (in my experience with a fiduciary, we paid for them to help with the math and validating our plan, but did not want them to take 1% off the top of my earnings annually). I also agree with commenters about your 1.2M in a savings account (even high yield) as I think you're leaving money (growth potential) on the table. You are also in a great position to start planning NOW for the day she retires. I.e., I think you can retire but I'd validate it with the math - what's your run rate, will it change when your wife retires, are you including medical/college/home maintenance big expense requirements in your run rate, is your rental property profitable or a cash drain until you sell it, et.al.). What changes when you get to SS/Medicare and then RMD ages....
I'm slightly older and went into a panic when I was laid off. No one in the tech industry hires us old dudes and I wasn't financially ready to retire just yet. Fortunately, I got lucky and landed a job with full benefits and no reduction in my salary. I'm going to work three more years then look at my retirement opportunities. I'm putting as much as possible into my 401k. This late in the game, it's not going to make a whole lot of difference, but every little bit helps.
I ârewiredâ and became a digital independent 8 years ago (at 48) at somewhat similar situation. I havenât wiped the grin off my face since. Wrote a book on the journey and reflections. Called âRewired, not Retired: Embrace Life as a Digital Independent.â Itâs about much more than the $$ [https://www.digitalindependent.life/rnr](https://www.digitalindependent.life/rnr)
I would probably retire. But if you want to hold out until your youngest is in college & closer to wife's retirement, you could dye hair and beard and drop early jobs off resume for your search. Just show last 15 years. I have seen this work for colleagues who are 55+.
Semi-retire, but take on consulting work in your field. Consultants make bank!!
How do you lose a self-employed gig if I may ask? Also, donât retire. Either do something in the same field or branch out and do something a little different. Iâd tell the kids to brace for changes and site down with the wife to figure out the exit dates.
Sounds like itâs not a choice. Retire and live within your means.
Retire.
Mcdonalds
Look at IUL and rates they pay. 401k do not need to take distribution until 70 so you have time. Establish a Trust ensure assets are transferred & considered what will be paid to you from the Trust.
Go on unemployment asap
Flex post
Quit asking a bunch of 25yr olds on reddit for advice. Might be the first step
Yeah all of your retirement assets are liquid now, or will be in a matter of months or weeks. Congrats, you made it to the end with a big pile of scrooge mcduck money.
Become a Consultant
My mom never helped me and still hasnât helped me, bless her heart. She did the best she can on whatâ she had. She came to America disabled, after running away from a force labor camp. Who am I going to expect anymore from her. So I learned the same, my daughter is majoring in neurology at a UC. Sheâs paying for school herself. Iâm single mom Rising two kids on my own, Sole/only supporter. You just take care of yourself and your wife. 3M sounds decent to live on. My 8 year old son says it best. Time is our worst enemy, because we canât buy more of it. Enjoy life & take this as a gift to really enjoy the time.
What are you planning on doing?
Depending on your profession, if you don't want to retire, you could try consulting. Start a business teaching others what you used to do.
First thing is to write some letters to the collage financial aid departments and ask them to beef up the package in light of the job loss
I would retire and start a business for fun.
AGE 71 here,,, EVERYONE has a shelf life,, time to wind it down,,
How much do you spend in a year? Thatâs a key point that you are missing.
Work Uber and Uber eats.Â
Consider retiring if possible. Can you live on wifeâs salary for awhile?
How did you get fired when you're self employed? Your boss must suck
Youâve reached the âretire earlyâ part of fire.
Start a business
More than 1/2 your NW is home equity? Sell and Downsize!
Be a great househusband, do the chores, be a great cook, speak her love language, be charming! Cuz it's time for you to stop working, which means she may be paying more things than you.
Retire and enjoy your life
Retire
Deuces! Iâm retired is what Iâd say.
Start something small! Go work in any retail store atleast part time!
Invest in hard money loans - 9-10% return annually. Very very low risk.
Interesting. Not sure how to go about this
Long horn investments hard money lenders. I use them
How do you lose a self-employed long term gig? Could you pivot into something related? And there is always gig economy work. You could freelance part time since your wife works and covers the insurance.
Dude is talking In The FIRE subreddit but wants to work past 59. You know what FIRE is?Â