Would You RE?

[ktupper]

40 Years Old
1.3 million in several top performing mutual funds, taxable account
1.5 million in several top performing mutual funds, SEP-IRA account
350K in equity in 700K home.
No other debts.
No Pension

Currently live on about $7K per month including home mortgage.

Happily married w/ 2 Children,  10 & 12.
Work from home and wife is homemaker.
Kids are homeschooled.

Not an overly stressful job, but lots of other things you'd rather do with 45 hours a week.

Do you go for it?

How would you change your portfolio? 

Sell the home and buy one with cash from in lower cost of living area?

I'd be interested in hearing from anyone, especially those who retired real early as a couple w/family.

 

[TromboneAl]

Yes, I would go for it. Sell house, move to country, cut expenses to 55K, adjust portfolio to reduce volatility.

 

[retire@40]

It sounds like a no-brainer, unless I'm missing something. If the job itself isn't a bother while working from home, is it a job that you could at least cut down to 5 or 10 hours a week and semi-retire for a few years before fully retiring?

 

[cute fuzzy bunny]

Thats easy. If you dont want to work anymore and can/will cut your living costs by ~30%, and most certainly sell the mcmansion and move to a cheaper area, then you can do it.

If you dont mind the work, like spending the money, and like living in the 700k house, then you shouldnt do it.

 

[73ss454]

Thats easy.  If you dont want to work anymore and can/will cut your living costs by ~30%, and most certainly sell the mcmansion and move to a cheaper area, then you can do it.

If you dont mind the work, like spending the money, and like living in the 700k house, then you shouldnt do it.

Am I missing something here?
With 2.8million you want him to keep working when he lives on 7K a month.
Man am I in trouble if you think he should keep working.

 

[REWahoo]

Am I missing something here?
With 2.8million you want him to keep working when he lives on 7K a month.
Man am I in trouble if you think he should keep working.

Either that crying baby got to th or he needs to put more tinfoil in the lining of his hat...

REW

 

[bow-tie]

I'm with '73, unless I'm missing something, he (FIRE ME!) looks good to go... although downsizing certainly wouldn't hurt.

 

[cute fuzzy bunny]

He's 40 and half his money is in an IRA. Unless he 72t's it off, he's working on a portfolio that will produce perhaps 50k a year @4% BEFORE taxes. If he eats principal and waits for the IRA, then he could possibly pull out 100k a year that would turn into 70k after taxes, but I hate principal eating.

That was also a test that you guys ruined! He didnt sound like he was particularly incented to run away from the job, or that he was totally excited about selling his expensive house and moving to a cheaper area. I was pushing the button that said 'job might not be so bad, house good' to see if he was really wanting to go bye-bye. He sticks it out a little longer, he might not have to sacrifice as much.

But yeah, he could go and probably make it, if his home value doesnt drop a lot due to an RE bubble bursting, and equities dont take a drubbing.

 

[preben]

He he - RUN! Cheers!

 

[retire@40]

He didnt sound like he was particularly incented to run away from the job, or that he was totally excited about selling his expensive house and moving to a cheaper area.  I was pushing the button that said 'job might not be so bad, house good' to see if he was really wanting to go bye-bye.

I got the same impression. That's why I recommended semi-retirement for a while to test the water.

 

[dimwit]

FIRE ME!,

Let me be the first to commend you on an awesome saving rate that you had to get at where you are... to get there by 40 - wow. I think that beats better than 97% of this board, especially when considering happily married, homeschooled children, a wife in a 700K home where she can stay at home because somehow you make enough to also spend at 82K after tax or like 150K annually salary without considering the savings you are admirably accomplishing ... whilie not even leaving home yourself and do something for 45 hours at home that generates this income.

Exactly what do you do Mr. FIRE ME!?

 

[LEX]

Congratulations. You've won. Take the family to Disneyland and celebrate your ER.