50 yo, $590k net worth...want to stop working asap

[Keim]

Sounds to me like you desperately need a change in vocation. But you still need to work.

You mentionee working all day every day. I think your subconscious is telling you thete is more to life than work. Cut back. Volunteer. Get a hobby. Bettet yet, 8nvest in your relationships.

Pay attention to your subconscious. Realize it doesn't have to be all or nothing. Realize also there are changes you can make today.

Good luck.

 

[Sojourner]

~ $590k net worth ($120k investment home equity, $120k stocks, $350k blue-chip crypto)

So, 60% of your net worth is in crypto? You have three times as much invested in crypto as in the rest of the equity stock market? I suggest you read up on the principles of diversification and asset allocation before you do anything else. A good place to start would be The Four Pillars of Investing by William Bernstein. Another would be The Bogleheads' Guide to Investing. Please read one or both of these books. You will be very, very glad you did.

So........the big question is this:

Would I be happy if I retired today? (Well early 2022, to spread out my tax bill...)

No. I would not dream of retiring in your shoes. Here's what I would do if I were you.

• Figure out a way to keep working and earning decent money for several more years. This may mean eking it out in your current job, or switching to something else that's less lucrative but more tolerable. Either way, keep working, for now.
• Diversify your investments and start investing more of your income. A lot more. Invest in low-cost, broad-based index funds, like VTI.
• Cut back on every optional expense. Live as frugally as you reasonably can, while still maintaining good mental/social/emotional health.
• Reassess after 4-5 years. See what FIRECalc says when you plug your numbers in. If it says you have a historical 90%+ chance of outliving your money in retirement, then pull the trigger.
• Keep reading and participating in this forum. You will learn a LOT here.

Good luck!

 

[disneysteve]

I agree with everyone else. You can't retire. What you need is to get a new job that you like.


I do have one question though. You listed $200/month passive income from crypto. I'm curious how your crypto holdings are generating regular income for you.

 

[Letj]

This is a great introduction. I share some of these values so it’s really relatable to me. I also had lost all desire for corporate politics and hated someone else controlling my time. I invested and started a side business while still working and got out early at 50. It all really depends on your spending, the lifestyle you want and where in the world you want to live. Once you have this figured out, the answer would be much clearer.

 

[Music Lover]

$1000 a month gym/massage/therapy?

I bought a power cage for $400, and $500 in free weights, and $300 for accessories, $1200 total.

I've had the stuff for 20 years so far, that's $60 a year or $5 a month.

 

[jasonfreedom]

$1000 a month gym/massage/therapy?

I bought a power cage for $400, and $500 in free weights, and $300 for accessories, $1200 total.

I've had the stuff for 20 years so far, that's $60 a year or $5 a month.

If I was able to have even a 2BR, I could gym it at home.
But, alas, I live in a small apartment, and the gym is just most convenient.
Right now my gym costs $500/year.

 

[jasonfreedom]

I agree with everyone else. You can't retire. What you need is to get a new job that you like.


I do have one question though. You listed $200/month passive income from crypto. I'm curious how your crypto holdings are generating regular income for you.

Hi thank you (As well as everybody else!!!!) for your reply.

Passive income from crypto comes through DeFi exchanges: Aave, Sushiswap (which I DON'T recommended since the co-founder left), and the like.

For example, if you believe in Polygon (Matic), you can Deposit your holdings on Aave and earn about 4% in additional Matic per year. compounds every second.

You MAY be able to consider "staking" crypto as passive income...stake 1 ETH at 5%, after a year and you have 1.05 ETH. Like an automatic DRIP program.

Only post "safe" cryptocurrencies - Bitcoin, Ethereum, Solana, and with research you'll discover more.

Don't chase 100%+ gains, or shietcoins because APRates will fluctuate wildly.

 

[jasonfreedom]

I suggest you read up on the principles of diversification and asset allocation before you do anything else. A good place to start would be The Four Pillars of Investing by William Bernstein. Another would be The Bogleheads' Guide to Investing. Please read one or both of these books. You will be very, very glad you did.

Thank you, I am checking both of these books out

No. I would not dream of retiring in your shoes. Here's what I would do if I were you.

• Keep reading and participating in this forum. You will learn a LOT here.

Good luck!

Of this I have no doubt!!


I am trying not to do anything stupid, which is why I HAVEN'T quit.

Every year I stay at my job adds, barring severe event, $19.5k Roth IRA + $3k Roth IRA Match + $6k traditional IRA contribution + $36,000 after-tax savings

So each year I am working, I can put away $64,500.

Also, my pension at retirement (yes my job offers this) will go up by $100/mo, and I am assuming/hoping Social Security will increase as well (if that is still around in 20 years)

So there's that.

But at what cost...............

 

[jasonfreedom]

Sounds to me like you desperately need a change in vocation. But you still need to work.

You mentionee working all day every day. I think your subconscious is telling you thete is more to life than work. Cut back. Volunteer. Get a hobby. Bettet yet, 8nvest in your relationships.

Pay attention to your subconscious. Realize it doesn't have to be all or nothing. Realize also there are changes you can make today.

Good luck.

I've had many jobs, and many career changes, but it always follows the same formula.

I work for several weeks or months in a row. I feel miserable enough to almost shoot myself.

Then I take a vacation for 1-3 weeks. I feel GREAT. FANTASTIC. Refreshed. CREATIVE. Like I can take on the world.

Then I come back to work. First Monday morning feels like a tightening of my nerves. By Wednesday of my first week back, I am fully miserable again.

It has been this way for 25 years......

 

[jasonfreedom]

You state you make $225k, yet it looks like you have $370k in actual savings.
No, it doesn't look like you can retire yet to me.
If you truly live on 60k, did you just recently start saving or earning that higher amount?
Does your "everything else" $750 in the budget include medical/dental insurance, clothing, gifts, transportation, etc?

Your desires swing widely. I hope you find what you are looking for, but I think you need to keep working for a few years.

Thank you, great question.

First...yes my $750/modoes not include health/dental/vision insurance. Those alone would be about $600/mo ($7.2k/year!) So I'd need to add them - or plan to be super healthy. But, it does include clothing, gifts, and transportation.

Second, yes my income has fluctuated wildly. Starting several companies = no salary = high up front investment costs. Until $40-$50k in credit card debt = time to shelve the company and get a @(*#ing job again until I can save up for the next entrepreneurial run.

 

[ocean view]

Have you ever considered seeing a counselor to help you work through your stress rather than just taking a vacation or getting a massage? If this has been going on for 25 years, I think there’s more to it and counseling could beneficial. More of a treat the cause, than just the symptoms approach.

 

[jasonfreedom]

Have you ever considered seeing a counselor to help you work through your stress rather than just taking a vacation or getting a massage? If this has been going on for 25 years, I think there’s more to it and counseling could beneficial. More of a treat the cause, than just the symptoms approach.

Thank you for posting...yes, I have been to many. Pretty steadily in fact, for the past 22 years. It always follows the same pattern: Starting off talking about the past for about a year, and ending up with "Well why can't you be happy with a job and then retire at 65 like everybody else?" or "EVERYBODY want to retire early, what makes you think you are so special? I think you're being delusional" "Other people don't complain about having to go to a job, why are you?" etc.

Not to say that I don't appreciate all of the other benefits. I am an absolute fanatic about self-mastery, when it comes to emotional, spiritual, and (until my injury) physical. My personal style is zen, empathetic, generous in giving advice, and thoughtful in offering a perspective most others haven't considered.

But, I absolutely despise HAVING to go to work. Slavery shackles and chains, it kills absolutely everything in life that I have passion to experience, and desire and creativity and zest and fresh perspective and optimistic outlook and so on.

Almost every girlfriend I've ever had, has remarked that I am much happier after I take a week off, or even a 3-day weekend.

I just wish I didn't have to keep doing this.

 

[jasonfreedom]

Maybe last thought from me for this thread, because I don't want to hog the air:

According to FireCalc, if I were to cut my expenses to $18k per year, I am safe. This would not be Hoboken based, but say Puerto Rico, Portugal, or Bali. And I could ONLY allow my expenses to increase as I increase my net worth: with stipulation that I cannot let my future projections fall below the red line.

The elephant in the room is health insurance...but other than my irreversible injury, I am in fantastic physical health.

Thoughts?

Any thoughts on this?

 

[mystang52]

OP: By nature I'm a conservative guy, so your comments paint a picture quite alien to me. With that disclaimer out of the way: I know next to nothing about crypto, but I believe it falls firmly in the speculating side of "investing." If that is the case, then its value can dramatically fall quickly, and you have a proportionately - or should I say DISproportionately - large stake in crypto. So, $560,000 may become a LOT less.
You also mentioned some previous major financial setbacks. You had time to recover from those; at age 52, there may not be enough time to recover from another major downturn.
Many (most?) people dislike working if the viable alternative is not working. But we make the best of it, find ways to enjoy the good aspects and minimize the downsides. Earning $200,000/year, even in metropolitan NYC, is a substantial salary. If I were you, I'd find a way to tough it out at work, sock away as much as you can, and do some serious research into other geographical areas you would want to relocate to. That can make an early exit more feasible for the long term.
*I* would diversify away from crypto, but like I said I know nothing about it.

 

[LarryMelman]

Sorry, but as this thread gets longer and longer, the more I think we are being trolled. The first post asked the simple question "Would I be happy if I retired today?" which of course no one here can answer. And now 40 posts later, the OP has gone full-blown "shackles of oppression" mode.

So I just ain't believing it. If you've been that truly unhappy for so long, you wouldn't be coming to a site like this only now without a plan.

 

[jasonfreedom]

Sorry, but as this thread gets longer and longer, the more I think we are being trolled. The first post asked the simple question "Would I be happy if I retired today?" which of course no one here can answer. And now 40 posts later, the OP has gone full-blown "shackles of oppression" mode.

So I just ain't believing it. If you've been that truly unhappy for so long, you wouldn't be coming to a site like this only now without a plan.

Can promise I am not trolling, and this is a problem that has personally plagued me for many years.

 

[jasonfreedom]

OP: By nature I'm a conservative guy, so your comments paint a picture quite alien to me. With that disclaimer out of the way: I know next to nothing about crypto, but I believe it falls firmly in the speculating side of "investing." If that is the case, then its value can dramatically fall quickly, and you have a proportionately - or should I say DISproportionately - large stake in crypto. So, $560,000 may become a LOT less.
You also mentioned some previous major financial setbacks. You had time to recover from those; at age 52, there may not be enough time to recover from another major downturn.
Many (most?) people dislike working if the viable alternative is not working. But we make the best of it, find ways to enjoy the good aspects and minimize the downsides. Earning $200,000/year, even in metropolitan NYC, is a substantial salary. If I were you, I'd find a way to tough it out at work, sock away as much as you can, and do some serious research into other geographical areas you would want to relocate to. That can make an early exit more feasible for the long term.
*I* would diversify away from crypto, but like I said I know nothing about it.

Thank you.. I hear what you are saying. I've taken risks my entire life so my risk tolerance is on the high side. But yeah I can't be happy with, nor will I tolerate, a life that is permanently gimped and disempowered. So I want to retire, absolutely as soon as I can, so I can begin to live up to some/any sort of fulfilling life purpose.

I sincerely and genuinely appreciate all of your responses. I have studied personal finance for many years, and will give sincere effort to contribute to other/others' threads.

 

[Bryan Barnfellow]

All of you are making sense. And yes I shouldn't count dividends...I can't think of them as passive income anymore because so often dividends get slashed.

The solution is to be sure to include a lot of stocks from the group of so-called Dividend Aristocrats--those which have increased their dividends for at least the last 25 years or more. Also, these stocks also have increased in value over those years.

-BB

 

[SecondCor521]

Sorry, but as this thread gets longer and longer, the more I think we are being trolled. The first post asked the simple question "Would I be happy if I retired today?" which of course no one here can answer. And now 40 posts later, the OP has gone full-blown "shackles of oppression" mode.

So I just ain't believing it. If you've been that truly unhappy for so long, you wouldn't be coming to a site like this only now without a plan.

There are lots of people who have an issue/question, find a site like this one, post their issue/question, and then disqualify or disregard every suggestion that is made.

The most common version of this pattern I've seen is "I'm spending too much money, how do I cut back?" followed by "Oh, I can't cut back on lattes" then "I can't cut back on cell phone" then "I can't cut back on auto" or whatever.

It's pretty much human nature to have an issue, want to solve it, and then ask for help. It's uncommon bordering on rare to then pause and reflect on the suggestions and consider them carefully, because often the person has already thought of the suggestion themselves.

I think OP falls into this category/pattern.

Whether it's trolling or not? I'd say no. But it can be a tad offputting for people to try to help and then have their efforts disqualified. I think so far OP has done a decent job of responding to the suggestions even if there hasn't been any silver bullet ideas yet.

Sometimes, actually, just the process of posting and thinking through things, sometimes with a bit of a different angle or approach can result in the person coming up with their own solution, such as OP suggesting an $18K reduction in expenses and moving overseas. Which sounds like a reasonable idea to me, FWIW.

 

[Gumby]

Looking back, the thing that got me to retirement was not any sort of genius, but sheer dogged perseverance and a willingness to endure things that others were not willing to endure. It has been my observation that to get what you want in life, you generally have to wade through an ocean of crap, and the more you want, the deeper and smellier the ocean. People who think they can shortcut the process through some super-duper investment or business opportunity often only put themselves deeper in the muck.

 

[MarieIG]

Maybe last thought from me for this thread, because I don't want to hog the air:

According to FireCalc, if I were to cut my expenses to $18k per year, I am safe. This would not be Hoboken based, but say Puerto Rico, Portugal, or Bali. And I could ONLY allow my expenses to increase as I increase my net worth: with stipulation that I cannot let my future projections fall below the red line.

The elephant in the room is health insurance...but other than my irreversible injury, I am in fantastic physical health.

Thoughts?

Any thoughts on this?

I suspect that you would become bored on 18k a year and want to finance adventures/ trips in excess of that amount.

 

[jasonfreedom]

It's pretty much human nature to have an issue, want to solve it, and then ask for help. It's uncommon bordering on rare to then pause and reflect on the suggestions and consider them carefully, because often the person has already thought of the suggestion themselves.

I think OP falls into this category/pattern.

Appreciate your insight.. I have read all responses multiple times and will be sitting with them all.
Everything from I should stay in the rat race for another ~5 years, to could I possibly be happy / not bored with cutting my expenses down to $1.5k/mo.

A friend of mine gave me a suggestion tonight...if I retire, I will need to do something to replace my work activity, so my mind doesn't dull. Because most people who retire, especially early, lose their sharp edge. She suggested I stay working for that reason alone.

So, I have a lot to chew on, and don't want to monopolize the forum. Again I want to express my sincere gratitude for giving me many things to think about.

 

[daylatedollarshort]

Maybe you just need to change jobs. Someone we know had a well paid, but very demotivating, high stress job and now has something along the lines of a management job at a ski resort (changing the exact details a bit for privacy reasons) and is perfectly happy doing what they love. There is the some truth to the saying, do what you love and you never have to work a day in your life.

I don't think many actual retirees here would agree with the losing the "sharp edge" comment being fully retired. That sounds like propaganda spread by our corporate overlords, or a worker suffering from a Stockholm syndrome. Once retired you are free to take as many classes, go on as many trips, join as many clubs, play as much chess, attend as many ballets and art gallery showings as your little heart desires (and budget allows). Many of us had Office Space type office jobs filling out TPS reports, so that isn't actually brain regenerating work.

 

[Letj]

Looking back, the thing that got me to retirement was not any sort of genius, but sheer dogged perseverance and a willingness to endure things that others were not willing to endure. It has been my observation that to get what you want in life, you generally have to wade through an ocean of crap, and the more you want, the deeper and smellier the ocean. People who think they can shortcut the process through some super-duper investment or business opportunity often only put themselves deeper in the muck.

This right here!

 

[Aerides]

The elephant in the room is health insurance...but other than my irreversible injury, I am in fantastic physical health.

You're 50. As someone once said on this forum, no matter how awesome you were in your 30's and 40's, your 50's is when your check engine light starts to come on.

You slip in the shower - you don't fall, but you tear your knee. Either stop running forever or get surgery (no it doesn't heal on it's own you are not 18). You get the surgery and oh yeah your cartilage is zero so plan on a knee replacement in 5-7 years.

A wonky blood test - 5 more tests and a couple of specialists and oh hey you have a hereditary condition that's totally manageable, but has ongoing meds or costs or both.

Your shoulder feels funny after a workout. That's an xray and an MRI and a tear and a bursitis and at least PT for 2 months. And the shoulder guy wants to rule out your back and your neck and a few more tests...

Your annual PCP visit shows a couple extra heartbeats so now you're off to the Cardio doc.

Your colonoscopy has a polyp or 3, so you need to do them every 3 years.

And if that's all you get by 60, you're doing great!