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

[Exchme]

Are you sure you know your SS benefits if you quit now? The default at the SSA.gov site is to give you number you would have if you kept working. Quitting at age 50 means a whole lot of zeros averaged in to your top 35 years of earnings.

Trying to retire with virtually no liquid assets outside of a crypto holding? That's beyond highly speculative.

You tell us you had other financial setbacks which explains why the low savings for what seems like a pretty good income, but your taste for crypto tells me you are still a big risk taker and that tendency is likely to give you more setbacks.

You say you were successful as a freelancer, so maybe go back to that. I doubt that you can really keep expenses to 18K/year in NJ, but being extremely frugal is the right mindset to have if you are going to work for yourself. As another poster suggested, the best plan might be to start off as a side gig and see if you enjoy it, can make money at it, etc.

 

[Big_Hitter]

$60k / year expenses x 25 = $1,500,000 in actual savings (not net worth). You can retire when you hit that number. And that's giving you credit for the pension and SS later on.

that's a good rule of thumb in this situation

 

[pjigar]

$60k / year expenses x 25 = $1,500,000 in actual savings (not net worth). You can retire when you hit that number. And that's giving you credit for the pension and SS later on.

And I don't believe your "real" spending will be $60K/year since you make 200K/yr. If you really have been living off of $60K then your net worth should be A LOT BIGGER than $1M. Go back and find out your real expenses today and then adjust them for the future (add health care, more travel, more entertainment, more hobbies, more eating out, remove work related expenses, etc.). Nevertheless you are no where close to being done. YMMV.



I would also look at reducing exposure to the speculative holdings such as crypto as you come closer to the retirement unless you can afford to lose all of the capital in such investments.


Keep saving+investing and some day you will be able to retire. Good luck

 

[Sunset]

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......

I've always felt vacations were GREAT. I also think 98% of people feel the same way as everyone I know takes vacations year after year.

If a vacation was like hitting your thumb with a hammer, some of my friends would stop paying money to do it every year

I think it's time OP to apply some of the meditative deep thinking qualities you might have seen in life to your job. Find the JOY in some aspect of your job, nearly all jobs have some aspects for perfection, quality, creativity.

As to OP's question, NOPE retirement is years away unless you go to a very low cost country and don't come back.

Also, I do see, OP's risky financial tendency is again showing up with such a high concentration in crypto. Probably will again cause the loss of money, and never seems like it will at the time.

 

[RetiredHappy]

Most people do not like to work or their work. My son was whining to me that he would be unhappy in this and that job. I looked into his eyes and said.. It is very simple, if you feel that you are miserable when working, then look at it as you are paid to be miserable. You need money so you have to work. We have not had a discussion since then and he is now working at an extremely humbling blue collar job even though he has 2 Bachelor's. If my son can do such a low level job at minimum wage, so can you in a white collar high paying job. You need money, so suck it up for a few more years.

 

[LarryMelman]

- $1k/mo of self-pampering: I can cut this off, but at the moment I NEED self-pampering to cope with the fact that I have to work a f*cking job which grates against my soul.

So you don't want to work. But you have a $200K job and really haven't saved very much. And much of what you have saved, is in tulip bulbs or crypto or etc.

If you were 30, you'd have time to reset your career, learn how to save, find some satisfaction in some non work-related aspect of your life. But at 50, with the numbers and attitude you've presented? Staying in your job and increasing your savings are the most obvious path to supporting a decent retirement, and not really even an early one.

 

[captain3d]

I was thinking about this again today. Thought experiment...

Imagine you are not working and having to live on the $20k available from the current investments. How is life? Can you be happy?

Now imagine you are offered your $200k job. Do you take it?

Maybe this helps.

 

[pacergal]

Most people do not like to work or their work. My son was whining to me that he would be unhappy in this and that job. I looked into his eyes and said.. It is very simple, if you feel that you are miserable when working, then look at it as you are paid to be miserable. You need money so you have to work. We have not had a discussion since then and he is now working at an extremely humbling blue collar job even though he has 2 Bachelor's. If my son can do such a low level job at minimum wage, so can you in a white collar high paying job. You need money, so suck it up for a few more years.

way to go, mom! Your son got a good, real life lesson.
As my mom used to say "suck it up, buttercup". Sometimes we have to do things we don't want to do, in order to get what we want later. Life is all about choices. Choose wisely.

 

[JJpop]

So you don't want to work. But you have a $200K job and really haven't saved very much. And much of what you have saved, is in tulip bulbs or crypto or etc.

If you were 30, you'd have time to reset your career, learn how to save, find some satisfaction in some non work-related aspect of your life. But at 50, with the numbers and attitude you've presented? Staying in your job and increasing your savings are the most obvious path to supporting a decent retirement, and not really even an early one.

I agree with this post 100%.

You say you are very knowledgeable about personal finance yet it seems the small amount you do have saved is invested in the riskiest asset on the planet.

How can you be retired and start a business? You mean you want to quit your job, not retire.

You seem like a really interesting and smart guy that is living in a fantasy land about his actual financial knowledge.
When I read your initial post I had to read it again because the numbers and your investments were so far from any chance to retire reasonably.

The only positive about your idea is that you are single so if you want to gamble the future it only effects you.
Best of luck, because that is what you are basing this on.

 

[Parfumeur]

>> No wife (that I know of), no children,..

You have it backwards..... No wife, no children (that I know of) . . . .

 

[Doc0]

If your crypto 10x in the next 5 years you have enough. 5x will go to you 5x to the IRS. Otherwise you got 10 more years at least. We have this little thing called inflation happening right now which will turn your nest egg into smoke.

 

[kjpliny]

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.

^ Pure wisdom and a grounded life lesson for all.

 

[F.I.R.E User]

Excluding the social security and pension, the firecalc says you have less than 50% chance to stretch the money for 35 years with 1 million dollar net worth to support your $60k a year living expense, 2m net worth to have the freedom you are looking for with 100% success rate. More if the net worth is shared with someone ( not a girlfriend I hope ).

Good luck. I personally wouldn't dream of retiring in your situation but I am not a free spirit. I am hoping I will be free from the rat race after 5 more years.

What is the safer FireCalc #?

75%? I’ve heard 95%.

 

[LarryMelman]

What is the safer FireCalc #?

75%? I’ve heard 95%.

Please don't take this thread into the ditch.

 

[P.S.]

I’m kind of suspicious. You don’t sound like a 50yo M, or someone that’s climbed to Everest base camp, plus 7 continents, etc. etc.

But, if you are as you describe… I would look closely at my expenses. For example, being completely sexist, maybe a 50 yo F might indulge in shopping for the dopamine high. Maybe a male might use alcohol, or other drugs. Or other habits… that could be expensive

 

[RockLife]

I guess I'm not looking to retire, but rather have control over my time so I can do what I want.

To take the FIRE acronym apart (Financial Independence, Retired Early), it sounds like you are really looking for the FI part, which is a really good place to be. What FI amounts to is that your lifestyle doesn't change if you change your job. IOW, you are not tied to the job you hate. It sounds like that should be your goal instead of trying to stretch <$600K over 45 years.

FIRECalc is a good place to start, and there are many other good retirement calculators available as well. You can use them to see what would happen if you work 10 more years, 5 more years, or take a lower paying job that you love, that sort of thing. You need to do some homework to see where you really are, but I agree with the sentiment here that you are not ready yet.

 

[Al in Ohio]

IMO you need another million. Keep socking away $75k or more each year into investments for another 8-10 years.

 

[target2019]

I've been in the same HCOL state as you, for 35 years or more. I also "freelanced" for many years, and had regular W2 for 12 of those years. With the W2 money you are reporting, I would be able to quash my need to be independent, and save for 5 more years, re-evaluate, and repeat.

I see that you are in therapy for issues. Those affect you as a freelancer, as well as on W2. You can't escape that, per your own words. Starting another business after you quit may work out, or it won't.

If you move away from HCOL, then your existing savings will go further. But it's still not enough. Your crypto is not an investment. It is speculation, so you have less invested than most here.

You're not close, IMO, and just have to keep going with W2 (and saving max $$$) or quit and find out if another business try will work for you.

Sorry to be blunt. Hope you find what you're looking for...

 

[DayVee B]

The OP just needs to be patient, suck it up, put his head down and keep his nose to the grindstone. No pain, no gain. Not being a spouse or parent seems to have made him a little too self-focused. Who wouldn't want to quit their job, travel the world and be freed from the "shackles" of a job they hate? But there is this reality called math that works the same for rich and poor. If you want to live at a certain spending level, you have to bridge the gap between the reality of what you have and what you need to get there.

I loved my job for the first 27 years then there was a change and I've hated it the last 3years. Every Monday is a struggle trudging through the start of another week. I've got 2 yrs, 11 mos & 20 days until I'm outta here and retiring at 60. (Providing those in D.C. don't screw things up too badly.) My career has been spent sacrificing many of my wants to take care of my wife, put 4 kids through college, supply each of them with a car and teaching them how to be responsible, contributing, content adults with a work ethic.

I could probably quit today and eke by. But my desire to thrive in my post-work life out weighs my hatred of my job. Reaching a desired goal takes effort and, more often than not, plowing through a ton of crap and ignoring the day to day negative with eyes firmly fixed out your desired outcome.

 

[Al in Ohio]

Looks like you are no where near ready to retire. That comes from someone who thinks most people on here worked way longer than they needed to and will die with millions in the bank. You could get crazy lucky and have crypto go up a lot and stay there and maybe you could eeek out a decent retirement but it is very, VERY unlikely you could retire anytime soon and not run out of money before you die.

Yup. I’d say the same thing.

 

[teetee]

The OP just needs to be patient, suck it up, put his head down and keep his nose to the grindstone. No pain, no gain. Not being a spouse or parent seems to have made him a little too self-focused. Who wouldn't want to quit their job, travel the world and be freed from the "shackles" of a job they hate? But there is this reality called math that works the same for rich and poor. If you want to live at a certain spending level, you have to bridge the gap between the reality of what you have and what you need to get there.

I loved my job for the first 27 years then there was a change and I've hated it the last 3years. Every Monday is a struggle trudging through the start of another week. I've got 2 yrs, 11 mos & 20 days until I'm outta here and retiring at 60. (Providing those in D.C. don't screw things up too badly.) My career has been spent sacrificing many of my wants to take care of my wife, put 4 kids through college, supply each of them with a car and teaching them how to be responsible, contributing, content adults with a work ethic.

I could probably quit today and eke by. But my desire to thrive in my post-work life out weighs my hatred of my job. Reaching a desired goal takes effort and, more often than not, plowing through a ton of crap and ignoring the day to day negative with eyes firmly fixed out your desired outcome.

I dont like my job but it is not all bad. The good part of it is that it is never the same so I don't get bored. But being helpful and having large capacity of information uptake can only last for so long before getting stressed or burnt out.

It is totally natural to keep the job you can tolerate but there is another consideration: will it become more and more difficult to change your life style for retirement if you stayed working longer? Flexibility can be a perishable skill. It is not only about the courage of taking the first step, but also how the change can affect your emotion and mental state afterwards.

I think the issue that the OP is facing is he likes to be flexible (free spirit) and not be in a situation with a corporate job. He just does not have enough net worth that he could outlast his money.

 

[mystang52]

The OP just needs to be patient, suck it up, put his head down and keep his nose to the grindstone. No pain, no gain. Not being a spouse or parent seems to have made him a little too self-focused. Who wouldn't want to quit their job, travel the world and be freed from the "shackles" of a job they hate? But there is this reality called math that works the same for rich and poor. If you want to live at a certain spending level, you have to bridge the gap between the reality of what you have and what you need to get there.

I loved my job for the first 27 years then there was a change and I've hated it the last 3years. Every Monday is a struggle trudging through the start of another week. I've got 2 yrs, 11 mos & 20 days until I'm outta here and retiring at 60. (Providing those in D.C. don't screw things up too badly.) My career has been spent sacrificing many of my wants to take care of my wife, put 4 kids through college, supply each of them with a car and teaching them how to be responsible, contributing, content adults with a work ethic.

I could probably quit today and eke by. But my desire to thrive in my post-work life out weighs my hatred of my job. Reaching a desired goal takes effort and, more often than not, plowing through a ton of crap and ignoring the day to day negative with eyes firmly fixed out your desired outcome.

I suspect OP is no longer reading replies. In any event, "+1" to these comments. I ER'd at 60. Could've done it sooner but am so glad I stayed with it a bit longer.. I am so enjoying my ER and have zero financial concerns....which no doubt contributes to why "I am so enjoying my ER."

 

[Retired Expat]

Yeah Milarepa's cave would be on my tourism list.

A good friend of mine (who's 10 years younger than me...) lives in Bali and tells me I can live there, comfortably, for $1k/month right now. If I didn't have a gf, I would very seriously consider it.

Similarly I retired early to Uruguay. Where I cut my expenses drastically but also my high paying job.

But OP isn’t close to pulling the plug and living on his savings for 40 years snd continue to travel do cool stuff. Most anyone can drop out and live really cheaply but why? We like travel, good food, wine, new clothes, a car etc all of which cost money. I could move to a single wide in the middle of no where and live cheap but that doesn’t sound like fun!

 

[Amykat]

For several reasons, and I say this nicely, the OP is reminding me of adults who are intelligent but have ADHD and never knew it. When they find out and get help, it can really turn their life around.

 

[Koolau]

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.

There MAY be another way to reach FI and maybe OP will find it through a start-up or something else. For me, I never considered anything other than the Gumby School of Financial Independence. Otherwise, I think it's like my good buddy (the one $500K in debt at age 77) who's long-term investment plan is to spend $20/week on Lotto tickets. Maybe it will work, but I wouldn't count on it. YMMV