39 and thinking of semi retiring / changing to a slower pace

[ratraceout]

Hi there.

Im 39 and in a sales job which im not enjoying at all and that has taken its toll on me over the years with several bouts of depression etc.

Im married with a 7 month old adorable baby girl.

This is where i stand at present.

main house - paid off and worth $860,000
holiday home - paid off and worth $2-3 million (its in the tropics so selling it may take a while but also i dont want to sell in this depressed market but realistically i could get "today" about $2 mill nett.

pension pot - $175,000

Cash / Investments - $1m USD mainly in cash at the moment.

What i would like to do is stop working in the sales job (salary is good) move to the tropics where overall life is cheaper and rent out my house which will be about $4000 before tax per month. I would get a job and my wife can also work out there and just take some pressure off and get me out of a job i cant stand anymore.

We live in London and currently spend about 120,000$ a year which is my salary. i estimate cost of living will be 80,000$ in the tropics.

Anybody done this, anybody have any thoughts on if i can just do it. Life is short and at the moment other than my family whom i love im not getting much pleasure out of living in the big city or the agressive sales job.

many thanks for reading my post..

 

[bo_knows]

Sounds like an awesome adventure. You didn't quite specify, but are you looking to live in that home that you own in the tropics, or just sell it eventually?

$1M in cash/investments + $2M (lowball number) in selling the home in the tropics, would give you $3M * 3% SWR (conservative number, but so young) or $90k per year + $48k/year from the rental back home.

Alternatively, if you plan on keeping both homes, it looks like your rental + 3% withdrawl on investments would almost get you to $80k/yr in income. Are you confident in the job market where you'd be moving? Your numbers seem more than feasible.

As I said in the beginning... sounds like an awesome adventure.

 

[ratraceout]

Sounds like an awesome adventure. You didn't quite specify, but are you looking to live in that home that you own in the tropics, or just sell it eventually?

$1M in cash/investments + $2M (lowball number) in selling the home in the tropics, would give you $3M * 3% SWR (conservative number, but so young) or $90k per year + $48k/year from the rental back home.

Alternatively, if you plan on keeping both homes, it looks like your rental + 3% withdrawl on investments would almost get you to $80k/yr in income. Are you confident in the job market where you'd be moving? Your numbers seem more than feasible.

As I said in the beginning... sounds like an awesome adventure.

Hi Bo! Thanks for the reply. The market out there is very quiet job wise but my wife can get work as she is specialised and im sure i would find something in a year or two to roll me over. The house we would live in initially but if the "right price" came up we would sell and move to a smaller one. its a pretty big house. The london house would be a source of some income as you say and eventually if need be that could be sold.

 

[bo_knows]

Hi Bo! Thanks for the reply. The market out there is very quiet job wise but my wife can get work as she is specialised and im sure i would find something in a year or two to roll me over. The house we would live in initially but if the "right price" came up we would sell and move to a smaller one. its a pretty big house. The london house would be a source of some income as you say and eventually if need be that could be sold.

Excellent. Well, until you sell the house, your investments and rental income would just about get you an $80k income. So, any job that either of you get would just be gravy on top, solidifying the deal. What's the healthcare like in the tropics? Is it as free as it is in the UK? (I'm an American, health costs scare the hell out of me)

 

[ratraceout]

Excellent. Well, until you sell the house, your investments and rental income would just about get you an $80k income. So, any job that either of you get would just be gravy on top, solidifying the deal. What's the healthcare like in the tropics? Is it as free as it is in the UK? (I'm an American, health costs scare the hell out of me)

not free but not massively expensive. I would keep my UK private health insurance anyway which costs about 600 us a month for my wife and me and baby

 

[AndrewJackson]

Holy crap man, what industry are you doing sales in? That is quite an impressive hall for a 39 year old.

 

[jphripjah]

Cocaine? Hence the home in the tropics.

 

[heeyy_joe]

Sell the home in London. Learn to sail, buy a boat and open your own business in the tropics. Work when you want to. When you have won the game - stop playing! Best, Joe

 

[ratraceout]

Joe - i like your attitude... makes sense and thats kinda how im thinking.

to others - im in sales but also set up a sales business and sold it. nothing illegal here.

 

[Sparkie67]

Do it. You have a lot more than we did when we stopped aged 43. We have a different lifestyle than you want (rv), but you can afford more. I've never been happier or more relaxed. What's the worst that can happen? Another job? That's the same position you're in now. So the worst choice is staying as you are now. I rest my case

 

[ratraceout]

Thanks Sparkie! Good to hear that life is so good for you on the other side.