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40, large savings, looking for a change.
12-20-2021, 06:29 AM
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#1
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Confused about dryer sheets
Join Date: Dec 2021
Posts: 7
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40, large savings, looking for a change.
Hi All,
First time poster, long time lurker. What a great forum and I thank you all in advance for your thoughts.
I'm 40 and my wife is 45. I currently work for a nonprofit and my wife has her own business. My salary is 100k and my wife's business makes 50k on average. We also get free health care through my employer.
Before I worked in the non-profit space, I was a professional athlete. Not in a making 10's of millions of dollars way, but in a way that allowed me to invest a good portion of my income for 12 years.
I am feeling pretty burnt out from my current employment. I'm basically "on call" all of the time and am traveling 100 plus days a year. I'm looking for a change or potentially going part time but I'm having trouble leaving such a safe thing. One part of me wants to go part time in a way that we could cover all of our living expenses, but would no longer allow us to contribute to our investments. Even with a high NW, this scares the hell out of me. Is this understandable or am I crazy?
The other part that scares me is that I do not have a college education. I have a pretty "high up" position now for not having a degree, and I'm not sure I could find something like this again if I go part time or leave the work force all together.
Current yearly expenses= 70k (does not include taxes or health care)
Investments: 3.8 M (70/30 allocation, 3 fund portfolio, only 400k in tax advantaged accounts with the rest in taxable)
Home worth 1 M. This includes a building for my wife's business. Don't think McMansion here; it's a newly built home with lifetime materials and is low energy use.
No Kids.
What would you do in my situation? Thanks in advance for your thoughts!
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12-20-2021, 06:40 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,622
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Is there any way to transition with your current employer to a less stressful, part time job that would free up some time for you to discover your true calling without giving up the security you have now? I think you could likely afford to retire, but that would be a mistake from the tone of your post. Think of the job you always wanted but didn't have the time to discover.
VW
__________________
Retired May 13th(Friday) 2016 at age 61.
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12-20-2021, 07:16 AM
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#3
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Moderator
Join Date: Nov 2015
Posts: 13,929
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Quote:
Originally Posted by Blue42
Current yearly expenses= 70k (does not include taxes or health care)
Investments: 3.8 M (70/30 allocation, 3 fund portfolio, only 400k in tax advantaged accounts with the rest in taxable)
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I would retire today. Even if you round up for taxes and healthcare (both of which you should research) to say $100k annual expenses, you're quite comfortably below even the most conservative safe withdrawal rate plans for ER.
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12-20-2021, 07:27 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2013
Posts: 11,078
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Quote:
Originally Posted by Aerides
I would retire today. Even if you round up for taxes and healthcare (both of which you should research) to say $100k annual expenses, you're quite comfortably below even the most conservative safe withdrawal rate plans for ER.
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+1
OP doesn't "need" to work if they don't want to. If they desire for whatever reason great but I sure wouldn't be on the road 100 days yearly for fun.
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12-20-2021, 08:43 AM
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#5
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Dryer sheet aficionado
Join Date: Dec 2021
Location: Odessa
Posts: 34
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Thinking outside the box here, so please don’t flame. Seeing you’re a young former athlete, have you ever thought or considered some sort of franchise endeavor in the sports performance industry? Gyms, sports rec center etc in something that you know (maybe enjoy) and can acquire hard assets and have a vested interest in.
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12-20-2021, 09:21 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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Have you considered going back to school to pursue a degree that would make you more employable?
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12-20-2021, 09:49 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Feb 2019
Location: St Pete
Posts: 1,243
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I'd walk! Looks like you've got the FI locked in. Do what you want from now on. College can open doors but you've got experience and that's so much more valuable; if you want to learn more or get a degree do so but don't beat yourself up. Some of the smartest people I know have no education on paper and some of the dumbest have lots of initials after their names. (Side note, my last couple years, I put all my certifications on my email signature block... those in the know knew that meant I was done and that I was mocking all the others that put alphabet salad after their names)
__________________
FIREd 7/2021 at age 47
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12-20-2021, 10:25 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2016
Posts: 9,526
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The numbers add up that you are a candidate for ER. If your wife stays working, you will be in even better shape to ER.
I personally wouldn't retire at that age even if I could of. I would find another passion and pursue that business or work for some more years, before stopping.
Good Luck!
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12-20-2021, 11:42 AM
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#9
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Full time employment: Posting here.
Join Date: Jun 2009
Location: SoCal
Posts: 569
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Going part-time to just cover expenses seems like a good compromise.
Your expenses indicate you probably could retire but 40 is young and as you point out going back to work without a degree and a gap in your resume could be a challenge.
Though you can always retire and work on a degree if you're open to that - and it may be a nice challenge to keep you occupied for a few years as well.
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12-20-2021, 12:14 PM
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#10
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Confused about dryer sheets
Join Date: Dec 2021
Posts: 7
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Quote:
Originally Posted by Ninepoint5
Thinking outside the box here, so please don’t flame. Seeing you’re a young former athlete, have you ever thought or considered some sort of franchise endeavor in the sports performance industry? Gyms, sports rec center etc in something that you know (maybe enjoy) and can acquire hard assets and have a vested interest in.
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I definitely see where you are headed with this. Unfortunately, the sport that I was involved with does not lend itself to this type of activity. But I like your idea, just not sure it could work for my situation.
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12-20-2021, 12:17 PM
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#11
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Confused about dryer sheets
Join Date: Dec 2021
Posts: 7
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Quote:
Originally Posted by Dash man
Have you considered going back to school to pursue a degree that would make you more employable?
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I have not seriously considered this. I live in a fairly rural area and I am not interested in moving. I guess there could always be remote work opportunities with a degree, but I don't think an education would open too many doors in my home area.
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12-20-2021, 01:20 PM
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#12
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Dryer sheet aficionado
Join Date: Dec 2021
Location: Odessa
Posts: 34
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Quote:
Originally Posted by Blue42
I have not seriously considered this. I live in a fairly rural area and I am not interested in moving. I guess there could always be remote work opportunities with a degree, but I don't think an education would open too many doors in my home area.
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One of the many lessons we’ve learned from the past few years (thx to COVID) is that technology and work are going hand in hand more so than ever. Lots of companies are ditching the model of brick and mortar, traditional office type setups, to work from home and personal office settings. I see this really ramping up in the next few years.
Same can be said with school and getting an under grad or even a masters via online.
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12-20-2021, 02:24 PM
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#13
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Confused about dryer sheets
Join Date: Jan 2021
Posts: 2
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Quote:
Originally Posted by Blue42
Hi All,
I'm looking for a change or potentially going part time but I'm having trouble leaving such a safe thing.
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Change is hard!
If you’re a book guy, “Designing Your Life” by Bill Burnett & Dave Evans is a good read and might help you think through how to reframe your current situation.
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12-20-2021, 05:35 PM
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#14
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Confused about dryer sheets
Join Date: Dec 2021
Posts: 7
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Quote:
Originally Posted by VanWinkle
Is there any way to transition with your current employer to a less stressful, part time job that would free up some time for you to discover your true calling without giving up the security you have now? I think you could likely afford to retire, but that would be a mistake from the tone of your post. Think of the job you always wanted but didn't have the time to discover.
VW
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I have definitely considered transitioning within my current employer. I think this is a viable option. However, I'm concerned that I would ask to go part time, take a big pay cut, but still somehow end up doing a similar amount of work. This is still something that I will consider, I guess I would just need to be very firm with any change.
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12-20-2021, 06:06 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,672
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Quote:
Originally Posted by Blue42
Hi All,
Current yearly expenses= 70k (does not include taxes or health care)
Investments: 3.8 M (70/30 allocation, 3 fund portfolio, only 400k in tax advantaged accounts with the rest in taxable)
Home worth 1 M. This includes a building for my wife's business. Don't think McMansion here; it's a newly built home with lifetime materials and is low energy use.
No Kids.
What would you do in my situation? Thanks in advance for your thoughts!
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I think your in a good position with your $3.4M of taxable money and a spending need of $70k + taxes and Healthcare. You can draw (round numbers) $108k of capital gains and (qualified?) dividends . Take the standard deduction of $26k MFJ, leaving you $82k of taxable income. The capital gains tax rate on LTCGs and Dividends under $82k is 0%. So you would have $108k tax free to pay all you bills. Now, say that 25% of the $3.4M is LTCGs, you may have to sell $432k to realize $108k of LTCGs. That's OK, just put $317k back into your investments resetting the cost basis. You will have to reduce the $108k a little because of the dividends your getting. You would need to get your wife to stop working, or just spend some of your dividends when your not working.
If I have anything wrong, someone will tell me!
Many of us here would retire on 1/3 of your nest egg.
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12-20-2021, 06:50 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Jan 2017
Location: Des Moines
Posts: 1,389
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College degree not required to live a successful FIRE life!! Your success proves that already.
__________________
Retired in 2013 and we are living the dream!
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12-20-2021, 10:35 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Mar 2007
Posts: 1,860
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Quote:
Originally Posted by Blue42
I have definitely considered transitioning within my current employer. I think this is a viable option. However, I'm concerned that I would ask to go part time, take a big pay cut, but still somehow end up doing a similar amount of work. This is still something that I will consider, I guess I would just need to be very firm with any change.
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If that happens, you can always quit.
But whatever you do, handle any exit from your employer with class and don't burn any bridges. If things don't work out on your new endeavor, you may decide to go back, in either the same or a different capacity.
Good luck!
__________________
"Live every day as if it were your last, and one day you'll be right" - unknown
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12-21-2021, 01:38 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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I retired at 39, I won't necessarily encourage to follow in my footsteps. However, I would say that you have a problem with your job, or perhaps working in general. The benefit of FIRE is exactly the situation you find yourself in. Don't underestimate the leverage you've gained by becoming financially independent. Employers don't necessarily understand the power of, "I don't need your stinking paycheck or anyone else's."
Personally, if I was you. I'd ask for an unpaid leave of absence, it was probably the smartest thing I did when I retired. I got a 1 year, but anything over 3 months or so should be adequate. I call this a trial retirement
Financially, you are in excellent shape. Pyschologically you aren't and that is perfectly understandable. Will you bored, how much will you really spend in retirement, will you drive your wife crazy being home so much or vice versa. All of this questions are unanswerable until you actually try it.
After 3 or 6 months, you'll be in a much better position to know, do I really want to work part time, or maybe you'll be refreshed and want to get back to work, or you'll just decide to do what I did and retire early.
I was surprised that my employeer gave me the LOA without any issues. Yours may give you more pushback, just be clear to your employer that status quo is unacceptable.
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12-22-2021, 08:44 AM
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#19
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Full time employment: Posting here.
Join Date: Jul 2014
Posts: 930
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How does your spouse feel about these options? It can sometimes be tricky if one spouse has significantly more free time or different life goals. You'll want to make sure she supports the plan. You are lucky to have a lot of options, and I hope you find something you find fulfilling whether it's a paid job or not.
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12-22-2021, 09:00 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,545
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Seems that you have the $ part of the equation covered. The "what do you do now" part is the hardest in my opinion. Our siutation is not exactly apples to apples but somewhat similar. Here goes: I played football & basketball in college. Joined the USMC for 23 years and retired from there 8 years ago. DS played hockey thru 3 years of juniors now USMC (coaches and plays adult league hockey). DD played college volleyball and then 2 years overseas. She is now a defense contractor and coaches volleyball. We all scratch our sports itch by coaching, playing and officiating. I officiate baseball and volleyball up to and including college ball. It is tough for athletes when they no longer play. I would venture to say that you have a lot to give back to the sports community in a variety of areas. Player development, coaching, mentorship, officiating, etc... I still work a full time gig from home to scratch the work itch. Easy job. I scratch the sports itch by officiating and also bring in about 15k/yr doing it. Good luck to you sir.
__________________
-Big Dawg-FI since 9/2010. Failed ER in 2015. 2/15/2023=DONE! "Blow that dough"-Robbie
" People say I'm lazy, dreaming my life away Well, they give me all kinds of advice designed to enlighten me When I tell them that I'm doing fine watching shadows on the wall "Don't you miss the big time, boy. You're no longer on the ball" -John Lennon-
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