45 and ready to push the quit button....now what?

[Intrepido]

I have been a lurker for years and this is my first post. I am 45 and single without kids. I read the FAQs before posting as well as numerous posts but haven't seen one that has a situation similar to mine, so here it goes:

Annual comp: $1.1M (all cash)
Non Tax Qualified: $3.1M ($800K cash, rest in brokerage (60/25/15 stock/bond/Alt Assets))
Tax Qualified (IRA, Simple IRA): $6.0M ($100K RMD per year currently)
Real Estate: two properties, each values about $850K ($90K mortgage left on one), no rental income
Annual Expenses: $160K to $180K (including HOA, property taxes and other fixed expenses, and excluding health care and long term insurance costs that will be relevant when ER begins)

All the calculators suggest that ER is an easy yes. The job is becoming a drag and with a 53% effective tax rate, there is not much incentive for me to keep going even though it's a lot of cash to give up. I am also not attached to the houses and the HCOL area I am living in right now (CA). In fact, I have relatives in Europe who will be more than happy to have me stay six months out of the year. I think I am ready to pull the trigger this year but not sure how in terms of AA after retirement and healthcare, etc. Any advice from the good folks here would be appreciated. I learned so much from this forum over the years and everyone's story has been the main driver for my crazy saving rate.... Thanks in advance.

 

[Lakewood90712]

What you need is a sabbatical. Take a year or so off, and start fresh. Maybe you will continue to work, or not. It's your choice. Don't box yourself into an all or nothing at your tender young age.

 

[Teacher Terry]

Do whatever you want.

 

[timo2]

Go for it. you are young enough to find something more fun later.

 

[HI Bill]

Welcome! Easy financially, yes! How does one have a $100K/yr RMD at age 45? Inherited IRA?

Your distribution from taxable accounts could just about carry you through to 59.5, even if you don't actually have an RMD. If you do, it's all easy. You might want to consider staggering the sale of the houses until the year after you quit working to minimize taxes. Other than that, with your relatively high level of assets with relation to your spending, you could go with 65/35, 70/30 or even 80/20. I'd consider some diversification with real estate in a couple different countries, and possibly a little gold (just in case).

Guess you have enough to fulfill all of your wants and needs, so it's time to go find something that you really find fulfilling!

 

[socca]

I think I am ready to pull the trigger this year but not sure how in terms of AA after retirement and healthcare, etc.

With a net worth on the high side of 8 figures and relatively low expenses for someone with your net worth, you've got a lot of investment flexibility - you'd have to spectacularly screw up to get in financial trouble. That said, there are plenty of opportunities to screw up lurking out there. Consider, for example, the poor suckers who invested in this opportunity: Oasis International Group.

According to the CFTC complaint, starting in 2014 the Oasis defendants raised $75 million for two commodity pools from investors who were promised a minimum 12% annual return. Those pools claimed to yield 22% in 2017 and 21% last year.

But the pool operators deposited just $21 million into forex trading accounts, all of which has been lost, the complaint states. Another $28 million went for “Ponzi-like payments” to some pool investors, and the rest was spent on personal and business expenses of the Oasis operators.

Sorry for not being more specific, but you sound sufficiently cautious and skeptical to avoid this type of fate.

 

[ownyourfuture]

Go for it. you are young enough to find something more fun later.

This!

 

[Intrepido]

Welcome! Easy financially, yes! How does one have a $100K/yr RMD at age 45? Inherited IRA?

Your distribution from taxable accounts could just about carry you through to 59.5, even if you don't actually have an RMD. If you do, it's all easy. You might want to consider staggering the sale of the houses until the year after you quit working to minimize taxes. Other than that, with your relatively high level of assets with relation to your spending, you could go with 65/35, 70/30 or even 80/20. I'd consider some diversification with real estate in a couple different countries, and possibly a little gold (just in case).

Guess you have enough to fulfill all of your wants and needs, so it's time to go find something that you really find fulfilling!

Thanks Bill. Very helpful advice. Yes, $100K is from an inherited IRA I got six years ago—it’s managed by someone at .5% at 70/30.

 

[Intrepido]

With a net worth on the high side of 8 figures and relatively low expenses for someone with your net worth, you've got a lot of investment flexibility - you'd have to spectacularly screw up to get in financial trouble. That said, there are plenty of opportunities to screw up lurking out there. Consider, for example, the poor suckers who invested in this opportunity: Oasis International Group.

Sorry for not being more specific, but you sound sufficiently cautious and skeptical to avoid this type of fate.

That’s awful. A close friend’s friend was a Madoff victim. I learned from her that the price for greed can be costly.