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

[indiajust]

I retired with less at 44, so it is doable. My decision was driven by poor engineering salary. It is much harder to walk away from such a strong savings situation. Are you sure there are no mistakes in your future that a bit of cash might greatly assuage?

I generally advise to make hay while the sun shines. Your are at peak career earning potential.

Also, I have seen demonization and takedowns of crypto wealthy. I suggest a plan if the Treasury dept and IRS attach assets. Scrupulous documentation may help protect you. I can suggest a crypto 1099 type doc service if you wish.

Unless you absolutely dread your current employment, I would hang on for a bit. Once you quit, you can use the house/mortgage/tax deductions to write off a rollover of your 401k to a Roth. Then sell and go to cheaper shores.

 

[2177V]

Well, I know about the lifestyle you want, but you're not going to achieve that in New Jersey.

If you want to quit now, your best bet is to live in Kathmandu, Nepal which is cheap. You can go to Everest or Tibet easily from there, and find a cave to meditate. I've also stayed in Kathmandu and Tibet for months and went to Milarepa's Cave in Tibet.

But you know, if you want to stay here in the US, you got to work at least another 8-10 years to be independent, and go live in a cheaper southern state.

I agree. I suggest taking some vacations in low COL areas: Mexico, Thailand, Rural China, etc.

I am ex-military and I was stationed in low COL Korea near the DMZ and I lived like a king as a buck private. I am now planning to buy a Condo in rural China where the COL is 1/3 of California but only 30 miles away from a high COL 2nd tier city. I appreciate living in a low COL area.

Yes you can retire now but only in a low COL area. However, if you insist on retirement in a high COL area, then you may need to be a slave worker for another 10 or so years.

 

[NoEZmoney]

Retire Now? But there's that financial pressure thing . . .

So after I re-read the original post and processed the important stuff like:
net worth, nestegg/investments (A little heavy on the Crypto-related for my tastes), lifestyle, Cost-of-living / expenses -- earnings, extreme sports/experiences, travels, yada, yada, yada... this really stood out:

OP said:
"I really DON'T do well with financial pressure. Grew up in poverty, etc."

So I'll just toss this out -- I don't believe you have enough set aside to live the life you want right now. And I think you'll get to feeling pressure if you punch out now and then have to rely on what you have with anticipated market volatility. Let's face it -- we're in some cuh-raay-zee uncharted territory with the upcoming political races (mid-terms & presidential) Not exactly the best of times to bail out right now.

No one can predict the future but if you don't do well with financial pressure now, wait 'til you have to depend on your nestegg / investments alone during a wild ride in the markets. I'd say tough it out until 55 or so, sock even more away -- diversify into more or less tried & true stuff that will cover your nut on the basics. I've met FIRE folks who worked with huuge financial firms and they didn't want the "financial pressures anymore" and just dropped everything in index funds (S&P, etc) and they are satisfied. They also used geographic arbitrage and became expats for fun, adventure, and lower COL.

Maybe max out savings/investing by lowering COL? I know you're in a high-priced area but every dollar you trim gets you closer to punching out.

Best of luck

"People don't plan to fail, they simply fail to plan."

 

[Out of Steam]

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.

In this line of thinking, I am questioning our decision not to go above a 4% draw rate on retirement savings for the two years between the end of my retirement incentive and my wife's first Social Security payment. We were not much over 3% the first year. The period is more than half over, so it may not make a lot of difference now.

Returning to the original subject, I agree that OP needs either lower expenses or more retirement savings. Expenses in the urban Northeast are crazy, especially if one keeps a car better than a street-parked beater.

 

[Librarian]

My first thought after reading 1st post...

Is this satire?

 

[RetiredHappy]

OP's last checked this website on Nov 6...

 

[CSdot]

Hi everybody!!
First time visiting this site. But been into financial freedom as an intention for many years.

Okay my deets:
- 50 years old
~ $590k net worth ($120k investment home equity, $120k stocks, $350k blue-chip crypto)
~ $550/mo passive income ($250/mo rental home, $100/mo stock dividends, $200/mo crypto)
~ $2400/mo retirement income now vested if I stop working today, starting Age 67 (social security and work pension)
- No personal debt (except monthly ccard balance and investment home mortgage)
- $200k/yr salary (w/ bonus and 401k match really $225k)
- $5000/mo expenses (rent $2400, food $600, gym/massage/therapy $1000, phone/utilities $250, everything else $750... I live in Hoboken after all)
- No wife (that I know of), no children, have a gf who doesn't want to get married, rent my apartment
So........the big question is this:

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

Thank you for reading!

Quick answer is no.

Not sure what "blue-chip cryptos" are, but they make up 59.32% of your stated net worth. Considering you state "$120k investment home equity" and "$120k stocks" and later mention an "investment home mortgage" and a potential "401k match", I have to wonder how much you owe on that "investment home mortgage" to go along with your $2,400/month rent, plus whether your $120K stocks are going to be tied up in your 401k for 9.5 more years until age 59.5.

Maybe I am misunderstanding your 401k comment and your $120k stocks are outside of retirement and the 401k is just a prospective thought, but that still leaves you with $350K cryptos and $120K stocks, with the gains from both being taxed when you sell. The $120K investment home equity is not available for your living expenses unless you sell or borrow against it. Neither are good long term solutions.

I know I would not be looking to retire if these were my finances.

 

[swaneesr]

OP's last checked this website on Nov 6...

Sort of fits with the OP’s perceived personality. Pops in, a bit of chaos, pops back out.

For us lurkers on this site it is as important to read the community responses like this. This person is not ready at age 50. It is interesting to see your advice on what actions could be taken.

Swanee