Hello everyone and thank you for reading my post. I've lurked here for awhile (my goal has always been to retire somewhere between 55 and 60) to get some good insights on how to get to my goal, but recent events may alter things a bit.
Here's some info about myself. I'm married to a wonderful wife and have a great 12 year-old daughter. I've just been let go from my 200k (plus bonus) per year job in financial services due to the credit market meltdown. Severance is being negotiated but we're probably looking at 6-8 months of base. The rest of our financial situation is as follows:
Taxable Brokerage A/C - 1.5 million (60% cash, 40% equity / equity funds).
401k / IRA's - 700k (80% equity / equity funds, 20% bond funds).
Emergency Fund - 190k all cash and short-term CD's (represents two years living expenses at 8k per month).
House is worth 500k - 525k with a 140k mortgage. Mortgage, taxes, and insurance come to $2,350 per month.
529 plan has about 40k in it.
It feels strange not working after doing so for 25 years, but I'm thinking this might be an opportunity to make some changes. I don't like the commute associated with working in NYC ( 2 1/2 to 3 hours a day), and I'm not crazy about the stress associated with working in financial services. However, I'm not sure I'm financially ready to walk away, and I'm not sure what other type of employment I could obtain.
One thought is to look around for a year and if nothing reasonable surfaces sell the house and use the equity to buy a house in a locale with a lower cost of living (currently live in NJ). This would cut expenses considerably. Another part is saying just get out now, but our daughter is very happy here, I'm not sure I'm ready to retire, and being in the NYC area gives me by far the best chance of re-obtaining a well-paying job.
Thanks again for your time and any thoughts are greatly appreciated.
Here's some info about myself. I'm married to a wonderful wife and have a great 12 year-old daughter. I've just been let go from my 200k (plus bonus) per year job in financial services due to the credit market meltdown. Severance is being negotiated but we're probably looking at 6-8 months of base. The rest of our financial situation is as follows:
Taxable Brokerage A/C - 1.5 million (60% cash, 40% equity / equity funds).
401k / IRA's - 700k (80% equity / equity funds, 20% bond funds).
Emergency Fund - 190k all cash and short-term CD's (represents two years living expenses at 8k per month).
House is worth 500k - 525k with a 140k mortgage. Mortgage, taxes, and insurance come to $2,350 per month.
529 plan has about 40k in it.
It feels strange not working after doing so for 25 years, but I'm thinking this might be an opportunity to make some changes. I don't like the commute associated with working in NYC ( 2 1/2 to 3 hours a day), and I'm not crazy about the stress associated with working in financial services. However, I'm not sure I'm financially ready to walk away, and I'm not sure what other type of employment I could obtain.
One thought is to look around for a year and if nothing reasonable surfaces sell the house and use the equity to buy a house in a locale with a lower cost of living (currently live in NJ). This would cut expenses considerably. Another part is saying just get out now, but our daughter is very happy here, I'm not sure I'm ready to retire, and being in the NYC area gives me by far the best chance of re-obtaining a well-paying job.
Thanks again for your time and any thoughts are greatly appreciated.