Need a nudge

[BlessedLife224]

41yo, Male, Married, No kids (now or in future), work in tech in SF Bay Area

Total NW: ~7.9M including Primary Residence.

Take home approximately $750K - $900K a year and in the peak of my career, and will have to let go of ~$1M in RSU when I retire. Just feeling burned out and tempted by the hunch that I have enough savings to last our lifetime.
DW makes $120K a year and enjoys work and wants to continue for at least a few more years. My investments are doing well, I have retained an advisor.

Started thinking of FIREing years ago by moving back to home country (given my immigration situation, which is no longer an issue), years later after my investments did well, seems like I can FIRE in the Silicon Valley.

I don't think we spend a lot, but it feels like it will be $150K to $175K / year here in the Bay area, biggest expenses being mortgage, property taxes, insurance, taxes, and advisory fees. I'm surprised by a lot of the numbers used here for retirement spending, the expenses numbers in FIRECalc (https://www.firecalc.com/real-cost-of-living.php) don't make sense either, maybe it's a Bay Area thing?

Just don't seem to be able to make up my mind, seem to be on OMY mode. Don't really have a plan for what to do in retirement, other than spend more time with aging parents back home for at least part of the year.

What do y'all think? Am I ready?

 

[MarieIG]

Welcome to the ER forum Sudi.

Budgets vary greatly. Many people may spend less than you do - others (even here) spend more. Run your own numbers.

Some Important Questions to Answer Before Asking - Can I Retire?

FIRECalc

 

[Closet_Gamer]

I'd suggest you get very specific about budget and historic spending. You're in a great spot. If I were you I would double/triple check the math before I stepped out of income stream. Congrats on being in a great place.

 

[The Cosmic Avenger]

I'd suggest you get very specific about budget and historic spending. You're in a great spot. If I were you I would double/triple check the math before I stepped out of income stream. Congrats on being in a great place.

Agreed; first off, congratulations, you're in a great spot! Next, no offense, but it doesn't matter what you "feel" you spend. You need to look at your last year or two of spending and use that as your basis, of course with adjustments for retirement.

And rather than your NW, focus on your available funds or investable assets. And you will not be able to spend any 401(k) or traditional IRA funds for another 18 years without paying a hefty penalty, so your account distribution matters. Ideally, if you have a regular (taxable) brokerage account, you can start drawing from that first when you need it. If you're right about your expenses, though, you may not need much when your wife is still working. However, with a combined income of over $1M, I'd be surprised if you're spending less than 15% gross or less than 25% after taxes.

The good news is that you can probably safely withdraw $180-200K per year and not run out of money. (I'm taking a stab at the house being close to $2M, since it's SF, so estimating $6M in liquid assets.) That's a 3% withdrawal rate, which in almost all cases should last you for as long as you need. You may have heard of a "4% rule", but when you're retiring early and need the money for 4-5 decades instead of the more usual 2 or so, most of us here prefer 3% or less to be safe.

 

[DrRoy]

We now spend a good bit more than we estimated that we would in RE, but are still well covered. At $200K/year you would still be at about 2.5% WR so it seems fine as long as you have all spending accounted for, including taxes and medical. It is important to have a decent idea of how you would spend your time. If all that is covered, you are quite good.

 

[pacergal]

Congratulations on your savings, it puts. you in a great spot.

Answer the questions in post #2 by MarieIG and get a good handle on yearly spending, including taxes, look at the last 2-5 years.

Come back here a post specific question if you have some. There are some very knowledgeable folks here, willing to share their thoughts.

 

[HI Bill]

Welcome to the forum! If you invested assets are able to supply you with your annual spending at a 3-4% withdrawal rate, they financially, you're likely good to go! As many say here, 'come on in, the water's fine'! I ER'd at 55 during COVID, then couldn't travel, then health issues hit that further hindered travel. Better to ER early and enjoy life, especially at your level of assets!

 

[RetMD21]

I don't know the specifics of your situation. If you are burned out is there a possibility of switching jobs to something less stressful or demanding? You can retire if you want but I think sometimes the solution for a job you don't want is a different job.

 

[BlessedLife224]

I don't know the specifics of your situation. If you are burned out is there a possibility of switching jobs to something less stressful or demanding? You can retire if you want but I think sometimes the solution for a job you don't want is a different job.

That is a good point. I will likely put my skills to use by volunteering and /or some pro bono work.

 

[RetMD21]

That is a good point. I will likely put my skills to use by volunteering and /or some pro bono work.

You might be able to arrange to get paid a little by a nonprofit, school, or government entity.

 

[CO-guy]

Congrats on reaching this point!

I left my dumpster fire of an employer less than a year ago, but with much less savings and spending. What really helped me was to track my spending for several years before pulling the trigger.