Windfall and Early Retirement

[Anonymous]

If you came into enough money (say an unexpected $3 million inheritance on top of what you'd already saved for retirement) that you could retire from a stressful job (say finance or litigation) at 52 but had to live on a fixed income - say $200k a year but no mortgage or debt and kids were grown and college saved for, would you quit your job and just enjoy life? Assume spouse has a very low stress but low-pay job (say academia) and is happy to keep working for health care and steady income but can also take tons of PTO and will not resent you.

[Anonymous]

Anonymous wrote:If you came into enough money (say an unexpected $3 million inheritance on top of what you'd already saved for retirement) that you could retire from a stressful job (say finance or litigation) at 52 but had to live on a fixed income - say $200k a year but no mortgage or debt and kids were grown and college saved for, would you quit your job and just enjoy life? Assume spouse has a very low stress but low-pay job (say academia) and is happy to keep working for health care and steady income but can also take tons of PTO and will not resent you.

How did you get the unexpected $3 million inheritance?

[Anonymous]

Absolutely, and in fact we have done exactly this thing

[Anonymous]

My brother did this. He lives in a very low cost of living area. His house is paid off. He's 51 and he's done. Now he volunteers in the schools, learned to be a bus driver, helps out at the community activities, he skis a few days a week in the winter. Overall he seems to be enjoying himself. The one big expense he has now is healthcare.

[Anonymous]

Anonymous wrote:If you came into enough money (say an unexpected $3 million inheritance on top of what you'd already saved for retirement) that you could retire from a stressful job (say finance or litigation) at 52 but had to live on a fixed income - say $200k a year but no mortgage or debt and kids were grown and college saved for, would you quit your job and just enjoy life? Assume spouse has a very low stress but low-pay job (say academia) and is happy to keep working for health care and steady income but can also take tons of PTO and will not resent you.

So you have no mortgage or debt and healthcare (likely your biggest expense) will be mostly paid by your husband’s job?

What are your monthly expenses?

It’s a personal question but for us, we could easily live off 200k/yr even with a mortgage and health payment.

[Anonymous]

I did it without the windfall BUT 200k doesn’t go very far and you are young. So $$$ to travel, do things, fly to a broadway show and back, has to be factored in. I didn’t like being on a tight budget I felt we couldn’t enjoy life and we were still young. So do the math and figure out what fills your life first and then pull the chute once you know you’re ready.

[Anonymous]

OP - we’re figuring out expenses but i think with kids gone and house paid off it’s reasonable. This is about trading enjoyment of life for extra money I think at this point. I could easily fill my time with exercise, hobbies, volunteering etc.

[Anonymous]

Anonymous wrote:I did it without the windfall BUT 200k doesn’t go very far and you are young. So $$$ to travel, do things, fly to a broadway show and back, has to be factored in. I didn’t like being on a tight budget I felt we couldn’t enjoy life and we were still young. So do the math and figure out what fills your life first and then pull the chute once you know you’re ready.

+1 we have saved $4 mil, and I'll be retiring at 56 this year. Life is too short. Average healthy age in retirement is 65. That means after 65, you are not in great health so you can't do as much, like travel the way I want to travel.

We need $140K net.

[Anonymous]

Yes I did, and I’m happy.

[Anonymous]

$200,000 is a lot of money. I would retire, spend less in order to save for emergencies and buy long-term care insurance.

[Anonymous]

Anonymous wrote:I did it without the windfall BUT 200k doesn’t go very far and you are young. So $$$ to travel, do things, fly to a broadway show and back, has to be factored in. I didn’t like being on a tight budget I felt we couldn’t enjoy life and we were still young. So do the math and figure out what fills your life first and then pull the chute once you know you’re ready.

I've raised three kids and sent them to college on less than that (as does the majority of the US population). I'd quit in a second if I could

[Anonymous]

Anonymous wrote:If you came into enough money (say an unexpected $3 million inheritance on top of what you'd already saved for retirement) that you could retire from a stressful job (say finance or litigation) at 52 but had to live on a fixed income - say $200k a year but no mortgage or debt and kids were grown and college saved for, would you quit your job and just enjoy life? Assume spouse has a very low stress but low-pay job (say academia) and is happy to keep working for health care and steady income but can also take tons of PTO and will not resent you.

I would absolutely do it.

[Anonymous]

No, because even without tuition, mortgage, etc. we could not be very happy living on $200k/yr. in retirement. We want to be able to travel, dine out any time, do fitness classes, treat our kids and grandkids to vacations, etc.

I guess if the fixed income was for a relatively short time (say ten years bc you're trying to live on your spouse's low-pay job until 62 when you qualify for SS/Medicare), then maybe my answer would be different. But I still think 200k would be very tough if you've gotten used to the lifestyle that the finance/litigation job has afforded you.

Speaking of your current job, I would think that the $3m PLUS whatever you were already saving toward retirement (plus investing on top of that) would come out to more than $200k/yr. by age 52. No?

[Anonymous]

If you really want to retire, you are more than okay financially.

[Anonymous]

OP thanks these are great perspectives. It’s interesting to list what I would be willing to give up (housecleaning, manicures, Instacart) to make it work. And what expenses I won’t have by working (dry cleaning, lots of takeout!!) It’s a good exercise.