Would you retire with a NW of $10m?

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, my answer to your question would depend on the following factors:

1. Whether I like my current job
2. Whether the current job is demanding and takes me away from my family too much
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention
4. Whether college funds are fully funded or not
5. Whether house is paid off
6. Whether we have any other major expenditures coming in the future that have not been saved for

OP here:
1. Whether I like my current job. I feel burned out. Otherwise, I probably would not be crunching retirement numbers.
2. Whether the current job is demanding and takes me away from my family too much Yes. It's a very demanding job.
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention My parents are not the youngest, so yes.
4. Whether college funds are fully funded or not We should have enough for in-state tuition. The youngest has $200k in their 529. The older ones have more.
5. Whether house is paid off About 800k mortgage @2.75%
6. Whether we have any other major expenditures coming in the future that have not been saved for I guess, nobody really knows

I am the poster who provided the questions you responded to here.

If you feel that your current job is truly jeopardizing your mental and physical health, quit. That’s not a hard question. I had a job I hated so much that I would be crying on the way to work. I don’t regret quitting at all.

Assuming you’re leaving your current job, you can decide whether to retire or look for another position. I think you will be able to make it all work, though if you want to manage all your responsibilities to your family and increase or hold flat your net worth, you will have to carefully manage. I am confident you can do this.

[Anonymous]

It’s just weird that retiring on $10 million is even debatable- but it is. We have more than that and don’t feel particularly wealthy. We live on .02 percent of our assets and, while that is certainly comfortable, we don’t live large. We have kids with young families spread across the country and spend a huge part of our budget on travel to see them and hosting family trips. We do that on less than 300k.

[Anonymous]

Anonymous wrote:It’s just weird that retiring on $10 million is even debatable- but it is. We have more than that and don’t feel particularly wealthy. We live on .02 percent of our assets and, while that is certainly comfortable, we don’t live large. We have kids with young families spread across the country and spend a huge part of our budget on travel to see them and hosting family trips. We do that on less than 300k.

Why do you feel the need to hoard?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, my answer to your question would depend on the following factors:

1. Whether I like my current job
2. Whether the current job is demanding and takes me away from my family too much
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention
4. Whether college funds are fully funded or not
5. Whether house is paid off
6. Whether we have any other major expenditures coming in the future that have not been saved for

OP here:
1. Whether I like my current job. I feel burned out. Otherwise, I probably would not be crunching retirement numbers.
2. Whether the current job is demanding and takes me away from my family too much Yes. It's a very demanding job.
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention My parents are not the youngest, so yes.
4. Whether college funds are fully funded or not We should have enough for in-state tuition. The youngest has $200k in their 529. The older ones have more.
5. Whether house is paid off About 800k mortgage @2.75%
6. Whether we have any other major expenditures coming in the future that have not been saved for I guess, nobody really knows

Take a sabbatical.

I would say there is no point in paying off your mortgage early when the interest rate is only 2.75%. After tax investment returns will almost certainly exceed 2.75%. You also need to consider your tax situation, because you can itemize mortgage interest on your tax return if it is more favorable than taking the standard deduction. Even at 2.75% that provides around 20k for an itemized deduction. Plus 10k for SALT taxes and you are already at 30k which is more than the standard deduction this year. The TCJA, will expire soon which will make it more favorable to itemize. Once the TCJA expires, the standard deduction for a married couple will only be around 16k. In you situation, you will come out ahead by itemizing this mortgage interest when TCJ expires. The tax adjusted interest rate is even lower than 2.75%.

But if Trump wins reelection do we think that the TCJA limit would be extended or a similar policy proposed?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, my answer to your question would depend on the following factors:

1. Whether I like my current job
2. Whether the current job is demanding and takes me away from my family too much
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention
4. Whether college funds are fully funded or not
5. Whether house is paid off
6. Whether we have any other major expenditures coming in the future that have not been saved for

OP here:
1. Whether I like my current job. I feel burned out. Otherwise, I probably would not be crunching retirement numbers.
2. Whether the current job is demanding and takes me away from my family too much Yes. It's a very demanding job.
3. Whether anyone in my family has health or other issues that could benefit from having more of my time and attention My parents are not the youngest, so yes.
4. Whether college funds are fully funded or not We should have enough for in-state tuition. The youngest has $200k in their 529. The older ones have more.
5. Whether house is paid off About 800k mortgage @2.75%
6. Whether we have any other major expenditures coming in the future that have not been saved for I guess, nobody really knows

Take a sabbatical.

I would say there is no point in paying off your mortgage early when the interest rate is only 2.75%. After tax investment returns will almost certainly exceed 2.75%. You also need to consider your tax situation, because you can itemize mortgage interest on your tax return if it is more favorable than taking the standard deduction. Even at 2.75% that provides around 20k for an itemized deduction. Plus 10k for SALT taxes and you are already at 30k which is more than the standard deduction this year. The TCJA, will expire soon which will make it more favorable to itemize. Once the TCJA expires, the standard deduction for a married couple will only be around 16k. In you situation, you will come out ahead by itemizing this mortgage interest when TCJ expires. The tax adjusted interest rate is even lower than 2.75%.

But if Trump wins reelection do we think that the TCJA limit would be extended or a similar policy proposed?

If Trump wins, he will push for eliminating estate and gift taxes, and making the other changes permanent.

[Anonymous]

Anonymous wrote:It’s just weird that retiring on $10 million is even debatable- but it is. We have more than that and don’t feel particularly wealthy. We live on .02 percent of our assets and, while that is certainly comfortable, we don’t live large. We have kids with young families spread across the country and spend a huge part of our budget on travel to see them and hosting family trips. We do that on less than 300k.

I say this with kindness, You have a mental issue

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s just weird that retiring on $10 million is even debatable- but it is. We have more than that and don’t feel particularly wealthy. We live on .02 percent of our assets and, while that is certainly comfortable, we don’t live large. We have kids with young families spread across the country and spend a huge part of our budget on travel to see them and hosting family trips. We do that on less than 300k.

I say this with kindness, You have a mental issue

Agreed.

For the op, I think you have enough money i just would feel uncomfortable not having something that generatese income while I have small kids. Kids get more and more expensive as they get older. The daycare years are rough but we have found between sports, extracurriculars and health care we spend more on our older kids than our preschool aged children. It's just not monthly and required like daycare. Regarding healthcare older kids seem to always need something that's only partially covered, like care after a sports injury, braces or they want something like a trip to Europe through school. I wouldn't want to say no to those experienced because I'm on a fixed income ans chose to retire early.

I would definitely go part time or monetize a hobby in your scenario.

[Anonymous]

This whole thread is stupid. Any family can retire on $10M net worth with a pension and health benefits. They may not be able to fund their current level of expenses, though, and that information and OP’s willingness to adjust are completely missing.

[Anonymous]

Is the OP eligible to begin receiving pension benefits now? And health benefits? Or does OP need to wait till they are older to start receiving?