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Anonymous
| If you were 45, liked your job but didn't love it, had two children 9 and 11 and $1.5 million, would you quit your job? Spouse wants to quit work at age 62. |
Anonymous
|
No, I wouldn't quit. Reasons:
* continuing to pay into the social security system * health benefits (if your spouse is still working, s/he could always lose his/her job) * you never know what will happen to the economy--you need to be prepared if all that cash on hand suddenly gets lost Really, $1.5 million is not that much money. It is if you're buying a house or if you're desperately poor. But I don't see it earning enough income to support you in an upper middle-class lifestyle for the next 18 years & get kids through college. That said, maybe you can downsize your job--ask to take raises as vacation time and not $, and look for something more part-time. I'll also say that I'm biased in that the people I've known who have been independently wealthy & not worked have been pretty unhappy. Me, I go to work so I can feel good about myself. |
Anonymous
| I agree. First quitting now seems too early in terms of having things to do all day that use your talents and are hopefully meaningful, but also 1.5 million is what each of us hope to have when we retire at 62-- I can see it being enough now. |
Anonymous
| Nope. I'm in a similar situation. Not quitting until I can retire in 7 years. Then again, I earn more than DH does, and he'll also retire in 7 years or so. |
Anonymous
| Think about how much income the $1.5 could generate. In this low interest rate environment, let's say you can count on 4%-5% (in tax-free munis - and I'm being generous). At the high end, that's $75k. |
Anonymous
| 1.5 is not that much money. |
Anonymous
| $1.5M wouldn't go very far if you each lived a really long time and needed many years of assisted living. Plus I think 45 is young to retire. Could you find something else to do, career-wise, that you might like better? something with shorter hours and lower pay, since you do have the $1.5M? it would keep you from drawing down the principle for longer. |
Anonymous
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No. 45 is young these days and you may live another 50-55 years!
If you are not miserable I would stay working. Reassess in five years but I wouldn't do it. That said, I'm doubtful that we will retire at 65. My three bosses are in their late 50s - mid 60s and they are doing great in their careers. I think it will be cool to return to a time in my career down the road when I'm dealing with daily needs of kids etc. Not ready for that yet but it is nice to see the older folks at work not have to worry about fitting their childrens' schedules once they are grown. Retirement scares me - seems like the beginning of the end. Of course talk to me in 20 years I may feel different. |
Anonymous
| I appreciate all of the input so far. What if I told you that in 2 years we'd have no mortgage and that we're living on 65% of our net income right now? |
Anonymous
|
11:55 here. The upcoming decline in expenses and your current living well within your means don't, for me, change the importance of the health insurance, social security and market risk issues.
That said, your second post sounds like it comes from someone who's looking to be told it's OK to do what she wants. I would never do it--but if you have your heart set on it, Godspeed! |
SAM2
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I think you should work at least until your mortgage is paid off, and likely at least until your kids are grown and safely out of the house. This protects you in case something happens that requires additional income, gives you cheap health coverage, and builds your nest egg. If you're only living on 65% of your net income, why not find a job that you really like a lot? As long as it pays your current expenses, you can allow your nest egg to grow uninterrupted. If you work for 9 more years at a job you enjoy, and let your youngest child get to college, your $1.5m will essentially double to $3m, so you can fully retire without worry. Alternatively, if your spouse wants to keep working, let her/him continue working and you can retire now. There's no rule that says both must retire at the same age. I'm jealous. |
Anonymous
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1.5MIL is a good amount of money, but quitting money? IN your 40s? No way.
We are in our 30s and want to have at least a house free and clear and 3M in retirement savings. I also don't think either of us will ever totally quit working. I think working keeps your mind active and keeps you alert and alive. |
Anonymous
| Sounds like you're in an enviable position but I would calculate the kids' college costs before deciding to leave work. Can you handle them okay? |
Anonymous
| PP, we have $97K earmarked specifically for the kids' college. |
Anonymous
| Is this $97K included in your $1.5 m total, or is it above & beyond? |