Reply to I want to be self-employed/be partially retired.

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[quote=Anonymous]I’m planning on doing something similar, except I am already self-employed. The good thing about being self-employed (at least in my case) is that you can scale the business up or down to work the number of hours you want.

I’m 43 and plan on semi-retiring at 45 with a paid-off $500,000 condo and $1 million in investments. However, I plan on keeping my business but just working 1-2 hours per day and earning about $50,000 per year.

I estimate I’ll pay around $10,000 in taxes and be left with $40,000.  I further estimate I will end up spending about $50,000 per year, so I’ll just have a gap of $10,000 to fill.  That would amount to a 1% withdrawal rate from my portfolio.

I consider that pretty risk-free and expect that my portfolio will continue to grow. If you do have an entrepreneurial/self-employment bent, it’s much less risky to semi-retire because you can always ramp up your income in the future if needed.  In contrast, if an employee decides to semi-retire at 45, there’s no way they’re getting their job back at 55 if they need it.[/quote]

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