[USER]

I need to exit my job for personal reasons in the next 3 months. I believe I’m FI and can trigger RE but due to my age (45), I would love your sanity check.

401K = $604,000
Brokerage Account = $1,000,000 (mostly index funds)
Bonds/CDs/Money Market/Treasuries = $340,000
Cash in GBP (no interest) = £50,000
Two rental properties = net annual income $36,000. Fully paid and FMV around $800,000.

Annual net dividend income = $9000.
I believe my annual expenses would be approx. $90,000.

By subtracting my annual rental and dividend income, I believe I can bring down my annual expenses to $60,000 (having flexibility of approx 10k in case of issues with rental properties).

I also have my personal property with a small mortgage at 3.5% and FMV of $350,000. Expenses are included in the annual expenses.

Can I retire in 3 months? Thank you.

[Rick]

Can $2m non real estate investments support a $60k year expense load? Well that is a fairly measly 3% withdrawal rate. So easy answer. Yes.

You will probably find you are underspending after just a few years.

You will need to spend more or risk making someone else very wealthy at your death.

Now some of that increased “spending” can, and probably should, be Roth conversions as it will take you time to work down a $600k pretax amount.

At an 8% annual return, that is almost $50k gain each year. So, it will be a challenge to work that downward.

Not impossible but not simply convert $30k each year and bam it gets done in 10 years.

[Nalani]

Looks good to me! Congrats! And it doesn’t have to be all or nothing. If you decide you want more money in the future, you can always work again

[Statt]

Yes… The numbers are the easy part.
The psychology of purpose and meaning are the harder “nut to crack”.

Remember that at the end of it, money can’t buy happiness or time.

Invest in yourself by pursuing lifelong learning around your interests and invest in your personal relationships, and you’ll reap far better dividends than those that only focus on the money side.

As someone who ‘retired’ at 45, you’ll likely both be revered and reviled.

Just remember that other folks judgements will speak more to them than they will ever of you.

[Mia]

This is exciting for you! Does the rental income factor in 1% property value / year as a sinking fund for repairs and upkeep?

[Zack]

Does your expenses amount include disposable income and fun money? Everybody focuses on their expense number but I wonder how many include enough funds to cover actually enjoy retirement or they just plan on paying bills and praying no unexpected expenses ever come up.

[Desmond]

That non-interest bearing £50K would really bug me. You can’t take any action of monetising it?

[Tan]

You can definitely retire, but I recommend you to get a job with less responsibilities.

I understand you may have been going through hard time mentally, but not keeping yourself busy especially knowing that you have been sucessful based on what you shared would make your situation worse. Trust me.

You may be in need for a break so go enjoy life for a couple of months and don’t stress much.

You are ahead of 99% of people so be proud of yourself and enjoy.

[Traci]

Do you want to keep your real estate? Because you could also sell it and still be fine.

[Author]

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