Can I safely quit paying work?
Tax Filing Status:
Single, no dependents
Marginal tax rate: 48%
Age: 49
Gross Salary/Wages: 300K salary + ~300K RSUs / year
Maxing out Backdoor Roth (20K Pre-tax IRA, 46K Back-Door Roth)
SS: 2K/month starting at age 62 or 3K/month at age 67, if I quit work now and never work another day.
Current expenses:
Monthly Expenses
Water: $160
Electric: $200
Internet: $80
Housekeeper: $260
Gardener: $80
Nephew college: $200
Car Repairs: $200
Gas: $200
Groceries: $800
Restaurants: $180
Clothing: $250
Phone: $50
Fun Money: $300
Hair/Cosmetics/Wellbeing: $150
Subscriptions: $100
Pet Care: $200
Misc: $500
Auto Insurance: $133
Home Insurance: $100
Property tax: $310
Travel Fund: $400
House Repair Fund: $600
Electronics: $200
Splurge: $350
Total: $6000/month
Some categories are estimates but actual spending over the past 3 years averages to 72K/year. This does not include lumpy expenses like a new car or health care, which is currently covered through my work.
Expected Early Retirement expenses:
Health Care out of pocket, estimated at up to $720/month based on subsidized ACA plan with co-pay up to 9K/year.
Tax: 1-2K a year on 21K income (rolling from pre-tax IRA to Roth).
Car Fund: $3600/year for a new car every 10 years.
Add'l ER Expenses: up to 14K/year
Assets:
Investments:
Post tax Savings: 625K
IRA: 810K
Roth IRA: 206K
401K: 285K (mix of pre-tax IRA and post tax Roth)
HYSA: 70K
Total: 2M invested assets
Asset allocation: 63% stock, 30% bond, 7% HYSA.
Paid for home: 900K
Debt:
None
Specific Question(s):
Would you quit your job with these numbers? I want to explore some hobbies, volunteer work and possibly start a business. Is there anything I should consider before pulling the plug?
Healthcare is the wildcard - I don’t know how much to buffer for out of pocket expenses and I will be relying on the affordable care act.
Tax Filing Status:
Single, no dependents
Marginal tax rate: 48%
Age: 49
Gross Salary/Wages: 300K salary + ~300K RSUs / year
Maxing out Backdoor Roth (20K Pre-tax IRA, 46K Back-Door Roth)
SS: 2K/month starting at age 62 or 3K/month at age 67, if I quit work now and never work another day.
Current expenses:
Monthly Expenses
Water: $160
Electric: $200
Internet: $80
Housekeeper: $260
Gardener: $80
Nephew college: $200
Car Repairs: $200
Gas: $200
Groceries: $800
Restaurants: $180
Clothing: $250
Phone: $50
Fun Money: $300
Hair/Cosmetics/Wellbeing: $150
Subscriptions: $100
Pet Care: $200
Misc: $500
Auto Insurance: $133
Home Insurance: $100
Property tax: $310
Travel Fund: $400
House Repair Fund: $600
Electronics: $200
Splurge: $350
Total: $6000/month
Some categories are estimates but actual spending over the past 3 years averages to 72K/year. This does not include lumpy expenses like a new car or health care, which is currently covered through my work.
Expected Early Retirement expenses:
Health Care out of pocket, estimated at up to $720/month based on subsidized ACA plan with co-pay up to 9K/year.
Tax: 1-2K a year on 21K income (rolling from pre-tax IRA to Roth).
Car Fund: $3600/year for a new car every 10 years.
Add'l ER Expenses: up to 14K/year
Assets:
Investments:
Post tax Savings: 625K
IRA: 810K
Roth IRA: 206K
401K: 285K (mix of pre-tax IRA and post tax Roth)
HYSA: 70K
Total: 2M invested assets
Asset allocation: 63% stock, 30% bond, 7% HYSA.
Paid for home: 900K
Debt:
None
Specific Question(s):
Would you quit your job with these numbers? I want to explore some hobbies, volunteer work and possibly start a business. Is there anything I should consider before pulling the plug?
Healthcare is the wildcard - I don’t know how much to buffer for out of pocket expenses and I will be relying on the affordable care act.
Statistics: Posted by MustachianBoglehead — Thu Apr 25, 2024 5:28 pm — Replies 0 — Views 14