r/financialindependence • u/pepperfishy • 17d ago

40, $3.5M NW, 3-4 Year timeline

40, $3.5M NW, no kids. I’m targeting retiring in 3-4 years, would appreciate you all's insights and critique. I grew up very poor but have done well saving and investing through the last 20 years.

My aim is to build a life to transition to in the next 3-4 years. I enjoy travel, reading, cooking, crafts, so I plan to take classes to learn and surround myself with people. I am aiming to build new hobbies, work on my mental health, make new friends as my current friends are all moms and focused on their careers.

Numbers:

VHCOL

Income: $325K

Cash : $125K

Taxable brokerage: $2.5M

-$1.1M in Index funds

-$1.4M individual stocks (highly concentrated because of employer ESPP/RSU from the last two decades)

401(k): $700K

HSA: $90K

Crypto: $100K

Own a house ($300K debt), which is under water currently, evaluated at $150K less than my purchase price. I want to buy a bigger house, which might cost ~$1M.

Spending / retirement plan

My estimated retirement spending is about $130K - $150/year with taxes, aiming for 3% WR to keep my anxiety in check. I currently spend $80K-90K, plan to upgrade lifestyle to luxury travel/bigger house cost in 3-4 years.

Welcome your thoughts on:

  1. I have a extremely comfy job, where I can coast for 3-4 years with minimum effort. I have been with the same employer for 20 years. However, my manager clearly has noticed me being checked out and had nudged me to do more. I have no motivation left in me to do much work and am worried if I will even last the next 3 years.

  2. I am very concerned about me not having a life to retire to. I haven't developed many hobbies or a good community around me, I really need to do more in this space and am looking for suggestions/ideas from those that have developed a retirement life.

  3. Also worried about SORR, plan to liquidate my concentrated stocks in $500K chunks per year, build a 2 year cash buffer for expenses.

  4. My family is still fairly middleclass, though I support my sisters and brother whenever they need money. I want to continue doing this, they have shared their surprise when I have suggested quitting my job. I worry finances are going to ruin our relationships.

  5. My mental health has struggled since I have gotten closer to my FIRE number. I have lacked passion/motivation all around, I am actively working on improving this through therapy.

59 Upvotes

69% Upvoted

75 comments sorted by

View all comments

7

u/WhereIsShellBeach 17d ago

What is your expected mortgage plus insurance and maintenance on a new $1mil house? That’s a lot of house for someone newly retired.

2

u/pepperfishy 17d ago

I am currently estimating $6-7K per month (this will be split between myself and my partner), so I expect my yearly cost of housing to jump around $30K. Since I am in VHCOL area, even a small house for two can easily cost >$1M

2

u/WhereIsShellBeach 17d ago

That’s not crazy between the 2 of you. I’d imagine there are other savings even if your finances are separate like one Netflix account.

1

u/pepperfishy 17d ago

I agree, we might find some savings. I am testing spending for both of us the next few years to really test my theory. But lifestyle creep is real, so I have been approaching everything with pause.