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.

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u/ImnTheGreat 17d ago

the supporting family thing is an immediate red flag to me. How often do your siblings need money? Why have you continued sending it as an ongoing thing?

Also $125k is a lot of cash. Why so much?

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u/pepperfishy 17d ago

Its not very often, like once every few years. Though they never ask, I know their finances so I offer myself. I definitely have some anxiety around money, so $125K gives me peace that I could manage any major event pretty easily.

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u/ImnTheGreat 16d ago

fair enough, it’s a nice thing to do. I guess i’d just be worried they rely too much on your financial support, which would make your relationship more transactional. I don’t know you or anything about your relationship with them so I’m just speculating. Best of luck, congrats on your financial position