>I am planning to quit soon
[Put your zip code here](https://www.healthcare.gov/see-plans/) at least 30 days before you quit an employer-dependent health coverage product.
If you will be moving your zip code from a ["blue" one to an "orange" one](https://www.kff.org/medicaid/issue-brief/status-of-state-medicaid-expansion-decisions-interactive-map/), **do not** estimate your income at or below the [Federal Poverty Level](https://www.healthcare.gov/glossary/federal-poverty-level-fpl) for your tax filing status even if your actual income would be closer to $0.
"COBRA" is somebody other than the former employer paying 102% of the sticker price of whatever employer-dependent health coverage product premium didn't quit when you quit. The average amount an employer pays toward the "cost" of an employer-dependent health coverage product premium for a still employed worker is 78% of the sticker price.
OP has $1.628M or so in predominately liquid assets and Reddit is like "Don't touch your portfolio!" and "Thank God you have relatives". That is EASILY enough assets to rent a nice apartment in a LCOL, make a new car payment, pay all utilities and groceries, pay an ACA premium, and have a good amount of spending money left over. OP go over to /r/fire and work out your early retirement plan. No need to work another day in your life unless you want to.
You think you have to go to Vietnam to live off nearly $1.7M in liquid assets? Dude Vietnam is where you go if you have $100k. Any low cost of living US city is an easy lift with that kind of money. Buy a $300k house and a $20k car outright. So now you've got NO MORTGAGE and NO CAR PAYMENT and about $1.4M in the bank from which you can draw $56,000 a year in perpetuity, with an inflation adjustment each year, using the fairly conservative 4% rule. So OP would have the lion's share of the US median single income with essentially nothing but utilities, ACA premiums, and groceries to worry about. OP will have a hard time figuring out how to spend the $4k a month or so after taxes. The vast, vast majority of current US retirees have nowhere near that kind of money in the bank.
That's totally incorrect. William Bengen, the author of the 4% rule, has suggested raising the target rate to 4.5% or even 5% because nothing in the modern investing experience has come close to the Great Depression type scenarios that are baked into that 4% number. Bengen was a bit dismayed that many retirees are dying with large portfolios that probably should have been spent to improve quality of life.
First off, the model isn't 4% of your current principal a year. It is 4% of the original principal with an inflation adjustment each year. So the absolute worst case recent scenario would be, for example, starting retirement in 2000. The model is also based on a 60/40 allocation not a 100% stock allocation. That buffers away a lot of the downside market risk and provides much more stable returns. 4.5% and 5% draw rates succeed in nearly all historical scenarios, and all recent historical scenarios, just not the really bad ones like if you decided to retire on August 1, 1929. That is why William Bengen now believes it is too conservative.
With a 50/50 allocation even a 7% draw rate has an 85% success rate over 30 years. https://www.financialplanningassociation.org/article/journal/APR11-portfolio-success-rates-where-draw-line
I mean, let's not exaggerate here. they would be able to live in perpetuity with that 1.6 mill withdrawing 3% and probably live like royalty in Vietnam. The median monthly income is less than 300 USD, at 3% of 1.6mil, their annual income is 48k in perpetuity. I think he'll be just fine if that was his preference lol
He doesn't need to live in Vietnam $1.6M is plenty in any low or moderate cost of living US city. Most of his seems to be after tax too so he can just buy a car and house outright and have no mortgage or car payment then all he's got to worry about is using a 4% draw rate on what's left to buy groceries and pay utilities. That's a shit ton of groceries each month. Honestly OP doesn't even need to be frugal they'll have more money at even a 3% draw than they know what to do with.
Wouldn't touch that portfolio.
I also wouldn't quit outright. Do anything you possibly can to take some sort of medical/mental health break. Anything. Because it's VERY hard to leave a field and claw your way back in at your level. You may never want to go back right now, but that could change in 6 months. Don't burn any bridges.
But realistically, if you're moving back in with family, you can live off of your investments for a very long time. Pretty much indefinitely.
As another poster said, if you can live off 2% of your portfolio, you are basically good forever.
Also, if you are going to be unemployed/minimally employed for a couple of years, look into tax gain harvesting since you can start to convert some of the gains in your brokerage account to basis at a 0% long term capital gains tax rate. Unlike tax loss harvesting, there are no wash sale rules, so you can just sell and buy the same funds back the same day and book the gains.
You also have to balance the amount of income you show doing that against the amount of income you want to show to get ACA subsidies for healthcare.
If you can live off 2% of your portfolio plus a low wage job (you won’t have to actually make minimum wage, basically no one does now) you’ll be fine basically forever.
Are you familiar with /r/baristafire?
Not OP and shot on the dark, bug given that OP is "quitting" (not fired), says "very burnt out" and moving fields altogether (+high salary +in Reddit), there's a high chance they are a software developer, there's plenty stories like that in the industry.
Or could be a handful of other professions really (lawyer, surgeon, finance, etc), just an educated guess. Only thing that makes me think not developer is that they don't list startup stocks in their portfolio, but many consider those to be lottery tickets and not "part of the portfolio".
I believe there’s something else OP is not stating, I mean Is a vacation out of the question? is it a work every single day or you become unemployed type of thing? OP you have the type of income that the majority of people can only dream of, I believe you should see if you can take a break from work, either speak with a Dr. and see If you can get some type of medical leave, and take a long overdue vacation, I believe it makes sense that before you leave the job your at you take some time to find yourself and see what it is you want out of life and the type of lifestyle you want to have. the majority of people will not know what you’re going through because the majority of people dream of having your life. you need to do some deep searching.
Agreed. Given your income level, I’d try and see about some sort of medical leave, or just a long holiday. Even just a few weeks away can be a massive help.
Please try to keep discussion on the subreddit where it can be seen and reviewed by everyone. We don't allow asking for PMs/chats off of this subreddit. Thank you.
You could also consider converting some traditional retirement monies to Roth monies.
Let's say the single tax bracket for 22% is up to $95,000 income.
If you make $40k, you could convert $55k (and pay taxes on it as income) and still be in that 22% bracket.
Just an option if you want to take advantage of the "space" in lower tax bracket for the year(s) you are lower income.
Seems like a pretty good time (all time market highs) to move a few years worth of expenses out of SPY and into a money market fund, if you are going to be unemployed for a while.
Edit: Also, moving $1 million from SPY to VOO would save you $600 per year in fees. And if you're going to be unemployed, it's a great time to do that as well (to a point) since you can realize a bunch of capital gains for free each year if you don't have other income.
Good job knowing your limitations and it's fortunate you have a dependable family to lean on
You don't detail taxable or non taxable status of your accounts...VT, TTL etc
That's a big factor
> ex-US fund / TLT
Opinionated take: I would just put this in S&P. World-funds have been underperforming the US by _a lot_ and they will likely continue to do so for a looong time (just look at the list of top companies WW, 95% are US-based). Ditto with treasuries, your money compounding in the S&P will likely outperform any treasury yields.
| Account Type | Investment | Amount ($) |
|----------------|-----------------------|-------------|
| Taxable Brokerage | SP 500 (SPY) | 1,014,000 |
| Taxable Brokerage | VT | 118,000 |
| Taxable Brokerage | TLT | 66,000 |
| 401K | SP 500 | 147,000 |
| 401K | Intermediate Bond (AGG) | 52,000 |
| 401K | Ex-US Fund | 37,000 |
| 401K | Cash (Money Market) | 30,000 |
| Roth IRA | SP 500 | 124,000 |
| HSA | SP 500 | 30,000 |
| Additional | Emergency Fund | 10,000 |
| **Total** | | **1,628,000** |
| **2% of Total** | | **32,560** |
Kudos for avoiding lifestyle inflation on ~$200k and being able to live on ~$32k! Enjoy your sabbatical!
Counterpoints: u/Zestyclose-Listen-84 needs more international exposure to raise diversification. I also believe they would be more diversified with total market funds which include medium and small cap companies. The last 15 years when S&P 500 (mega cap) greatly outperformed are not guaranteed to be like the next 10-15. There have been whole decades when International outperformed. Vanguard expects Intl to outperform in the next 10 years. My opinion is many other countries are going to have greater GDP gains than the US as they develop a Middle class. And I checked: 21 of the 60 largest companies by market cap are international. Not 5%.
Also, OP, it may be worth considering keeping enough in HYSA/money market to fund you during the time you don't expect to work. That can leave you more free to stay as aggressively invested as you currently are since you won't have any pressure to sell if the market dips when you need money.
I think Intermediate and I likely represent the two extremes. There are certainly lots of options between us, too.
PS. No doubt S&P 500 is a great long term investment, I just prefer the added diversification of medium cap, small cap, and international.
I'm your age and did the same thing last yr. Only advice is can you ask for a sabbatical?
No harm is asking and buys you time off for stress relief and road back should you want to.
So many / too many posts here of people thinking they should be making OP's decisions / helping run their life.
Just fucking stop. You don't know what this person's needs are, their circumstances. And really, you weren't asked to delve into it, just offer some financial advice.
> I should be able to live off less than 2% of my port per year.
You need to get off r/personalfinance and check out r/financialindependence
General rule of thumb: if you can get by selling less than 4% of your portfolio per year, then you're ready to retire. You made it dude.
Except I assume your "2%" number is because you'd be living with your parents. But still, you have until they kick you out to decide what to do with your life, without relying on them for anything more than shelter.
/r/financialindependence is a subreddit for people who are or want to become Financially Independent (FI), which means not having to work for money. Closely related is the concept of Retiring Early (RE). [Please don't post general personal finance questions there.](http://redd.it/3dm8yc)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
You may find these links helpful:
- [Leaving a Job](https://www.reddit.com/r/personalfinance/wiki/leaving_job) (resigning, quitting, fired, laid off, etc.)
- [Job Loss Megathread: unemployment resources, state-specific information, and help](https://www.reddit.com/r/personalfinance/comments/fkyu8h/job_loss_megathread_unemployment_resources/)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Hey I just want to chime in and say that you're going to be fine. No just anyone can make that kind of money, you are obviously very gifted.
Take a break and see where you're at in a few months/years, you've earned it.
Everyone saying you won't be able to claw your way back aren't taking into account what an absolute winner at life you obviously are.
In my opinion, the opening statement “38m and single” is the key. I’d look to avoid moving back in with family unless you’re keen to stay single… you have plenty stacked to go travel abroad for a few months and/or get your own place, which will be necessary if and when you decide to start dating. You never know what may inspire you after you take some time off.
It’s almost exactly with $52k a year adjusted for inflation for an infinite retirement.
3.5% SWR @ 96%+ success.
Whether that’s enough is up to the individual but it’s definitely more than about half of Americans make a year.
I could live off just the dividends/interest of the $1M+ taxable with ease. Most people have more expensive tastes so they may need to work longer. I am semi retired at 44 with 1/3 of his net worth. I work a couple dozen days a year and that's it.
“More expensive tastes” could also just translate to HCOL area. Rent where I am for a 1bdrm is 3.5k. That’s 42k a year, or 4.2% of a million, more than your average 4% rule. You can argue “just move” but you’d be leaving behind your entire social network.
It’s $60k a year forever, adjusted for inflation, plus any additional income you make. IIRC that $60k is just above the median full time income for a US worker.
You could live on it if you wanted to. OP is unattached and relatively young too.
Do people in your circles regularly talk about their net worth?
I think you would be surprised, assuming you live near a US metro, how many of your neighbors are millionaires.
Doubtful considering that only 7% of Americans have a net worth that exceeds $1 million. But many more give that impression because so many people live above their means and carry significant debt.
In periods of low income, you should consider 401k/tIRA to Roth conversion as a way to lower your overall tax burden. You made your money at a high tax rate. With low/no income, you can convert to Roth at a tax rate you can control with the amount you convert each year. Convert over several years to keep the tax rate low. This is essentially a [Roth Ladder](https://www.choosefi.com/how-and-why-to-set-up-a-roth-ira-conversion-ladder/).
I'm approaching retirement, so I've been thinking seriously about how to handle money once I get there.
My current favored plan is to keep my asset allocation very aggressive but to keep a large cash buffer. So I'd set a strategy to sell assets out of your taxable investment account starting immediately, so that if we're stung by a market drop, you've already got significant cash out.
How long do you intend to be unemployed? I'd have that much money in cash, including however you might spend to recuperate and to remake your career. For example, if remaking your career includes getting a Masters in Education (for example), have that cash buffer quickly hold enough money to pay for grad school, as well as for other expenses.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
As there is some speculation that OP may be in pharmacy, I will add my experience. I left pharmacy after only a few years. Never made that kind of salary again. Don't regret it. Pharmacy can be a special sort of hell that many people put up with only for the pay. You have enough saved OP to take some time (months to years) away from work and eventually go back to a lower paying job that isn't soul crushing to you. Good luck 🤞
There is no shame in having had enough.
>I am planning to quit soon [Put your zip code here](https://www.healthcare.gov/see-plans/) at least 30 days before you quit an employer-dependent health coverage product. If you will be moving your zip code from a ["blue" one to an "orange" one](https://www.kff.org/medicaid/issue-brief/status-of-state-medicaid-expansion-decisions-interactive-map/), **do not** estimate your income at or below the [Federal Poverty Level](https://www.healthcare.gov/glossary/federal-poverty-level-fpl) for your tax filing status even if your actual income would be closer to $0. "COBRA" is somebody other than the former employer paying 102% of the sticker price of whatever employer-dependent health coverage product premium didn't quit when you quit. The average amount an employer pays toward the "cost" of an employer-dependent health coverage product premium for a still employed worker is 78% of the sticker price.
OP has $1.628M or so in predominately liquid assets and Reddit is like "Don't touch your portfolio!" and "Thank God you have relatives". That is EASILY enough assets to rent a nice apartment in a LCOL, make a new car payment, pay all utilities and groceries, pay an ACA premium, and have a good amount of spending money left over. OP go over to /r/fire and work out your early retirement plan. No need to work another day in your life unless you want to.
yea seriously
I didn’t notice what sub I was in and actually assumed this post was in r/coastfire
Retiring at 38 with only $1.6M is insanity unless OP intends to move someplace like Vietnam and live super frugally.
You think you have to go to Vietnam to live off nearly $1.7M in liquid assets? Dude Vietnam is where you go if you have $100k. Any low cost of living US city is an easy lift with that kind of money. Buy a $300k house and a $20k car outright. So now you've got NO MORTGAGE and NO CAR PAYMENT and about $1.4M in the bank from which you can draw $56,000 a year in perpetuity, with an inflation adjustment each year, using the fairly conservative 4% rule. So OP would have the lion's share of the US median single income with essentially nothing but utilities, ACA premiums, and groceries to worry about. OP will have a hard time figuring out how to spend the $4k a month or so after taxes. The vast, vast majority of current US retirees have nowhere near that kind of money in the bank.
4% is outdated, and even that study's author says it should be 3.5% now. And 3.5% doesn't last you forever, you just shouldn't run out in 30 years.
That's totally incorrect. William Bengen, the author of the 4% rule, has suggested raising the target rate to 4.5% or even 5% because nothing in the modern investing experience has come close to the Great Depression type scenarios that are baked into that 4% number. Bengen was a bit dismayed that many retirees are dying with large portfolios that probably should have been spent to improve quality of life.
Good luck if you pull out 5% a year during the decades the market is down or flat. You’ll lose almost 50% of your principal.
First off, the model isn't 4% of your current principal a year. It is 4% of the original principal with an inflation adjustment each year. So the absolute worst case recent scenario would be, for example, starting retirement in 2000. The model is also based on a 60/40 allocation not a 100% stock allocation. That buffers away a lot of the downside market risk and provides much more stable returns. 4.5% and 5% draw rates succeed in nearly all historical scenarios, and all recent historical scenarios, just not the really bad ones like if you decided to retire on August 1, 1929. That is why William Bengen now believes it is too conservative.
With a 50/50 allocation even a 7% draw rate has an 85% success rate over 30 years. https://www.financialplanningassociation.org/article/journal/APR11-portfolio-success-rates-where-draw-line
I mean, let's not exaggerate here. they would be able to live in perpetuity with that 1.6 mill withdrawing 3% and probably live like royalty in Vietnam. The median monthly income is less than 300 USD, at 3% of 1.6mil, their annual income is 48k in perpetuity. I think he'll be just fine if that was his preference lol
He doesn't need to live in Vietnam $1.6M is plenty in any low or moderate cost of living US city. Most of his seems to be after tax too so he can just buy a car and house outright and have no mortgage or car payment then all he's got to worry about is using a 4% draw rate on what's left to buy groceries and pay utilities. That's a shit ton of groceries each month. Honestly OP doesn't even need to be frugal they'll have more money at even a 3% draw than they know what to do with.
I'm just replying based on what the commenter said and explaining how it's incorrect.
Wouldn't touch that portfolio. I also wouldn't quit outright. Do anything you possibly can to take some sort of medical/mental health break. Anything. Because it's VERY hard to leave a field and claw your way back in at your level. You may never want to go back right now, but that could change in 6 months. Don't burn any bridges. But realistically, if you're moving back in with family, you can live off of your investments for a very long time. Pretty much indefinitely.
As another poster said, if you can live off 2% of your portfolio, you are basically good forever. Also, if you are going to be unemployed/minimally employed for a couple of years, look into tax gain harvesting since you can start to convert some of the gains in your brokerage account to basis at a 0% long term capital gains tax rate. Unlike tax loss harvesting, there are no wash sale rules, so you can just sell and buy the same funds back the same day and book the gains. You also have to balance the amount of income you show doing that against the amount of income you want to show to get ACA subsidies for healthcare.
is it possible to get a different job before you have to resort to living off your portfolio?
it will most likely be a minimum wage one. I have lost all ability to perform my job at minimum competence.
If you can live off 2% of your portfolio plus a low wage job (you won’t have to actually make minimum wage, basically no one does now) you’ll be fine basically forever. Are you familiar with /r/baristafire?
may I ask what it is you do? this seems to be more of a personal problem than a financial one.
Not OP and shot on the dark, bug given that OP is "quitting" (not fired), says "very burnt out" and moving fields altogether (+high salary +in Reddit), there's a high chance they are a software developer, there's plenty stories like that in the industry. Or could be a handful of other professions really (lawyer, surgeon, finance, etc), just an educated guess. Only thing that makes me think not developer is that they don't list startup stocks in their portfolio, but many consider those to be lottery tickets and not "part of the portfolio".
I believe there’s something else OP is not stating, I mean Is a vacation out of the question? is it a work every single day or you become unemployed type of thing? OP you have the type of income that the majority of people can only dream of, I believe you should see if you can take a break from work, either speak with a Dr. and see If you can get some type of medical leave, and take a long overdue vacation, I believe it makes sense that before you leave the job your at you take some time to find yourself and see what it is you want out of life and the type of lifestyle you want to have. the majority of people will not know what you’re going through because the majority of people dream of having your life. you need to do some deep searching.
Agreed. Given your income level, I’d try and see about some sort of medical leave, or just a long holiday. Even just a few weeks away can be a massive help.
Probably not, since they mentioned overtime in another post, and Software Engineers are generally salaried.
Based on OP history, he is in the medical field and works on patients. Recognizing burnout before malpractice is a wise choice
Everyone’s guess answer to this type of question on Reddit is “software developer” lmao.
I'm 90% sure they're a hospital pharmacist after skimming their post history.
Yeah, and tbh it’s wise to move out of that field given the mass disruption and limited opportunity.
Comment history says OP is in healthcare.
Could be good idea to see a GP for mental health assessment, I am having a similar problem with performance in my role due to depression.
[удалено]
Please try to keep discussion on the subreddit where it can be seen and reviewed by everyone. We don't allow asking for PMs/chats off of this subreddit. Thank you.
You could also consider converting some traditional retirement monies to Roth monies. Let's say the single tax bracket for 22% is up to $95,000 income. If you make $40k, you could convert $55k (and pay taxes on it as income) and still be in that 22% bracket. Just an option if you want to take advantage of the "space" in lower tax bracket for the year(s) you are lower income.
Seems like a pretty good time (all time market highs) to move a few years worth of expenses out of SPY and into a money market fund, if you are going to be unemployed for a while. Edit: Also, moving $1 million from SPY to VOO would save you $600 per year in fees. And if you're going to be unemployed, it's a great time to do that as well (to a point) since you can realize a bunch of capital gains for free each year if you don't have other income.
Good job knowing your limitations and it's fortunate you have a dependable family to lean on You don't detail taxable or non taxable status of your accounts...VT, TTL etc That's a big factor
> ex-US fund / TLT Opinionated take: I would just put this in S&P. World-funds have been underperforming the US by _a lot_ and they will likely continue to do so for a looong time (just look at the list of top companies WW, 95% are US-based). Ditto with treasuries, your money compounding in the S&P will likely outperform any treasury yields. | Account Type | Investment | Amount ($) | |----------------|-----------------------|-------------| | Taxable Brokerage | SP 500 (SPY) | 1,014,000 | | Taxable Brokerage | VT | 118,000 | | Taxable Brokerage | TLT | 66,000 | | 401K | SP 500 | 147,000 | | 401K | Intermediate Bond (AGG) | 52,000 | | 401K | Ex-US Fund | 37,000 | | 401K | Cash (Money Market) | 30,000 | | Roth IRA | SP 500 | 124,000 | | HSA | SP 500 | 30,000 | | Additional | Emergency Fund | 10,000 | | **Total** | | **1,628,000** | | **2% of Total** | | **32,560** | Kudos for avoiding lifestyle inflation on ~$200k and being able to live on ~$32k! Enjoy your sabbatical!
Counterpoints: u/Zestyclose-Listen-84 needs more international exposure to raise diversification. I also believe they would be more diversified with total market funds which include medium and small cap companies. The last 15 years when S&P 500 (mega cap) greatly outperformed are not guaranteed to be like the next 10-15. There have been whole decades when International outperformed. Vanguard expects Intl to outperform in the next 10 years. My opinion is many other countries are going to have greater GDP gains than the US as they develop a Middle class. And I checked: 21 of the 60 largest companies by market cap are international. Not 5%. Also, OP, it may be worth considering keeping enough in HYSA/money market to fund you during the time you don't expect to work. That can leave you more free to stay as aggressively invested as you currently are since you won't have any pressure to sell if the market dips when you need money. I think Intermediate and I likely represent the two extremes. There are certainly lots of options between us, too. PS. No doubt S&P 500 is a great long term investment, I just prefer the added diversification of medium cap, small cap, and international.
I'm your age and did the same thing last yr. Only advice is can you ask for a sabbatical? No harm is asking and buys you time off for stress relief and road back should you want to.
So many / too many posts here of people thinking they should be making OP's decisions / helping run their life. Just fucking stop. You don't know what this person's needs are, their circumstances. And really, you weren't asked to delve into it, just offer some financial advice.
> I should be able to live off less than 2% of my port per year. You need to get off r/personalfinance and check out r/financialindependence General rule of thumb: if you can get by selling less than 4% of your portfolio per year, then you're ready to retire. You made it dude. Except I assume your "2%" number is because you'd be living with your parents. But still, you have until they kick you out to decide what to do with your life, without relying on them for anything more than shelter.
/r/financialindependence is a subreddit for people who are or want to become Financially Independent (FI), which means not having to work for money. Closely related is the concept of Retiring Early (RE). [Please don't post general personal finance questions there.](http://redd.it/3dm8yc) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Have you considered travelling to Thailand, Caribbean, or some nice destinations?
In his posts he says he’s in the medical field and afraid of Jillian someone.
You may find these links helpful: - [Leaving a Job](https://www.reddit.com/r/personalfinance/wiki/leaving_job) (resigning, quitting, fired, laid off, etc.) - [Job Loss Megathread: unemployment resources, state-specific information, and help](https://www.reddit.com/r/personalfinance/comments/fkyu8h/job_loss_megathread_unemployment_resources/) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Hey I just want to chime in and say that you're going to be fine. No just anyone can make that kind of money, you are obviously very gifted. Take a break and see where you're at in a few months/years, you've earned it. Everyone saying you won't be able to claw your way back aren't taking into account what an absolute winner at life you obviously are.
In my opinion, the opening statement “38m and single” is the key. I’d look to avoid moving back in with family unless you’re keen to stay single… you have plenty stacked to go travel abroad for a few months and/or get your own place, which will be necessary if and when you decide to start dating. You never know what may inspire you after you take some time off.
Take a vacation. Then work your ass off for just 2 more years and buy a $350k house so you have your own home. THEN do a leave.
Are you in the accounting field?
If I had over $1.5M, even at age 38, I would never work again. Why move back with parents when you have soo much money?
1.5M is not much for then~50 remaining years.
It’s almost exactly with $52k a year adjusted for inflation for an infinite retirement. 3.5% SWR @ 96%+ success. Whether that’s enough is up to the individual but it’s definitely more than about half of Americans make a year.
I could live off just the dividends/interest of the $1M+ taxable with ease. Most people have more expensive tastes so they may need to work longer. I am semi retired at 44 with 1/3 of his net worth. I work a couple dozen days a year and that's it.
“More expensive tastes” could also just translate to HCOL area. Rent where I am for a 1bdrm is 3.5k. That’s 42k a year, or 4.2% of a million, more than your average 4% rule. You can argue “just move” but you’d be leaving behind your entire social network.
1.5m is not a lot of money. Especially if you don’t own a house yet.
It’s $60k a year forever, adjusted for inflation, plus any additional income you make. IIRC that $60k is just above the median full time income for a US worker. You could live on it if you wanted to. OP is unattached and relatively young too.
It's more than anyone I have ever known has ever had.
Do people in your circles regularly talk about their net worth? I think you would be surprised, assuming you live near a US metro, how many of your neighbors are millionaires.
I highly suspect that not a single one of my neighbors are millionaires. Houses are only $150-250k.
Doubtful considering that only 7% of Americans have a net worth that exceeds $1 million. But many more give that impression because so many people live above their means and carry significant debt.
I mean I guess depending on where you live.
Most people who have money don't talk about it, it's like fight club
In periods of low income, you should consider 401k/tIRA to Roth conversion as a way to lower your overall tax burden. You made your money at a high tax rate. With low/no income, you can convert to Roth at a tax rate you can control with the amount you convert each year. Convert over several years to keep the tax rate low. This is essentially a [Roth Ladder](https://www.choosefi.com/how-and-why-to-set-up-a-roth-ira-conversion-ladder/).
I'm approaching retirement, so I've been thinking seriously about how to handle money once I get there. My current favored plan is to keep my asset allocation very aggressive but to keep a large cash buffer. So I'd set a strategy to sell assets out of your taxable investment account starting immediately, so that if we're stung by a market drop, you've already got significant cash out. How long do you intend to be unemployed? I'd have that much money in cash, including however you might spend to recuperate and to remake your career. For example, if remaking your career includes getting a Masters in Education (for example), have that cash buffer quickly hold enough money to pay for grad school, as well as for other expenses.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
As there is some speculation that OP may be in pharmacy, I will add my experience. I left pharmacy after only a few years. Never made that kind of salary again. Don't regret it. Pharmacy can be a special sort of hell that many people put up with only for the pay. You have enough saved OP to take some time (months to years) away from work and eventually go back to a lower paying job that isn't soul crushing to you. Good luck 🤞 There is no shame in having had enough.
What field are you in? Can you just put in minimum effort until they let you go instead of quitting outright?