Personal FinanceCanva: Изображения пользователя Yauhen Akulich and gerenme from Getty Images SignatureChristy Bieber
A Reddit user with a $6 million nest egg is wondering if he should retire.
With a substantial amount of income available from rental real estate and other investments, there’s a case to be made for quitting.
At the same time, stopping working a such a young age can create unforeseen financial complications — and getting back to work can be difficult or impossible.
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A Reddit user with a generous net worth recently posted a question looking for advice about a big life choice.The poster explained he’s worth around $6 million, not including equity in his primary home. His wealth is mostly in the form of rental real estate and investment accounts. He lives in a high-cost-of-living area, is the sole breadwinner for his family, and earns around $400,000 per year, not including private restricted stock units. He’s tired of the politics at work and, despite having two young kids at home, is considering leaving work in his 40s to retire early. His frustration with his job and his large account balances naturally have him wondering whether he should just stop working now — especially since his annual spending needs are around $170,000 and he earns $100K in annual income from his real estate investments alone. So, should he quit, or should he keep working?The case for quittingThere is absolutely a case to be made that the Redditor has worked hard, built a stable nest egg, and deserves to be able to walk away from work if it’s no longer making him happy. Assuming his real estate continues to produce the $100K he said it provides, and assuming he sticks with his $170K in spending, his investments would only need to produce $70,000 a year in added income.Since he said he has $2.5 million in investment accounts, those accounts alone could offer more than he needs. Assuming he withdrew 3.7% from his investment accounts, he’d have $92,500 in income without having to touch his 401(k) funds. When you have enough money to live on comfortably for life and you no longer enjoy your job, having the ability to walk away can be priceless. It’s the payoff for your earlier investing efforts, which you likely embarked upon to provide you with the very freedom you’re looking to take advantage of. The Redditor put himself in a position where he could be financially free, so continuing to work at an unsatisfactory job seems pointless. The case for sticking it outbaranq / Shutterstock.c