24/7 Insights

• This Redditor hopes to retire soon and move to Asia. 
• He’s hoping he is financially able to live a luxurious nomadic lifestyle. 
• There are no children or partners to account for at this time.
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

You never quite know what you will get with posts in Reddit’s r/ChubbyFIRE subreddit, which makes those like this one so great. In this case, we have a 33-year-old single male who has no plans for children, has moved to Asia, and is debating whether he can quit his job in a year or two. 

What’s interesting about this post is that I don’t think this person is unusual in their desire to move out of the US. There are too many stories popping up lately of those who make a great living or have strong savings moving out of the US in search of a cheaper cost of living with a better quality of life. 

This post caught my attention because it’s unique in that this person openly declares their intention to leave the United States for a luxurious nomad lifestyle. 

The Scenario 

From what the Redditor has told us, he’s 33 and has no plans for kids, which means no partner or spouse. We also know that he’s planning on moving to Asia after he hits his FIRE number, where he can live a “luxurious nomad lifestyle.” 

He earns approximately $300,000 after taxes, which he earns by working remotely and can therefore work anywhere in the world. His net worth is roughly $2.7 million, comprised of $800,000 in stock, a $240,000 retirement account, $140,000 in crypto, and $640,000 in cash. He does have $1.7 million in real estate investments, although this isn’t liquid, so we’re not counting it toward his immediate retirement goals. 

With an estimated monthly burn rate of around $10,000, he believes he can live his luxurious nomadic lifestyle somewhere in Asia. So, the big question is whether or not he can quit his job now or if he needs to keep grinding for a few more years. 

The Recommendation 

In the FIRE subreddits, it is common to trust that the 3% rule applies in most situations. In this regard, you should be able to draw on the 3% interest your net worth is earning to live on. I’m not a financial advisor, and I always recommend contacting someone who is, but it’s pretty clear here that this Redditor is nowhere near where he needs to be. 

Assuming the 3% rule, he must have more than $4 million in invested assets or cash, double his current position. He also has too much cash lying around, and he should invest a good portion of his $640,000 liquidity in something like an ETF or a brokerage account. 

Assuming he needs $120,000 to live after taxes, he needs closer to 4% interest earnings or $150,000 pre-tax. This means he’d need to be closer to $5 million in net worth, not accounting for his real estate investments, from which he can’t draw any cash. 

In other words, any way you look at this right now, this individual is nowhere near being able to retire. Two years isn’t a reality either; we’re looking at far longer than that to hit his magic number. 

The Takeaway

Ultimately, this unique scenario tells us that as much as we all want to retire early, even those who hope to do so by finding a lower cost of living still have to live in the real world. In this case, the real world tells us that Redditor is not yet ready to retire and will likely not be for a few more years. 

The biggest takeaway is that he needs to do something with his cash hoard, as it’s not earning anything while sitting in an account. Even if he puts it in a HYSA, it would be earning something instead of sitting around for a rainy day and may help get him one step closer to financial freedom. 

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