Personal Finance

I have a net worth of $15m and am looking to quit my job - should I do it gradually or all at once?

David Beren

Published: November 11, 2024 10:30 am

24/7 Insights

• This Redditor has a high-paying job that is burning him out. 
• There is a definite concern about missing his children growing up. 
• The family’s annual spending needs to be under control. 
• Also: Are You On Track to Retire? Take This Quiz and Find Out ^(Sponsored) 

For those fortunate enough to make plenty of money well before retirement, you must make smart decisions about how long to work. This is exactly the case a Redditor posting in r/fatFIRE is going through right now. 

With a net worth just north of $15 million, he is considering how to start winding down his demanding job and find enough time in the day to actually enjoy life. Unfortunately, this is a scenario both those with millions in the bank and those scrambling for their rent payment go through regularly. 

What I love about this post is that it doesn’t matter if you’re rich or struggling. We all have to figure out the right balance in our lives. 

The Scenario 

Our Redditor is in his late 30s, and we assume the same for his spouse. There are two elementary school kids whom the Redditor outright admits he doesn’t get to spend enough time with. It’s currently “gnawing” at him that he never truly feels present at home, which is the driving force behind his post. 

As far as money goes, we know he has a net worth of $15 million, and they live in an area with a very high cost of living. His current salary, which includes a demanding job managing a global team, is approximately $800,000 annually. His spouse, who does not intend to stop working, earns around $250,000 annually. 

The Redditor is straightforward about not wanting another W2 job after this one. However, there is an immediate concern that the family’s annual spend of $500,000 is pretty large on just one salary. This includes $100,000 for private school, $80,000 in child care, $20,000 for kid’s activities, and another $150,000 on rent. 

The Recommendation 

The easy recommendation here, and I say this not as a financial manager but just from someone who can do easy math, is that he can retire anytime he wants. At a 3-4% interest rate, the family would make plenty of money along with the wife’s salary to keep up their lifestyle. 

If he were to retire or slow down, some childcare costs could be partially cut, saving them money as he would be around more to help care for the children. 

All of this said, is the real question more about the job than about retiring completely? We don’t know the Redditor’s exact job, but if he doesn’t want to go the W2 route, could he go the consulting or freelance route? 

At his salary level, there is a good chance he’s made some contacts in his field that might help him with referrals toward the consultancy path. Such a decision could enable income while freeing up more time to do what he feels he’s missing. 

The last idea might be to consider a sabbatical. Step away from your work for six months or a year, and then see how you feel. Of course, sabbatical or not, we also can’t ignore that spending roughly $12,500 on monthly rent is crazy. Just buy a house already and cut your payment down. 

The Takeaway

I can easily say that I know everyone gets burnt out, myself included. While it’s not a competition with those who don’t have children, those who do tend to find themselves in a position where they are lighting the candle at both ends and struggling to hold it all together. 

However, this individual isn’t holding it together at all. He knows his young children are growing up, and he’s missing it. For this reason alone, he needs to change his life. Otherwise, his kids will grow up wondering why Dad was never available to throw a baseball or play in the backyard. 

Leaving a high-paying job will never be easy, but the benefits of doing so may easily outweigh any pros of staying. You just have to decide to take the leap and see where the road takes you next.