Personal Finance

I'm only 34 and just inherited $5 million from my parents - if I retire now, what do I tell people?

Kristin Hitchcock

Published: November 19, 2024 2:22 pm

24/7 Wall St. Key Takeaways:

• The question of “What do you do?” is often more about identity than work itself. When you retire early, that question can get a bit complicated. 
• Luckily, that question doesn’t have to be answered by a job title. Many people do continue to do things in retirement, and those things can work as answers to this question. 
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

A Reddit user recently shared a question that I think many early retirees worry about: What do I tell people I do? After inheriting a substantial amount of wealth, this 34-year-old now has a net worth of $5 million, well past the number they originally aimed for to reach financial independence.

It’s pretty clear that they now have plenty of income to retire on. However, they’re now trying to figure out what that looks like (and what they tell people).

Here’s a look at the options I’d recommend and strategies to help transition from “working” to “retired,” especially at an early age. Remember, this is just my opinion and not financial advice. 

The Identity Shift: From “Worker” to “Retired Early”

In our society, work is often deeply tied to identity. When someone reaches financial independence, the usual answer of “what you do” no longer has to be about a job. After all, when you retire, you still do stuff; you just don’t work. But, still, many people have a hard time answering without a job title!

For many, financial independence brings the freedom to explore new identities beyond work—but it can be tricky to find the right balance between being open about one’s financial situation and maintaining privacy.

After all, I’m sure the poster doesn’t want to go into a long backstory about losing his mother every time someone asks him, “What do you do?”

Possible Responses When People Ask “What Do You Do?”

If you’re grappling with this question, here are some potential responses I recommend:

• I’m in a career transition: This is a versatile response that lets the other person know you aren’t doing anything in particular. It also likely won’t prompt any further questions unless someone pivots to asking what you used to do. 
• I work in personal finance/investing: Since the Redditor’s net worth is diversified in index funds, this response isn’t far from the truth. They could share their interest in financial literacy or investing. Of course, this only works if the Redditor is directly managing their investments. 
• I focus on projects I’m passionate about: The Redditor will likely be doing something during retirement, and this question lets them talk about things like volunteer work, personal development, and creative pursuits. 
• I’m retired, but I keep busy: Honesty can sometimes be the best policy, especially if you’re comfortable with your financial independence status. Saying you’re retired but active can keep the conversation casual.

Managing People’s Reactions

Once you have a response that feels comfortable, it’s important to prepare for potential reactions. Financial independence—especially from inheritance or early in life—can lead to varied responses. Here are some tips for managing that conversation:

• Guage the person’s interest level: Sometimes, people won’t care much about early retirement and move on, while others may have an interest. 
• Stay true to your comfort level: It’s okay to keep things vague if that feels right for you. The Redditor does not have to go into detail. 
• Direct the conversation towards other interests: Mention hobbies or activities that you pursue instead of the financial aspects of retirement. Often, you may find that others share these interests.