I’m a 59 year old workaholic who made $250k a year and constantly worried about financial safety and I just quit my job

24/7 Wall St. Key Points:

• Financial worries don’t always stem from insufficient resources; they often come from uncertainty and lack of clarity. 
• Getting your goals and crunching the numbers can help you gain more confidence in your financial plans. 
• Also: Take this quiz to see if you’re on track to retire ^(Sponsored)

Recently, a Reddit user shared their worry about their financial security. At 59, they quit a stressful $250,000 job and are transitioning to consulting work at $120,000 annually. With a $10–12k monthly retirement budget, a young child, and two others with significant college expenses, they’re worried about financial safety.

That said, they have a very strong financial foundation:

• Net Assets: $2.1M in retirement accounts, $2.5M in brokerage accounts, $950k in a 529 plan, and a $1.3M house.
• Income: Future Social Security ($3,000/month at 62), a pension annuity ($5,000/month), and potential investment returns ($8,000/month at 4%).

I believe this is a very common problem. Even those with plenty of money saved up still worry about their finances! 

Here are some of my recommendations for easing concerns and helping your finances through these changes. 

1. Understand Financial Anxiety

Financial anxiety is extremely common, even among high-net-worth individuals. Having millions of dollars does not protect you from financial anxiety. Plus, things are getting more expensive. Inflation is real, and the cost of raising children and education will likely continue to rise in the future. 

Even if you have plenty of money saved up, these considerations can cause anxiety. 

2. Project Realistic Cash Flows

Calculating your expected income can help calm your financial anxiety. The Redditor has a protected income of around $16,000 a month based on his investments, pension, and Social Security. 

This is far above his $10-12k goal. However, he should still factor in irregular expenses like college costs, healthcare, and home maintenance to ensure the $4,000 monthly surplus remains intact. Some of these expenses are likely to rise, too, like healthcare costs. 

3. Plan for College Expenses Strategically

The Redditor currently has $950k in a 529 plan, which sounds like enough! Even with inflated education expenses, this will likely be plenty! 

There are other ways to protect these savings, though. Scholarships can help pay for a good bulk of it, for instance, depending on the school the child goes to. 

4. Account for Inflation and Longevity

It’s important to account for inflation, which will make expenses rise over time. A 4% withdrawal rate is recommended by most, but it is still on the higher end. It’s important to have some flexibility built into your plan in the case of unexpected expenses. 

A qualified financial advisor can stress-test your portfolio to ensure it stays strong against inflation and unexpected expenses.

5. Leverage Professional Advice

Even with strong numbers, uncertainty often stems from the complexity of juggling multiple accounts, investments, and future income streams. A financial advisor can look at all your numbers and build a detailed plan to ease your mind. They may also see holes in your plan, which may prevent complications later on.