Personal Finance

I’m 35 and recently inherited enough money to quit my job and retire early - is retiring this early like giving up?

Joey Frenette

Published: December 5, 2024 10:33 am

Becoming an early retiree at 35 is a dream for many. And while it’s challenging to retire in your mid-30s, it is possible for a select few who’ve saved up (and invested wisely) early on in their lives. Undoubtedly, the great Warren Buffett is known to have started investing at 11. And for many folks who also invested funds from their paper routes as youngsters, financial freedom at an early age (think chubby early retirement) is a 100% realistic possibility.

Undoubtedly, it’s not hard to imagine that many young people who retired decades earlier eventually found themselves back in the labor market, either due to boredom or the realization that they don’t have enough money to finance a lifestyle that’s comfortable for them.

Key Points About This Article

• Retiring young can be like giving up. But for many, they discover new ways to find meaning and fulfillment.
• Taking a year or so off to “test-drive” early retirement seems worthwhile.
• Also: Is your 401(k) optimized for your retirement plans? (Sponsored)

Early retirement at 35. It’s the dream for many, a reality for some.

Indeed, lean FIRE (or a frugal form of early retirement) is a common choice among younger early retirees. That said, it’s not for everyone, especially for those who want more cash to spend on just basic necessities. Of course, lean FIRE may be enough for some, but for those who desire anything more than a limiting budget, it makes sense to delay early retirement until one’s late 30s or 40s for a “fatter” form of FIRE.

In the case of a Reddit poster I came across on the r/ChubbyFIRE subreddit, they’ve managed to build a nest egg that’s enough to fund a pretty comfortable (some may even find it mildly opulent) early retirement.

Also, their current lifestyle, which includes insurance, hobbies, travel, and other discretionary experiences, only implies a 2.5% withdrawal rate, which is actually on the conservative side (many retirees go by the 4% rule), meaning they can either upgrade their lifestyle or grow their wealth while still in retirement. Indeed, lifestyle creep may not necessarily lead to greater life satisfaction.

As such, continuing to grow one’s wealth with passive income that’s not spent in any given year seems like a solid plan. Indeed, this early retiree is slated to have their cake (retirement) and eat it, too (continued investment growth).

As is the case with many prospective early retirees who are in profoundly impressive financial shape, there’s some concern about actually moving forward with retirement. This poster wonders if retiring in their 30s is akin to “giving up” on life.

Retiring early won’t be for everyone. But it’s worth trying if you’ve got more than enough.

Indeed, it’s not hard to imagine some folks having an identity crisis after leaving their career behind at a young age. Though there are other ways to find meaning, I do think that retiring early isn’t necessarily giving up unless, of course, you plan on doing nothing every day.

Though they’ve earned the right to sit around and do nothing, I think it’s worth “test-driving” early retirement to see if it’s right. If one doesn’t like it or hasn’t found anything meaningful to spend time on, heading back to work is always an option.

Of course, there could be some difficulty regaining employment after taking a year or two off. That said, I’d argue there’s no sense worrying oneself about difficulty finding work if one already has a massive nest egg to live off of! Indeed, such a worry, I believe, is unfounded for someone on such enviable financial footing at such a young age.

In short, retiring early is what you make of it. It can be like “giving up” if you don’t have hobbies, goals, or anything of the sort. That’s why it’s better to view early retirement as just one path your fortune can take you. As always, check in with an adviser to ensure you take the best plan forward.