Personal Finance

We banked $4 million in retirement and moved to another country in our early 40s - are we set up to really never work again?

Kristin Hitchcock

Published: December 9, 2024 10:28 am

Reddit is a treasure trove of real-life stories, and one post recently caught my attention. The 41-year-old poster shared how his family had recently undergone a serious lifestyle change, leaving behind high-powered jobs and a high-cost-of-living (HCOL) area to settle in a lower-cost country. Their main goal was to find a meaningful life away from all the noise.

However, they may have accidentally stumbled upon early retirement.  

What I found really interesting about this story is its nuanced take on the Financial Independence, Retire Early (FIRE) movement. The couple has a net worth of $4.3 million, with an annual spending plan of $70,000—a far cry from their previous $150,000 lifestyle.

Despite these numbers, the couple is experiencing some of the emotional sides of retiring early, like a scarcity mindset and uncertainty about “what’s next.”

Let’s look at the numbers behind this couple’s journey and what their story means for the broader FIRE movement:

Key Points From This Article

• FIRE often isn’t a financial milestone alone. There are lots of emotions involved, especially towards the end of the journey. 
• Don’t consider early retirement an end to working. Instead, see it as an opportunity to make decisions that you want to make without the beaconing of money.
• If you’re considering retiring early, take a minute to reflect on what it would take for you to feel “done.” Often, it isn’t just the numbers. 
• Also: Take this quiz to see if you’re on track to retire (Sponsored)

The Numbers Behind the Leap

Here’s a quick look at the couple’s financial situation, according to their post:

• Net Worth: $4.3 million ($4.8 million with unrealized gains).
• Annual Spending: $70,000 is projected for their new location, down from $150,000.
• Income: Nearly seven figures combined before quitting.
• Lifestyle Shift: Relocated from a very high-cost-of-living (VHCOL) area to a lower-cost country for a family experience.

From a purely financial perspective, it looks like they’ve achieved early retirement. They can live comfortably without worrying about money. However, the Redditor’s wife remains skeptical, and both are struggling with fears of running out of money.

Navigating Emotional Barriers

Interestingly, the post highlights how hitting a “magic number” doesn’t always bring peace of mind. The wife’s hesitance to embrace FIRE shows how deep-rooted beliefs about money can linger, even when financial security is objectively achieved.

Sometimes, our brains don’t care that the math works out. We can still stress about money. (Like another Redditor we covered did.)

However, there is a broader question here that deserves asking: How do you know you’re truly done?

When Do You Know You’re Done

For the husband, it’s not just about financial independence; it’s about a deeper sense of readiness. He writes, “Hitting the number doesn’t feel like enough. It has to be something you feel in your bones.” Again, the numbers aren’t always the most important thing. 

This is a key challenge that I’ve noticed among early retirees: transition from accumulation to spending. Financial spreadsheets can show readiness, but that doesn’t mean people are emotionally ready to retire. 

Lessons from Their Story

• FIRE Isn’t One-Size-Fits-All: For some, FIRE means never working again. For others, it’s a chance to reimagine work or take extended breaks, as this couple has done. FIRE is about not letting money control your decisions, not necessarily about never working again. 
• Mindset Matters: Scarcity mindsets can persist despite wealth. Even if you have plenty, it is easy to feel like you don’t!
• Life Beyond Numbers: Financial independence is often the beginning of something bigger. It doesn’t provide fulfillment in itself. That’s something you’ll have to find elsewhere!