I’m in my 50s making $315k a year and retirement is here but I don’t feel ready – how do I reduce my financial stress?

Financial anxiety is something many people experience, even when there may not be a reason for concern. One Reddit poster recently asked for help overcoming his money worries. He shared his numbers, which certainly make it appear he’s in a good position, but said he is having a hard time appreciating where he is because he worries about his financial stability.

So, how can he feel less stressed — and does he have reason for concern? Let’s take a look at the details.

How much money is enough to feel secure?

The Reddit poster shared plenty of details about his finances, which all point to the fact he doesn’t have much to be concerned about. Specifically, the poster said he has:

• $9.7 million in total net worth, including cash, home equity, and investments.
• $6.5 million in retirement savings
• $2.2 million in non-retirement accounts, including savings and investment accounts but not including college savings
• $160K in annual spending
• A home he owns free and clear and plenty of college savings

His wife, who earns $315,000, wants to quit working and will receive around $300K when she does as her options will pay out — although some of this money will go to taxes. He will stay on the job a little longer, and he earns $150K.

When he posted, he said he was looking both for ideas on how to make the most of his $2.2 million in non-retirement income, but more importantly hoping for help appreciating what he had since he still has money worries despite his wealth.

Obviously, this Redditor is in great shape, as his $2.2 million alone could produce around $81,400 in annual income at a safe 3.7% withdrawal rate — which would combine with his earnings to provide more than enough until they can tap their larger retirement account.  However, despite having much more money than most, it’s still hard for him to get into the mindset that his savings actually can support him.

This is something many people struggle with, even with a high net worth. Giving up a steady paycheck can be anxiety-producing, and shifting from focusing on savings to spending down assets you have worked hard to acquire is bound to cause some stress.  Living off a finite amount of investments can feel more precarious than a steady paycheck too — even with a large account balance.

How to put aside financial worries when you have enough

One thing that may help is working with a financial advisor to run the numbers and create a concrete plan for when and how money will be withdrawn. Deciding exactly how to generate reliable income from investments, and running the numbers to see what these withdrawals will do to an account balance, could provide more financial peace.

Taking the plunge and actually making the shift to living off savings will also make a difference. Once the poster gets used to taking regular distributions and is able to see how well he can maintain his living standard and account balance, he may start to feel more comfortable that his situation is sustainable after all.