Personal Finance

I'm 53 years old and have a net worth of $10 million and I took a job that was 30% lower than what I usually make - was that dumb?

John Seetoo

Published: January 15, 2025 6:35 am

24/7 Wall Street Key Points

• Pursuing a FatF.I.R.E. strategy can lead to an obsession with working even beyond the FatF.I.R.E. targets.
• Taking pause to assess job satisfaction and quality of life throughout or even past attaining one’s FatF.I.R.E. goal is a rule of thumb that should be observed on a regular basis. 
• Remaining miserable in a job that is mathematically superfluous to one’s Fat F.I,R,E, target solely out of the compulsion to continue earning money for one’s F.I.R.E. agenda is an indication of insecurity and other psychological and emotional issues that demand closer examination and introspection.
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FatF.I.R.E. (Financial Independence Retire Early) strategies entail the notion of growing a retirement nest egg at an accelerated pace to a $5-$10 million minimum. Predicated on a 4% or less annual drawdown rate, this allows for a very comfortable lifestyle. Ideally, one’s FatF.I.R.E. target can be met as much as 10 or more years ahead of the average retirement age, so that the retiree is still young enough to enjoy retirement before health and other aging issues become a larger concern.

People who pursue FatF.I.R.E. strategies successfully need a number of traits to succeed: 

• A disciplined mindset for consistent thrift.
• A focus on aggressive savings and investment
• A game plan that maximizes 401-K, IRA, Roth, and other financial retirement platforms for contributions and growth.
• A motivation to maximize one’s earning power during his or her peak production years .

The last trait is often viewed as the main engine to fuel the ability to initiate the first three. While this may be true, the larger picture that includes one’s physical, emotional, and psychological health is equally, if not of even greater importance. This is even more prevalent when one is close to, or already has achieved their FatF.I.R.E. target nest egg amount.  Hitting the target a year or two later is worth it if the stress, unhappiness, and depressing circumstances of a despised job can cause cancer or other illness that impede enjoyment of one’s retirement nest egg. 

Living to Work Instead Of Working To Live

A 53-year old Reddit poster who was laid off from a top technology services job took another job paying 30% lower after a 6-month gap and a string of unsuccessful interviews. However, after 3 months, this married father of an 8-year-old is miserable, and the stress is causing him to suffer from insomnia. The problems are thus:

• He feels that the actual job and work he is tasked with is far different from what was described to him, and was, in effect, “false goods”.
• Compared to his previous salary of $440,000, the new job only pays $310,000.
• He is being asked to log 12-hour days, and the bulk of the work is taking calls.
• The poster is reluctant to quit, fearing that the job drought’s continuation will keep him unemployed for an even longer period the next time.
• He is concerned about how quitting will look on his resume. 

However, unlike many others in his position, the poster is a FatF.I.R.E. adherent and has resources at his disposal that affords him a range of options. 

• The poster and his wife have $6.75 million in index fund investments spread between IRA and after-tax accounts, along with $700,000 in rental property.
• They also have home equity of $2.4 million in a $4.1 million appraised home with a low mortgage rate. 
• Wife’s salary is $350,000. Current annual expenses are $280,000.
• Both he and his wife would prefer to continue working until they reach 60 before retiring. 

“The First Wealth is Health” – Ralph Waldo Emerson

Unsurprisingly, the bulk of the respondents’ comments expressed the need for the poster to prioritize his health and urged him to quit. The range of option scenarios, justifications and insights were broad, and included the following:

• Assuming a slight reduction in expenses to $236,000, the poster and his wife could retire immediately with a 3.5% withdrawal. With the portfolio consistently earning above that for replacement purposes, they would be ostensibly set for F.I.R.E., and marginally for FatF.I.R.E.,
• Given that he and his wife wish to continue working for the next 7 years and he is so miserable, perhaps discuss quitting the job to look for another one. The wife’s salary should be sufficient to cover expenses without needing to access the retirement nest egg, and an unimproved work environment may lead to further health deterioration.
• One respondent assessed the poster’s fixation with working, even under adverse conditions: he has still not emotionally recovered from the stigma of being fired from his previous job. This has left the poster with self-worth and validation issues. 

This article is intended to be purely for informational purposes. If more comprehensive details are sought, discussions with a retirement financial professional are advised.