I’ve got $8 million saved up and at 52 years old I think I’m ready to pull the plug and retire in a few years

A Redditor has built an $8 million portfolio after working as a mid-senior in the tech industry for 25 years. He is currently52 years old, walked away from his career a few years ago, and shared the details in this Fat FIRE Reddit post. The post included his story about overcoming challenges and working hard to restore his family, but then we got a glimpse into his lifestyle.

He states that he and his wife are frugal and have become empty nesters. The couple is almost 50% in real estate and 50% in equities. The wife still works because that’s been the optimal arrangement for their marriage, and she earns $225k per year working from home. They also earn $60k in rental income and anticipate withdrawing $140k per year from their equity account.

I’ll share my thoughts, but it would be good to speak with a financial advisor if you can.

Walking Away from a Big Salary 

The couple has decided that it’s best for the wife to be the breadwinner and for the husband to be the nurturer. This arrangement works for them, but the husband was earning almost $2m/yr at his peak. 

Some high earners may be cautious about walking away from that type of paycheck. It may be hard for some professionals to find a job that offers the same paycheck. Gaps in the resume make it even more difficult. 

However, the Redditor shared insights with this crowd. He said that it’s okay to walk away if you have “enough-ish” and aren’t feeling fulfilled at work. A lack of fulfillment at work can easily carry over into other areas of your life.

Multiple commenters expressed that they were at the same place. They are high earners who have large portfolios but want to leave their careers. While it can feel scary to take the leap, it may be the best choice if your finances are sufficiently in order.

Setting Long-Term Financial Goals

You don’t reach an $8 million net worth without setting ambitious goals. Setting these types of goals early makes it easier to retire early. Working as hard as you can during your 20s and 30s can set you up for more financial flexibility in your 40s and 50s.

However, the Redditor’s success includes some ominous warnings. Working as hard as possible has its benefits, but not if it derails your family and important relationships. While everything turned out well for the Redditor, he almost went through a divorce and had to re-win his first daughter’s love.

It’s easy to celebrate the Redditor for his comeback story and the wealth he accumulated, but it could have just as easilyended up wrong. Working hard and making millions of dollars isn’t worth it if your family has a shaky foundation. 

Retiring with Stocks and Real Estate

Another key detail to note is that the couple has a well-diversified portfolio. Real estate and stocks both tend to appreciate in the long run, and the investor has individual picks like Apple and Berkshire Hathaway. Both of those stocks have delivered solid long-term returns for their investors.

Pouring too much capital into one asset class or sector increases your risk. While it’s okay for younger investors to incur more risk, it makes sense for most people to gradually reduce their risk as they get closer to retirement. Stocks require less work, while real estate offers more tax benefits.