Personal Finance

I'm 50 with $9 million and I want to get closer to my retirement plan but I'm not sure that's possible right now

Christy Bieber

Published: February 11, 2025 9:12 am

A 50-year-old Reddit user with $9 million is hoping to retire with enough money to produce $475,000 in pre-tax income in order to allow him to spend $365,000 per year once he has stopped working. 

The Redditor has a good amount of money invested in money market accounts and treasuries but he’s afraid to put the money into the market right now because he thinks a crash is impending. He is also planning to build a $3 million home, which he thinks he will be able to sell for a profit — and he has some other income-producing real estate as well.

He’s not sure if his current plan is likely to pan out, so he’s looking for some advice on what to do Fortunately, there are a few key tips that should help him to ensure he’s building a secure future when he retires in the coming year. 

How to shore up retirement plans

There are two big things that stand out from the Redditor’s story. 

First, he is planning to build a $3 million house, which he says he will not be able to afford when he retires and which he is hoping he can sell for a profit. This is likely to be a really bad idea. Building such a large house will eat into his net worth and make it far more expensive for him to retire. He’ll either need to use $3 million of his $9 million in assets on the home — tying up the money and limiting potential returns — or he’ll need to borrow at today’s high rates and make expensive mortgage payments. Neither is a good idea. 

There’s also the fact that it’s very unlikely he will be able to sell a house for a profit soon after building. New builds often cost more to construct than existing homes sell for, plus he won’t have had time for the property to appreciate or go up in value. There are also transaction costs of selling a home, which could be huge with such an expensive property. This means even under the best of circumstances, profiting would be difficult. If the market collapses, then the Redditor is going to be in real trouble.

If the Redditor really wants to retire early and retire rich, this plan should be scrapped. The poster is also trying to time the stock market, which is a bad idea too. He thinks a crash is coming, but it very well may not be — and he could lose out on lots of potential returns that he could have received from investing if he waits for an adverse event that may not come for years.  This will make building up a big retirement nest egg very difficult. 

Instead of delaying investing, the Redditor should jump in and get money into the market, with his appropriate asset allocation based on his age and risk tolerance.

A financial expert can help you figure out early retirement

The Redditor here has admitted confusion and some of the decisions he is making seem contrary to his goals. He should strongly consider talking with a financial advisor to make a better plan. In fact, most people in a similar situation who care about early retirement should do the same. 

Ultimately, the best path to success is usually to keep fixed expenses low, including housing costs, and to invest as much as possible. Those who aren’t sure how to implement this plan, or who want to deviate from it at all, should get the financial advice they need to make the right choices so they can retire on schedule with the security they deserve.