Retiring at 49 sounds boring – is indulging in a Paris pied-à-terre and high-end toys the new plan?

As one might suspect, the hope for anyone living the FIRE (financial independence, retire early) lifestyle is that they have the means and opportunity to live a good life. If they work hard and put away enough money to get out of the rat race early, they should be able to treat themselves a little. 

At least, this is exactly what this Redditor feels after posting in r/fatFIRE upon accumulating a massive $25 million net worth, with $3 million coming in every year as his W2 income. Over the last 30 years, this individual has worked tirelessly, and it’s time to decide whether to retire or “start making bad choices.” 

While I don’t necessarily agree that these are the only two options for this Redditor, there is no question that with this net worth, they can afford a little bit of fun, depending on their lifestyle. 

The Big Money Retirement 

At 49 years of age, this Redditor indicates they have been working since they were 49 and, as a result, have accumulated a massive net worth of approximately $25 million. As they are still working, approximately $3 million of W2 income still comes in annually, though the Redditor acknowledges it can vary from year to year. 

Even with this net worth, the Redditor fully acknowledges they are living cheaply, which we can interpret as not living beyond their means. Things get interesting because they know they can retire with a reasonable withdrawal rate of roughly 4%, equivalent to pulling out $1,000,000 annually. Even if they were to do 3%, you’re still looking at a safe withdrawal rate of $750,000 annually. 

Given that this Redditor still lives a low-cost lifestyle, it stands to reason that either number will be far more than they can spend in a year. Of course, this point brings us to the Redditor’s central question as to whether they should splurge and buy a Ferrari, get an apartment in Paris, or use a private jet for personal travel. 

To be transparent, this Redditor has been so good that he wants to be “bad” and do something that uses his income without using his principal. He believes retiring at this point would be boring, but he doesn’t want to sit on this money. 

What To Splurge On

If this were me, I’d talk to a financial advisor about how much I could truly “splurge” without touching the principal. However, regardless of the amount, I agree with one Redditor in the comments who said that the best course of action is to enjoy experiences, not material things that you will quickly get bored of. 

The private plane is a bad idea as the cost of ownership could be ridiculous, but flying first class to do something incredible like swimming off the coastline of an exotic place is a once-in-lifetime opportunity. The same can be said about owning multiple homes, which means more of a drag on taxes, insurance, upkeep, and overall maintenance. 

Ultimately, what this Redditor decides to do is entirely up to them. They could donate every penny to charity, and it wouldn’t impact the lives of other Redditors at all. If they want to buy a Ferrari, while it might not be a wise long-term investment given ridiculous maintenance costs, this is certainly something they can do many times over. 

If this person is already living in a low-cost-of-living area, it stands to reason they don’t care as much about material things. The Ferrari and material things will only bring about so much joy. Whether it’s front-row concert seats or traveling the world, those are the memories and moments you will remember far more than the Ferrari. 

When To Retire 

With so much money in the bank and a high-income level, it leads directly to the question of when precisely this Redditor should retire. It’s hard to say in their case because a balance needs to be found between boredom and living. The bottom line is not to walk away now if they are concerned about how bored they will be retiring in their early 50s. 

Of course, if they don’t walk away now, they don’t know how much time they have on this planet. This is precisely why people who live for the now are some of the happiest people out in the world. They are the ones who recognize that tomorrow isn’t promised and that if you have the means to retire and do something amazing with your life, don’t put it off.