A Reddit poster is trying to decide on how to handle his career situation. He’s 44 and earns around $180K per year while his wife is 40 and earns $80K. The couple has $1.6 million invested, a $425,000 paid-off house, and $100K in a high-yield savings account. They have two children who are five and seven, and they have saved $60,000 in a 529 account for their college savings.
Their target savings goal is $2.5 million, which the poster thinks would be more than enough because the couple lives in a very low-cost-of-living area.
He has not liked his job for the past nine months since a new boss started, and his career problems are beginning to impact his physical and mental health. He said the job market his not good, but he’s hoping to quit anyway and switch to something that pays less but provides a better quality of life. His wife wants to keep working until the traditional retirement age.
He said he’s at a crossroads, though, because he is risk-averse and scared about just quitting his job and making less. So, what should the poster do?
Can the poster quit his job and end up with his target retirement savings?
The good news is, with $1.6 million already invested, the poster is very much on track to hit his target retirement goal. In fact, if he simply left the $1.6 million to grow for another decade and earned 7% average annual returns, our compound interest calculator shows he would end up with $3,147,442.17, which is more than he needs.
So, as long as he wasn’t hoping to retire and start drawing from his savings immediately for the rest of his life, he should be in good shape. If the couple could live off his wife’s income alone, he wouldn’t really even need to work anymore — but since he didn’t say he’s ready to quit, he should absolutely start the search today for a job he likes, even if it pays less.
As several Reddit posters pointed out, money can’t buy back mental or physical health, which his current job is compromising. And, finding work he actually enjoys would make it easier for this poster to work longer if he wanted to, so he could end up in an even better financial position in the long run as he leaves his money to grow while continuing his career.
Talking with a financial advisor could still be a good bet
While many posters suggested the Redditor start looking for other work he enjoyed, a few suggested he explore his options before rushing into anything. It’s not a bad move to line up another job before he does leave, so that’s probably the best way to go.
Others advised making sure he isn’t missing anything when it comes to his plan to live on $2.5 million. That’s not a bad idea either, since the poster did say he is risk-averse and since he would probably have a hard time finding a comparable replacement job after he quit.
In fact, before making a career change, it would be a good idea for the Redditor to talk with a financial advisor. An advisor can help him ensure that his money is invested wisely and that he’s planned for and considered all of the key expenses that he needs to think about for his future.
With advice from a professional, the poster could make the best and most informed choices to avoid compromising his financial security. He may also be able to move forward in making his decision with fewer worries once an advisor has confirmed that he’s making a move that won’t hurt his finances over the long run.
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