I’m in my 30s with $1.3 million – Should I quit my job now or keep grinding for a few more years?

One of the biggest questions anyone in the FIRE world can ask themselves is what number they need to achieve to walk away from the workforce for good. For some people, it’s $1 million, and for others, the number is closer to $5 or $10 million. Still, there is always a number that makes the whole idea of achieving financial independence and retiring early work. 

In the case of this Redditor, they are hoping to make it work in their early 30s, which isn’t easy, but they know, for their mental health, that calling it quits is the right move. As they have managed to save over $1 million, the hope is that they have hit their target number and can say goodbye to the workforce, something they are hoping other Redditors will confirm. 

Current Finances

According to the Redditor’s post on r/Fire, the couple has a current net worth of approximately $1.3 million, which definitely isn’t easy to achieve in their 30s. As part of their net worth, they have $850,000 in investments, with an additional $400,000 in a 401(k) account. There is also a $50,000 cash holding, which they are likely going to leave untouched and available for emergencies. 

As for a home, they are currently building a new one, which is expected to cost around $550,000 and will be paid off once construction is complete. This is excellent news, as it eliminates the need for a mortgage, leaving only insurance, maintenance, and taxes. In addition, they also have three paid-off vehicles, so when the house is complete, they should have approximately $750,000 in net assets still available to live on. 

In terms of where this couple stands income-wise, the Redditor currently makes around $145,000 annually, with another $60,000 coming from annual consulting work. The wife earns between $60,000 and $80,000 annually and also brings in another $10,000 from her own side gig work. Given that the couple only needs around $50,000 after taxes to maintain their lifestyle, they don’t appear to need to give up every income stream. 

What About Lean FIRE? 

Knowing that the couple does not plan to have children, this eliminates many potential questions about future financial spending. Given this, we know that a 529 account isn’t necessary, nor will there be expenses for private school, camps, or any of the hundreds of thousands of dollars that are often spent raising kids. 

As a result, the last central question for the Redditor is about healthcare, which they estimate will cost around $10,000 per year. This sounds good for now, but the number will increase as soon as they enter their early 40s, 50s, 60s, and beyond. This means they will need a significantly larger financial cushion than they are likely accounting for. 

What’s also notable is that if the wife continues to work as one Redditor in the comments actually points out, this isn’t a proper retirement, but rather a transition into a stay-at-home husband role who can golf. Something to consider is that this Redditor might want to focus on a more Barista FIRE environment.

Something that should be flagged is that this Redditor needs to realize they are closer to Learn FIRE than traditional FIRE. In financial terms, I don’t think this couple is really where they need to be, as they are not accounting for any number of potential emergencies or costs that could come up over the next few decades. At the very least, they need over $1 million in savings or investments to make this work. 

The Next Step 

If you apply the 4% safe withdrawal rule to achieve $50,000 in living costs, this couple would need at least $1 million, or more. This leaves the reality that working as they are now for the rest of their 30s is likely the best approach. It’s not an ideal scenario mentally, but if they want to truly be comfortable retiring and having enough of a cushion to offset unexpected costs, such as medical issues, this is their reality. 

There should even be consideration that he could switch jobs and look to address his burnout. While the couple has a great financial situation, they definitely need more to achieve the kind of lifestyle they truly want. This might not be the answer the original poster wants to hear, but it’s essential to keep in mind that it’s only temporary and that retiring by 40 in a better financial position is very possible and the smarter move.