The concept of retiring early, particularly for those who adhere to the FIRE philosophy, is a fantastic way to live. The hope that you can save enough while young enough to feel like your best years are ahead of you is a philosophy to live by.
For one Redditor posting in r/ChubbyFIRE, this is precisely their line of thinking, with a caveat or two. The hope is that with a $5 million net worth, he can retire within the next seven years. There is no question this is a lofty goal, and it leads directly to the question of whether they can balance everything.
Living Right Now
According to the 49-year-old Redditor, he and his wife (47) have a current net worth of around $5 million. His wife is going to leave her role in the next month or so, so she can pursue some hobbies. Additionally, his wife will also focus on raising their two children, who are 11 and 8 years old.
As for the Redditor, he’s focused on trying to work for another 7 years. At this point, he hopes that the family’s total net worth will be somewhere between $10 and $11 million. The plan is to have two-thirds of this amount in a brokerage and the other third in a retirement account. This would mean that only around $6 million would be accessible until he turns 59.5 years old.
Also on the table is a need to fund two college funds, of which 529 plans will only handle between 33% and 50%. Lastly, he also has to factor in the cost of health insurance for a family of four when they don’t have corporate rates to work with.
Given all of this, he knows the family will have enough, but he’s not sure how to enjoy himself right now. With a focus solely on achieving his seven-year goal, he realizes he could miss his kids’ golden years while grinding away. There is an understandable concern about what to do and how to do it.
Setting Family Boundaries
The idea of wanting to work and retire early is one that most people hope to accomplish. This Redditor is undeniably on the right path to achieve such a goal, but must navigate doing so without losing focus on what’s most important to his family. This means that he really needs to set some clear boundaries.
Ideally, he needs to set aside time that’s just for the family and kids. Whether it’s trying to be home for dinner every night or making sure the weekends are family-focused, he has to commit to something. As someone who works most weekends, I empathize with this Redditor’s struggles, and it’s not always easy to find time for myself.
The most important thing is that when he is with his family, he is focused and attentive. This means reducing the time spent checking email or any other work-related tasks. If the family is having a movie night, phones are put away in another room. This could become a new family tradition, one that allows everyone to be focused and live in the moment.
Review Financial Goals
For this Redditor, the best thing he can do is review his financial goals intermittently, so as not to obsess over them. He already knows he’s in a strong financial position, so watching the net worth slowly grow doesn’t do him or anyone else any favors. He should consider setting aside time once a month on his calendar to sit down at a computer, review the family’s goals, make adjustments, and then put it aside until next month.
Beyond financial goals, he should turn his focus to discovering distractions that can reduce the emphasis on money. Hobbies or volunteer work are two things that come to mind. Neither of these generally requires big financial contributions, so he can take advantage of other things to do with his time. There might be some hobbies he can involve his children in, allowing him to kill two birds with one stone.
Last but not least, he should consider consulting with a financial advisor to ensure he’s truly on track. Just because he has a high net worth doesn’t mean it’s all being utilized properly. It’s very easy to go through this kind of money as it is to burn through far less if you don’t have the right spending and saving habits.
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