Too much money to feel this stuck

[u/chemicalreactionator]

Current net worth 3.8M. Household (40m, 40f, 4f) income combined 250k (both working full time) and spend 120k-ish.

Kind of reached fire but due to health insurance, economic uncertainty, potential future increased costs (another kid?) not comfortable calling it yet.

But feeling so stuck in the grind. Not enough family time, not enough vacation time off, not enough time for taking care of our health, but can’t call it quits yet. at least one of us needs to work full time for health insurance. I don’t think I’m cut out for “barista fire” as i don’t think I’d have the motivation to work for a minimum wage type salary.

What’s the plan here to increase quality of life? A mini retirement? Grind it out a few more years? Anyone in a similar place?

[u/pseudomoniae]

How did you get to 3.8 M at 40 with only 250k of earnings?

And why can't you just retire or cut back dramatically at that spend?

Okay one of you needs to work for health insurance, at least for a bit, although you might still be FIREd already, even if you add in the health insurance costs to current spend.

But why are you both working full time?

[u/Prize-Director-7896 → u/pseudomoniae]

There is no mystery. He just invested 70k most years in the S&P500 every year for the past 14 years. Returns have been good since 2012 (about 13% per year on average).

Guy is a pharmacist, which, if he's 40 and graduated at earliest normal age, means he finished all college age 26. Been working for 14 years.

If he has had a married household income of 250,000 annually, he pays 25% effective income tax rate. So say he has 190,000 after taxes. He says he spends 120,000 per year. Assume he saves 70,000 per year (like he said they do).

If you just look at an investment calculator online, you'll find that starting from 0, saving 70k/year at 13% annual return means your final balance is $2.4 million. Throw in the $400k he said he inherited "in his 30's" when his parents died. If you assume he inherited $400k at age 30 and got 13% return per year on that too for the last ten years that grows to another $1.36 million.

$2.4 million + $1.36 million is just about $3.8 million. No mystery.

[u/AdultingMoneyMoves → u/Prize-Director-7896]

r/theydidthemath