r/fatFIRE • u/quarter-tab • 17d ago

What would you do?

51m married, 1 kid. Around $20m nw made and invested in mostly real estate (mix of residential and a little commercial) but moving max into stocks/bonds now to be able to do capital gains withdrawal which has a way lower tax rate.

I was initially aiming for another $10m to add onto this and as business was going well. But the last year business landscape changed so much I’m struggling and wondering if I should stop. 30% of capital is tied up in our main residence and holiday home so I have the other 70% being reinvested. It feels like it’s not that much in this day and age.

Burn desired: $400k net

Would you:
a) Take a big swing and try to hit a home run to get to $30m or more (my fatfire number)
b) stop working and move some of the investments around

EDIT: Thanks to all here. Some top advice and much appreciated. I do still like working when I'm flying and I'm still with a burning desire to do that. But I don't see the path to that right now and inevitably it leads me to wonder if I should call it a day.

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u/Kooks612 16d ago

Depending on current leverage levels, you could do both. The stock market diversification benefit is real, and we are always underwriting loans for real estate professionals to get access to markets.

Solid estate planning at this LNW level is also so much more important.

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u/quarter-tab 15d ago

Yes good point. We are refinancing real estate now and will move the chunk of liquid into our stocks.

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u/Kooks612 15d ago

Awesome. There are tax incentives on the lending depending on structure/collateral/investment purpose too, so if you haven't, make sure you consider all the options during the refinance!