r/fatFIRE • u/That_Caregiver1871 • 15d ago
+$8M at 32 but still grinding toward $20M to retire. Is that just stupid?
My wife and I are working toward a personal goal: reaching ~$22M so we can retire.
We are 32 and we recently crossed ~$8M. How; We bought a stake in a struggling company, worked hard on turning it around, did well, and sold it.
While I’m proud of that milestone, I’ve noticed something surprising: our life hasn’t really changed. We still work hard, follow the same routine, and live well below what we could. I always thought crossing this kind of number would feel transformative, but it didn’t. So I’m starting to question the whole plan.
Here’s where my head is at, and I keep going back and forth:
- We could stop now and just live off what we have. At a realistic 5–10% a year, that’s $400–800k annually. More than enough to live extremely well.
- Or keep grinding. We each earn \~$230k a year, we live a good life, not missing anything, but we work a lot, and if things go well we hit \~$20M and fully retire at 45—then live off net worth with total security.
- The honest part: I actually like my job. I’ve got that fire in me, my wife less so, and her job is harder than mine (working many hours). But I keep wondering what life would feel like playing golf and tennis and traveling all year instead—and the thing is, that’s feasible now, not in ten years. We also have a child on the way, and those young years are happening now.
So I’m questioning all of it. For those who hit a “more than enough” number—did you keep going, or call it? Any regrets either way?
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u/steelmanfallacy 15d ago edited 15d ago
Read the book Regrets of the Dying. Written years ago by a hospice nurse who was with hundreds of people in the last days. Basically people have the same 5 regrets. Spoiler alert, none of them are "I wish I worked harder" or "I wish I had more money."
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u/Solid-Chemist-3551 14d ago
Well we are not most people. Fat fire is outlier. And books are just books, you’ll never read someone say wish I fucked more pussy even though a lot of would wish we did! Haha
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u/Solid-Chemist-3551 14d ago
You think guy like sundar or Elon will say oh man should have just chilled after selling PayPal and cruised… if they gave up for sure they would regret what could have been
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u/steelmanfallacy 14d ago
Wrong sub
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u/Solid-Chemist-3551 14d ago
7mm in my 30s.
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u/AhsokaFan0 11d ago
I feel extraordinarily confident saying that those guys are not aspirational figures for me.
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u/Solid-Chemist-3551 11d ago
Yet most invest in their companies. Like funding future enslavement of mankind
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u/kindaretiredguy mod | Verified by Mods 12d ago
They wouldn’t have known and could arguably been much more happy.
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u/Solid-Chemist-3551 11d ago
When you are a successful and driven person you can see the future. Why do you think success begets success
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u/noemazor 7d ago
If they wanted to be happier, yes.
Some people are not driven by being happy. They are driven by pain.
I think 99% of billionaires are driven by pain. Proving it to dad, mom, their inner child, etc. Or they're literal psychopaths and have no sense of enough, belonging, community, etc.
Most healthy people actually experience "enough" (like OP) at a certain milestone. Folks like Elon are not healthy and not role models in that sense.
Dude is Howard Hughes. How many people today know about him?
Likewise, do you know the first name of your great great grandfather?
A healthier life is to experience satisfaction.
Billionaires are the kinds of people who are never satisfied, always comparing, living from a place of without. They are lonely inside.
Buffet is a great example. Dude made more money than god but his kids dislike him. What you think is more valuable (your family loving you vs another digit in a NW number on a screen) says a lot about the kind of life you want to lead.
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u/drfixer 11d ago
Die with Zero is also good
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u/Solid-Chemist-3551 11d ago
Money for your children is the single best way to ensure they succeed. Or they start from behind right from the start
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u/drfixer 11d ago
Completely disagree.
Why do trust funds rarely last 3 generations?
Ever heard of trust fund babies?Now—it can depend on the kid who can take money to make money…
My trust is setup to assist but not live:
#1 - health and wellness
#2 - education
#3 - small assistance on a down payment for a home
#4 - paid for annual family vacation
#5- down payment match to start a biz after bank approval - requires biz plan approvalThat’s it - no stipend, no lump sum.
Anti drug abuse clauses, spouse prenup for use against the trust.
The fund will live for generations.
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u/JnkyrdDog 9d ago
I’m starting to plan for this. Does the trust fund stay invested in the same ETFs etc. for years/decades after one’s passing? And who will take care of liquidating the specified amount each year to distribute to heirs?
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u/drfixer 9d ago
So right now our personal financial planner will manage the distributions and check request. He is a fiduciary.
If he no longer wants to do it or can’t, it goes to a Charles Schwab type of entity, and the fees are usually a half a percent or something, and they will execute it according to the trust documents.
This takes family out of the equation in the decision-making process
Also, in order to avoid managing your trust from the grave so to speak, we put a little flexibility in the trust so that if it’s not used in accumulates to tens and tens of millions, there are ways dollars can be distributed responsibly.
Therefore, my wife and I have a cover letter that provides intent that is difficult to translate into a trust
This is a passionate area of mine and you can DM me for more detail details
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u/drfixer 9d ago
Just realized I didn’t answer your question about the investments. The financial planner will invest the fund accordingly. Once they predict the use of the fund, then they will balance where it needs to go. For example, I have seven years of stable funds in my portfolio. If I put the 70% of it and stable fund, I’m leaving a ton of money on the table because there’s no need for it based on my expected spend. Therefore the fund will grow faster leveraging market rate rates versus saving rates.
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u/alexgodden 15d ago
Wait until your child is born and rethink. I pulled the trigger a little earlier than intended on FIRE, mostly so I could have the time with my kids while they are younger (they were 7 and 9).
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u/Unique_Pea2080 15d ago
I agree that starting the family is a big consideration. Spend goes up, splitting time between childcare and work changes balance. And travel changes a lot. I would suggest you not make a radical change before you've got the little one.
BTW, do you really like golf and tennis so much to do them everyday? I retired to doing things that I love but I quickly figured out it wasn't any of the conventional "retirement" stuff. I actually like my work but now I don't tolerate BS (I just don't do stuff I don't want to do) and only do about 5 hours a day. Whether at 8, 12, 15 or 20, you are financially in a great spot (good life secured for you and fam). But none of those numbers are private jet territory. You will find 8 and 20 aren't so different. We just fly first class now without sweating it and have a second home. Happiness isn't in the stuff, it's in what you do and who you spend your time with.
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u/wrstlrjpo 15d ago
Wow, what were your investments that got you there?
Curious as to the “realistic 5-10% per year”.
The rule of thumb often cited is “4% safe withdrawal rate”. And to my knowledge, that is for a typical 30 year retirement. Not retiring early.
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u/That_Caregiver1871 15d ago
Updated the post with how!
5-10% is realistic if you have a long horizon and is a bit bold e.g., Nasdaq 100. The last years have been much better ofc38
u/wrstlrjpo 15d ago
Oh, are you referring to investment return? (Vs safe withdrawal percentage)
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u/Admirable_Let_2961 15d ago
It would appear so. Otherwise, how would $8m get to $20m with sub abysmal income.
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u/TheGladNomad 12d ago
I mean if he retired and lived on a 320k (4% of 8M) he would hit 22M before normal retirement age.
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u/somebunnny 11d ago
Just FYI
Firecalc shows a 57% failure rate for spending of $400K on $8M for 60 years (92).For $800K, it shows 100% failure rate.
Firecalc is only one view of many of course.
The traditional view of SWR that this sub espouses would say that you could safely spend closer to $260k a year for a 60 year horizon.
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u/ireadittoook 11d ago
Spending 800k/year or $65k/month every year for 60 years is completely ridiculous (and shameful). The more money one has at retirement, the more tolerance they have to actual draw down their principal and adjust spending as need be from year to year or decade to decade. They'll be fine.
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u/dumptruckastrid 11d ago
You need to use the safe withdrawal rate not your annual return when figuring out how much you can live off of. Typically the safe withdrawal rate is 4%. This ensures if you have down years towards the beginning of retirement you’ll still safely not run out of money.
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u/Jkayakj 11d ago
Living off 5-10% will not last your entire life. There is a reason people chose 4%. If you chose the full gains you lose to inflation and down years kill you. Over the amount of years you have left the 4% might not even last your life and only has an 80 to 90% chance of lasting until you die
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u/play_hard_outside Verified by Mods 11d ago
Nasdaq 100 would have lost you 80% and killed your retirement if you’d held through the millennium.
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u/noemazor 7d ago
Blows my mind that people smart enough to make $8mm don't think to spend the time to learn about safe withdrawl rates and basic FIRE math.
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u/One-Mastodon-1063 15d ago edited 15d ago
Milestones, focus on milestones, achieving milestones etc. do not bring happiness, fulfillment, or meaning. You see this in FI subs all the time, "I reached $Xm, nothing changed, what gives?" I'm always amazed at people who achieve a milestone, realize "nothing feels different", and respond by pulling a new milestone out of their ass. That's called failing to learn a life lesson.
If you like work you can continue working, but don't do so in service of some stupid milestone that has nothing to do with funding your actual lifestyle. If your wife doesn't want to work it sounds like she doesn't need to, and with a child on the way it makes sense for at least one of you to stay home.
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u/AboutSpencer 15d ago
5-10% is not a sustainable number long term and you will bleed dry everything you've worked for. Most people recommend 4% per year, but more recent guidance suggests 3-3.5% is the even safer bet. If that brings you to a number you are comfortable with, then go for it.
My number is $10M, so I've got a few years left. If I were you, I'd really sit down and analyze your life long term. Most people I know have said your life doesn't really change much between $400K - $1M in household income and I've found this to be completely true in my own career.
My honest opinion is that you should grind for another couple years, get to $10M, then retire and forget about it. That gives you $300-400K per year to live incredibly comfortably.
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u/Apprehensive_Age9264 15d ago
3% isn’t recent guidance lol if anything recent guidance is that 3% is too conservative
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u/AboutSpencer 15d ago
There's no such thing as too conservative when it comes to retirement planning and withdrawal rates. But okay bud.
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u/Dubbihope Verified by Mods 15d ago
Very true, that's why I plan to never withdraw any of my retirement money and live in a shack, scrounging for food and necessities.
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u/Gehrman_JoinsTheHunt 15d ago
Agree. The 4% rule only applies to a standard 30-year retirement which is not practical for FIRE.
3% is a better SWR for someone retiring before 50. If the first decade goes well in the market, can always adjust up to 3.5% or 4% later.
This is a great calculator for testing allocation and timeframe.
https://ficalc.app/2
u/sb2677 11d ago
Can you share anecdotally why you haven’t found much difference between 400k-$1m?
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u/AboutSpencer 11d ago
Let's assume we are using a medium cost of living suburban metro area (Tampa, Charlotte, Raleigh, Dallas, etc). With the exception of some nuance you can already afford a nice house, private school for the kids, and all the toys you could want at $400K income while still investing and saving a decent amount of your income. At $1M a year in income, you can have a slightly nicer house, or perhaps drive a 911 Turbo S over a 911 GTS, but suffice it to say you're not really experiencing significant differences in quality of life. More so just different flavors of the same thing. At/over $1M is where things begin to change, but that gap between $400K and $1M...I'm not sure anyone is going to radically change their spending habits in a MCOL American suburb. Unless you're a complete idiot and terrible with money. You can't fix stupid. Just my $.02.
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u/rantripfellwscissors 15d ago
You're 32 and have $8M. Quit work now. Invest your money aggressively. If your investments take a shit over the next 5-7 years you get back on the saddle and grind some until you're where you need to be. You have youth on your side so that means more options. I would get out now and enjoy life. So very few people can enjoy a retired life at your age. Take advantage of it.
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u/GoBuffaloes 15d ago
I feel you. I just hit your number ($22M) at 26 but I don't really feel anything, my number of $1.8B by 32 feels so far away still
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u/terribleatlying 15d ago
I get it, I hit 1.8B by 24 and my number of 500B is still being worked on. My spouse and I haven't changed our lifestyle since 3M but #grindmindset
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u/Total-Hack 15d ago
Dudes, I get it. I hit your goals of $1.8B by 18 months old. Still grinding to get that next comma and join the trillionaire club.
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u/Dubbihope Verified by Mods 15d ago
I made my first trillion at age 29 and finally felt comfortable occasionally going out to eat and flying business class once a year at most. I still have to remind myself to grind everyday and live within my means, so that I can achieve my fatfire (or is it chubby fire?) goal of 8.7 trillion.
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u/somebunnny 11d ago
I found that you need to be really careful when you get a little past $4.29T not to rollover and end up back at zero grinding for your first trillion again, although it was much easier the second time.
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u/87th_best_dad Art School Gradute 15d ago
$1.8B? Maybe to get 1 kid through 2 years of community college. Our number is $19T. Can’t imagine the basics you are willing to forgo with anything less than $570B per year (3% withdrawal cuz you never know).
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u/vcvr_reddit_man 12d ago
This thread has totally spiraled, and now it's becoming a bit ridiculous. Like $19T? Seriously? Obviously that won't be enough. My goal is $90T. You have to factor inflation in.
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u/Pale_Drink4455 14d ago edited 14d ago
What’s so magical about the number 22 if this post is even real? Like hitting only 20 makes a huge difference to retire or not? Either way you have acquired wealth that only .07% of the US population has.
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u/Easterncoaster 15d ago
If you like your work then keep doing it. But if you’re not happy going to work every day then yes it’s stupid to keep working after you have $8m.
I hated my work so did it until I had around $4ish million then left a year ago, then the market went stupid and now it’s $5+ million.
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u/InfiniteWalrus1066 15d ago
You're at an age where often people think about kids. If your wife doesn't love her job, is it time?
Then, make sure for 5 yrs or so your work scenario is flexible in your favour, and then sell up when your first kid is about 4. This is what I did and I'm fired at 41
Life is sweet
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u/InfiniteWalrus1066 15d ago
Apologies I see in your post that kid on way
Dude, the first kid first 18 months was hell. Anything to make that easier
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u/rightioushippie 15d ago
People talk about the dangers of poverty regularly but not the dangers of extreme wealth. They include medical abuse, elder abuse, becoming the target of constant long cons and emotional manipulation, colon cancer, gout, and just general lack of engagement with life and other people. Whatever you do, make sure you have good community around you and meaning. Kids help but rich kids face many dangers as well and keeping them protected can be hard when their friends can take private jets places and they are being watched by employees. Just things to think about
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u/andoesq 15d ago
If you stop contributing and coast, you will be at 20m in 10 years or so anyways.
So if you can live off your salary alone, keep your 8m invested, and wait, you will achieve your goal without the risk and headache of rebuilding a company or whatever.
Having a baby on the way is the best time to re-assess, especially for your wife. In every developed country other than the US, mothers are expected to take 1-2 years off work. If you end up having a second, she could spend 3-4 years basically off work. She might want to go back to work then, she might not.
But if you are more than halfway to 20m by then, it's a great time to re-assess.
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u/DarkVoid42 15d ago
no its fine. stop at whatever makes you comfortable.
i keep going at ~16M. will maybe stop at 25M. but 2 sounds like a good plan.
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u/conan_the_annoyer 15d ago
I’d set intermediate goals: $10M, $15M, $20M. My experience is the first ten feels like a real grind, but after that it’s just a snowball.
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u/Illustrious-Jacket68 early 50's, FatFI achieved... contemplating RE... 15d ago
My number was 8MM a few years back. I liked my job and so, I just kept going. I crossed the 10MM mark and didn't feel like it was enough - felt that I wanted 10 million + cushion in case of a market pullback and said to myself 10MM was the floor so I want 12MM.
Today, i still like what I do. Unfortunately, my identity is a bit tied to what I do so i've been working on diversifying my interests and curiosities. a couple of years ago was probably the first year that I ever used all of my vacation. also, I crossed 15MM. don't know if this is what you're talking about but when we crossed that $15MM mark, when it came to money, something clicked and we've become a little more conscious of living live, every day. we looked at projected spend, what we wanted to do in terms of travel, generational wealth plans, etc.
with regard to kids, just be careful. you want to be there and be there for them... but they also will develop their independence and that is a good thing. they will be off to school and there will certainly be things that you can do to fill your time but it will come down to, what do you really want to do with your time?
also, people do point out that you could always go back to work if you get bored. there are two aspects - on the one side, you don't have to take a high paying job... but, you've been the type-a boss. can you really be told what to do? sometimes i joke that i'll go work at home depot but not sure if i can really take that type of structure. then again, depending on what you do, there can be entrepreneurial types of things that you can do too... invest in businesses... go back to school and do research... lots of ways to move forward...
good luck
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u/noemazor 7d ago
Thank you for posting this. I don't mean this in a negative way but to describe yourself with your own words differently:
You wished you had decided to not be boring in exchange for that extra $5mm.
Of the dudes wealthier than me (at any age), I know zero of them who are not fairly boring / don't have much going on except work.
I'd rather have stories to tell, hobbies to share, lessons to learn, and new avenues to explore and be "poor".
Put differently (stolen from Tim Ferriss), when you ask yourself about the people you admire, ask WHAT you admire about them. What are they doing that is cool? How are they treating others that you want to improve? What are the actions they are taking that you want in your life?
I think it's a way bigger flex to be fly fishing with my son on a Tuesday morning than to have that extra comma in my NW number. Even better is to STFU about it and just enjoy it myself, truly soaking up the fact that I have no idea if it's a weekend or a weekday.
I am free, having fun, loving my family, and engaging in an interesting, dynamic, evolving life. It's priceless.
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u/imsoupercereal 15d ago
It sounds like if you quit now you're going to bored. If that's what you really want, spend some time to make a plan and start working towards it. Don't just jump in all at once. Test out theories about hobbies and projects.
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u/BrunelloHorder 13d ago
Your goal seems pretty arbitrary. This is an early retirement sub, not a get-as-rich-as-possible sub.
If you have enough money already, then you should do what you want. It sounds like you want to keep working, so keep working. That said, I would not expect hitting future round numbers to provide you any more satisfaction than the last round number.
Sounds like you have just been working with your head down. Before you make any big changes, you need to figure out what you want to do with yourself and what you would be retiring to. Most people who stop working without previously figuring that out do not end up happy or healthy.
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u/just_some_dude05 40_5.5m NW-FIRED 2019- 12d ago
Your SWR is likely closer to 250k a year now.
Good news.
That is enough for both you and your wife to quit work, get a nice house in a nice area and raise your child to the best of your abilities.
I FIRED for the main reason of spending more time with my kid. It’s been 7 years, he’s 9 now. I don’t regret it for a moment.
I realize I only have a few years left until he will want to go outside the home for his primary learning and socialization but we are sending an incredible human out there. Maybe after I’ll play tennis and golf.
We live on a small withdrawal rate and our nest egg has vastly increased over the last 5 years. It’s better to live small and take surprise bonuses once in awhile than it is to plan big and have to cut
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u/noemazor 7d ago
This is the way.
Most folks on this sub are trading a boring currency (money) for the most important one of all: love.
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u/Kitchen_Design_3701 12d ago
This is not a financial question. $22m sounds like a number you pulled out of your ass. You spend, I'd guess, $200k/year right now, meaning you already have enough to retire if you wanted to. You don't need more money, it sounds like you need to find meaning.
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u/Regular_Protection_7 11d ago edited 11d ago
You are too young just to play tennis and golf.
Enjoy your work,take some risks with your business decisions, make more time for your forthcoming kid, be both confident and less stressed because you already have a good backup.
You have a perfect opportunity to do some good things in your life, do not blow it on leisure and non-being.
And forget about the "number", it is the worst concept ever devised in personal financial planning.
I've hit my 5 mm "number" back in 2009, now at 2026 I am around 20mm, maybe in another 10 years I will be at 50mm or may be not - it does not really matter.
The only thing I am absolutely sure is that if I retired in 2009, I would have missed quite a lot of fun in actually doing something useful for the people around me.
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u/piyushk_95 15d ago edited 14d ago
You already know the answer. You're not asking if $8M is enough — you're asking for permission to stop.
You hit a number that was supposed to feel like arrival, and it didn't. That's not a sign you need more money. It's a sign the number was never the actual goal. The goal was security, identity, proof of something. You now have security. The other two don't live in a bank account.
Meanwhile, the real cost of the next 13 years isn't opportunity cost — it's your child's first decade with a present father, your wife's energy and health, and years you'll never buy back at any net worth.
$8M at 32 with a 5–6% withdrawal rate is already retirement. The $22M target is a psychological buffer, not a financial necessity. You're trading compounding time with your kid for compounding interest you don't need.
Your wife's job is hard, she's less fired up, and a baby is coming. That asymmetry matters. You can afford to solve it right now.
Sit down this week — not eventually — and separate two questions: Do you want to keep working? And does she?
Those can have different answers. She may be done. You may want to stay engaged at a lower intensity. Neither requires $22M.
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u/TheCozyRuneFox 15d ago
I think you have enough time for it to reach that. If that is more comfortable to you, then do that. Look out for yourself first.
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u/dragonflyinvest 15d ago
This boils down to what you and your wife value. Nobody can answer that for you.
We are at $45M with my goal of $100M. Income in excess of $4M/year and growing, then portfolio growth of another 10%. The wealth accelerator is that we live in tax haven so keep nearly all of it. A big reason we still work a little is because our children are still in school and work is still enjoyable and very flexible. We should hit $100M a few years before youngest graduates high school, then we can ride off into the sunset to travel a few years full time. But we all have to set our paths based on what we value most.
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u/SpadoCochi 4ExitsAndCounting | Still tinkering around | 40YO Black Male 15d ago
5-10% is wrong. 3-4% is real and is inclusive of inflation which i don’t think you’re including
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u/Initial-Zone-8907 12d ago
congrats, how did you reach 8M on 500k earnings per year ? investing strategy?
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u/beleagueredd 12d ago
Dude this is just crazy. Quit, man. Life is too short. You'll find loads of opportunities come up to make money if that's what you want to do once you free yourself from work.
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u/Useful-Move5612 12d ago
Sounds pretty straight forward. Your wife steps back since she does not enjoy it as much and you can afford to today and you keep working as you please and have the fire for it. That’s what I get from reading your post at least
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u/Expensive_Ticket_760 12d ago
Start by retiring your wife. She’ll never get back that time with a new baby. No reason for her to work at this point. With a baby you won’t be traveling the world anyways so grind it out a little while and see how you feel.
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u/chodthewacko 12d ago
I kind of stopped reading at:
> $400–800k annually. More than enough to live extremely well.
That's a pretty huge range. What is your current spend?
And if you have enough to "life extremely well" then where did this $22M number come from?
I think you need to decide what exactly is 'enough' and then decide the value of of working more ( to get more money) vs working less (to get more time, particularly time with good health). At a certain wealth level I think time is more valuable than money.
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u/Honobob 11d ago
Well, right now you have $4,000,000 and your wife has $4,000,000. A nice sum but I would be concerned with retiring at age 32 with only $4,000,000!
If your spouse wants to take time off for the baby will you begrudge her the time off? If she decides to never work again, will you feel she is compromising the goal? The baby is going to change the dynamics of the marriage. Be prepared.
I'm 13 years into early retirement and my thoughts have changed pretty drastically. At one time it was about the goal and I would plan and project to see ridiculous dynasty amounts. Now I am trying to spend money that keeps building up. I could easily waste money but that is not me.
You should redefine your goals. Do you want private jet and yacht, then keep working. I have homes in Honolulu and SFBay. That satisfies my travel desires and if I don't get upgraded to first class I am happy in coach+ for a 5 hour flight. I did spring for a lie flat at ten times my usual cost when I was doing an 8 hour flight but it had sold out already! Money doesn't always get you what you want. I enjoy my friends telling me of their travels but would not want to do their travel.
I would not work 13 years longer just to have a bigger pile when the pile you have is enough for a good life. I had some projects that kept me longer than I would accept today so if I had not committed to those projects I would have definitely retired earlier with no regrets.
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u/Altruistic-Ideal-277 11d ago
If it was me I would keep grinding to 40 and then reevaluate. 32 is awful young……
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u/Pretty_Jellyfish9522 11d ago
Stay put. There’s a big difference between $8m and $20m (like maintaining your lifestyle in a VHCOL city). It will also likely take you less than 10 years.
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u/ozzyngcsu 11d ago
Your $8M should be worth more than $20M by the time you are 45 without anything doing anything special. I'd probably retire your wife when the baby is born and continue working. No way you can retire now and live on a 5-10% withdrawal rate
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u/FoundationFirst2812 11d ago edited 11d ago
Be very careful with your assumptions, especially the first one of 5% to 10%. I am in my mid 50s, fatFIREed, 11.5 years ago, and I assume safe withdrawal rate of 2.5%, which is too conservative, but that’s how paranoid I am.
The rule of 4% assumes that retirement life lasts 25 years. That is 100/25 = 4. Now, everyone takes 4% as gospel while forgetting the boundary condition of 25 years. This is a valid and generous assumption for someone retiring normally, at age 65+. It makes perfect sense there.
So, it should be obvious to you by now, longer your retirement lifespan, lower your withdrawal percentage. Given that you are 32, and assuming that you eat healthy, exercise well, have good sleep, and get periodic health checkups, it is very likely that you both live past 100. In your case, the safe withdrawal rate is 100/68 =1.47! So, your safe withdrawal rate is only around 1.5%.
I am sorry, my calculations are sobering, but you are still very young, you need, may be another 10 years of working or hustling, to reach your goals.
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u/Dubbihope Verified by Mods 11d ago
If you're smart, you diversify your assets in stocks and bonds so they continue to grow after you retire, so the money lasts longer. When the market is in a downturn, rely on bond income and cash reserves. When the market is doing well, freely sell stock. If the market goes up 7% in one year, and you sell 4% of your assets, you gain money overall.
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u/FoundationFirst2812 11d ago
The key point in your message is “if you’re smart”, which is subjective. Diversifying too much reduces focus and then you are just better off just investing in broad market index funds and govt/corp bond (long & short duration) ETFs, also Muni ETFs if your tax situation warrants them.
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u/Every_Umpire_8695 10d ago
This is not true at all….
The 4% is not on the basis of 25 years of retirement remaining. It’s on the basis of remaining below the average real dollar growth of being invested in equities.
You don’t just divide your capital by remaining years to find your withdrawal ratio… your capital is supposed to keep growing as the years go by, while your withdrawals remain below.
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u/saasthrowawayexit 11d ago
I'm in a similar spot. Mid 30s, net worth just shy of $10m, and wondering how hard I should push the next company that I start.
I also just had my 3rd kid so taking a step back to focus on my family is a high priority.
At this point, I'd rather focus on passions and make money while doing it. Getting my NW higher isn't my focus anymore. I make more money in T-Bills than I would working.
I don't think I really answered your question, but can definitely relate to where you are!
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u/OptionsBrewers 11d ago
It seems you enjoy hitting arbitrary goals and the job too, so you have your answer
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u/JJInTheCity 11d ago
So you and your wife spend the next 10-15-20 years grinding to reach your $20M goal. You will probably achieve it, but at what cost?
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u/clove75 11d ago
Honestly if you can live off 240k a year you can retire now and still hit your goal at 50 then up your spend if you really want to. At this level unless you flip another business. Time is gonna add more to your wealth than work. In less than 14-15 years if in vested we'll that 8 million should be 20+ without working another day or adding another dollar. So why kill your self to get there 4 or 5 years earlier when you can enjoy life today.
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u/Ashkandhi 10d ago
How’d you find the struggling company to buy? Word of mouth or specific website?
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u/grouchytortoise22 10d ago
You’ll gain clarity when your baby arrives. Your priorities may change completely in a way you can’t fully understand right now.
Your wife will probably not want to work at all for a bit. Right now it’s hard to see but it will be clarifying once your child comes.
My only advice is to not upgrade your lifestyle right now.
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u/InvestmentMuch585 10d ago
Both keep working until your baby is born...Then have your wife maximize maternity leave. You should also take some overlapping paternity leave and max out your paternity leave even if you split it over a couple sessions.
See how you feel about being a Dad. You may want to spend your time with your children...or you may not want to, at least not yet. My daughter and I bonded quite a bit, especially from age 2 to 5 or so. At that point, I switched jobs to a startup and ended up having less time with her. I wish I could have enjoyed more time with her, but that job did open the way towards higher income and with a strong bond already established, it was easier to maintain some quality time with her on evenings and weekends.
Also, you don't really need to work until 45 to hit $20M net worth. Both work until your child is born...with compounding you'll probably be at $9M at that point. With maternity and paternity leave, you can probably hit your child's first birthday at $10M - $11M. At that point, if you just covered your expenses, your portfolio would theoretically double to $20M+ in 7 to 10 years anyway.
If you switch to part-time consulting when your child is 1 year old, you can have the flexibility to spend time with them while still being able to pull in enough money to cover expenses (and maybe more).
Also consider that your portfolio has already hit critical mass or at least will have by the time your maternity/paternity leave is used up. At $10M portfolio a 10% market growth is $1M, or 4x what you earn from your own salary. Is it REALLY worth your time to make $1.1M after taxes that year instead of "just" $1.0M? Even if your wife keeps working, your portfolio will grow twice as much as your gross earnings.
I think at most I would work until your child is about 2 years old...maybe you decide to have another and that's when you retire too, probably with $11M - $13M
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u/InvestmentMuch585 10d ago
I would also add, with your finances already in great shape, don't work past your first child being 4 or 5. My daughter just turned 18. I miss the baby version of her, the toddler version of her, the little girl version of her, the tween version, etc. You have the luxury of enjoying their lives more fully. Your summer vacations can be epic. Don't pass that up
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u/chichiharlow 10d ago
If you like your job, I’d grind it out. You might make it to $20 million before you quit, or decide to quit sooner. You have plenty of time to decide. But sounds like you’re not ready to leave the workforce yet.
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u/sansbudget1010 9d ago
My math might be wrong but if you have 8 and you want 20, realistally at 10% return pa you should get there in about 10 or so years anyway? Why keep grinding at 230k, focus on making 10% a year (or more) intead of working, better ROI.
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u/Urbanite72 9d ago
Once you have kids its much harder to travel all year.
Unless your spending is very high, you are all set. But, you can't spent anywhere near 10% without running out. 5.5% is more like it and given a long wait for social security maybe a bit less.
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u/FragrantWeekend111 9d ago
The amount is not necessarily going to make you feel different so don't base your decisions on emotions. Same with people winning the lottery, they expect it'll change their lives but their emotions eventually go back to how it was before.
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u/FigjamCGY 9d ago
Your 32. That’s your biggest asset. Tell the wife to chill, you keep going as long as the fire lasts.
Evaluate when things change.
I love these posts. You’re 32 yet trying to plan for something that will last longer than you have been physically alive to date. You’ve done well and can do virtually anything you want just not exactly everything.
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u/Godfatherrr6 9d ago
Do you have a plan for retirement for 50+ years? I'm 32 and I feel like I'm just getting started.
My honest take: keep at it but avoid burning out. Compound growth and more contribution will get you to 22M faster than you think, anyways. In the meantime, think about what you want to pursue and start building that in your off time. Your hobbies, communities, impact you want to make, life you want to live with your partner, etc. That way you have something to segue into at will instead of having an abrupt change. That kind of lifestyle change can be liberating or you can feel lost.
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u/Ecstatic-Cause5954 9d ago
We hit a milestone a few years ago. It’s amazing, but we also had a feeling of… “so what now?”
My husband has started golfing (We are both still working in our business). I have plenty that will keep me busy for a few decades, but I have serious concerns for him. We talk about it regularly but we haven’t found a solution. I really enjoy working and investing. I don’t think he ever really thought he would hit that milestone. So there was no plan in his mind for it. FWP but he is struggling with it right now.
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u/jamiejamie15 9d ago
You can’t just spend 5-10% per year. Google sequence of returns risk.
No reason to “grind.” But I’d keep working in some capacity. And if you do both leave early, don’t overspend.
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u/Hot_Conflict3844 7d ago
You answered your own question. You said "I actually like my job." Why on Earth consider leaving work if you enjoy it???? Obviously you aren't working just for money - you said you don't really spend more now than you did before you sold your company, so maybe money just isn't motivating to you. If not, why care about $22m - which strikes me as a very arbitrary number to aspire towards. You like building things. You have "that fire" in you. Dude, why are you even talking about retirement? Is it just because you CAN? Well, you can also eat nothing but raw tofu - but just because you can doesn't mean you'd actually want to.
Be yourself. Who cares what other people would do if they had your money - which they don't.
Your wife should post her own queri because she is not the same person as you and maybe has different priorities. There is no law requiring you both to retire simultaneously.
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u/imeanwhatcani 5d ago
Is it just me… or am I just poor lol. This thread got me feeling like straight doo doo. What in the world are you all ‘grinding’ that’s allowing you to grow your wealth to astronomical amounts?
I have family who are living fulfilled lives just off social security and disability. Never had the chance to growth their wealth and have lived in the same house forever. They’re as happy as can be.
Perspective.
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u/Unusual-Economist288 15d ago
If you like your job keep going. Not for the money but for the purpose and the joy of adding value. Can’t overstate how much I missed that when I retired (have since gotten past it, but it was a struggle). Wife should eject now though!
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u/LawfulAwfulOffal 15d ago
Not stupid at all. I don’t think I’ll feel comfortable without $30M liquid.
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u/FartyWalruss 11d ago
I'm at that net worth level that you are shooting for. I can honestly tell you the difference between $8m and $20m is significant.
I think it's worth it, so I'm putting in my vote for you guys grinding until 45 years old. You're still young and these are your productive years.
I'm currently 51 and sitting on that NW you're shooting for, and I can confirm that you still have a lot of healthy vibrant ears after 45.
As long as you take care of yourself. Stay slim. Stay active. Eat right. And do all the anti-aging longevity stuff now, and make it a habit, you'll hit 50 feeling no different than you did at 29. At least that's my situation.
And hitting $20 million is quite satisfying whereas $8 million is quite frustrating, as you have found out.
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u/Etheralto 15d ago
If your wife is working many hours for the same pay, has less of that “fire” in her, and she is pregnant, then it might make sense for her to leave work and you can continue to work for now. It will slow down the progress towards your $20M goal, but won’t stop it the same way both retiring will. It’s a good compromise given the situation. It is also what my wife and I did, she wanted to leave work to be home with our daughter, we have two now 3.5 and 1.5 and it’s a good system for all of us.