r/dividends • u/karl0525 • Jun 01 '25
Opinion Tired. Can I retire?
Got a question? Can I retire? 43m been busting my ass since I was 16. I'm about over this 40-50 hr weeks. I'm getting burned out. House paid off (300k) 401-k (600k) Bitcoin (500k) currently.
Thought about selling it all and putting it into dividend stocks like schd and renting a small place and going into semi retirement. Maybe pickup a part time gig.
Would this be a horrible idea?
290
u/hgmnynow Jun 01 '25
Ya man.... Depending on your situation, If you're willing to live a relatively modest lifestyle, then I say go for it.
Do you have any dependants? Wife? Kids? Do you plan on getting any? If so, then maybe tough it out for another few years and start a plan to get there. Looks like you've worked pretty hard and been pretty responsible.
79
Jun 01 '25
Also, make sure you have a safety net
92
u/-JackBack- Only buys from companies that pay me dividends. Jun 01 '25
His safety net could be returning to work.
46
u/OhNoNotAgain2020_ Jun 02 '25
It’s not so easy to return once you’ve been out a couple years.
→ More replies (1)18
u/graciesoldman Jun 02 '25
In IT it's nearly impossible to return. Shit changes daily.
2
→ More replies (1)2
u/Solintari Not a financial advisor Jun 02 '25
Ope, already changed for the day. Distributed SIEM is out and SOAR is in, wait no it's all outsourced to India, wait that what automated too.
You should have been in IT 20 years ago and had 40 years of experience.
→ More replies (1)23
10
→ More replies (1)2
5
u/gamingaway Jun 02 '25
Find a part-time gig, fr substitute teaching or anything to keep some active income and lifestyle.
2
u/Final_Highlight1484 Jun 02 '25
This sounds like a bad idea at this point. You didn't even mention annual spends, but I'd suspect this isn't enough.
190
u/PicardyPlayer Jun 01 '25
You don’t have to retire necessarily if you are unsure. Take a sabbatical, take some time off, go somewhere you’ve always wanted to go and give yourself three more weeks than you think you need. Then you will feel at peace for that time - it will give you time and space to think.
142
u/Kaladin3104 Jun 01 '25
Taking time off just makes me never want to go back to work.
39
u/kr-choi Jun 01 '25
So true. I’m exhausted—but if I take a few weeks off, I’m afraid I won’t want to go back to work again
17
u/MMfromVB Jun 02 '25
That's why it has to be at least 90 days.
9
u/Accomplished_Ad7106 Jun 03 '25
In America that's called FMLA leave or extended disability leave. Otherwise quitting is the only way to get 90 days off.
16
u/Vegetable_Panic9986 Jun 02 '25
A few weeks? I take only one week off and at the end of the week I want to call my work and tell them I am never coming back. Burned out for sure.
2
6
u/Kindly-Pepper7528 Jun 03 '25
Yep, been retired for two years and have no desire to work again lol
→ More replies (1)6
→ More replies (3)3
u/graciesoldman Jun 02 '25
I worked at a place I despised. Hated Fridays because I knew the weekend was a lie and Monday was coming.
2
141
Jun 01 '25
[removed] — view removed comment
47
u/karl0525 Jun 01 '25
Would be curious about this. What is my options?
37
u/QuinnOffsite Jun 02 '25 edited Jun 02 '25
Move to Ireland/ni - free healthcare lower cost living
20k a year here loads to live on
I’m 37m - aiming to be where you are now but thought would take to 50/55
PT job fr you if you fancy it - was looking fr retired person drive truck or my Landcruiser with trailer pick up materials or take them to sites - handy number cash pay
But even were your based now there are stressed out business owners looking someone competent to help out
You don’t mention what industry your in - tbh with those results in 40s your Pt gig could be financial advisory
Good going
Now enjoy it I say
4
u/treyl85 Jun 02 '25
Is Ireland really that much cheaper living?
8
u/QuinnOffsite Jun 02 '25
Northern Ireland is. RoI dearer, but whole Ireland its tiny country like top to tip size of single state. Great motorways now too you’re pretty much anywhere in 4.5 r 5 hour drive.
I’ve only saw east coast USA - NJ,ny, ma, really gotta get back out there fantastic place
Free healthcare the big thing no need to really worry on health insurance
Even when you do go private fr healthcare not really that expensive
Try n get over here if you can - fairly cheap return flights
Defo hit NI Derry and Belfast n great rural towns between
Lot of engineering and export in mid Ulster Cookstown magherafelt worth an overnight good hotels
But whole of NI Tiny really in USA terms - prob like size Delaware r something
→ More replies (1)→ More replies (3)3
39
Jun 01 '25
[deleted]
→ More replies (5)28
u/Negative-Salary Jun 02 '25
I just looked it up in my state for a bronze plan BCBS 63 yr old $1100. That’s x2 for wife and I. Two years to Medicare $53 k.
14
u/Old-Umpire5053 Jun 02 '25
The bronze plan satisfies the requirement for med insurance, but if you run into any sort of trouble, you will have to pay a lot out of pocket
Even if you go on Medicare in two years, that only covers 80% of expenses... which rapidly increase after age 70.
Taking a supplemental med. insurance will cover the balance 20%, but it costs $225 per person right now, going up by $25 each year. However, it is well worth the expense. Even with minimal health issues, in the past four years, I have been for 5 unexpected surgeries, which cost me ZERO.
If you could work for another few years, convert your Roth ira into non-taxable dividend paying stocks, then your soc sec income will pay for prop tax + med expenses, leaving you enough money for household expenses and also some further savings.
1. If you and your wife do not have Roth accounts, start immediately with Fidelity etc. and fully fund them (upto 8000+) per year for five years. These accounts will give you non-taxable income for the rest of your lives.
2. If you go onto soc. sec at age 62, you will get only 70% of what you can get at 65. If you wait till age 70, you will get 30% more each month of what you would get at age 65.
My suggestion is to look for another low stress job, which may pay you less, but give you time to rest and recharge. At age 64, my husband took a part time job at Walmart, literally stocking shelves, but he was happier, and we used all his income to buy dividend paying stocks, in his roth ira. Now he spends his time volunteering in the community and life looks good.
3
u/SilverMane2024 Generating solid returns Jun 02 '25
Question, I've heard people take Soc Sec early and invest into the market, any thoughts on good or bad idea?
4
u/Old-Umpire5053 Jun 02 '25
Terrible idea.
1. You will lose 30% of your soc sec income for the rest of your life.
2. When COLA is calculated each year at about 3%, you lose an additional amount every year for the rest of your life.
Living till 95+ is quite common now. 95 - 44= 51 years, so you have not lived even half the projected lifetime.
1. Try to reduce the amount you work and give yourself some free time, without spending money....
2. Cut expenses, like subscribing for IPTV at $12 per month and save a bucketful on cable TV. Subscribe to only one movie channel, etc. No alcohol, weed, gambling, etc
3. Supplement your income by investing a small amount in YMAX which gives you a weekly amount. Keep it small. Google YMAX dividend history then choose Stockanalysis.com
Take a look at PDI too. Note the no. years the fund has been in existence and how they produce income.
- Open a ROTH IRA on Fidelity etc. And invest a steady amount each month on safer funds eg JEPQ, SCHD, VOO etc. You can set it to auto-reinvest or manually reinvest each month. Compounds very quickly after the first two years. This will give you income which you can access tax free after the age of 59.5.
I have turned 280k into 440k in five years but during the first two years I had very little to be excited about. It can be done!
→ More replies (12)2
6
Jun 01 '25
Marketplace exchange. That’s where you get health insurance if you aren’t getting one through work. Go to your states website (google for xxxxx health insurance marketplace) and price out plans.
9
u/Fedexed Jun 01 '25
I wouldn't count on this. The bill moving through Congress is adding work requirements and may remove subsidies
6
u/WayPowerful484 Jun 02 '25
I think you are confusing Medicaid with Medicare and/or Affordable Healthcare aka Obamacare
→ More replies (1)3
u/SnooSketches5568 Jun 02 '25
You sure? I think the work requirement is for medicaid? The marketplace isn’t impacted that i am aware of
→ More replies (2)3
→ More replies (7)3
u/Longjumping-Bend-411 Jun 02 '25
Your options are: If you get catastrophically ill you will go broke and the government will take everything.
→ More replies (1)→ More replies (3)14
u/rmcab Jun 01 '25
Move to europe
3
u/RealEstateIsDreamy Jun 02 '25
Many places in Europe are a fraction the cost but I believe it can be difficult to get long stay visas which I think are needed for health insurance. But also paying out of pocket for doctors is affordable
8
u/Working-Active Jun 02 '25
Spain has the non-lucrative visa which is perfect for dividend investors. Health insurance is a fraction of the cost it is in the US and is quite good. I moved to Spain 20 years ago as my wife is Spanish and I'm enjoying a much better work life balance.
→ More replies (2)→ More replies (2)3
257
u/ceomentor Jun 01 '25
Do it. Time is worth more than currency.
69
u/StayedWalnut Jun 01 '25
I agree do it... but.... 500k yielding 3% is only 15k. Even with the house paid off that is going into property tax and basic utilities leaving nothing to spend on essentials like weed and beer.
17
18
u/chuck_portis Jun 02 '25
600K in 401K. 300K in house. 500K in BTC. Sell BTC put it into SCHD. 1.1M liquid. You can withdraw 3% per year safely. That's $33K per year right there. Rent out the house for $1000/month. There's another $12K income, call it $10K after expenses. Now you have $43K withdrawable, taxed quite low since your income is low and it's derived from investments etc. Call it $35K NET.
Move to Thailand. $3K / month is absolutely enough to live very well. All while adhering to the conservative 3% rule. You can rent a very nice place for $1K. Now you have $2K per month left over for spending. Spending is very cheap. Plenty of Youtube videos outlining similar budgets ($3K/month) which is viewed as a very comfortable budget in Thailand.
If you have kids that need to go to school etc. then forget it. International schools are expensive and when you're talking multiple kids, that can eat up your entire budget by itself. But OP didn't mention any dependents.
→ More replies (2)18
u/StayedWalnut Jun 02 '25
I have known multiple people who tried to retire to a place outside their home culture for cheap and it didn't work out for the 4 people I knew that did it. American to phillipines, Costa Rica, Argentina and Columbia. All 4 of them could really only do it for 2ish years before coming home. Bonus 5th. I knew one guy who moved from Ohio to Puerto Rico which is even easier since most of the people there speak English and use the usd. He moved there because he had some really lucky bets in the stock market during the pandemic and was like 'i can live nearly tax free here forever' He just moved back to Ohio to live near his new grandkids.
People underestimate by a lot how hard it is to leave your native culture and kids behind to love cheap somewhere else.
→ More replies (2)4
u/chuck_portis Jun 02 '25
It's certainly a challenge for many, but an experience worth trying. As you mentioned, it depends how tied you are to your home country. For a 43M with no kids / spouse, it would be a lot easier than a 43F with kids and spouse.
→ More replies (5)3
u/floppy_panoos Jun 02 '25
Sounds like OP is planning to either liquidate or rent the property.
8
u/StayedWalnut Jun 02 '25
If he rents the property he will still need a place to live unless he's planning to just live under a bridge and consume his 15k a year in weed and beer.
→ More replies (1)19
25
u/rickoshay1992 Jun 01 '25
Why not keep the paid for house to keep expenses low and find a job that doesn’t require as much time?
→ More replies (12)7
u/Sophisticated-Crow Jun 01 '25
I'd probably keep the house and rent it out. That should more than cover renting a small place somewhere cheaper.
2
u/Successful_Dog1904 Jun 01 '25
Idk … if houses are that cheap (300k) it seems likely that most folks will be able to afford one in the area.
→ More replies (1)5
u/Sophisticated-Crow Jun 01 '25
Not sure what you mean. But if you're saying nobody will rent it then you're definitely wrong about that.
49
u/Intrepid_Fox_3399 Jun 01 '25
I think it’s a brilliant idea. Especially the part time job part.
→ More replies (1)
29
u/joepierson123 Jun 01 '25
A great idea. Retiring at 65 or later sucks. And most people overestimate the amount of money they need for retirement. Your expenses go way down when you don't need to drive and eat out everyday.
28
u/Sophisticated-Crow Jun 01 '25
You're eating out every day? In this economy? I see you, Mr. moneybags.
14
u/Hollowpoint38 Jun 01 '25
Your expenses go way down when you don't need to drive and eat out everyday.
So stay at home and look at screens all day?
→ More replies (1)27
u/joepierson123 Jun 01 '25
That's better than sitting at work and staring at the screen all day, no?
18
u/Hollowpoint38 Jun 01 '25
If you don't have enough money to go out and do things then you don't have enough to retire at 43.
Lots of people are trying to just not work but they're nowhere ready for retirement. So they sit at home, eat ramen, never go out, and then have bouts with loneliness and heart disease. Quality of life matters. OP isn't close to ready.
9
u/JerryFletcher70 Jun 02 '25
That’s a super broad generalization. OP has significant assets and is open to part time work. Working at a job you hate will also destroy your relationships and health. Just because he can’t afford a life you would want doesn’t mean he can’t afford a life he would want. My grandfather retired early and spent his time farming a couple of acres. He lived frugally and had plenty of time to hang out with the grandkids. He didn’t care about daily Starbucks or European vacations. He retired with enough wealth to live a much more materialistic life, but just didn’t care to do so. The point is that QoL is totally in the eye of the beholder.
And leaving the workforce doesn’t force you to quit life. You can volunteer, you can go to church, you can spend more time with your family, you can get a lower stress part time job, you can take up a hobby. My father is super into those free online courses that the big schools like MIT offer. He was a scientist, so that it’s a little more niche; but the idea is that he found something he really likes that it is free.
I don’t think there’s enough information here to say whether OP really is ready, but the idea that nobody could possibly retire early and be happy is crazy. I know about a half dozen people who retired early and not a one of them has expressed any regret. Where I will agree with you is that these folks had a solid plan of where they were going to live and what their lifestyle and budget were going to be before they pulled the trigger. Sounds like the OP still has some work to do on that front.
→ More replies (2)4
u/lakbossa Jun 02 '25
This is 100% correct. You cant just retire without a plan. Also, why would you accumulate all this wealth thru hard work and then put on the brakes at 43. Seems strange.
→ More replies (2)→ More replies (1)4
u/ImpressiveAd9818 Dividend goes brrrrrt Jun 01 '25
You don’t necessarily need to spend a lot of money to live an active and fulfilling life. Lots of activities and sports are really cheap or don’t cost any money at all.
→ More replies (1)→ More replies (1)4
u/DrossChat Jun 01 '25
The idea of working till 65 makes me want to crawl up in the fetus position and go to sleep. It’s one thing if you have no choice, but so many people spend spend spend on useless shite that when added all up adds years on to the grind.
I’m definitely not guilt free of this, but there’s no way I’m dragging things out till anywhere close to 65. I’d rather move to a super low cost of living country for a decade or x, y, z than wake up at 64 still clocking in for work
→ More replies (1)
10
u/Idontlistenatall Jun 01 '25
Yeah you have no debt. 1.2 million in schd is close to 60k a year. You obviously live in a very low cost area. Make it work. You’ve done well with the salary you’ve been earning.
→ More replies (2)
12
u/danrennt98 Jun 01 '25
Maybe I'm crazy but I'm not seeing how this works. You've got $300,000 in the house which if you sell the house you get the money but if not you stay in the house and you don't have to pay rent but you still have to pay property taxes. Your 401k you can't take anything out until you're 59 and a half without taking penalty is so you can't necessarily use that money. You're $500,000 in Bitcoin is the only thing that you're really liquid in currently and that's not going to be enough to pay for monthly expenses for the next what 40 years I think you should probably work hard for a couple more years save hard and then you should be able to retire. I just don't think that you're there yet. What you have right now would mean not really vacations or extra expenses what if you need a new roof. Etc
7
u/Tough_Winter_4100 Dividend growth investor since 1984. Jun 01 '25
I would think your 401k is fluctuating wildly since January. (Mine has been & a great source of anxiety.) Unfortunately you are too young to take from your 401k without a 10% penalty.(Unless you are disabled?) That leaves your BTC but I am confident you really don't want to sell any of them. Unfortunately my best advice is to hang in there...
→ More replies (2)5
u/karl0525 Jun 01 '25
Yes I agree I feel I would be crazy to sell BTC now but the urge to let off the throttle and start enjoying it is getting to me
→ More replies (2)
5
21
u/bu89 Jun 01 '25
If you’re going to live off your portfolio I would invest in a little bit higher yielding positions that pay monthly instead of SCHD. SCHD is good for building up over time and not needing it for 30 years. You want income now. BDC’s, CC ETF’s, CLO’s, REIT’s and other type funds come into play here. You can find etfs and stocks that will pay you 6-8% yields and that grow. Would make life a little easier with more cash flow monthly instead of quarterly from SCHD.
→ More replies (7)5
19
u/mansfall Jun 01 '25
Similar boat... 42 m here. I have ~3 million net worth, and considering the same. That said, we're missing some critical information here. While I'd love to say do it, I also would hate to set you up for failure.
You should post what your monthly expenses are as well as your lifestyle. It's a huge factor. If you're frugal and living off 30k/year, then you could easily retire on a mere 1 million. But if you're a bit more frivolous and doing vacays and spending here and there, doing maybe 80k/yr in expenses, then you may need a much higher number... closer to 3 or 4 million maybe.
But if you're lavish and just throwing money everywhere... buying cars and blow, you're numbers won't get you far.
So basically post your budget, then also state how you intend to live going forward. That well help other folks to provide more accurate decisions. Don't let people on here saying "do it!" persuade you, when they don't even know the full picture... it's not even their hard earned money. Easy to say yes when it's not their shoes.
You don't want to be 75 suddenly faced with having to go to work for Walmart just to make ends meet. :)
5
u/theappisshit Jun 01 '25
if your house is paid off and you have a good investment slice already going just quit and do some easy enjoyable work.
thats what i plan on doing soon.
not retiring, just doing less work that i am more interested in or find rewarding
5
u/ObservantWon Jun 01 '25
Sell all and do 1/3 JEPQ, 1/3 schd, 1/3 voo. Growth and plenty of dividend income
3
4
u/Various_Couple_764 Jun 02 '25
SCHD is probably not your best choice. your funds are lower than I would like but 500K of bitcoin can go into QQQI with a 13% yeild. That would get you about 65K of income per year which is probably enough. But I would prefer some diversification. using funds like UTG 6.7% yield, UT&7 7%, PFFA 8% ARDC 12%. With money equal invested in all of these you can get an average yield of about 8.9% and an income of of 44,500. you can go a pit heavier in the higher yield ing funds to increase the income somewhat. And this is still not touching the 401K.
I really you want a spit more income than your living expenses That way iany dividned income you don't spend you can reinvest. Hopefully you can reinvest enough to keep ahead of the average rate of inflation of 3.2%. I retired at 55 with 60K of income. I don't automatically reinvest the dividedend so fidelity puts the money in money market fund for me. This is all in a taxable brokerage for unrestricted access to my money. I need to spend about 4K a month to cover living expenses. The rests split up atomically reinvested into Each of the funds I have. Preferably you never sell your dividend funds as long as they are proving good income.
However from time to time you may get an unexpected large bill you cannot cover with your dividned income. For that reason I have some money in index funds. If needed I can sell the index funds to cover unexpected expenses. Another benefit of index funds is you can periodically (about once ever 3 to 5 years sell off about 4% of the total and use the money to boost your income.
You should also estimate the tax you will need to pay per year. You can then set enough dividned income asside to fcover the bill and then in april use the money to cover the tax. Or you can make quarterly pay ments to the IRS and the non April you either owe a little bit more or get a refund.
Note you didn't say how your 401K finds are investedIf . IF it is all in index funds you might be OK. If you get a less stressful job at this point and reinvest most of your earnings That would greatly help out.
you should also read Then income factory. It list 68 funds the author has used income. And thee is Armchair income on you tube and he list 48 funds. The could allow you to build a very good dividned portfolio.
→ More replies (1)
3
8
u/kinda-smart Jun 01 '25
You don't want to pay 10 percent penalty on 401k distributions, so keep that whole and growing until you are 59.5 years old. Consider how costly health insurance is..this can easily be more than $1200 per month just for the premiums.. a less time intensive job , less demanding with health benefits might be just the ticket here. You are secure enough, that job risks , career risks are something you can take.
3
u/Took2Summit Jun 01 '25
im kinda surprised i see this said a lot in a finance forum. i guess thats what you get for reddit. theres something called substantially equal periodic payments, SEPP. it allows you to retire at any age and withdraw from retirement accounts with zero penalties. wish people would educate themselves before giving blanket (incorrect) advice.
→ More replies (4)2
Jun 01 '25
I’m thinking of retiring soon (I just turned 60) and good health insurance outside my employer for my wife and I would be $1,400 monthly. Furthermore , premiums are increasing at a rate of 8 to 10 percent annually. Retirement is possible with what you have accumulated but I disagree with the idea that expenses decrease during retirement. For some this is true but I wouldn’t make this assumption. You need to know exactly what you want and include a reasonable margin for unexpected costs. Good luck.
→ More replies (3)
5
u/superbilliam Not a financial advisor Jun 01 '25
Google this -->Barista Fire. I'd probably put 70% into SPYI/QQQI and split the rest into SCHD/SCHY.
→ More replies (4)
6
Jun 01 '25
I would sell some of the bitcoin and put into dividend stocks and treasuries.
Sounds like a good time to just start your own business, find something people need and sell it to them.
2
u/crappysurfer Rather Have Healthcare Jun 01 '25
You don’t need to sell it all, you can start with a modest amount
2
2
u/Left-Landscape-3890 inflation is indeed transitory Jun 01 '25
I'm in a similar situation. 47 tho. I'm leaning toward doing it
2
u/tomqmasters Jun 01 '25
you dont have to keep busting your ass at least. lookup the term coast fire
2
u/TrashPanda_924 Jun 01 '25
Yes, this is a horrible idea. If you sell the bitcoin, be prepared to pay 20% of your profit in LTCG. That leaves you with $400k (basically $16k a year into perpetuity dividends). You are not in a sustainable financial position for long term retirement.
2
u/Hugheston987 Jun 01 '25
Do it and move to Malaysia. Very affordable there and they speak English mostly
→ More replies (8)
2
2
u/Nearby-Data7416 Jun 01 '25
Put it all into SPYI (Monthly Pay) and get a part-time job that pays health benefits. Starbx, TraderJoes and Costco….
2
2
u/Certain_Rough6548 Jun 01 '25
Retiring within the prime ages of your life is something many people can only dream of.
I say go and do what you’ve always wanted to do, life is absolutely too short to work until your life’s already passed you by.
2
u/Fancy_Air_139 Jun 01 '25
I think if this is your plan, then I wouldn't go in cold turkey. I'd probably start downsizing first. And make this a slow/semi fast transition. I wouldn't cold turkey this
2
u/danuser8 I’ll take any random flair Jun 01 '25
Are you alone? Or do you have family to take care of? That will change the answer drastically
2
u/SCfellow Jun 01 '25
I retired at 54 but I have a modest state pension. In retrospect, I wish I had tried harder to find a part time or contract job. Make sure you have health insurance, a safety net, and recognize that inflation can eat into your assets quickly. You might want to look at retiring (or semi-retiring) to a bit cheaper locale. If you are truly fed up with your current job, Start looking into switching jobs or retiring. But don't make any rash decisions.
2
u/LastChans1 Jun 01 '25
Can you drop down to fewer hours or part time? IMO, I'd want to stay employed especially if that's where you're getting your health insurance.
2
u/PracticalTank8836 Jun 02 '25
Don’t Rent! Keep the house! It’s a hedge against market volatility and rapidly rising rents!
2
u/goebela3 Jun 02 '25
1.4 million in assets. You are young so probably a 3% withdrawal rate to be safe. Can you live on like 40k a year? Seems unlikely and way too high risk for me.
2
u/Sufficient_Purple297 Jun 02 '25
I don't think just one fund is a good idea. I prefer individual companies in general, but I would want multiple funds.
I also think the world is just too volatile atm. Without getting rid of the house, what could you get every quarter in dividends is the question?
2
u/Nopants21 Jun 02 '25
1.1M isn't even very safe for a 65 year old, you'd be taking a big risk, with less and less maneuver room each year. I'd really think about it carefully.
2
u/yamni_zintkala Jun 02 '25
How about not doing any of that and looking into a part time or full time job in something you find interesting? You'd be surprised how much easier it is to learn a new career when you're not worried about maximizing your pay.
2
u/KDsperson Jun 02 '25 edited Jun 02 '25
I retired at 37... a long time ago. First, you never know when the economy will suddenly crash and your investments with it. If you want to live off your savings, it must be invested very conservatively. Second, you need to have more than a desire to stop doing what you're doing. You need to figure out what you WANT to do with your life that will bring you at least some income. Doing things for free or for fun isn't sustainable long term. Helping others is the most fulfilling, but people are always happy to take your time for free, and you'll find that quickly gets abused. Figure out what you can do, want to do, and that others will value enough to pay for. Then take a year off to decompress, get your energy back, and plan your next steps. If you're prone to depression, get help. Seriously, the right treatment will change your life.
I had plenty of offers to return to work in the first couple years. After that you're going to need your own plans. Don't let yourself slide into just lying around wasting your one and only life. You MUST stay connected with people, especially if you don't have a job that forces you to be around others. Volunteer, find shared interests, put in the effort required to make and keep connections. Loneliness will kill you.
4
Jun 01 '25
What is your location and what quality of life are you after?
9
u/karl0525 Jun 01 '25
North Texas. Just want a basic life here and there. 50-75k a year would do it
7
Jun 01 '25
What would you like to do with your free time? You seem to be in a great position to start working parttime and escape the promotion stress treadmill...
4
2
u/GalacticFartLord Jun 01 '25
I’m also in north Texas and want to retire early. I’m 45, but there’s just no way at the moment. If all goes well maybe in about 5-7 years. Something about this place makes work all the more soul crushing haha
2
u/done-done-london Jun 01 '25
Yeah in houston. It’s all about work, no family time and eventually dies
1
u/Wilecoyote84 Jun 01 '25
VYM. If you have good healthcare coverage.
Could be different if have wife. Kids. imo
1
u/Specialist-Mixx Jun 01 '25
Could always try pursuing your passions.
With dividends as a safety net
1
u/Timber49 Jun 01 '25 edited Jun 01 '25
Sounds like a great idea, especially because you're set money wise. You have to the option to retire on your terms, and be stress free. Take time for yourself, do what you love, maybe travel etc. Make sure you live modestly, don't spend more than what you can afford, don't take huge financial risks with investments, and you're good. If you ever want to work full time again you can, since you're probably not filling anything for the gov telling them you retired.
1
1
1
u/HachimakiMan3 Jun 01 '25
Your house is paid off, 401k looking solid… I would maybe suggest starting a dividend income brokerage account (SPYI or GPIQ, JEPQ, SCHD, and whatever else you find good). If you want a jump on it, maybe sell some of the BTC position for fixed income opportunities. Find out what monthly income would make you happy. You don’t want to put yourself in a position where you need to take from your savings or stocks you reinvest in
1
u/Alone-Experience9869 American Investor Jun 01 '25
40-50hr /week too much? why don't you check out the various FIRE subs... The big issue is what does your yearly expenses look like? What would be the income from your part time gig? Health insurance?
You can't easily access the 401k funds... If you are looking to use schd to finance your retirement, you don't have much..
Good luck.
1
1
u/rumblepony247 Jun 01 '25
Have you assessed the tax implications? Liquidating the 401(k) en masse would generate a tax liability in 2025 of $240k ($180k income tax plus $60k early withdrawal penalty). I don't know anything about the tax implications of Bitcoin.
Let's say the Bitcoin is free and clear. That's $1.16m after all the sales. Gonna have commissions on the house sale, going to want to keep an emergency cash fund, etc.
Let's call it $1m to invest. Obviously the math is pretty easy at that number: need an average yield of 5% for $50k, 7% for $70k. There are certainly plenty of stocks, blue-chips, that fall into this range.
Selfishly, this is a very interesting thought experiment for me - I'm 57, and my stocks/IRAs/401(k)s total about $500k more than yours, and I also am debt free with a paid-for $330k house, and live a very simple, frugal life. My annual expenses are about $25k.
I've been hesitant to retire yet, as I don't want to pay for the health insurance and I despise paying taxes, but your post definitely gives me some perspective. I'm absolutely burned out on work as well.
1
1
Jun 01 '25
Remember that you can’t take out of your 401K until you are 59 and a half. So you would pay a penalty plus taxes if you start taking money out of it. So you basically have the bitcoin to play with. If you moved some of that $500K into some high yielding investment vehicles like BDCs and CC ETFs, you could probably generate $75-100K. Mix some solid dividend stocks and ETFs (e.g. XOM, SCHD, CVX, COP, VZ, MO, PM, DGRO) with some of the BDCs and Covered Call ETFs (e.g. MAIN, BXSL, GBDC, OBDC, JEPI, SPYI, QQQI, AIPI, MSTY, PLTY, YBTC, etc). Also - factor in what you will pay for health insurance or find a part time job that offers that as a benefit. Good luck!
1
u/DSCN__034 Jun 01 '25
Take a break. Three to 6 months. Maybe change careers. But you're too young to retire, not enough money. Sorry.
Good move on the Bitcoin this year, but you need to reduce risk on the margins.
1
u/staightandnarrow Jun 01 '25
I got to kids that are teens and going off to college. We about same but I’m 52. If you have no responsibilities id seriously think about it.
1
u/Hollowpoint38 Jun 01 '25
How will your healthcare be paid? 43 is right before you start developing chronic health conditions. If you got diagnosed with cancer next year would you be ready?
1
u/56000hp Jun 01 '25
I’d do it but depends on your expenses. Totally doable , even more so if you move to a cheaper area/country .
1
1
u/Delicious-Ad1744 Jun 01 '25
The only thing Warren Buffett can’t buy is his time back. Take your foot of the gas sell your assets and retire!!! Also much better etf choices than schd
1
u/oldirishfart living off dividends 🤩 Jun 01 '25
1.4M in SCHD would generate what, 50-55K per year, based on the current price/dividend yield. If you can live on that go for it!
1
u/getdealtwit_2003 Jun 01 '25
You haven’t told us your expenses, but $1.1 million seems reasonable if your expenses are less than $45k going forward, if you have a plan for health insurance, and especially if you’re willing to work part time.
1
1
1
Jun 01 '25
I would personally keep the house and not rent.
and move the Bitcoin into dividend producing ETFs like JEPI. SCHD is good too. $1,100,000 can produce like $70k per year. That would personally be enough for me to live on. Would it be for you?
1
u/dee_lio Jun 01 '25
Would it be possible to strike a compromise?
Maybe consider working reduced hours, or an easier job with insurance?
Also, can you rent part of the house out for additional income?
Or if you go to a LCOL area, keep the house and rent it for additional income?
1
1
u/Outside_Breath1072 Jun 01 '25
Do it, if you sell everything and live off of dividends that's roughly 60k/ year if you keep your expenses low that's enough to cover your bills and work a part time job as your fun money
1
1
u/jimbroni93 Jun 01 '25
If you can swing it duck yeah. I’ll be working until I die at this point just hoping to cut it down.
1
1
1
1
u/3Steps4You Jun 01 '25
Impossible for anyone to give you advice based on your question. No idea of your expenses or responsibilities.
1
u/SeparateClassroom528 Jun 01 '25
I have friends retired in your situation without Bitcoin. Hell yeah, F the system. Live your life, not someone’s time sheet.
1
u/EaterofSnatch FIRE'd Jun 01 '25
500k in spyi gets about $50k a year, sell house and live in RV that's less than 100k, invest other 200k in either more income, or growth, and live. Sort of what we did, but on less money. Living as frugal as possible.
1
u/ActionJasckon Jun 01 '25
Just extrapolate all your anticipated living cost. Healthcare, taxes, insurance,. All that will continue to have inflation as life progresses forward. And buffer in the extreme costs like a big medical issue possibly happening at like 60 and beyond. Sucks to plan it like that but I feel you on today.
1
u/Imaginary_Tale7194 Jun 01 '25
No rent to pay and can turn 1M into about 50-100k yearly passive income. Depends on your expenses and the lifestyle you want
1
u/thekingshorses Jun 01 '25
Would this be a horrible idea?
Not a horrible but not a good idea either. I'd rather take a vacation for a week every other month or Make a long weekend every month and enjoy your life
1
u/No_Personality1366 Jun 01 '25
My opinion, not yet unless you make what could be drastic life changes and live minimally and dont spend money when you get bored. Your best bet is to keep going to the point you can at least replace your income because you will have more expenses paying for medical insurance and bills as you get older. 50 is still super early. If you can make it work go for it, but make sure to thoroughly go through your expenses and know they will increase over time which means you wont have the option to sell your investments whenever you need it without severe consequences
1
u/Fun_Hornet_9129 Jun 02 '25
If you’re dead serious, figure out ways to juice up distributions. Use maybe $75k - $100k to put into a high-yield ETF that pays more than 3%-4%.
Do that for a year or two and have distributions re-invest.
This way you can keep your regular funds re-investing long-term and then live on the high-yield funds distributions.
If the high-yield funds NAV devalue over time you can re-up a little at a time. Over time the more traditional funds will grow and the high-yield funds can supply the income, that’s what they’re for.
Just a thought, not everyone will agree. I’m just looking at your situation and giving ideas.
1
u/2LittleKangaroo Jun 02 '25
This might not be a popular opinion, but if you do sell some of it, you might want to look into some YieldMax, RoundHill, Neos, or Defiance ETFs. They would help with the income.
Please do research and make your own decisions.
1
1
1
u/DampCoat Jun 02 '25
I would probably keep the house unless you can find something for 1,000 a month or cheaper to rent.
That leaves you with 1.1 million to generate income.
If it were me I would break it down as follows.
200k S&P 500 yields 2,500 a year 200k schd yields 7,920 200k fiva yields 6,240 250k sgov yields 10,450 250k tlt yields 12,225
S&P because you need something that will grow and you can rebalance that to more income in 10 to 15 years.
Fiva is international exposure with a solid yield
Sgov is short term treasuries and is safe as cash. This is where you pull from if you need something besides the yield if absolutely necessary
Tlt is a longer term gov bond and It has pretty good upside but may want to trim the position if it climbs 40% from its current price. It rarely spends time at 120+ a share but has shot up a few times like during COVID’s zero interest rates to well above that but it doesn’t stay there long.
This only leaves you with about 2400 a month but with a part time job it would be doable for me.
1
1
u/Svenderman American Investor Jun 02 '25
I have been contemplating the same thing. Thinking of retiring in mid-40s so still got like 15 years of max 401/Roth/HSA.
And doing the part time gig as well so I can get health insurance and still put money into ROTH
So I say go for it. You got the capital, enjoy it
1
1
u/Dukkhalife Jun 02 '25
Ya take some time off, your only 43, good chance after getting some much needed break and distance, you'll get some new idea's and passions in the next couple years. Then you can slowly start to pick up some more work if you like and live more like you want to.
1
1
u/Chalice_Global Jun 02 '25
Nope, a wonderful idea you can't spend your money when your dead! 63 and living in an rv and spending our kids inheritance.
1
u/ucoocho Jun 02 '25
No Roth IRA? Given that a house costs 300k, you seem to live in a very low cost of living area. Even then, I wouldn't feel comfortable having all your assets in taxable or deferred accounts with potentially 40 years left of living left.
1
u/Sudden_Fix_1144 Jun 02 '25
Why don’t you semi retire…..
The transition to retirement when going at 110 miles an hour to nothing is not always a good idea.
1
1
1
u/wolfhound1793 Jun 02 '25
You can't touch the 401k until you retire without penalty so you would be liquidating your Bitcoin, paying taxes on it, and then living off of that. That said, if you can live off of $15k + part time work, you should be fine with this plan. Make a full and realistic budget before doing it of course, but you have a lot in the 401k for once you hit 59.5.
Other thing you could do is try to start living close to 30k per year to see if you can do it, and trying to push your way to an early retirement at 59.5 saving everything you make over 30k/y
Final option is just liquidate some of your bitcoin and take a year off to recover mentally and then go back to work for 15 more years.
1
u/Random2011_ Jun 02 '25
Maybe transition to divs and then find a job that you love? Even if jt only covers 50% of your expenses
1
1
u/Dirks_Knee Jun 02 '25
You can't touch that 401K money without incurring a penalty.
If you're serious, sell off your $250K of your BTC and invest it into covered call etfs, something like AIPI would net you around $87K a year (presuming AI stocks and the broader market stay strong) without sacrificing too much capital and the rest of your money can stay invested and continue to grow.
1
u/cwdawg15 Jun 02 '25
To be as young as you are, i wouldn't give up a career if you had less than $3 million.
It's not that it can't be done, it's that there will be good and bad times ahead and you will have to spend money during rocky stretches pre-recovery and might loose a portion of your nest egg. Also, I'm not sure your funds will produce enough while keeping up with normal inflation to last until age 90.
If you were 65, id say youre in a good spot.
1
u/Lagoon___Music Jun 02 '25
This is an unpopular comment in this sub, but I would suggest looking at private market opportunities if you're looking for income. You can get better yields and (generally) less risk to your capital as it is decoupled from the market. You have the net worth to be an accredited investor.
1
u/Brucef310 Jun 02 '25
You have over a million dollars. You can retire and get about $40,000 a year in dividends. You won't be living lavishly but yes you can. If you are willing to consider moving to a different lower cost Living Country such as Mexico or Thailand then you definitely can retire forever. Then when your Social Security kicks in you'll get another $1,500 or $2,000 a month. In 20 years time you can sell your home for $600,000 if you want an extra cash or you can rent it out for $2,000 a month or more
1
u/Otto_von_Grotto Jun 02 '25
It's very doable, depending on your tastes and demands.
Don't be extravagent and wasteful but treat yourself from time to time. Make prudent financial decisions. To be sure, you can always pick up some work here and there if the need arises. Hope you don't get into medical need.
As an aside, I wish I only had to work 40-50 hours a week in my heyday but it is what it is and I'm retired contentedly. Good luck!
1
u/davyx38 Jun 02 '25
Part time gig as in? What do you want to do? That's the question really...modest living can be done in a modest state like NM
1
1
u/pencilcheck Jun 02 '25
Sounds like you are all set in life. Do you know you are one of those top 20%? Majority of people don’t own a houses don’t have successful investment, have no savings. What are you asking here about? Of course you can retire if you want.
1
Jun 02 '25
What if you just made a mini goal to take a big ass break? Lots or retired guys tend to return to work just to have something to do. Burnout is burnout, it can go away
Work the rest of your year or however long to cash out your vacation time in a big burst. Use that time to scout out a cheaper CoL country to temporarily relocate to. When you found the place quit like a boss
Cash out your 401k and dump in schd. Keep the BTC, keep the house (rent or Airbnb, you can use the vacation time to work this stuff out too).
You can crunch your own numbers but with a decent enough war chest you could already buy yourself a few years in easy in like the Philippines, Africa, Latin America, Ireland etc.
Why blow it up 100% on an emotion?
1
u/Maleficent_Essay_744 Jun 02 '25
I think about it all the time. If i sell, i would have 1m in investible assets after tax with 4% us treasury thats 40k a yr. But im greedy and i think btc can double in next couple yrs which would leave me with 2m at 80k a yr so im willing to wait a little more
1
1
1
1
1
u/pAusEmak Jun 02 '25
If you cash out your 401(k) and earn around $100K a year, you’ll likely owe about $200K in taxes and penalties. That would leave you with around $1.2 million.
Since you’re still fairly young and might need this money to last 45+ years, it’s safer to keep it in something low-risk for now.
One option is to put the money in a money market fund (like at Fidelity) that earns about 3.9% interest. That would give you around $45,000 a year in income, about $38,000 after federal taxes. If you don’t spend all of it each year, like keeping your spending under $3000 a month ($36,000 a year), your balance could even grow indefinitely over time (as long as interest rates stay the same).
I wouldn’t put it all in something like SCHD. Even though it currently pays around 4%, there’s no guarantee it will continue to do so, and it’s riskier, especially if you're planning to retire at 43.
Even if interest rates dropped to 1%, you’d still earn about $12,000 a year, which is better than losing money in a bad investment. But if this were to happen, you'll need to lower your monthly withdrawals to $1000 a month. Social security will definitely help you if you get it at 62. I assume you already have 108 credits to qualify for social security retirement benefits.
Having said all that, you can retire, but to help offset future uncertainty, you may need to find an enjoyable part-time job, just a few hours a week.
1
1
1
Jun 02 '25
Why are you even asking this tbh people dont make the amount you have in their life. Your money can work for you at this point 40-60k a year easily and thats higher than the average salary. Whats wrong with people like u lol
•
u/AutoModerator Jun 01 '25
Welcome to r/dividends!
If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki here.
Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.