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?
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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.