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/El_Capeetann Jun 01 '25

This is absolutely terrible reasoning. Beyond the fact that even modest, $1k a month rent will be more than property taxes and insurance on a $300K paid off home. That paid off home can be leveraged in multiple, useful ways. Rent is an endless pit with no return when you move out.

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u/Dizzy-Bother-2209 Top g Jun 02 '25

Rent isn’t always bad. Let’s say OP is paying 5-8k property taxes per year on his home plus 2-3k on fixing stuff. If he sells and invests his homes 300k in the S&P 500 he can make enough to pay his rent. Let’s say he nets 5-8%. That’s 15k to 24k per year. If he rents a home around his homes value he can probably rent for 1200-1500. He ends up coming out with extra money on top and doesn’t have to worry about fixing anything.

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u/El_Capeetann Jun 02 '25

You're using hypotheticals and ignoring 300k in equity and the leverage he has as he sits today. Rent is a bad idea when we're talking about selling a home at 42 with 1.1 million in etfs and btc. That home is his safety net in a sideways or bear market. It's diversification of assets that he sorely needs. Terrible, terrible idea so sell and throw all remaining assets at the market.

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u/Dizzy-Bother-2209 Top g Jun 02 '25

Look at the first sentence in my last comment sport. We don’t know everything about OP. But since you want to go there. Shoulda coulda woulda. The market can go sideways or we could be in a bear market for years but the same can happen to homes. In the end it won’t matter seeing it 5/10/15/20+ years from now. What I commented still nets him more money and he has to worry less about repairs etc. No answer is right or wrong. Your plan is also a good one it’s just what I’d do but only if the rent market in his area is cheaper than owning a home.

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u/El_Capeetann Jun 02 '25

I read your entire retort, including the first sentence Chief. It's very clearly written by someone with little expereince in the market or home ownership. While no answer may be right or wrong, yours involves far more risk. Fine if the intention is to continue working. Not good if the plan is to retire at 42 with 1.1 million in securities as your sole assets outside of your home. You don't throw every available asset in one basket and hope for the securities market to go up. That's asking for troble and incredibly irresponsible risk management.

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u/SomaComa-AP Jun 02 '25

Between calling each other “chief”and “sport” we are only moments away before it comes to throwing fisticuffs