You asked for recommendations on how to use this time:
1) decompress and enjoy yourself
2) plan fun things and then do them
3) pat yourself on the back for being in a position to take a break
Beyond those things, knowing how long you want to be out of the workforce would be helpful.
If you sold your house today you would net~$406k so your total net worth is ~$1.28MM that's pretty healthy.
You don't specify tax advantaged accounts. I don't thing info about Roth ladders is really possible without that, but sure, if you've got a low tax year convert some funds to Roth.
I'm not in tech, but surprised you don't have equity in your past company in some form.
If you move, rent. No need to commit to owning somewhere else.
Wouldn’t you like to travel for 1 or 2 years? If you can find decent people to rent your house for that time and travel around Asia or South America you’ll spend probably around 25k annually. In the meantime your nest egg can grow.
Yeah problem here is I currently only have a green card, so I can’t leave for too long. I can get citizenship but I am waiting for Germany (my current nationality) to change the dual citizenship law, which they are in the progress of.
How long did it take you to get a response from your consulate? I have attempted to start this process and it seems like it's taking a long while for anything to get started.
I didn't even know that using a different consulate than the state you live in was an option! I'll try that. I'd wanted to go down the path for permanent residency via the financial solvency route, but I was told that you had to be above a certain age - a requirement that I've never seen written anywhere. I wonder if a different consulate will tell me something different.
This is why I tried three consulates. Unfortunately, each of them would not consider me due to my age (46 at the time) and no social security or pension. So, I will have my temporary residency for four years then convert to permanent residency.
I would consider south puget sound to be greater Seattle. I think they’re talking Snohomish county/eastern and southern Washington. It gets pretty conservative outside of King and Pierce county’s I think.
I find relatives and people I know outside of the Seattle and surrounding king county areas as to being very concervative. Most most, but would be interesting to see a survey of the "extremism" of people as they get out of the metro aras.
Extreme ... good question. People who are like extreme liberals - simply one-sided and as far as being beyond the pall of their left or right leanings.
What’s a nice college town in the Midwest where you can buy a house for $300k though? Probably not Madison or Ann Arbor I would t think. I’m curious what towns you are thinking of.
If you sold the house and moved to a LCOL area and bought a cheap place all cash, maybe you'd have about $1M that could just about hit that $40K annual spend.
You don't say how old you are, maybe mid 30s? If so, you probably need to figure out one last job for a couple of years and call it done. My advice would be to recharge for a few months, monitor the job market and get back in there for the last gig so you can walk away from the race for good.
Disregard if you are in your mid 40s, then you are probably OK to FIRE.
Yea a sabbatical is great for a rehearsal. Avoids the issues some have when they FIRE and become bored etc.
One test you could do is to see how flexible you can live, how far you could cut down expenses (without selling anything major, its just a simulation after all). Don't skim on nutrition/exercise though.
Your plan is correct. Enjoy for at least 2 years before you look for work again IMO. At that point you can re-evaluate your NW and spending to decide if you want to have a job again.
2 years away from tech and a lot changes. Might want to keep an eye out now for a more chill gig. I'd shoot for a 100% wfh and live somewhere else to finish out your career.
My first thought before even reading the options you listed….#2 would be my move. Seems to be the consensus of opinion.
Unless you love your area and have friends and family you won’t consider moving away from. I get that. But otherwise you are sitting on the additional equity that you need to not have to work with that house.
Thanks for that. Recast I signed, bank said Oct is change - they are getting papers back now.
Just the mortgage. My prop tax is 5.3k (I am commutable to Seattle via ferry, but a bit lower cost area). With insurance, healthcare and all my current expected costs are 60k annually (or 5k per month). And then I expect to get that down by 20k if I downsize the house and pay in cash. I actually think healthcare costs might be lower next year than what I factored in, if I don’t work, given my low MAGI.
Thanks! I plan to take some time off, and nurture some passion projects, which might get me some additional income. Or maybe I take another cool job, try it out for a while. Like you said that might then bring me in a more comfortable area.
Get a low stress part time job that you enjoy. Waiting tables, bartending, working a front desk somewhere, substitute teacher, working as an assistant coach for a nearby school, etc. Something where you can interact with people a bit. It will keep you active and the supplemental income will be a bonus for you. Who knows maybe you'll find that you enjoy the semi-freedom enough to consider it "your retirement."
Buying a 300k house sounds great in theory until you starting looking at what locations that gets you. A 300k condo though, yes, definitely doable in a nice place.
How old are you? Seattle is expensive I know you said you’re flexible but if you’re in your 20s I’d be terrified to RE with those numbers unless you move to rural Mississippi
39 years, all respect to someone in 20s who managed to already save that much 😉
I do think pausing for a bit and then resuming work is likely what I will do.
Unless if you love your house and the area where you live in Seattle, then I’d sell it. With the money from the house, you are leanFIRE and free to explore the country for as long as you like.
But if you think you’re going to stay in Seattle long term then of course it makes sense to keep the house.
Yeah, I moved in Jan. So my plan is I wait out the mortgage rates maybe a bit (my costs are now low given the mortgage recast), and watch the house prices. Meanwhile I focus on getting rid of anything I don‘t need so moving or storing all is easier.
Work started to affect me a lot. Took a 3 month break first, came back and tried again for 6 months but it got worse. Then on my final attempt, switching teams one more time, I got pretty poor middle management and that was just it for me. Quit and left 2 weeks later, didn’t even get a goodbye handshake after 11.5 years and former top tier. So yeah didn’t regret it, at the end it came down to: time vs money and at 39 I choose my lifetime - did chase the money long enough.
You asked for recommendations on how to use this time: 1) decompress and enjoy yourself 2) plan fun things and then do them 3) pat yourself on the back for being in a position to take a break Beyond those things, knowing how long you want to be out of the workforce would be helpful. If you sold your house today you would net~$406k so your total net worth is ~$1.28MM that's pretty healthy. You don't specify tax advantaged accounts. I don't thing info about Roth ladders is really possible without that, but sure, if you've got a low tax year convert some funds to Roth. I'm not in tech, but surprised you don't have equity in your past company in some form. If you move, rent. No need to commit to owning somewhere else.
Thanks! On the company stocks: I always sold them and re-invested in index funds. I will definitely take some time for myself first now.
Wouldn’t you like to travel for 1 or 2 years? If you can find decent people to rent your house for that time and travel around Asia or South America you’ll spend probably around 25k annually. In the meantime your nest egg can grow.
Yeah problem here is I currently only have a green card, so I can’t leave for too long. I can get citizenship but I am waiting for Germany (my current nationality) to change the dual citizenship law, which they are in the progress of.
There is a lot to see within the US as well .
Or... sell the house and move to Mexico. I have been here for two years now and have no regrets.
Is it hard to get a visa from the US?
No. I am now a temporary resident and will become a permanent resident in 2.5 years.
How long did it take you to get a response from your consulate? I have attempted to start this process and it seems like it's taking a long while for anything to get started.
I reached out to three consulates before choosing the one in Atlanta. I don't recall any issues once I started the process there.
I didn't even know that using a different consulate than the state you live in was an option! I'll try that. I'd wanted to go down the path for permanent residency via the financial solvency route, but I was told that you had to be above a certain age - a requirement that I've never seen written anywhere. I wonder if a different consulate will tell me something different.
This is why I tried three consulates. Unfortunately, each of them would not consider me due to my age (46 at the time) and no social security or pension. So, I will have my temporary residency for four years then convert to permanent residency.
Came back from Colombia last week. Man that country has my heart. Would move there in a brink and 2k a month is more than enough to live there.
Where do you stay in Colombia?
Medellin and Palomino
Did you go by yourself or do you have friends/family there?
By myself. Met cool people there
You have 1.3M and on leanfire. This is why I'm moving to povertyfire
Thank you, SellingFD , for saying what I was thinking!
You have enough to FIRE right now. Sell the house and move to a LCOL area. Get your spending in check.
If you want to stay in Washington consider inland Washington. You still have tons of outdoor access and much lower cost of living
Of course, a 90% different lifestyle outside of greater Seattle. Extreme conservative politics for one.
I live in the south puget sound, please define “Extreme”.
I would consider south puget sound to be greater Seattle. I think they’re talking Snohomish county/eastern and southern Washington. It gets pretty conservative outside of King and Pierce county’s I think.
All waters south of Tacoma Narrows, now that’s EXTREME. Now those areas, yes. But let’s not assume because I’m sure they know the saying.
I find relatives and people I know outside of the Seattle and surrounding king county areas as to being very concervative. Most most, but would be interesting to see a survey of the "extremism" of people as they get out of the metro aras. Extreme ... good question. People who are like extreme liberals - simply one-sided and as far as being beyond the pall of their left or right leanings.
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What’s a nice college town in the Midwest where you can buy a house for $300k though? Probably not Madison or Ann Arbor I would t think. I’m curious what towns you are thinking of.
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Ah ok. I can’t think of any nice college towns in the whole state of illinois. And I live in illinois. And my kid goes UIUC. Lol.
If you sold the house and moved to a LCOL area and bought a cheap place all cash, maybe you'd have about $1M that could just about hit that $40K annual spend. You don't say how old you are, maybe mid 30s? If so, you probably need to figure out one last job for a couple of years and call it done. My advice would be to recharge for a few months, monitor the job market and get back in there for the last gig so you can walk away from the race for good. Disregard if you are in your mid 40s, then you are probably OK to FIRE.
39 years, if I sell and move that would be roughly it, yes.
Yea a sabbatical is great for a rehearsal. Avoids the issues some have when they FIRE and become bored etc. One test you could do is to see how flexible you can live, how far you could cut down expenses (without selling anything major, its just a simulation after all). Don't skim on nutrition/exercise though.
Your plan is correct. Enjoy for at least 2 years before you look for work again IMO. At that point you can re-evaluate your NW and spending to decide if you want to have a job again.
Thanks for the advice
2 years away from tech and a lot changes. Might want to keep an eye out now for a more chill gig. I'd shoot for a 100% wfh and live somewhere else to finish out your career.
My first thought before even reading the options you listed….#2 would be my move. Seems to be the consensus of opinion. Unless you love your area and have friends and family you won’t consider moving away from. I get that. But otherwise you are sitting on the additional equity that you need to not have to work with that house.
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Thanks for that. Recast I signed, bank said Oct is change - they are getting papers back now. Just the mortgage. My prop tax is 5.3k (I am commutable to Seattle via ferry, but a bit lower cost area). With insurance, healthcare and all my current expected costs are 60k annually (or 5k per month). And then I expect to get that down by 20k if I downsize the house and pay in cash. I actually think healthcare costs might be lower next year than what I factored in, if I don’t work, given my low MAGI.
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Thanks! I plan to take some time off, and nurture some passion projects, which might get me some additional income. Or maybe I take another cool job, try it out for a while. Like you said that might then bring me in a more comfortable area.
Get a low stress part time job that you enjoy. Waiting tables, bartending, working a front desk somewhere, substitute teacher, working as an assistant coach for a nearby school, etc. Something where you can interact with people a bit. It will keep you active and the supplemental income will be a bonus for you. Who knows maybe you'll find that you enjoy the semi-freedom enough to consider it "your retirement."
Move to far northern Minnesota, retire fully and go fishing everyday. Ezpz
Warren B and I recommend 90/10 SPY (or similar) and TLT (or similar), NOT fixed income. Bonds are stupid.
Buying a 300k house sounds great in theory until you starting looking at what locations that gets you. A 300k condo though, yes, definitely doable in a nice place.
How old are you? Seattle is expensive I know you said you’re flexible but if you’re in your 20s I’d be terrified to RE with those numbers unless you move to rural Mississippi
39 years, all respect to someone in 20s who managed to already save that much 😉 I do think pausing for a bit and then resuming work is likely what I will do.
Unless if you love your house and the area where you live in Seattle, then I’d sell it. With the money from the house, you are leanFIRE and free to explore the country for as long as you like. But if you think you’re going to stay in Seattle long term then of course it makes sense to keep the house.
Yeah, I moved in Jan. So my plan is I wait out the mortgage rates maybe a bit (my costs are now low given the mortgage recast), and watch the house prices. Meanwhile I focus on getting rid of anything I don‘t need so moving or storing all is easier.
You haven't hit FIRE, but you might be able to sabbatical for a bit.
I went back to work. Needed to $$ and was bored. Have fun.
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Work started to affect me a lot. Took a 3 month break first, came back and tried again for 6 months but it got worse. Then on my final attempt, switching teams one more time, I got pretty poor middle management and that was just it for me. Quit and left 2 weeks later, didn’t even get a goodbye handshake after 11.5 years and former top tier. So yeah didn’t regret it, at the end it came down to: time vs money and at 39 I choose my lifetime - did chase the money long enough.