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Decided to payoff my mortgage.
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You’re doing very well and it’s definitely enough.
Just not in a VHCOL.
You’re better off than most of the US.
3m is great for most of the country but for VHCOL without housing it's pretty lean. If you keep renting at 4k (which will rise) it eats half of your withdrawal.
If you really really really want to stay, I'd suggest home ownership and maybe expect to downshift instead of full retire. But I'd really consider whether moving somewhere else (even if just the burbs) is viable for your lifestyle.
Can you move? $3M in the bank is retiring in comfort in a very large % of the country
Community Builder
It also depends on how you lived your life , for someone with accumulated tax debt etc you know what that means
You really need to estimate your expenses post retirement and make sure your liquid assets are at least 25x them plus any special costs (ie college). You shouldn’t be bummed. Seems like you are very successful and while maybe you can’t retire at 50, you probably will be financially well off in life. The vast majority of people retire well past 50. You may have a choice between continuing to work and moving / lowering expenses. Most people aren’t even in that position to choose yet.
Subject Expert
You have a lot of good choices.
With $3m you could move somewhere where you can get a house for $500k, and the remainder of your portfolio supports about $60k, $70k in spending. With a paid off house that's not bad. :)
Or you can stay in your existing area and work longer.
How much do you spend now, including everything? How much do you save every year?
I have a newborn so I'm trying to get a handle of future outflows. But the year before he was born, I saved ~$200k on $450k TC (pre tax). My TC has since dropped to $280k.
Would you be able to stop supporting your dependents by 50/retirement? Those seem like solid numbers but would you move or look for lower rent at a certain point?
No, my kid is only a few months so it's hard for me to accurately assess expenses. I guess I could consider moving to a lower COL but would like to stay where I am for the school and cultural opportunities for my child.
$3m is extremely conservative if you’re already at $2.5m. An 8% return would get you to $5m in those 9 years even if you don’t invest another dollar. How did you come up with $3m?
Yeah I think the rest of the guidance here is moot. “Is 3M enough?” cannot be answered without knowing how much you’re spending annually. Getting a hold on your expenses seems like your way to FI
Thanks. Am I wrong to feel bummed? I feel like I've worked hard to amass this amount at this age and that I was doing well, but it seems it's not enough.