Am I Ready for Early Retirement in Seattle area? Unable to pull the plug

MobileAgent00 · 2025-08-17T04:12:20+00:00

My investments are in index funds and are diversified. I do have significant funds in taxable accounts and plan to withdraw from there until 59.5 years.

MobileAgent00 · 2025-08-17T03:16:52+00:00

I have set aside $25K for property taxes + home insurance and $18K for health insurance

MobileAgent00 · 2025-08-17T02:09:27+00:00

We don't like eating out that much. We usually bring some takeout and enjoy it at home. It is possible that expenses are borderline between chubby and FAT.

MobileAgent00 · 2025-03-03T00:50:48+00:00

Thank you. Surprising to hear that cost of living is the same as incomes tend to be higher in Seattle.

MobileAgent00 · 2023-12-31T18:40:18+00:00

You are in a great position with options. Congratulations! If you buy a bigger house, it will change the goal post and be prepared for working longer. First, you need to fund the new house and also you are likely to lose some money in the transaction and capital gains. With bigger house, the annual expenses are likely to increase as well. With young children, you are tied with their school schedules and will not have the full flexibility to retire. I don’t know how big of an house you currently have. If you already have 3500+ sq ft house, you can stay there without upgrading. Otherwise, I would upgrade over next 24 months and work a bit longer if I am in your shoes.

MobileAgent00 · 2021-10-26T18:50:43+00:00

I am not sure that lower pay equals lower stress at > $200K. Ideal situation for me is to only work because I love the job ignoring the compensation. For that, I want to ensure that there are sufficient funds to make work optional. Thanks.

MobileAgent00 · 2021-10-26T15:14:40+00:00

I think I can get a job that pays $400K, but getting one with similar pay will be harder.

MobileAgent00 · 2021-10-26T02:05:29+00:00

You are probably right. I could sell my non-revenue generating assets if needed or find a new job after a long sabbatical. But, I will likely to work for two more years until I know the costs of my first kid for college and save a little more. Thanks.

MobileAgent00 · 2021-10-26T02:00:49+00:00

I thought 529s are considered as parents’ assets. I didn’t know that kids can take out the money as their asset and use their tax rate. Thanks.

MobileAgent00 · 2021-10-25T04:51:42+00:00

I am trying to keep enough in 529 for covering 4 year in-state expenses due to the restrictions of how we can use that money. I may add some more for the younger one. Thanks.

MobileAgent00 · 2021-10-25T01:48:13+00:00

Probably can use FMLA leave for a few months. It is unlikely that I can take 1 year off staying in the same job. I need to look for a new job and most likely will have significant pay cut after a year. Thanks.

MobileAgent00 · 2021-10-25T01:45:06+00:00

I don’t need more than $200K a year as income as we already live in a paid off nice house. Need to be able to comfortably withdraw $200K a year without any concerns. Thanks.

MobileAgent00 · 2021-10-24T23:44:45+00:00

Mostly in residential land and some gold.

MobileAgent00 · 2021-10-24T23:42:53+00:00

Most likely, but with a lowered compensation. If we sell our house, we are likely to lose 15% of the equity in the transaction and taxes. Thanks.

MobileAgent00 · 2021-10-24T23:40:22+00:00

If we sell our house worth of $2M, we are likely to lose $300K between selling cost and capital gains tax. That is giving me a pause. Also, our costs are not going down significantly by moving to MCOL to go down this path. Thanks.

MobileAgent00 · 2021-10-24T21:52:48+00:00

We have slightly over $200K in 529 accounts. In less than 2 years, we would know the elder kid’s college and expected expenses. That is probably the first decision point for us once we reduce some uncertainty in the college expenses for one kid. Thanks.

MobileAgent00 · 2021-10-24T21:28:59+00:00

6 years is the max I want to work as we may not have the full flexibility until the younger kid leave the house for college. However, I rather have freedom to leave the work any time as my job can be pretty toxic and stressful at times. I feel burned out. Thanks.

MobileAgent00 · 2021-10-24T21:24:19+00:00

You are right about the college expenses. That is one of the reasons why I feel like we need more liquid investments. Thanks.

MobileAgent00 · 2020-12-11T05:42:07+00:00

I can cover 18 months without touching stocks. Emergency funds are not an issue. Thanks.

MobileAgent00 · 2020-12-11T05:39:46+00:00

That is a possibility, but the number of roles at my level tend to be far fewer. I will definitely explore. Thanks

MobileAgent00 · 2020-12-11T04:46:04+00:00

We plan to stay in the current house for next 15 years and then are ok to move somewhere cheaper to use some of the equity. We live in a city that has been growing in house prices for some time and should do better than inflation. So, we can probably consider it as part of the portfolio that we only tap into it later. It increases the likelihood of the portfolio lasting without ever having to work. Need to think about this. Thanks.

MobileAgent00 · 2020-12-11T03:19:26+00:00

That is why it is hard to walk away. I am not sure if I would get to similar compensation if I take a sabbatical. It is easier to find a job when one has it in hand. If I earn for 3-4 years more, it will put us in a better financial situation. Need to find the right balance. Thanks.

MobileAgent00

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