Hi guys,
This is definitely going to sound like a first world problem whine but here goes.
My wife is very unhappy at work and getting depressed. Our current plan is to retire early in about a year. She makes all of the money (a bit over $250K) and gets part of it in a hefty bonus in the fall.
I have our current net worth at about $1,300,000 which includes a house we plan to sell. In my figures I have valued the house at what it should be worth once fixed up. I had planned on doing that this winter/spring and having it on the market next spring/summer. It is an expensive house to fix and maintain (taxes, flood ins, heating).
If we stick to our plan we should easily hit $1,400,000 by next fall even with a flat market. I am trying to figure out a way we could bail early and not do too much damage to the finances, as setting a earlier date might cheer her up.
An exit in early Feb 2015 would generate some 2015 income (for Roths and such) and capture a small vest of stock plus a partial HSA contribution. Probably our income could be controlled down to about $30,000 that year instead of ~$200,000 if we left in October 2015. Tax-wise we would make out better, as we should be able to pay near zero tax on the $30k vs about $50,000 tax on the $200K. So we are talking $150,000 vs $30,000. We could cut out a vehicle immediately and also save on commuting gas. Call that another $10,000 (she has a round trip near 2 hour commute). Now we are at $140,000 vs $30,000.
If there was some way we could sell the house much earlier without taking a total bath (it needs work)...
If our income really was only $30,000 in 2015 we could get a silver ACA plan with subsidy for only a couple hundred a month. I believe a change in employment would qualify us to enroll. If we bail in October we are probably going to need to go Cobra for Oct, Nov, Dec or enroll in a bronze plan for those 3 months with no subsidy (having income of $200k).
Personally I think we could live on $1,300,000 bailing early. $1,400,000 was just a goal of having a SWR rate of 3% and living on $42,000 a year. So we bump that to 3.5% and still get $42,000 a year.
Should I push her to leave early or not argue with her and let her stick it out but stay depressed?