First time poster, long time lurker! Apologies this is so long - wanted to give as much detail as possible.
I’m looking for some advice/guidance on whether it’s financially feasible for me to quit my job/semi RE. Here goes!
Background: - Family = 2 adults, 2 kids (ages 10 & 11). My husband is 50, I’m 41.
Location = super high cost of living, Bay Area
Employment = both adults employed in high paying jobs
Plan to remain in current house for 9ish years, and then sell & move somewhere signficantly more affordable
Current net worth = $3Mish, but much of this is tied up in our primary residence
Assets:- $1.1M in 401Ks (between the two adults)
No debt (other than two mortgages, below)
Have a vacation house. We owe $225K, worth $400K
Primary residence. We owe a smidge under $2M. Worth around $3M
$600K in investment/liquid accounts (non-retirement)
Not our assets, per se, but have about $100K saved for the kids college
I’ve been working in tech for 20 years, and have recently found that I’m almost physically unable to do the job. I have lupus, and while it’s currently managed well, my job is demanding enough that I’m spending most of my available energy on that. Leaving me coming come exhausted, & crashing on the couch, with nothing left for the kids or myself. My priorities in life our my family, and taking care of my health, but that’s almost/always sidelined by the fact that my work is so demanding. I have a very senior role, and manage a large international team. I travel a lot, and work lots of early mornings/evenings/weekends/holidays due to time zones & other issues. To say I hate the commitments of the job (and working generally at this point, with my energy level) would be a huge understatement. I am concerned that a few more years like this will trigger really terrible things for my health. My doctor is constantly on my case about my workload & travel.
I’d like to quit my job in March, and take a year off. (I’ll be able to save another $100K in vested stock, etc through that time period. After that, I’d plan to work part-time. I don’t have any desire to work another “career” job. I could (I assume, relatively easily) find another job making around $100K by consulting/working part time.
Expenses/The Plan:Our total yearly expenses are $200K. This includes close to $35K in property tax, plus the mortgages. My husband’s salary covers the primary mortgage, and his stock more than covers property taxes, etc. We would need to draw down our liquid investments for the next few years to cover the remaining expenses $60K gap. We could theoretically cover that for 10 years, until we’re ready to move, although I’d prefer to work part-time & not draw down the full amount over that time period. My husband has zero desire to quite work, and staying in the area is a concession given he will be the primary bread winner in the future.
In ten years, our plan would be to sell our house, and move somewhere less expensive. If needed, we could also start drawing down M's 401K, although he expresses no desire to retire fully at 60. We'll see how he feels in another 10 years. We would keep the vacation home, as it’s near my family & allows us a place to crash when visiting family. I expect this to be our part time home as my parents age.
Thoughts? Advice? We could obviously cut back on our expenses, but for purposes of this exercise, I’d like to run the numbers at our current spend level.