Author Topic: Looking for advice: close to quitting FT job...  (Read 361 times)

max924

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Looking for advice: close to quitting FT job...
« on: August 26, 2019, 10:35:23 AM »
Hi all, I have been struggling with my job currently, part of it is that we are FI, but I keep holding off letting go. We are both 35 years old with a 3 and 5 yr old in Canada. I'll throw my stats out here to give a current picture.

-Current index investments : 670k (30%bonds, 70% stock indexes)
-Commuted value of pension after tax (if I quit today) : 500k (some locked till I am older, no biggie).
-House equity conservative 600k, could severe part of it for more $$ if necessary
-Mortgage :160k at 3%
-Rental income variable 15-25k / yr, possibility for more - just requires time/effort on my part, which I don't have while working.
-Wife works and will the next 5 years at least, her pension value is currently around 350k, will be 4-500k when she possibly quits in 5-6 yrs. Her income (~84k/yr after tax) also fully supports us, we have already done this with multiple sabbaticals/parental leaves in the past few years.
-expenses for the last 5 years are 55k/yr average (this includes our rental expenses) and can reasonably drop it to 45k/yr if we had to with little pain.
-As a side note I do not add the mortgage and daycare expenses to our recorded expenses anymore as these would be mostly eliminated if I quit, our yearly expenses did include them up until 6 months ago when I stopped adding them. Even if we still had these expenses my wifes income could still cover it.

Basically I am just reaching out for advice/hugs/face punches :) Not a lot of people around me I can talk to about this besides my wife, who pretty much just wants me to quit. I know we are financially good, just hard to make the jump. I have a very sought after qualification, so even if I quit I could have high paying contract jobs at any time for extra cash. In reality though I would rather just do things I love; volunteer, house renovations, family time, etc. One big thing holding me back is the 'what if' thought of quitting right before a large market correction (especially after investing my pension $).

We also have a very flexible mindset and would not be phased too much if a financial situation required massive downsizing/relocation.

Hopefully this describes everything and you can give me your opinion on our situation, thanks in advance!

Lady SA

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Re: Looking for advice: close to quitting FT job...
« Reply #1 on: August 26, 2019, 11:01:13 AM »
Go ahead and put in your 2 weeks. You're done! Congrats! Go have fun with your wife and doing the things you want to do. Get your butt out of the office already!

If you are nervous, during your 2 weeks notice, you can research consulting/contracting firms you could join in a pinch.

DadJokes

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Re: Looking for advice: close to quitting FT job...
« Reply #2 on: August 26, 2019, 11:13:28 AM »
Expenses that you need covered by non-rental income are ~40k/year, assuming getting the minimum from your rental income.

If you are going by the 4% SWR, that means you need $1 million, or $1.15 million with a more conservative 3.5% SWR.

Your investments and pension alone come out to $1.17 million, which doesn't even include your wife working for the next 5+ years. Since her income fully supports you, your investments can continue to grow for those five years and put y'all in an even better position.

You're set. Spend more time with those children! I'm quite jealous since I won't be able to pull the trigger until my son is a teenager (at which point he probably won't want to spend time with me anyway).

former player

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Re: Looking for advice: close to quitting FT job...
« Reply #3 on: August 26, 2019, 12:11:25 PM »
You are the person for whom a market correction is irrelevant: you put your money in index funds and forget about it for the next five years, by which time any correction will have come and gone - corrections only matter if you need to withdraw funds from the market while the market is down, and that's not you.  In five years' time your wife retires and you've got another big lump sum coming in.  In the meantime you are continuing to pay down your mortgage, so your debt is getting smaller over 5 years and your share of equity is growing.  Plus you already have a margin of income over expenses and you can grow your rental income too.

Dear dog, if you aren't FIRE, I don't know who is.  Go through the figures with your wife one last time, do your duty as a spouse and listen to her, properly, and be happy.

max924

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Re: Looking for advice: close to quitting FT job...
« Reply #4 on: August 26, 2019, 12:26:43 PM »
Thanks for the replies! Reading the responses really put a huge smile on my face and makes me feel all warm and fuzzy... Nice to know others agree that my hard work may actually be finally paying off!

I will be looking into either reducing my job stress/hours in the next few weeks, and or working towards an official goodbye date. I will be trying to leave on good terms as that will help keep the door open in the future.

Thanks again!