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Advise Before I do something stupid

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2Old2RE:
Wife and I are 54. 1 child going to be a senior in HS this fall. No debt at all. Both working. Wife brings home about 18k / year. I gross 65 - 75k / year depending on bonus and OT. Been currently maxing out my 401K each year with catch up to the tune of 24500 / year. Heres the main issue I HHAAAATTTEEE my job. Hate the company I work for, hate the people I work with. Unfortunately in our low cost of living area there are not alot of jobs to choose from and even less to none at what I am currently making.

We have no planned budget and never have....

Utilities around 150 month
Water 50 month
Internet 73 month
Cell phone $140 month
Between groceries and eating out we blow through 400 month
Gas for the cars runs about 200 month

Home insurance runs 2,000 / year
Property tax 2150 / year
Car insurance 1681 / year

We have:

702K in my 401K

116K in Roths and IRAs

50K in savings and checking

20K in a 429 for daughters college



I am currently taking some time off of work to clear my head and ponder the future. Did I mention I hate my job? I really feel its starting to effect my health and mental well being. Thinking maybe I could just find some slacker job to bring in some day to day money and of course the all important health insurance which my wife, at least right now, is not eligible for at her employer. I do have a small side hustle that depending on effort I put into it could bring in around 10 - 15K / year. I will be eligible for a small pension from my company at some point in time plus my wife will have a small amount of public employee retirement as well as SS for both of us. Also thinking of tossing in the towel, live on what we can scrape in, buy some health insurance month to month. I feel we live somewhat frugally, no cable tv, newest vehicle is 8 years old, no plans to trade vehicles or upscale our lifestyle. I REEAAALLLYY want to go back to work in 2 weeks and tell them to stick it.

Talk me down

WWYD?

markbike528CBX:
mmm... 2000/year insurance only in LCOL?  Unless you have a McMansion, in the path of a fire, seems high.
I pay 495/year on $250K coverage, with auto and claim discounts that would otherwise make it 900/year.

On the other hand, with a teen driver the auto insurance seems low.

Other than that and no budget the NW seems OK, if a light on non-taxables.

2Old2RE:
Yes I fat fingered that its 1,000 / year.
How do you find insurance that cheap? Although we do live on an acreage and have some out buildings...

Car insurance (2 cars and a pickup) is fairly minimal, mostly liability. Good driver and female honor student discounts. No claims for over 10 years.

reeshau:
One detail you hinted at is college.  What are your daughter's plans?  I see you have some savings in a 529, and she is a senior.  Does she get the 529, and she pays the rest of the way?  She's an honors student; do you have scholarships lined up?  Is she looking at some other career alternative?

It's hard to say you can tell them to stick it when you are about to plunge into the world of higher education.  Maybe in 4 years?  At the very least, your daughter may feel directly impacted by your decision.  Of course she would be, anyway, but if this decision goes against the expectations you have set for her, then she should have a voice in the decision--you need her buy-in.

You are old enough that you could access your 401k through 72t payments.  But in any case, your income is about to go down drastically.  That could spell big trouble unless you get the discipline of being on a budget.  If you can't get to that in one leap, then just try living on your projected new income for a month or two--see what it would feel like.

MarciaB:
It seems to me, looking at your amassed savings, that you and your wife are fairly reasonable about spending (based on your incomes and then looking at savings, you probably have a decent savings rate).

My first thought was to just say yes, go ahead and step off the hellish spin that is your job. Enjoy your child's last year at home, get a smaller/part-time gig that makes up for the spending that your wife's income doesn't cover.

But then...well, you really don't have a big enough cushion to manage a full retirement and college costs. You're sort of on the cusp but without any real margin for error. Not good (enough).

But then...I go back to my original thinking that you need to step off that job and settle into a smaller/lesser one. So can you maybe hold out until a natural break in the fiscal year - the Q4 end for your employer, or right before the holidays or something? Yes, it's longer than a 2-week notice, but it will give you time to live on your projected income for a couple of months (as reeshau wisely says) and wrap up any projects at work that you need to. What's 100 days from now... just before the 3-day Veteran's Day holiday weekend in November. Can you maybe target that in your mind (don't give notice yet) and "practice" thinking about yourself as not working there, tracking your expenses, and all the rest?

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