When should I give up Stressful a Job

[Rhys C]

Hello

I've learned about the MMM ways about 6 months ago, about 25 years to late :-)
I am 45 now and plan to retire at 55, I have a mortgage but that's about it, I can pay that off in 5 years.

I don't want for any more stuff, car etc is all fine for another 10 or so years, nothing else I really want to purchase (thanks to my new MMM knowledge)

I have a job that pays well, it's my own business and I get around 100 - 150k a year from it, perhaps a little more.
Its hard, really hard, 24/7 365 pressure,  holidays are almost impossible, even when I'm home I am at work, you get the picture.
I've been doing it 15 years and feel it has robbed me of life.

I can't decide if I should...
Keep going for another 5 years, pay off my house then get a low paying low stress job to top up my retirement money.
Keep going for another 2 years high stress then low stress job with less money to retire with and not have house paid off for 10 years.
Quit now and have debt for much longer.

Or any mix of the above.
I feel I really need to start living life to the full, I'm just not sure how to go about it.

I owe 300k on my house, I built it and would struggle to part with it, its my main hobby tinkering around on my land with gardens and animals.

Thanks for any thoughts.

Rhys

[swashbucklinstache]

What are your (real, tracked) expenses over the last six months? How big is your stache in assets, cashflow excluding your job, and liabilities? Maybe think about a case study?

Overall, as always it is your call. If you were 25 and 10 years away I'd lean towards sticking it out. As it is, how many months have you felt like it wasn't worth it out of the last 12? I'd be tempted to take a lower stress job depending on how close you actually are.

[NestEgg]

Hi Rhys,

You should look at the Case Study topic thread and post in that forum. It's clear that you have a difficult decision, but there's a lot of missing information.

Some examples of important things we would need to know to start giving advice:

• What are your current assets and liabilities?
• What's the value of the house?
• Why are you planning on retiring at 55? Do you know what your expenses are, and what they will be?
• How much will you make in your other job?
• That's a broad range of income for your current business. Can you be more precise? Is it net or gross?

[Rhys C]

Hello

I have no idea what my expenses are yet,  that would be a wise start to find this out, they are going down all the time.
I have 200k in super (that's the Australian retirement thing)
My house it worth 700k, I own a car, small boat and a bunch of tools.
I feel like its not worth it on and off all the time, today is a good day, I can leave early and all is well, I work in I.T so that could change at the drop of a hat.
I am thinking I should just try pay my house off even faster, when that's done, I'm out.
I can go on, I like my job sometimes, it has its good points also, it may even be a case of the grass looks greener.
I picked 55 because that's when my wife gets her work pension pay out, its 40k a year forever. I'll get mine when I'm 60
that's net income,  it changes all the time, low stress fun job would be about 35k net

Looks like I really need a few scenarios down on paper.

Thanks again for any replies.

[big_slacker]

Biz value on sale and stay on for a salary? Should cut way back on stress, pay the house off and you're on easy street. 150k net x whatever common multiplier for that type of business.

[Rhys C]

Hey

Yes, I definitely have thought of selling.
It would be hard to sell but I would most likely be be able pay my house off with it.

Guess I'm worried I might regret it.
In the end I know its my decision, really happy to listen to other peoples thoughts tho.

Hard to keep focused that more money is not happy life, I know it's true but I've been brainwashed into thinking more money is better for 45 years!

:-)

[NestEgg]

Some thoughts:

• It's obviously not a decision you can make on a lark, but it seems like selling the business is a good option if it makes you miserable. Is there a way to cut back within the business for a lower salary and be less miserable?
• For certain lifestyles, you may be close to retirement right now. You could sell the house, rent or buy a cheaper place, and/or move somewhere cheaper. It's not trivial to do, but it's worthwhile to think about your expenses now, and your expected expenses in retirement. It's also worth learning more about how your pension varies with years worked.
• I'm a bit confused at how you receive a pension if you own your own business. Could you clarify? Is it an Australian analogue to Social Security?
• I'm not familiar with Australia specific issues. You should consider reading up some of the Australia FIRE blogs (here's one I found).
  

[Rhys C]

Hello

In Australia our employer pays 9% of our income into a compulsory retirement fund.
you can also top it up (I do) I have 200k so far.

My wife can access her's at 55 (special government job she has)  I can get mine at 60 (like everyone else)
My wife will turn her retirement savings into a pension so she gets a payment each week or whatever. instead of a lump sum payment.

I think I will spend the next 3 years tracking spending and learning all I can, then sell the business and perhaps work in it.

I have 10 other people working for me, they are great but the stress is being at the top, I'd rather work for someone else for a while.

Thanks again.

[NestEgg]

Okay - a few more thoughts.

1. You should look into how that 200k is invested. It's often the case that the default investments in retirement plans are bad - in the sense that they are in assets with high expense ratios. This means that you pay a large cost for holding the portfolio regardless of it's performance. I'm not sure what type of assets you have access to in an Australian retirement fund, but it's something you should research. Vanguard funds are the typical suggestion to form your portfolio.

2. You should do research into the relative benefits of the weekly payment vs. the lump sum payment. It's likely to be the case that you're better off taking the lump sum, investing most of it, and then living off the interest. The main reason you would consider taking a weekly payment is because you are uncomfortable with dealing with your own money, and so you're delegating that knowledge to someone else.

I think the obvious place for you to get started is to optimize your existing investments, precisely calculate your current expenses, and think hard about your likely expenses in retirement. It's entirely possible that you do the math (or pay someone else to help you do it), and you find that you're financially independent right now - perhaps even without selling the business. But it will take some work and education - cheers!