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Last week, I was doing my daily scroll through Reddit and stumbled upon a post that I found extremely interesting.
In short, the Redditor was wondering if he and his wife - despite only being in their 40s - could start to scale back working and begin to enjoy retirement. More specifically, both have been working full-time in stressful jobs for a few decades, and are feeling the weight of burnout.
Adding to their stress, they've spent the last decade caring for aging and sick family members. And what makes the situation even more unique, the husband notes in the post that he has a chronic condition associated with a significantly reduced lifespan—about ten years less on average—and a family history of early mortality.
With a 12-year-old daughter and a substantial nest egg of approximately $4.2 million, they're contemplating whether to keep pushing, coast ( meaning no longer contribute to their savings ), or stop working altogether.
I found this post so interesting because it's a great example of how personal finance is often so personal. There is rarely a one-size-fits-all solution and address every situation - nuanced is required.
Before giving our take, let's take a look at the numbers they shared...
The Numbers
| Assets |
|---|
| Her 403(b) | $1,150,000 |
| His 403(b) | $1,335,000 |
| His Thrift Savings Plan (TSP) | $12,000 |
| Taxable Investments | $1,716,000 |
| Health Savings Account (HSA) | $15,000 |
| Home Equity | House valued at $569,000 (no mortgage) |
| Daughter's 529 Plan | $77,000 (not included in liquid assets) |
| Income |
|---|
| Her Salary | $160,000 |
| His Salary | $180,000 |
| Total Annual Income | $340,000 |
| Savings | Amount |
|---|
| Annual Savings (including company matching) | $180,000 |
| Expenses |
|---|
| Annual After-Tax Expenses | $75,000 (includes vacations but not major expenses) |
| Estimated Additional Annual Expenses | $25,000 (for new vehicles, home repairs, etc.) |
| Desired Spending | $150,000 per year |
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Some Observations
Given their substantial assets and the husband's health concerns, if I were in their shoes, I would personally consider prioritizing health and family time.
The husband's reduced lifespan potential makes personal time invaluable, so retiring now or reducing work hours could significantly improve his quality of life.
A staggered retirement approach could be a viable option: the husband might retire or shift to part-time work immediately to alleviate his stress, while the wife continues working full-time until their daughter starts college to retain the tuition discount. While most people often dream of a retirement filled with relaxation and no stress, many people often find themselves directionless if they retire too soon.
However, scaling back his commitment could balance financial benefits with personal well-being. With reduced income, they may still qualify for affordable ACA health insurance plans , and maximizing HSA contributions now might help build a larger healthcare fund for future expenses.
As a family with a net worth in the millions, engaging a financial planner to run detailed simulations accounting for different retirement ages, spending levels, and investment returns could be a really helpful exercise. Even if they are reluctant to work with an advisor that charges an assets-under-management fee, they should be able to find a financial planner or advisor who is willing to work on a flat-fee basis and help them forecast a handful of scenarios.
Lastly, given the potential for health issues in the future, estate and legacy planning is also important. I would encourage anyone in a situation like this to ensure wills, trusts, and beneficiary designations are updated, and consider the impact of early retirement on Social Security benefits to plan accordingly. They might also re-evaluate the necessity of increasing annual spending to $150,000, identifying areas where they can maintain happiness without significantly increasing expenses.
Please note that this is just my personal opinion and not financial advice.
The Takeaway
Life is about balancing financial security with personal fulfillment. In this couple's case, the husband's health concerns and family history suggest that time may be more valuable than accumulating additional wealth. By carefully planning and possibly adjusting their lifestyle expectations, they might retire or reduce work hours now without jeopardizing their financial future.
If it were me, I would seriously consider stepping back from full-time work to focus on health and family, ensuring that the time I have is spent meaningfully. But only the person involved can make that call.
Last I noted above, the wife continuing to work until their daughter finishes college could provide a middle ground, retaining valuable benefits while allowing the husband to prioritize his well-being. Open communication between them is crucial to navigating feelings of guilt and ensure both partners are comfortable with the decision.
Ultimately, consulting with a financial advisor could provide more personalized insights, helping them make an informed choice that aligns with their financial goals and personal values. It's essential to remember that money is a tool to facilitate the life you want to live—not the end goal itself.
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