[USER]

Can I retire at 53 in high cost area of New Jersey?
Below is my summary of question background, please share your insight and suggestions. TIA.

I was recently laid off as a software tester with $125,000 salary, I was in that company for many years working on some outdated technology stacks.

I thought the company was pretty stable and no history of layoff.

This sudden layoff got me totally off-guarded, I was unprepared for the job hunting, and the tech job market is currently very bad due to recent massive layoff from the tech companies + too many new college Computer Science graduates.

I am very discouraged by the job market due to my age and lack of marketable skill sets, and I am afraid I may be forced out of tech field.

Either I retire early or find a totally different line of work.

Financial Summary:
Wife (48) is currently working for a small company, pretty stable job with $80,000. But her company only provides health insurance for her only.

I believe I have to pay the full amount if she includes me in her plan.

Not sure how much it would be, but it would be pricey. Heath insurance is my biggest concern since I do have some chronic health issues.

I can also checkout Obamacare health plan for myself only, I suspect it is pricy too.

Kid is a senior in college, the remaining year expense is pre-allocated already.

House is paid off, no car loan either
Monthly expense is around $6,000. But this doesn’t include future pricy health insurance cost yet.

Total stock portfolio of $3.8m mostly in S&P 500 index funds, no bond funds, 30% in brokerage accounts and 70% in tax-defer accounts.

The market is in all-time high which inflates the portfolio value. I may need to re-allocated funds to have more bonds for smoother ride.

My main concerns:
Can I retire at 53 financially while wife still work?
If retire so young, do I have an identity issue being a stay-home husband?

What is the best way to get/buy a health insurance plan for myself? Maybe to find a non-IT job with a health insurance in the future?

What other matters do I need to consider if retire now?

I am looking forward for your candid and thoughtful feedback. TIA

[Scott]

You are golden. Your wife’s income almost covers your expenses and you could draw 150k without losing value on your investments.

I wouldn’t be overly conservative on restructuring them.

I’ve been retired for 10 years and I keep my investments growth oriented.

I compensate for volatility by keeping an 18 month cash buffer. You may want to do something similar.

[Lee]

That 3.8 million will disappear very quickly without good health insurance. Either use Obamacare or be part of your wife health plan.

Your future is not promise.

[Santanu]

How is your monthly expense $6000 with no mortgage or car loan and preallocated college expenses? You might want to look into that as well

[Rachel]

Go for it! He has 3.8 million with a spouse that’s still working and a paid off house. That seems like an easy yes to me.

They should get decent health care subsidies on ACA with a salary of $80k between them.

Start another job or business if you are bored but seems like you are fine to retire.

[Denny]

It looks like you can easily retire. I’m the same age and it feels like I should have retired at a younger age. To me, 53 isn’t “so young to retire.” I’m not saying it is old.

I’m saying enjoy life.

[Carrie]

What else are you passionate about? Maybe find a non-tech job which can provide health insurance while doing something fun!

[Ruthie]

How does your spouse feel about it? Will she be resentful that she’s working g & your not?

Will you keep all the laundry & cooking up while she’s working? Have you considered how this will affect your relationship?

[Christine]

Btw, look at small colleges to teach at if you are interested in teaching

Colleges are always looking for CS professors

[Josh]

Based strictly on the numbers you are good. You could spend $10k a month and still be below the 4% rule.

My advice is see what kind of severance you get and if it includes medical coverage for x amount of time.

Take some time away from work to think about what comes next.

You worked hard and saved so you have earned the position of not having to rush into something to stay afloat.

FYI your wife’s salary I’d very close to the max for Obama care subsides, so it’s worth exploring

[MT]

Yes, but you’ll need to tweak your allocation to be geared towards preservation and a cash position to draw your income from.

[Debbi]

Yes, check your aca marketplace cost. Live off brokerage assets until 59.5, then start drawing 401k non-Roth.

Look into part time work teaching or tutoring.

[Valerie]

If all you are really worried about is healthcare, then 1) get COBRA from your former employer to fill the gap and 2) find any job you feel is agreeable that has healthcare.

It doesn’t even need to pay that much since your other expenses are pretty well covered.

[John]

It’s good that you actually have the option of buying into your wife’s work health plan. Your chronic health issues should be irrelevant to plan eligibility.

[Farha]

Most of your wealth being in the stock market is very dangerous as the stock market has been pretty volatile and these huge swings in the last couple of decades have left many people with less than projected growth in their retirement accounts.

I would think of business ownership at your stage to continue to grow your income and diversify your investment.

You are still young enough to put in the first few years to build and stabilize the business before being able to step back more, you have the skill sets and financial ability to invest in and run a serious successful business.

[Author]

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