[USER]

Please help me with your opinion if I can stop the rat race. I was planning to stay another 2 years to add about 300K to my investments, but my job is getting so stressful that I`m not sure if I can do this anymore.

49 yo single F, no kids and have been with the same company for 16 years.

I would not do part time for this company and long unpaid vacation is not possible.

I`m estimating my annual budget around 40K living outside of the US including rent and everything else.

I`m currently spending around 26K/Y in Central America so 40K should be enough.

I own a three-family house and a condo in the US and all units are rented.

I estimate the net cash flow of all the unites around $2,000/month (24K/y) after all expenses including tax. It is more but I want to be safe than sorry.

I haven`t decided to sell the properties or not but if I was to sell them, the three family would provide around 320K after tax and the condo around 200K, so I have about 520K equity in the two properties after tax.

– My 401K/IRA/Roth is 250K.
– 310K in HYSA (4.5 %/year). I should invest this.
-Checking 15K
-285K brokerage.

Total net worth (860K+properties 520K) is around 1,380M.
Social Security at 67 if I stop working now would be around $1,800/month with today`s dollar.

Your opinion if I can quite the rate race is appreciated!

[Monique]

Based on numbers yes, living abroad. What about health insurance?

[Kim]

Why don’t you look for something you enjoy doing? Or start a side hustle and work on your own terms.

Get out of the rat race and be your own boss!

[Christopher]

You can quit your job. Enjoy not working. Then you can get another job, low stress, if you want later on.

[Jeff]

I’d sell the properties before moving abroad. What happens if the rentals need attention? Can someone manage them?

Less that can go wrong while you aren’t close by.

Good luck

[Josh]

Numbers look good. Real estate is how I will fire as well. Question you should consider is. Does your cashflow number from the rentals include a sinking fund for future repairs?

And if you sold the properties are you including desperation recapture as well as the capital gains tax?

[Ebony]

You can. I’m going through the same dilemma. My only issue is that I have a pension that will take a big hit if I leave.

You sound like you’re all set if you’re living abroad.

[Brittany]

Do it! You’ve got the money. Stop working now, and enjoy your life!

[Dorothy]

Looks good to me as well. Let us know when you’ve exited the rat race… I hope to be right behind you!

[Mindi]

I would quit. Keep the rentals, it’s easy income. Maybe start a side hustle you enjoy doing for part time income.

[Chris]

Using the 4% rule and creating a 80k buffer (investing that in CDs or Tbills to be safe short term) would net you about 52k a year.

You should be OK to spend the 40k a year take home. Note: the 4% rule assumes no chance of running out of money in 30 years but it is conservative in my opinion.

Do your own due diligence.

Taking a huge market hit in the early years would be the worst case scenario.

[Stephanie]

Peace of mind is priceless. But find an assignment or company to work for

[Amy]

I would quit given your math. Not worth the mental stress. Once getting out of the toxic environment, new Doors Will open because you have the mental capacity to pay attention to them.

Life is interesting that way.
My goal is very similar to yours with majority of expense covered by rentals.

Brokerage & savings are icing on the cake.

I won’t sell the properties as that’s an inflation prove investment/ income/ “paycheck”.

Congratz & enjoy your next phase of life

[Chelsea]

Are the properties paid off?
Might want to just leave an extra buffer if you have bad tenants at some point? How would that hurt cash flow, etc

I know you said you built in a buffer for expenses on the rentals and the numbers honestly look good to me.

You could also probably find something to make a little extra money if it was needed, or find a way to cut back since you’ve budgeted $40k but you’re only actually spending $26k/year now.

Do you rent abroad?

[Roland]

What if you needed to, or wanted to, return to live in the US? Maybe after awhile things change and you want to live here with

family/friends, or a health issues causes you to move to have access to better doctors? How would that affect your budget?

Maybe try to run the numbers for that scenario as well. PS: I would sell at least one of the properties.

Things may be good now with the tenants, but that can always change.

Having a rental far away (different country) is, I think, an elevated risk.

I would de-risk…

[Amy]

For myself I would say no but I am a worrier. I was in this same situation and just forced myself to carry on. Convince yourself that if you had to quit, you could.

That is the first step. Then, with that in mind, change your attitude at work.

I know I don’t know your job, but basically try to just cruise along, doing as little as possible, not taking them on. Just get by, and don’t get excited.

It’s called Coast Fire. And it actually works if you can do it.

It may be easier than you think, depending on your job.

I was able to do it. At my work I was often asked to expedite things, asked if it was possible that such and such could be completed by such and such a date.

I originally would go to some effort to figure it out, then usually tell them no.

Then I was the bad guy, lots of bad feelings, lots of stress on my part. I wisened up.

I started just saying yes, giving it a good effort and see what transpired.

Sometimes I would be surprised and it would get done but if not, well I wasn’t the one blamed anymore!

It was just a process time management issue lol. See what I mean? Now granted in my case this work was a group effort so this situation may not entirely apply to you.

But you see what I mean. Say yes, give it a college try and let it go. Whatever.

Coast. Also, if you get fired you will get a severance package which is way better than the nothing you get for quitting.

They can’t take any pension you get either way. This may seem extreme to you but honestly it’s dog eat dog out there and your employer doesn’t care about you. No matter how long you have been there.

I was 30 years at my place. You are replaceable.

So, you look after you. Do at least the extra 2 years with this new mindset.

You won’t regret it looking back. You are very young still. These are your best employment years, don’t cut yourself short.

And do a really good budget to feel absolutely sure of your financial situation for the future.

[Amanda]

Can you coast fire? Even working as a barista or something small to cover you expenses for a few years and let

Your money grow a bit more before touching it?

[Nick]

Take some personal days and do the three years IMO. You will be stressed out by not having enough.

Also, be looking g for a different position.

I always want to overshoot because things happen and having more than you need is comforting.

[Author]

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