I have debated between early retirement vs. a mini-retirement. Based on my health, life priorities and my pessimism that the world is going to get worse before it gets better, I am strongly considering this 5 year gap and then figure out retirement later.
Here are my financial details:
- DINK Couple - Partner is supportive as long as I continue to contribute to mortgage, very fair ask.
- Income - 160K/yr + ~ 20-22% bonus (bonus is basically guaranteed)
- Partner - $150K/yr, will be $170K starting 2022
- Retirement Savings (will not touch during the break) - 195K
- Other Savings (ETF, Stock, ESPP that I am willing to use during the break) - $160K Note: As of now I was planning on using this money for retirement, but it can be withdrawn without penalty
- Emergency Fund - $20K
- Expenses -
| Expenses | Monthly | My Share |
|---|---|---|
| Mortgage | $2500 | $1300 |
| Groceries/Home Goods | $1200 | $600 |
| Restaurants/Bars | $1000 | $500 |
| Other (Amazon/Pet etc) | $400 | $200 |
| Travel/Entertainment (Avg monthly, ~$0 in 2020) | $2000 | $1000 |
| Personal expenses (Gym, shopping etc) | $300 | $300 |
Based on this, would it be fair to estimate a minimum of ~3000/month for expenses *excluding travel*, so for 5 years, need to save at least $180,000 ? And then scale up from that number if I want to travel, take classes etc?
I am in a specialized field with a PhD. Yes, I may have to take a bit of a pay cut to return, but I don't envision it being impossible, especially with my 10yrs of experience by that point, even entry level job would be $100K. Plus, my salary will continue to increase over the next 7 years so have more income to save more. I will be on my partner's health insurance which is great. What other things should I be considering? And I am flexible on it being a gap starting at 42 instead of 40 or something to give myself wiggle room. Trying to understand what is the minimum amount that I will need. Thanks!
Submitted August 06, 2021 at 02:52PM by want-mini-retirement https://ift.tt/3ivuLMW
