Latest news with #FIRE
Yahoo
6 hours ago
- Business
- Yahoo
Retired Early But Now I'm Back to Work – Did I Make a Mistake in My Financial Journey?
A Reddit poster retired at 48, but he's going back to work in response to concerns about the economy. The poster is disappointed in his decisions and feels he should trust in his investments to see him through. The poster didn't necessarily make an error by retiring -- and going back isn't necessarily an error, either. The $23,760 Social Security bonus most retirees completely overlook › If you retire and then go back to work, did you make a financial mistake? This is a question that a Reddit poster recently asked. The poster explains that he had retired early at 48 years old, but has now signed a contract for a new job. FIRE Failurebyu/LeeeeeeRooooyJenkins in ChubbyFIRE His issue is that he is "disappointed" in himself for returning to work because he wanted to trust that compound interest and his wise investments would see him through for life. He has $4.38 million in total assets, including real estate, retirement, and brokerage accounts, and feels like that should be enough, but fear is driving him back to work. Specifically, he's scared of market turbulence and the economy tanking. So, did the poster make a mistake in leaving work and then returning? Did he derail his finances for good, and should he be disappointed in the decisions he's making? Everyone's situation is different, of course, but there are a great many people who retire and then return to work. In fact, the 2022 Retirement Saving & Spending Study from T. Rowe Price found that 20% of retirees were working either full-time or part-time, and 7% were looking for work. All of these retirees, and the Reddit poster, are not failures for deciding to return to the workforce. In fact, as one Reddit commentator suggested, it is not a failure to respond to changing market conditions, but rather a strategic choice to return to work and build a larger cash cushion. Now, the poster may be fine with $4.38 million in assets, as long as he maintains a safe withdrawal rate. But it's just as important to feel comfortable with the size of your nest egg as it is for your nest egg to be large enough to support you -- so if going back to work provides the poster with added peace of mind, there's no real downside to doing it. The Reddit poster also felt like he should trust in compound interest rather than returning to work. As a general rule, the poster -- and anyone else who is invested -- should have investments they feel confident in, and should try to make sure they have the right asset allocation to get through turbulent economic times. Hopefully, the poster did that. If he did, maybe a return to work wouldn't be strictly necessary, since he does have more saved than most. Still, there are very few people who regret having too much money saved for retirement. So, if the Redditor's investments perform as expected and he works to earn extra income too, he shouldn't end up in a bad place -- he will likely find himself better off. Other posters also commented that having a bigger cash cushion is good given ongoing economic uncertainty, and that's absolutely true. Turbulent markets are a part of life and not a reason for panic, but that panic will really only get you into trouble if it takes the form of selling low because you're afraid to wait for the recovery. If you respond to a down market by investing more, that's usually a smart choice, since you're taking advantage of buying opportunities. Of course, if you work hard for early retirement and then you have to go back to work, it's hard to make that mental adjustment. And, if you do return to work unnecessarily, perhaps you are giving up some of your precious time for no real gain. In this situation, though, the poster is going back for a short time, has specific financial goals, and has a clear plan. Given those circumstances, it's hard to see what could be wrong with this poster's choices. If he still has doubts, though, talking with a financial professional about how much he should end up with in his nest egg, and how to leave work for good and feel confident in doing so, could be his best bet. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Retired Early But Now I'm Back to Work – Did I Make a Mistake in My Financial Journey? was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
2 days ago
- Business
- Globe and Mail
Retired Early But Now I'm Back to Work – Did I Make a Mistake in My Financial Journey?
If you retire and then go back to work, did you make a financial mistake? This is a question that a Reddit poster recently asked. The poster explains that he had retired early at 48 years old, but has now signed a contract for a new job. FIRE Failure by u/LeeeeeeRooooyJenkins in ChubbyFIRE His issue is that he is "disappointed" in himself for returning to work because he wanted to trust that compound interest and his wise investments would see him through for life. He has $4.38 million in total assets, including real estate, retirement, and brokerage accounts, and feels like that should be enough, but fear is driving him back to work. Specifically, he's scared of market turbulence and the economy tanking. So, did the poster make a mistake in leaving work and then returning? Did he derail his finances for good, and should he be disappointed in the decisions he's making? Is it a failure to retire and then return to work? Everyone's situation is different, of course, but there are a great many people who retire and then return to work. In fact, the 2022 Retirement Saving & Spending Study from T. Rowe Price found that 20% of retirees were working either full-time or part-time, and 7% were looking for work. All of these retirees, and the Reddit poster, are not failures for deciding to return to the workforce. In fact, as one Reddit commentator suggested, it is not a failure to respond to changing market conditions, but rather a strategic choice to return to work and build a larger cash cushion. Now, the poster may be fine with $4.38 million in assets, as long as he maintains a safe withdrawal rate. But it's just as important to feel comfortable with the size of your nest egg as it is for your nest egg to be large enough to support you -- so if going back to work provides the poster with added peace of mind, there's no real downside to doing it. How big a cash cushion should retirees have? The Reddit poster also felt like he should trust in compound interest rather than returning to work. As a general rule, the poster -- and anyone else who is invested -- should have investments they feel confident in, and should try to make sure they have the right asset allocation to get through turbulent economic times. Hopefully, the poster did that. If he did, maybe a return to work wouldn't be strictly necessary, since he does have more saved than most. Still, there are very few people who regret having too much money saved for retirement. So, if the Redditor's investments perform as expected and he works to earn extra income too, he shouldn't end up in a bad place -- he will likely find himself better off. Other posters also commented that having a bigger cash cushion is good given ongoing economic uncertainty, and that's absolutely true. Turbulent markets are a part of life and not a reason for panic, but that panic will really only get you into trouble if it takes the form of selling low because you're afraid to wait for the recovery. If you respond to a down market by investing more, that's usually a smart choice, since you're taking advantage of buying opportunities. Of course, if you work hard for early retirement and then you have to go back to work, it's hard to make that mental adjustment. And, if you do return to work unnecessarily, perhaps you are giving up some of your precious time for no real gain. In this situation, though, the poster is going back for a short time, has specific financial goals, and has a clear plan. Given those circumstances, it's hard to see what could be wrong with this poster's choices. If he still has doubts, though, talking with a financial professional about how much he should end up with in his nest egg, and how to leave work for good and feel confident in doing so, could be his best bet. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
Yahoo
2 days ago
- Business
- Yahoo
The 10 Best States To Retire at 40 That Don't Require You To Be a Millionaire
Many Americans dream of living the retirement lifestyle. They may envision lives full of travel and enjoying drinks with tiny umbrellas on secluded beaches. Early retirement flips the mentality of working for decades in an office, with fewer years to enjoy life. The financial independence, retire early (FIRE) movement epitomizes that desire through aggressive investing to enable aspirants to retire as early as 40 years old. Discover More: Check Out: FIRE devotees often use the 4% rule to determine if they can retire early. The rule is simple: You add all your investments together and withdraw 4% of the total in your first year of retirement. That amount is adjusted for inflation in the following years and assumes the likelihood of not outliving your resources for the following three decades. Additionally, early retirement requires increasingly purposeful spending and saving in early years to achieve the goal. Retiring at 40 is seemingly impossible, but it's achievable with purposeful actions, notably finding a low-cost-of-living place to live. A recent study from Falcon Funded reveals the best states to retire at 40, and none of them require millionaire status. The study looks at monthly cost of living for one person without rent, average monthly rent for a one-bedroom apartment, annual healthcare costs and annual cost of living with rent. The annual amount was multiplied by 25 to determine the required retirement savings. Also find out how much you need to save monthly to retire comfortably in every state. Monthly cost of living per person (without rent): $807 Average monthly rent (one bedroom): $973 Annual healthcare cost: $9,394 Annual cost of living with rent: $30,754 4% rule for withdrawals: $768,850 Monthly cost of living per person (without rent): $863 Average monthly rent (one bedroom): $955 Annual healthcare cost: $9,789 Annual cost of living with rent: $31,605 4% rule for withdrawals: $790,125 Trending Now: Monthly cost of living per person (without rent): $1,138 Average monthly rent (one bedroom): $943 Annual healthcare cost: $9,408 Annual cost of living with rent: $34,369 4% rule for withdrawals: $859,230 Monthly cost of living per person (without rent): $1,047 Average monthly rent (one bedroom): $1,139 Annual healthcare cost: $8,902 Annual cost of living with rent: $35,132 4% rule for withdrawals: $878,305 Monthly cost of living per person (without rent): $1,146 Average monthly rent (one bedroom): $1,010 Annual healthcare cost: $9,444 Annual cost of living with rent: $35,318 4% rule for withdrawals: $882,960 Monthly cost of living per person (without rent): $1,087 Average monthly rent (one bedroom): $935 Annual healthcare cost: $11,301 Annual cost of living with rent: $35,566 4% rule for withdrawals: $889,158 Monthly cost of living per person (without rent): $990 Average monthly rent (one bedroom): $914 Annual healthcare cost: $12,769 Annual cost of living with rent: $35,612 4% rule for withdrawals: $890,308 Monthly cost of living per person (without rent): $1,095 Average monthly rent (one bedroom): $974 Annual healthcare cost: $12,495 Annual cost of living with rent: $37,328 4% rule for withdrawals: $933,201 Monthly cost of living per person (without rent): $1,162 Average monthly rent (one bedroom): $1,200 Annual healthcare cost: $9,280 Annual cost of living with rent: $37,628 4% rule for withdrawals: $940,690 Monthly cost of living per person (without rent): $1,083 Average monthly rent (one bedroom): $1,276 Annual healthcare cost: $9,338 Annual cost of living with rent: $37,639 4% rule for withdrawals: $940,970 Risks aside, retiring at 40 is possible with committed action. 'A person aiming to retire at 40 needs to think far beyond lifestyle goals — they need to think geographically. Housing remains the biggest driver, but healthcare and quality of life metrics also shift the savings target dramatically from state to state,' said Nathan Nolan, a spokesperson from Falcon Funded. 'Even small differences in monthly expenses can add up to hundreds of thousands in retirement savings over time.' Before beginning a journey towards early retirement, analyze the risks to create a plan to guide your decisions. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on The 10 Best States To Retire at 40 That Don't Require You To Be a Millionaire Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
I'm 29 with plenty of cash, a robust 401(k) and own a condo — but I feel left behind and lonely. What now?
Picture this: You own a home, along with $130,000 in cash savings and $40,000 in your 401(k), and you're not even 30 years old yet. On paper, this is a great financial situation. But after years of pinching pennies, turning down dinner invites and putting fun on layaway, was the sacrifice worth it? Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Welcome to the emotional hangover of hyper-saving, a side effect of the FIRE (Financial Independence, Retire Early) movement. If this sounds like you, we've got some strategies for how to be fiscally responsible and still enjoy your life. The FIRE movement is a financial movement that is made up of intense saving and budgeting to support an early retirement. Saving 50% to 70% of your income sounds glamorous on paper, and for the ultra-disciplined, it's a path to fast-track financial goals. But when social life takes a back seat to spreadsheet life, the returns may not always be what they seem. According to the Federal Reserve data, as of 2022, the median net worth for American households under 35 years old is just $39,000. So, if you're in your late twenties with six figures saved and real estate in your name, you've already lapped this figure several times over. But while your bank account may be full, what can you do if your social calendar is blank? Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Once you've nailed the basics, like establishing an emergency fund, bolstering your retirement savings and acquiring some equity, it could be time to rebalance. Financial stability should be your launch pad to life, not the finish line. Here are some ways to reclaim your social life: The 'Yes Month': Say yes (within reason) to social invites for a month. Go to that concert. Grab rooftop drinks. RSVP 'yes' to life. Giving yourself permission to live a little can revitalize your emotional well-being. Create a 'Fun Fund': Set aside a guilt-free allowance for everything you used to say 'no' to, such as weekend getaways, dinners out, shopping or even grabbing a coffee. Book a short trip: Whether it's a road trip or something more exotic, a short, reasonably priced escapade can reset your perspective and your priorities and give you time for self-reflection. Talk to a professional: A financial advisor can help you pivot from survival-mode saving to intentional living. Think of it this way, you take your car in for service regularly, right? So consider these meetings to be a tune-up for your money mindset. You may also want to ask yourself: 'What does 'enough' look like — for me?' This can be used as a baseline for your saving mindset. Defining what's 'enough' — whether it's a certain amount of savings or a paid-off mortgage — can help you figure out how much room you have to enjoy other things while you work toward achieving that goal. Saving aggressively in your 20s is a powerful move. But financial independence isn't just about escaping work; it's about designing a life you actually want to live. If you're sitting on a growing bank account and a shrinking social life, maybe it's time to rebalance the books, not just financially, but emotionally. Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
3 days ago
- Business
- Yahoo
35-Year-Old With $3 Million Net Worth Making $250K A Year Says Despite Hitting All Financial Goals, He's Miserable — 'I Feel Dead Inside'
Reaching financial independence by 35 is the dream. At least, that's what the FIRE community would have you believe. FIRE—short for Financial Independence, Retire Early—is a movement where people aggressively save, invest, and try to exit the rat race decades ahead of schedule. Skip the daily commute, skip the boss, and live life on your own terms. But for one user on Reddit's r/FIRE subreddit, hitting every financial milestone didn't come with freedom. It came with burnout. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – He's 35, married with two kids, earns $250,000 a year in a high-stress corporate role, and runs a startup projected to earn $90,000. His net worth? Over $3 million. That includes $2.5 million in brokerage accounts, $200,000 in retirement, $30,000 in cash, and a home worth $650,000—with only $300,000 left on the mortgage at 2.25%. Two cars are paid off, and the third is nearly there. He's done it all right. And yet? "I don't think I've ever been more miserable," he wrote. "I feel dead inside and I don't like who I've become. I feel like I can't enjoy anything anymore, even hobbies I once really enjoyed. I can't recall the last time I was actually happy or honestly what that even really felt like." He said he's losing sleep, spending hours staring at the ceiling, thinking about the years he's sacrificed. He goes through the motions, smiling for his family, pretending things are fine. "If only one of us has to be miserable, it should be me. No need to bring them down too." Trending: Maximize saving for your retirement and cut down on taxes: . For a community obsessed with asset allocation and early retirement math, the response was strikingly emotional. Users didn't toss spreadsheets at him—they tossed support. One person asked, "How did you get a $3 million portfolio in 13 years making $250K or less?" Another replied, "Lots of risk is the answer." Someone else said, "Sounds like OP is trading time and life experiences for money. And now found themselves entirely empty." The thread turned quickly from admiration to intervention. "You should probably talk to a mental health professional. Not a financial forum." "Walk away from the corp job to focus on your startup for one year... Spend more time with the kids and wife." "You can't get back those years of your youth. They're worth more than $250K a year."And the harshest but most honest comment of all? "If it makes you feel any better, I feel this way with almost $3 million less than you." This entire crisis tracks with what psychologists call the hedonic treadmill—the idea that happiness levels may shift briefly after life changes but eventually drift back to a personal baseline. According to Psychology Today, that baseline isn't the same for everyone, and a person can have different set points for emotional highs versus overall life satisfaction. In other words, your life can look fantastic on paper and still feel emotionally bankrupt. So maybe FIRE isn't the finish line after all. Maybe it's the starting line for a harder question: what are you really chasing? Because no amount of brokerage accounts or early retirement plans will buy back your 30s—or the peace you expected to find once you got here. Read Next: Invest where it hurts — and help millions heal:. 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 35-Year-Old With $3 Million Net Worth Making $250K A Year Says Despite Hitting All Financial Goals, He's Miserable — 'I Feel Dead Inside' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
