Long-time lurker here. I’ve learned a lot over the years and finally felt ready to contribute my 2 cents. A few years ago, I promised myself I’d post on this subreddit the moment our net assets hit £3M (our FIRE goal). Thanks to recent market surges, we’ve finally crossed the line.
- Age: 42 (Couple)
- House: £1.2M value / £330k mortgage (£870k equity)
- ISA: £690k
- Pension: £970k
- GIA : £520k
Financial Goals & Allocations:
- House Retention: We plan to stay put (no upgrade/downgrade) and pay the mortgage slowly. We intend to leave the house to our children when we pass away. (£330k debt remains).
- Children’s Education: Supporting 2 children in private school. (~£700k allocated for the remainder of their school years).
- Living Costs: Investment returns to cover £30k/year living costs (excluding mortgage and school fees).
In theory, we are FIREd today
- Withdrawal Rate: £30k / £1.15m ≈ 2.6%
The Dilemma:
We are both still working and have no immediate financial plans to stop, but we’re hitting a wall mentally and financially:
- Boredom & Purpose: I don’t hate my job, but I feel bored. There’s little sense of achievement at the end of the day. However, it provides structure, is a big part of my social life, and makes me feel needed.
- "Working for Free" : I am in the pension tapering region, which has pushed my marginal tax rate to roughly 70%.
- For every £1 I earn, I only take home 30p.
- We likely won’t need that 30p for the rest of our lives.
- When we pass away, the government will take another 40% Inheritance Tax (IHT) on what’s left.
- The Result: Essentially, for every extra £1 I earn, the government takes 82p, and my children each get only 9p.
It feels like I’m working just to keep myself physically and mentally healthy, rather than for financial gain.
The Question:
I’m considering starting to plan what to do for the rest of my life while we’re still young enough to pivot. For those in similar situations (high net worth, high marginal tax rates, but still employed):
- Do you miss the structure/routine after quitting?
- Did you find a "bridge job" or hobby that gave you purpose?
- Any suggestions on the best timing to pull the plug?