Advice from those on lower end of chubby ($3mm)
Like many here im feeling burnout and considering a change to coast or just stop entirely. I’m 44m earning $250k or so depending on bonus, wife is 42m recently laid off and trying to do contracting work in the short term. NW is ~4.3 with 3.5 liquid. Our area is prob mid to high COL. kids are 4 and 6, they each have about $100k in a 529 not counted in the nw or 3.5 liquid number.
I’m seriously considering paying off our remaining mortgage ($500k at 4.5%) leaving ~3mm investable and retiring. I am realizing that 120k spend/withdrawal has alot of benefits in terms of taxes and ACA subsidies (don’t feel great using these given our net worth but they can be a significant cost offset) We’d basically pay no taxes with the child tax credit and ACA plan would only be around 6k a year. Doing the math our spending would be right around the 120k - having no mortgage, manageable healthcare premiums and minimal taxes makes a huge difference on the expense side, also our kids are done with daycare and will be in public school. I am curious if anyone here has retired with a similar situation or is planning to. I am conservative and would feel better about having 3.5-4mm in particular for one off unplanned expenses like a house issue, new car etc, but at the same time I think my wife or I would be able to pick up contracting work and earn 50-100k a year in the near term if needed. Anyone else have a similar situation, how is it working for you? Appreciate any perspective.