mid -30s couple w/ $1.9mm and need fresh perspective
Hello,
Spouse and I are 35 and 37 with no children. We live in a HCOL area. I make around $145,000 and spouse's income is variable as they are a creative gig worker / performer, sometimes earning $50k and sometimes earning much more (or much less). Simply put, I have grown tired of working and have had a decent amount of health challenges as of late that make me want to take time away from working. That said, I work for city government and am not eligible for a yearlong sabbatical for another 18 months of service. My spouse does not get health insurance. My health insurance, on the other hand, is free with my city job. In the last five or so years, I have truly realized what an incredible blessing this “free” insurance is. I keep working now primarily for this health insurance. We have accrued a somewhat substantial net worth in the last decade or so thanks to some well-timed investments. As I said in the intro, we live in a HCOL area. The value of our home may not reflect that; however, we bought it for a lot cheaper in a major city when many were fleeing because of the pandemic. I am perhaps underestimating its value here. But anyways, here’s where we are:
Checking $15,000
Roth IRAs $260,000
Brokerage $861,000
HYSA $205,000
457 $99,000
403B Plan $237,000
Qualified Pension Contributions $72,000
Mortgage $195,000 @ 3%
Home Value $400,000
We otherwise live cheaply. We spend about $500/month on food. Our mortgage is just under $1,000. We have two paid-off cars, rarely go out, etc. Pretty boring, but it is what it is. My parents are aware of the amount of money we have and have suggested that perhaps I take some time off work immediately rather than when eligible for sabbatical (I don’t even know if I would ever go back after a sabbatical, but there is a 2-year commitment to return after taking one). I know we have a decent amount of money, but what does taking time off work even look like with our money allotted how it is? My biggest concern is the cost of health insurance. One thing I have considered is getting a significantly lower-paying remote job.
Edit: Our annual spending is approximately $49,000 (this includes property taxes, car & homeowner’s insurance, utilities, food, mortgage payment, etc.)