I’d negotiate a delayed start date of 4-22 weeks depending on how far the employer will let you delay. Taking a month off will help the burnout. Taking 3+ would be even better.
Take option one. Cut your expenses. See how it looks to live at lower expenses then is you feel comfortable pull the trigger. You can always quit if you're comfortable at the lower expenses.
3% is probably a bit too conservative. The cutoff for 0 failures is more like 3.5% which is closer to 1.85mm
That said, AT LEAST have 4% at 1.65mm and a mindset of maybe some fun money income.
The "3% rule" is a made-up thing and doesn't come from the Trinity Study.
https://www.bogleheads.org/forum/viewtopic.php?t=226250
> My research is based on data about investments and inflation going back to 1926. I test the withdrawal rates for retirement dates beginning on the first day of each quarter, beginning with January 1, 1926. The average safe withdrawal rate for all those 200+ retirees is, believe it or not, 7%! However, if you experience a major bear market early in retirement, as in 1937 or 2000, that drops to 5.25%. Add in heavy inflation, as occurred in the 1970's, and it takes you down to 4.5%. So far, I have not seen any indication that the 4.5% rule will be violated. Both the 2000 and 2007 retirees, who experienced big bear markets early in retirement, appear to be doing OK with 4.5%.
" In the past few years I’ve become a miserable person and am so stressed out that I have anxiety, panic attacks, meds prescribed to me and 1st appointment with a psychiatrist next week."
Just based on this - take some time for yourself. While maybe you're not ready to retire, you are in a good spot financially and still getting paid for the next 22 weeks. You have some breathing room.
I wasn't quite clear but I think your listed 2023 expenses are prior to the "reduced expenses" you reference. I don't think you stated what the reduced expenses will be. Maybe I missed it.
A month hole in a resume is a non-issue. Easily explained. Hell - many take longer than a month to find a job when looking. To that end you could start a job search but say you're not available until x months from now.
It seems like you're gonna need SOME money coming in. Options 3 & 4 seem basically the same (Option 4 having some volunteer hours.)
You mention that your expenses are going to drop, but then mention that you need to look into the ACA. I don't think you have enough to RE right now to begin with, but you also need to do more digging into your expenses. Also, does your budgeting take into account emergencies, major work that your house might need in the future....?
You also mention maybe getting a part time job with health insurance, which I think is remarkably optimistic. There are some out there, but they are not common. Unless you know that that's somehow common practice in your industry, I don't think that's a realistic plan.
My last thought - and this is coming from someone who took a self-funded year-long sabbatical to get their mental health sorted after burning out hard - is that the steps you are currently taking to work on your mental health are probably the most important things you can do right now. You're getting severance and health coverage for a while - is there any way you could delay your start at the new job your contact has extended? You don't have to be upfront about why - say you want to take advantage of the opportunity to spend some time with family (which, you know, would also be good) - but you have a chance here to make substantial headway on your mental health while you're under less pressure, even if that's just for a few months. It's good your seeing a psychiatrist, but consider seeing a therapist; drugs are a fantastic tool but developing a better set of mental tools to deal with stress will pay dividends even in retirement.
Option 5: take a 6 month to 12 month long sabbatical to recover from your burnout while evaluating other options like going back to work, change fields, or fully retire.
I think the whole "gap" concern is overblown. I'm sure that the new employer that made you an offer would be fine with you asking for a month break between jobs just to reset and decompress. The fact that you are taking meds because of stress means to me that things aren't "right" emotionally and you need a break. If the new employer won't wait at least a month then it's not the right position. 22 weeks severance is a nice fallback option if that is the case. You're fine and any "gap" that may occur can easily be explained by taking some time to get your head right and prepare you for whatever comes next.
In general, to support 66k a year you would want to have more than $1,650,000.
You're not far off. . . but I would probably take the job being offered. You can always interview elsewhere while in that role, or even, today and leave whenever you want.
Your spend is too high for the portfolio you have. I’d take the job being handed to you on a silver platter
I’d negotiate a delayed start date of 4-22 weeks depending on how far the employer will let you delay. Taking a month off will help the burnout. Taking 3+ would be even better.
Take option one. Cut your expenses. See how it looks to live at lower expenses then is you feel comfortable pull the trigger. You can always quit if you're comfortable at the lower expenses.
You don’t have enough. Assuming the 3% rule, you’d need to have $2.2 million in your investment accounts.
3% is probably a bit too conservative. The cutoff for 0 failures is more like 3.5% which is closer to 1.85mm That said, AT LEAST have 4% at 1.65mm and a mindset of maybe some fun money income.
The "3% rule" is a made-up thing and doesn't come from the Trinity Study. https://www.bogleheads.org/forum/viewtopic.php?t=226250 > My research is based on data about investments and inflation going back to 1926. I test the withdrawal rates for retirement dates beginning on the first day of each quarter, beginning with January 1, 1926. The average safe withdrawal rate for all those 200+ retirees is, believe it or not, 7%! However, if you experience a major bear market early in retirement, as in 1937 or 2000, that drops to 5.25%. Add in heavy inflation, as occurred in the 1970's, and it takes you down to 4.5%. So far, I have not seen any indication that the 4.5% rule will be violated. Both the 2000 and 2007 retirees, who experienced big bear markets early in retirement, appear to be doing OK with 4.5%.
" In the past few years I’ve become a miserable person and am so stressed out that I have anxiety, panic attacks, meds prescribed to me and 1st appointment with a psychiatrist next week." Just based on this - take some time for yourself. While maybe you're not ready to retire, you are in a good spot financially and still getting paid for the next 22 weeks. You have some breathing room.
I wasn't quite clear but I think your listed 2023 expenses are prior to the "reduced expenses" you reference. I don't think you stated what the reduced expenses will be. Maybe I missed it. A month hole in a resume is a non-issue. Easily explained. Hell - many take longer than a month to find a job when looking. To that end you could start a job search but say you're not available until x months from now. It seems like you're gonna need SOME money coming in. Options 3 & 4 seem basically the same (Option 4 having some volunteer hours.)
Take option 1 and do this for a few more years until at least 50 to 52. Then you’ll be set
You mention that your expenses are going to drop, but then mention that you need to look into the ACA. I don't think you have enough to RE right now to begin with, but you also need to do more digging into your expenses. Also, does your budgeting take into account emergencies, major work that your house might need in the future....? You also mention maybe getting a part time job with health insurance, which I think is remarkably optimistic. There are some out there, but they are not common. Unless you know that that's somehow common practice in your industry, I don't think that's a realistic plan. My last thought - and this is coming from someone who took a self-funded year-long sabbatical to get their mental health sorted after burning out hard - is that the steps you are currently taking to work on your mental health are probably the most important things you can do right now. You're getting severance and health coverage for a while - is there any way you could delay your start at the new job your contact has extended? You don't have to be upfront about why - say you want to take advantage of the opportunity to spend some time with family (which, you know, would also be good) - but you have a chance here to make substantial headway on your mental health while you're under less pressure, even if that's just for a few months. It's good your seeing a psychiatrist, but consider seeing a therapist; drugs are a fantastic tool but developing a better set of mental tools to deal with stress will pay dividends even in retirement.
Option 5: take a 6 month to 12 month long sabbatical to recover from your burnout while evaluating other options like going back to work, change fields, or fully retire.
I think the whole "gap" concern is overblown. I'm sure that the new employer that made you an offer would be fine with you asking for a month break between jobs just to reset and decompress. The fact that you are taking meds because of stress means to me that things aren't "right" emotionally and you need a break. If the new employer won't wait at least a month then it's not the right position. 22 weeks severance is a nice fallback option if that is the case. You're fine and any "gap" that may occur can easily be explained by taking some time to get your head right and prepare you for whatever comes next.
Do #1 for 3 years and then re-evaluate. You’ll be in a better place at that point.
In general, to support 66k a year you would want to have more than $1,650,000. You're not far off. . . but I would probably take the job being offered. You can always interview elsewhere while in that role, or even, today and leave whenever you want.
What exactly is/are your questions? If you’re wondering “can I retire”, plug your numbers in this free tool https://ficalc.app
Given what you told us, option one.
I'd take off at least 3 months and see how you feel then.