I’m 42 and have approximately $1.8m in net worth. I make $500k/yr. That seems like a lot, but my field is very unstable and it’s unlikely I will make it past 50 before the business retires me (and maybe sooner). I’m trying to save about $200k/year for the next two years, which will conclude my current contract. I expect to be let go after that because my field is contracting and it’s very hard to make the company enough money to justify my salary. Assuming the market is somewhat steady, I’d expect to have about $2.2m in Net worth at the end of 2025.
Allocation would be as follows:
350k - home equity 175k - rental property equity 1.675m ~95% stock/5% bonds - I’d say that about 80% of my equity position is in either qqq or SPY etfs. The rest is in specific stocks like Amazon and Apple.
I live in SoCal, am single with no kids, and spend approximately $13k/mo between my mortgage, insurance, entertainment and eating out.
What is my best course of action to ensure I can retire if my career comes to an end in two years? And same question if I can make it ten more years? I don’t see a path to it being longer than that given the state of the industry. I’d also expect that if I make it more than two more years, my pay will be cut in half based on the lack of opportunities available (meaning, I’d probably have barely enough to cover my current monthly expenses).
Advice?
original posted by detectiveSmartGuy to r/personalfinance on Tue, 12 Mar 2024 07:50:04 GMT.