A 39-year-old considers taking a year-long sabbatical and potentially retiring early after experiencing the ‘Trump bump’. This could provide a chance to recharge, explore new interests, or appreciate freedom. However, it’s essential to consider financial security and prioritize happiness when making this decision.
Taking a Sabbatical
You also have the opportunity to take a year-long break from your job, enjoy a taste of retirement, and decide what you want to do next with your life. This could be a chance to recharge, explore new interests, or simply appreciate the freedom that comes with early retirement.
The Pros of Early Retirement
You’re considering taking a year-long sabbatical and then returning to the workforce if you get bored of traveling. This would allow you to experience early retirement and see if it’s something you enjoy. If you do decide to retire, you could take $52,000 a year to live on, or just over $4,300 a month, which would be a good income in Spain.
Employing the 4% Rule
Using the 4% rule as a guideline, you could potentially take $52,000 a year to live on, or just over $4,300 a month. This amount would provide a good income in Spain, where property taxes are significantly lower and health insurance costs around $200 a month.
A “Work” Move or Partial Retirement
Considering these factors, a “work” move or partial retirement might be the most suitable option for you. This would allow you to enjoy your European adventure while still contributing to your financial security and potentially benefiting from future interest on your investments.
The Cons of Early Retirement
However, retiring early also means you would have to withdraw money from your investments, depriving yourself of future interest and the magic of compounding. Additionally, you would have to take into account income tax and property taxes in Europe. Health insurance costs are also lower in Europe, at around $200 a month.
What to Do
You should consider taking a “work” move or partial retirement, where you continue to work part-time while enjoying some of the benefits of early retirement. This would allow you to maintain your financial security and still experience the freedom that comes with retiring earlier than expected.
Conclusion
Ultimately, it’s essential to prioritize happiness and financial security when making decisions about early retirement. While retiring at 39 might seem like a dream come true, it’s crucial to consider all aspects of this decision before making a final choice.
