[USER]

My wife and I (age 50+\-) have never kept a budget. I’d like to not keep a budget in retirement, either. Ever.

One of us is done with work, but the other is now left with the decision to sell the business for a profit around a million before taxes, or keep working when it leaves about a $250,000 to $400,000 taxable profit each year.

We have right around $4.25 million saved now, with a mortgage-free home that’s worth about an additional 1/3 of that. So, after taxes we’d be left with right around $5 million if the business is sold. Plus a nice well located mortgage-free house that’s in great shape (in one of the highest rated towns for retirees in the entire country).

We’d like to live the fat-FIRE lifestyle of more-or-less doing with our money what we want, without concern for running out. We don’t travel first class, stay in 5 star hotels, or dine out at fancy restaurants.. but we do appreciate quality and service.

Would you do it, or would you continue to draw some more earned income? If so, how much more?

[Azzedine]

The big question is always health insurance. At least for me it is. What is your plan? Also do you have 1 , 2 vehicles? Is it a walkable town/city where you are? Any kids in College. You did not mention but I do not want to assume No kids.

I do not keep a budget but you must have an idea and should how much money you will allocate every year. I am planning on using the 3.5% rule at least for the first few years following RE.

Will you be traveling a lot? It really depends on what you are planning on doing but many people in your situation would be ready to RE now.

[Raman]

With 5 million you are simply NGMI need at least 10 times of that just to afford McDonald’s nowadays. GL hf

[Wayne]

All depends how FAT you want to be. I despise budgeting as well but I did do three different budget estimates (frugal, normal and luxury) when I retired. More to help either my wife’s anxiety about it than anything. Haven’t done one since. As a successful business owner, you’re always budgeting, you’re just doing it subconsciously.

You have a good feel if you can afford something or not. One thing I will say is that surprises will pop up so always have a little padding.

My mother in law had to go into assisted living unexpectedly and in 2025 that will start costing us about $100k/year since we’re the only family members that can afford it.

That one certainly wasn’t “in the budget”. Get out there and enjoy life but always be ready to adjust if necessary.

[Author]

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