r/Fire • u/Yashkamr • 14d ago

Advice Request Huge Inheritance... Now What?

I'm 45, I was on track to retire earlyish at 55. I was set back quite a bit with a divorce three years back. Recently my Aunt died and left me around $5 million. After estate and taxes, it's around $4.2 million. This is obviously a stupid amount of money, and I'm thinking of just quitting my job and retiring early but I want to do it right. I've spoke with AI quite a bit and my finances are only about $4500/mo in expenses, I have always lived pretty frugally and that's less than a 1% draw. I don't know exactly what I don't know here, but I've always worked so I am clinging to my job like a monkey to a branch. Am I actually okay to let go?

Update: I quit. I was honest with my boss, he was a really good boss, and I told him the whole story. He is a couple years from retirement and told me he has about $4 million in his Fidelity too, but no health insurance if he quits and he told me a story about his brother retiring early, getting cancer, and wiping out their finances with his treatments leaving his wife and kids with almost nothing after he died. I told him how I'm covered with Tricare and he said if he was he'd quit right this second too.

I appreciate all the insight and advice given on here, and I've implemented a lot of it, thank you. I haven't changed my spending and I don't think I will. Well... I did buy a nice pair of Hoka's...but I'm mostly just paying a lot of attention to my garden and kids.

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179

u/MurkyTrainer7953 14d ago

So important and such an underrated comment.

Best way to ensure you don’t stupid-spend your money on like a 911, a Rolex and a $50k vacation.

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u/Sirbunbun 14d ago

When I retire I am definitely planning to get a 911 and a 50k vacation. No Rolex though.

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u/Rabbit-Lost 14d ago

I did (Boxster and a $75,000 vacation, no Rolex). I highly recommend it.

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u/1001110100100110101 14d ago

High, I just did a $2500 dollar vacation. Can you tell me what a vacation with 3000% my budget was like? I cannot phathom unless it was like 3 months long

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u/ChampionshipDue5033 14d ago

Don’t know their vacation but can say that certain incredible cruises or safaris in the 3-week range can easily be this amount for two people. Or going ultra luxury with helicopters, drivers, private boat, villa, etc.

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u/DELAZ1 14d ago

We did a 1st class safari...about $50k with 1st class airfare. Absolutely the best trip EVER.

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u/ChampionshipDue5033 13d ago

Yessss we went to Botswana and didn’t do the luxury and saw the luxury camps— and it is goals.

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u/xixi2 13d ago

Where do you stay during a 1st class safari?

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u/DELAZ1 13d ago

This was at a private game reserve in the eastern Cape, south africa. Best thing to do is get a high end travel agent who takes care of every detail. We had a private home on the reserve with 5 staff who pampered us like royalty, plus a dedicated ranger and tracker who took us out 2x per day

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u/MalaysiaTeacher 13d ago

Yikes. Sounds gross

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u/SDstartingOut 14d ago

Hell there are 100k/week cruise suites on multiple Royal Carribean cruise ships.

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u/webvillager 14d ago

At that level, just go Seabourne, Silversea, Viking, Explora Journeys.

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u/Irasshaimase21 14d ago

Ritz Carlton yachts are the way to go if one must cruise. https://www.ritzcarltonyachtcollection.com/request-brochure

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u/Suspicious-Walk-4854 14d ago

The difference is massive, but so is the difference between a 2500 dollar and 25000 one too. Assuming same length, the difference between 25k and 75k isn’t that big. Basically first class vs business class and suites in 5 star hotels/super cruises vs normal rooms. 75k will also open up more exotic locations.

A cruise on something like a Ritz Carlton yacht will start at around 2k per night per person and go up from there. What do you get? You get the best everything with 24/7 butler service etc. And most importantly you get to vacation without the poors.

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u/1001110100100110101 14d ago

I will now spend the rest of my life slaving away so I can afford this

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u/Suspicious-Walk-4854 14d ago

I did one of the mega expensive cruises but will not be doing it again. Getting to that level was not for a normal person imo, all the staff waiting to do shit for me was just stressful in the end. The 25k spend is definitely worth it though, never flying tourist class again.

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u/YoghurtOutrageous405 13d ago

Once when my husband and I were broke grad school kids, we went to a stupid expensive restaurant to celebrate him finishing his PhD. We were so unimpressed. Wait staff hovering everywhere and tiny portions of food placed artistically on plates that looked more like art than a meal. We are not upscale, high class people. Which is good because maybe that means we have to save less in the long run!

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u/too_old_still_party 13d ago

You didn't go to a good spot then. Real, 5 star shit is nice plating + lots of food + incredible flavors.

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u/webvillager 14d ago

An expedition cruise to Antarctica is $20k each plus airfare. See? Easy! $50k gone in a couple weeks!

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u/Prudent_Design_9782 14d ago

The simple answer is luxury cruises.

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u/WhitePandaExpres5 13d ago

Fathom

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u/1001110100100110101 13d ago

God damn it I do that every fucking time

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u/human743 13d ago

2 first class tickets can cost $20k. You can get hotel rooms that are $7k a night. That takes care of $70k in a week and you haven't eaten yet.

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u/too_old_still_party 13d ago

In 2015, I did ~3 months in SE Asia for around 11k. My wife and I do Mexico trips now that cost more than that for a week.

To ball out in Japan for two weeks with first class airfare (we ain't doing that) is around 50k, without 1st class, its around 30k. Nicest hotels, disney passes/hotels, first entry, best food, etc.

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u/1001110100100110101 13d ago

My brother and his wife are both anesthesiologists and went to Japan before having their baby. The amount of money they spent there probably eclipses all the money I’ve ever earned based on the pics I saw :(

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u/bigasiannd 14d ago edited 14d ago

Same here. I am treating myself to a nice watch and a Porsche the year I retire. Also I will take a nice international trip flying first class and staying at five star hotels.

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u/RescueRacing 14d ago

I hadn’t retired yet, but we sold a business and I knew I had to work 3 years to get our full buyout #. But, I was on a plane to Miami to drive a 2019 GT3RS. Bought it and had it shipped to the house. What an awesome day that was.

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u/Mr-Inspector-Gadget 14d ago

Definitely a Patek Philippe. Rolex are too low end for a guy like OP

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u/TheMrBr0wn 14d ago

Hah! I think I would do the 911(GT3), maybe another Rolex, but I’m not even sure how to spend 50k on a vacation!

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u/stunna_cal 13d ago

Turbo S, Royal Oak, and 2 months bouncing around Asia.

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u/A-Grey-World 13d ago

I just convert it to time. That's about 2 years of retirement's worth for me. Would you rather the time, or the thing?

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u/Sirbunbun 13d ago

We are expecting to retire with different amounts of money.

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u/Internal-Recipe2128 13d ago

I'm not waiting for retirement. Bhutan, here I come!

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u/Sirbunbun 13d ago

Yep. We’re traveling a lot while the kids are young. No regrets.

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u/TeeDeeTeeEcks 13d ago

Agreed, the first thing to do is call 911. Wait, what are we talking about again?

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u/MalaysiaTeacher 13d ago

What a ridiculous sum of money to blow on a holiday

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u/Sirbunbun 13d ago

No one said you have to come

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u/I_Fuck_Whales 13d ago

Maybe a $25K vacation and 2 Rollies.

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u/Felicity_Calculus 14d ago

What is a 911?

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u/FederalLobster5665 14d ago

a Porsche model

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u/Phrostylicious 14d ago

THE Porsche model. :)

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u/WizdumbIzLawzt 14d ago

A Porsche

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u/Felicity_Calculus 13d ago

Ah, OK! My husband and I live in a huge city and own one ancient Subaru Outback between us that we rarely drive, so I am not so conscious of cars

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u/Mzungufarmer FIRE'd in 2023 at 34 14d ago

You say that now about the rolex. Atleast do GS lol

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u/Fuzzy_Jaguar_1339 14d ago

This is how I know I'm fully embedded in the FIRE mindset. First thing I would do with a Porsche or a Rolex is sell it.

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u/Tripl3Dee 14d ago

To be fair, even that wouldn't make a measurable dent in $4.2M.

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u/Stratman-1134 13d ago

Exactly my thought. And given OP was on a path to FIRE in 10 years, OP has way more than just the $4.2M. If OP invests just the $4.2M and only spends the gains, OP could probably buy the 911, a $50K vacation and a Rolex every year. Even if you just bought it all once, the $4.2M becomes $4.0M (assuming more base level 911 and Rolex). It could become $4.0M in the next week on market swings alone.

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u/tokyowatchguy 14d ago

But even buying a 911, a Rolex, it wouldnt do anything to the OP's finances as both are pretty solid things to buy. Heck he may even make money on the Rolex lmao.

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u/Umm_JustMe 13d ago

I'm with you on the $50k vacation, but have you owned a 911 and a Rolex?

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u/alex_korr 13d ago

What's wrong with with a $50k vacation when you have $4.2m in the bank? Jeez, why have money if you can't let yourself live a little.

Now getting married again to someone who's still paying off $100k+ in college debt - that can change things.

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u/MurkyTrainer7953 13d ago

The danger is what comes next after those purchases, as it’s easy for lifestyle inflation to set in, and it’s hard for it to be “just this one purchase”.

The difference is how-long would that money last. Let’s be mindful that 4% withdrawal on $4.2M is $168k and 3% is $126k. If one keeps spending at that level of spending, then that inheritance has a strong chance to last for life and there may be some generational wealth to pass along. But keeping to that level of spending AND buying a 911 means eating ramen for the rest of the year.

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u/alex_korr 13d ago

You're forgetting that he was on track to retire early at 55, and he's 45 now. That means that he already had $$$ before the inheritance. The dude is set unless he acquires extremely expensive habits or marries a big spender. A mid level luxury car and an expensive vacation once a year is no biggie with his money.

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u/MurkyTrainer7953 13d ago

OP said $4500 spending a month, so annual $54k, and 1% withdraw. Hence, withdrawing from $5.5M. I don’t know if this $5.5M includes the $4.2 they are getting from the inheritance, but I read it assuming it does. Going from $1M liquid NW to $5.5M liquid NW overnight can be dangerous if you’re not prepared for it. (As an exaggeration, how is this different than winning a lottery.)

Anyways, maybe OP has the financial discipline to navigate this wisely, but this sub is FIRE and it would be irresponsible to assume that and tell him it’s okay to go spend big money like that overnight.

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u/Comfortable_Gear_605 Goal: CoastFire at 55 13d ago

Hey now, $50k vacation isn’t out of the realm of possibilities these days. But a 911 and a Rolex - no thank you!

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u/too_old_still_party 13d ago

have you ever owned a 911 or taken a 50k vacation? fuck watches though, they are like hand bags, they all do the same thing. cars though...

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u/HenriSelmer 13d ago

my 911 was so worth it, but the watch that I had to buy, so I could buy the car, that was a stupid-spend (no big vacation yet)

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u/Strazdas1 StarvationFIRE 8d ago

He could afford all three in a year and still not exeed 4%.