29-Year-Old Inherited $2 Million And Wants To Retire Early But Fears People Will Think He's An 'Inheritance Baby'

A Redditor recently posted in the FIRE (Financial Independence, Retire Early) subreddit, sharing a dilemma after inheriting $2 million from their late father.

At 29, he contemplates quitting a high-stress job to pursue a more relaxed lifestyle focused on health, wellness, and travel. He asked the community for advice on whether this decision would be selfish and what considerations to keep in mind.

Don't Miss:

• Are you richer than most people you know? Here’s the net worth you need at every age to be above average.
• Many are surprised by Mark Cuban’s advice for lotto winners: Cash or annuity?

"My father recently passed away. He left me $2 Million, which I will have full, unfettered access to within the next few weeks. I work a job which does bring me fulfillment, but with it comes so much stress, responsibility, and public presence that I haven't been ‘enjoying' it for the last two of four of the years. I want to quit my job, work part-time jobs doing things I like such as health, wellness, and travel, and work no more than 20 hours a week … Is this selfish? What are your thoughts?"

The Redditor explained he doesn't have children and doesn't plan to, having gotten a vasectomy. The loss of his father led him to confront his mortality, prompting a reevaluation of his life choices. No longer burdened by the pressure to save heavily for retirement thanks to a substantial inheritance, the user now has the freedom to prioritize their hobbies and happiness. However, concerns linger about how his friends might perceive this shift. He worries about being judged as an "inheritance baby" who no longer needs to work full-time.

Trending: Rory McIlroy’s mansion in Florida is worth $22 million today, doubling from 2017 — here’s how to get started investing in real estate with just $100

One commenter suggested a practical approach: "If I were you, I'd get my hands on the money and continue to work for the next few months with the changed mindset of not ‘having to' work but ‘wanting to' and see if that takes some of the stress out."

Another emphasized caution: "Take it slow. Don't make any major decisions for at least six months, maybe even a year. Grief can really make us do things out of our ordinary character."

A different perspective highlighted potential financial considerations: "In order to make $2M last, that's only a 3% withdrawal rate, $60k to live on isn't enough in a lot of the U.S., but could be plenty in some more depressed areas or even some countries."

One commenter shared an anecdote about a retired colleague: "A company I work for hired a retired pensioner … He refused to do so many tasks that were expected of everybody else … Now, looking back on it, 10 years later, I absolutely understand where he was coming from and don't blame him one bit."

See Also: Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average?

Overall, the community advised taking time to process the loss and avoid making rash decisions. They also recommended considering both financial stability and personal happiness before making a life-changing decision. 

Retiring at 29, even with $2 million, can be risky. While $2 million might seem like a lot, it must be managed wisely to last for potentially 50 or more years. Inflation, market fluctuations, and unforeseen expenses can deplete savings faster than expected without careful planning and investment. Health care costs, especially as one ages, can be substantial. 

Social Security benefits will not be accessible for many years, and the cost of living can vary greatly depending on location. However, if invested properly and with a frugal lifestyle, it might be possible to live comfortably. Financial experts often suggest a conservative withdrawal rate of 3-4% per year to ensure the longevity of funds.

Read Next:

• How much money will a $200,000 annuity pay out each month? The numbers may shock you.
• Mark Cuban believes “the next wave of revenue generation is around real estate and entertainment” — this new real estate fund allows you to get started with just $100.