Retiring early with $400K: a risky bet?

Some people confidently retire early with VND10 billion in assets, believing that they will not have to worry about living expenses if they spend reasonably. However, if they find themselves regretting the decision a few years later, it becomes difficult for them to re-enter the job market at 40-50 years old. They can also start their own business but that would require some capital and come with many challenges.

Early retirement may not feel too boring for extroverts who enjoy socializing, but their expenses will likely increase significantly. Additional costs may also arise if your children want to study abroad. By then, early retirees may end up regretting not working a few more years to save up more money.

Many decide to retire early and move from the city to the countryside because they are too stressed with their city lives. But how will their spouses and children feel about being forced to shift to a lower standard of living and breaking off their current relationships?

While everyone agrees that people should move close to and take care of their parents before they pass away to avoid future regrets, few consider what follows their decision to move back to the countryside. When their children grow up and study or work far away, they might either have to uproot their lives and move back to the city or stay in the countryside and live without their children just like their elderly parents did.

In general, everyone has different circumstances, preferences, and plans, so there is no one right answer for all. People often have the tendency to think "the grass is greener on the other side" and change their mindset over time, making it difficult to identify the perfect decision.

Personally, I believe one should only retire early if they have enough money or a stable passive income that can cover living expenses, inflation, risk allowances, and healthcare costs. Of course, you must also update your budget frequently, determining how much you can spend each year and month, and strictly adhere to these limits to avoid overspending.

The mistake many make when quitting high-paying jobs to retire early is that their savings may only last 10-20 years under normal circumstances. Meanwhile, being only 30 years old means having much longer than that ahead. They also fail to take into account situations where they might spend more than expected.

At 40-50 years old, you may regret the decision to retire early but find that you no longer have the chance to start over.

If you quit your job because you cannot endure excessive stress while young and healthy, how will you cope with the pressure that comes with old age, illnesses and a greater need for enjoyment?

Reader D Hien

*This opinion was translated into English by AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.