My Net Worth Has Ballooned to $3 Million; Is It Crazy to Consider Part-Time Work Now?

When times are good in the stock market, the impact on an investor’s portfolio can be profound. Witnessing account balances swell can be intoxicating, fostering a sense of invincibility. Combine this with the relentless pressure of the corporate rat race and the drive to climb the ladder, and it can be a recipe for disaster. Fortunes in the stock market can turn on a dime, and more often than not, what goes up must eventually come down. While it may be tempting to simply rest on one’s laurels during prosperous times, this is precisely when vigilance is most crucial.

Consider a recent dilemma shared on the r/ChubbyFIRE subreddit by a 42-year-old Redditor. This individual had amassed a significant net worth of $3.1 million, in addition to $700,000 in home equity. With this substantial wealth, he was contemplating a transition away from the demanding 9-to-5 grind. His high-stress job had severely impacted his work-life balance, prompting him to take a sabbatical for several months, which offered him a new perspective on life.

Now, with the benefit of time away, he’s weighing the option of shifting from his full-time role to a part-time position at the same employer, seeking the best of both worlds. While dreams are valuable, this Redditor was wisely seeking a reality check before making any drastic moves.

If a younger person were to ask for similar guidance, my advice would be to consider changing employers entirely with a full-time position rather than remaining with the same stressful company, even in a reduced capacity. This way they can hang onto their benefits and have greater job security for the future. Furthermore, I would strongly recommend consulting with a financial professional to align long-term financial goals with their significant net worth.

Roller Coaster Markets: The Illusion of Invincibility

A substantial portion of this Redditor’s wealth is held within retirement accounts, including a 401(k), Roth IRA, and brokerage accounts. Consequently, his financial well-being is closely tied to the fluctuations of the stock market. According to the Investment Company Institute (ICI), approximately three-quarters (71%) of 401(k) participants held their assets in equity securities through various fund types. It’s therefore reasonable to assume a similar allocation for our Redditor.

The years 2023 and 2024 saw the broader stock market deliver higher-than-average returns, exceeding 20% each year. Such performance can certainly foster a feeling among many investors that they are financially set for life, or at least for several decades. However, as we move into 2025, the broader market is barely eking out gains halfway through the year, with the added threat of an economic recession looming. If our Redditor were to transition from his full-time position to a part-time role, his job could be among the first targeted for cuts if the company needs to reduce expenses.

Instead of taking a gamble with his career and income, he might benefit from exploring opportunities with a different employer altogether, where he could potentially earn a competitive salary without experiencing the burnout he faced in his previous role.

Rising Expenses: The Unseen Costs of Growth

Achieving a healthy work-life balance through part-time employment is particularly appealing, especially when raising young children, as is the case for this Redditor with his nine and five-year-olds. While he plans to contribute $60,000 per child towards college rather than covering the entire cost, it’s crucial to remember that children’s expenses do not diminish as they grow older.

While childcare costs may be a thing of the past, persistent inflation means that clothing and feeding them will become increasingly expensive. While these rising costs may not manifest all at once, they are a significant factor that should not be overlooked.

Blurred Lines: The Risks of Staying Put

Another aspect of this Redditor’s plan that warrants scrutiny is his intention to remain with his current employer rather than seeking a fresh start elsewhere. He is considering an offer for 60% of his current $300,000 annual salary, which translates to $180,000. It’s also worth noting that his compensation package includes equities valued between $30,000 and $35,000 over the coming year.

The concern with remaining at the same job in a lesser capacity is that appearances can be deceiving. While official work hours would be reduced, it’s possible that the very issues that caused stress in his full-time role could carry over into this scaled-back position, thereby undermining the purpose of taking a step back.

The Redditor also mentioned concerns about potential boredom during the winter months. If he does make this significant life change, he might consider actively filling his newfound time with other activities, challenges, or tasks to prevent himself from inadvertently dedicating more mental energy to his future part-time job than it deserves.

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