I’m 52 making $350k a year and my wife makes $35k a year – why do I still have anxiety over income?

Mo’ money, mo’ problems. Just because you’ve made it financially doesn’t mean there aren’t things to worry about. Especially for people who built themselves up from nothing, they can have insecurities over still having enough to live comfortably.

It’s the realization that it is always possible to lose it all. Hopefully, through careful financial planning and owning a diversity of assets, you have minimized the potential for that ever happening, but it can always be a nagging doubt at the back of your mind.

That seems to be the problem a Redditor on the r/fatFIRE subreddit is facing. Despite having accumulated substantial wealth over a lifetime of work and saving, he is still worried he doesn’t have enough.

The situation

The 52-year old Redditor has amassed $10 million in assets spread over 401(k) plans, IRAs, managed accounts and various managed accounts. He has stashed away a large sum of cash, has a substantial inheritance, a small pension vesting soon, a paid-off home, fully-funded college savings for his kids, and minimal expenses.

Yet having always been an aggressive saver, he is still worried about surviving when he retires early in a few years. His biggest concerns are healthcare costs, having a steady stream of income in retirement, and being able to adjust to the fatFIRE lifestyle without the security of a permanent job.

Now I’m not a financial advisor so these are only my opinions, but overcoming anxiety about income, especially when you’re on the brink of early retirement, can be daunting despite having substantial assets. Let’s look at each of his concerns in turn.

Healthcare concerns

It’s not surprising he has worries about healthcare because of the unpredictable nature of healthcare expenses. That means the first step to take is to get a clear understanding of your future healthcare needs. 

If you’re retiring before 65, it would be smart to purchase private health insurance until you’re eligible for Medicare. Once on Medicare kicks in, supplementing it with a Medigap policy will cover what Medicare doesn’t. 

Long-term care insurance might also be a wise investment to safeguard against the potentially enormous costs of nursing home care or extended home health services. Planning ahead allows you to budget for these expenses rather than letting them loom as unknowns.

Lack of steady income

While not having a job is a difficult adjustment for many people to make, having hefty sums in retirement accounts as the Redditor does gives him options. He should consider setting up an income strategy that includes both fixed and variable income sources. For example, annuities might offer a guaranteed income stream, providing peace of mind. However, they should be balanced with investments that offer growth potential, like stocks or real estate investments, to keep pace with inflation. 

A financial advisor can help craft a withdrawal strategy from your savings that ensures your money lasts, perhaps adhering to the 4% rule or a similar sustainable withdrawal rate tailored to your portfolio.

Adjusting to the FatFIRE lifestyle

Transitioning from a high-saving, high-earning phase to retirement can feel like a loss of control or purpose. Begin by redefining what financial security means in retirement. Since the Redditor already secured major life expenses like education for his children and housing, he should instead focus on what brings him joy or fulfillment. Engage in hobbies, volunteer work, or even part-time work are possible if you need structure to your day. Remember, your assets are there to support a lifestyle, not dictate it. 

Key takeaway

It’s normal to feel anxious about change, especially when it involves financial independence. To fight this, educate yourself on your financial situation through regular reviews with your advisor. Knowledge is power and understanding your financial health in detail can alleviate much of the fear. 

Also, consider psychological support or joining communities of like-minded early retirees. Hearing others’ stories and strategies can ease any concerns about your individual experience while also providing a channel of practical advice to keep you going.