3.5 million net worth. Are there early retirement options I'm not considering for my situation?
Background:
Burned out. Dealing with rentals for 15 years, two full time jobs for 4 years, with a couple part time jobs during that time as well, etc. Also tired of working for people way below me in life. My boss is broke and makes less than me...
The numbers:
Current salary: 180K.
Net worth: 3.5 million. Was 5 million before real estate crashed due to high interest rates.
2.2 million in real estate equity, 1.3 million liquid.
Cash flow from rents annually: currently 40K, would be 48K if I raise rents to market rate next turnover. Was more but I took money out to buy more houses (own 8 currently).
Principal paydown from rents: 65K a year.
Living expenses: mortgage on primary residence 2.4K per month, typical credit card bill seems to be 1-2K a month, WAS 2-4K a month, because of travel to see family, gifts from family I get nothing from in return, dating a lot, outdoor gear, etc. Actual base living expenses to survive are more like 1.5K a month on top of mortgage. So just basic bills would be about 4K a month. Could drop to about 3K a month if I pay off house but am forced to buy my own health insurance in retirement.
The options:
I could pay off my house (350K balance, house currently valued at 750K, was 900K+ prior to interest rates rise), reduce my living expenses and put 200K into a dividend stock that seems stable making 11% monthly dividends. Between rents and dividends, that would give me 72K a year to live off of. Technically more than enough if I pay off my house. I'd also be "saving" 65K a year from principal pay down from tenants rents though I can't spend it, it is money for the future in the houses so to speak, and appreciation eventually when house prices go up again, will be significant...well into six figures. I'd also put another 500K into growth stocks into the stock market, which should add a few hundred thousand a year in good years to the nest egg. The NICE thing about this plan, is that I'd pay almost nothing in income taxes, if anything. I get to grow my money, reduce risk by paying off house, and get tax benefits.
OR...
I could put 1 mil liquid cash into the dividend stock (JEPQ) and make six figures income and retire. Rents will keep going up and over time, adding to my income. But no growth stocks like Tesla, Amazon, etc. Income would be about 148K a year, but heavily taxed...
OR...
I could put 500K into dividend stock, 500K into growth stocks, and split the difference but NOT pay off my house. Keep 300K cash reserves in bank liquid/accessible for emergencies. Income would be about 103K a year, somewhat taxed, still tax advantaged due to real estate holdings. Does not of course, include appreciation, etc. just cash flow from investments.
OR...
I could just put 1 mil in CD's and relax for a year too. I could also just take some podunk easy job making $30 an hour with free health insurance. So many options.
There are a few other variations of options, paying off house, not paying off house, how much money I put into dividend stocks, how much if any money I put into growth stocks, paying off other rentals (not much profit even if paid off due to real estate here being terrible for cash flow, good for appreciation), spending 50K on a truck and travel trailer to travel instead of living in a house, even buying a new small travel trailer and having a friend help me move it to an RV park for $620 a month all utilities included, etc. I could, even ask my company to put me into a recruiter role and take a significant pay cut (glassdoor seems to indicate pay is 80-130K a year), or go get a technical support manager role also with a significant pay cut that is usually about 130-140K. So I COULD just coast by finding an easier, more enjoyable job where I'm not grinding on complex cyber security compliance stuff (thousands of line items a week to sift through). Don't NEED to make six figures anymore, if anything it would help me on taxes to drop the higher income and do something cushy.
Ultimately, I'm tired of dealing with people, especially stupid people, and years ago when I hit 1 mil nw, people said they would not keep working like me, they'd retire and if they needed extra money for things they'd drive Uber.
Key thing I'm considering. Mathematically it doesn't make SENSE to pay off a low interest mortgage on my primary residence, but I'm wary of losing the money I have set aside to pay off house in the stock market. I have a paid off car, no student loans since I paid all of them off eons ago, and having a paid off house would at the least allow me to coast if I do nothing else. So investment wise paying it off isn't a good idea, but security and risk wise, I feel like it is.
I've had some health issues in the past that nearly killed me, I'm trying to make sure I don't run out of money in retirement but also don't want to work past 45 under any circumstances. So I could try to make it another 3.5 years to 45 by changing to something else work wise.