With a newborn and a nanny, we barely have time for family – can we afford to dial down while still growing our nest egg?

It’s incredibly difficult to spend hours on end at the office with a newborn at home, even if there’s a nanny present to take care of everything. Undoubtedly, the newborn stage does not last all too long. And while I’m sure a nanny can do a great job of providing care, it’s not hard to imagine one finding it more worthwhile to drop everything at work for a while longer, even if it means quitting outright, so that one can enjoy their baby’s first milestones in their first year. Indeed, doing so will dig into one’s nest egg. But the concept known as “sabbatical FIRE” (a form of semi-early retirement), I believe, is perfect for times like these.

So, if you’re a new parent who’s sitting on a comfortable nest egg, like this Reddit user who already has a whopping $2 million net worth and their own home, I say it’s a wise idea to consider “dialing down.”

This new parent has ample financial flexibility. I think stepping back is a smart move.

With ample cash invested in the stock market, this individual can still keep growing their nest egg without working for a few months or even a few years. Of course, one must also have a comeback strategy in place for when it’s time to head back to work. Otherwise, one’s sabbatical may be a tad longer than originally desired.

And that can really set one back quite a bit financially. Either way, I think $2 million is more than enough to give oneself a break. Arguably, quality time spent with family (especially a newborn) is worth more than some extra figures in the bank, especially if one is already a millionaire. Furthermore, if one takes that sabbatical to care for the newborn, there won’t be a nanny to pay. Indeed, hiring a nanny does not come cheap. Arguably, the saved expenses here should make the decision to embrace “sabbatical FIRE” a strong one.

Of course, the right move will differ based on the individual. Some folks are keen on achieving an early retirement sooner rather than later, while others don’t mind hitting the “pause” button to enjoy life and allow their investments to do the heavy lifting for some number of years. With a $2 million net worth, one could also argue that there’s enough saved up to retire early today, provided they’re willing to dial back on expenditures as well.

There’s room to retire and spend more time with family

Given our Reddit user was posting on the r/fatFIRE subreddit, they’ve set their sights on a more lavish form of retirement, which I don’t believe is necessary. With a willingness to embrace a more traditional FIRE or even a leaner version, there’s a way for this new parent to have their cake and eat it, too.

In any case, health insurance and potentially lost benefits should also be taken into consideration before handing in one’s notice. In that regard, bringing on a financial advisor could be a wise move so that they can suggest solutions to cover blind spots (like insurance coverage shortfalls), give that investment portfolio a look, and even suggest areas of the budget that one may cut.

In short, it all comes down to priorities. Fortunately, this Reddit user has options. If they’re still keen on achieving fat FIRE, taking a sabbatical for a year or two is not the worst idea in the world. In fact, it may be what recharges them as they are ready to return to the workforce after having spent a few years taking a much-needed rest with the company of the newest member of the family!

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