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Coming Out!
Old 10-06-2006, 02:00 PM   #1
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Coming Out!

Well, enough lurking, time to come out.

I'm 48, and I sold my share in the family business four months ago. It was a bit of an ordeal even though split was cordial, but it's really great to be on the other side. I still can't get used to the term "retired", but I really like the reality.

I met DW 28 years ago and we have 3 teenage daughters. So, no (more) big life changes planned until they are launched. I've fretted about what kind of example I am setting for them, but have concluded that I'm actually a rather good example. I've also worried that I won't be giving them as much financial advantage as I had, but I'm also sure they will be fine.

I love this board because there is nobody I know that is in my situation. And you just can't talk to people about $$$.

The house is paid for, the girl's have 529 plans with enough to pay for 4 years college anywhere, and I have about $5 million to live on. Some is in index funds, some is due from the people who bought me out, some is continuing interest in a couple of small local companies, some is real estate.

I know this will draw hoots, and I don't expect sympathy, but it's a challenge to get by on, get this, $250,000 a year. Part of this is taxes (I'm deep into AMT territory, and these little S-corps don't distribute all their taxable earnings, cuz they're growing). It has become clear to me, however, that I would rather downsize and be free than to continue to spend at this rate and have to take a job.

While I didn't really plan to retire this early, I will admit that I have loved the concept of unearned income ever since I was a little kid. So I reckon I have arrived at my goal, and I feel better about this decision every month. Life is good!

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Re: Coming Out!
Old 10-06-2006, 02:20 PM   #2
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Re: Coming Out!

Quote:
Originally Posted by lifeisgood

I know this will draw hoots, and I don't expect sympathy, but it's a challenge to get by on, get this, $250,000 a year.
LOL. I feel like I have it easy compared to a lot of folks here but you are a hoot

Welcome out of the closet, lifeisgood. Have you actually tallied up all of your expenses and concluded $250K is a stretch? I have two houses and a BIG travel budget and I am not anywhere near that neighborhood. Maybe you are still looking at expenses during accumulation?
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Re: Coming Out!
Old 10-06-2006, 03:45 PM   #3
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Re: Coming Out!

Welcome to the board, LifeIsGood.

Quote:
Originally Posted by lifeisgood
I met DW 28 years ago and we have 3 teenage daughters. So, no (more) big life changes planned until they are launched. I've fretted about what kind of example I am setting for them, but have concluded that I'm actually a rather good example. I've also worried that I won't be giving them as much financial advantage as I had, but I'm also sure they will be fine.
One of our more senior ERs spent a number of years "pretending" to go to work while his teenage daughter finished middle/high school. Each weekday he'd leave the house in business attire and come back when the school bus had taken her away. He felt that he was setting a good "work ethic" example for her.

Years later, when she was a grown adult, he mentioned this subterfuge to her. She said that she was so busy being entirely self-centered getting through her teenage years that she didn't notice. She also said that if she had noticed, she wouldn't have cared.

"Financial advantage"?!? Who's taking advantage of whom? I'm hoping our kid gets her financial advantage from learning how to work hard, make money, and live below her means. The rest is up to her.

Quote:
Originally Posted by lifeisgood
I know this will draw hoots, and I don't expect sympathy, but it's a challenge to get by on, get this, $250,000 a year.
You're right, you're at the farthest right-hand edge of the bell curve. In fact we're going to have to tape a couple extra pages on the bell-curve chart to extend it out that far.

But, hey, they're your expenses... and presumably FIRECalc can give you good success rates for those seven-figure numbers.
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Re: Coming Out!
Old 10-06-2006, 07:48 PM   #4
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Re: Coming Out!

Lifeisgood, I feel your pain and was in a similar situation 16 years ago. I was just 38 when I sold out. About half of the $$$ your talking about and probably not as much debt. I kept semi busy for about 10 years and eliminated all debt. Lets see during that 10 year period I consulted for the people that bought the business for a few years, got into a partnership to developed 125 single family lots, built about 10 houses, Day traded during the bubble!, owned a donut shop, was partners in a pizza shop(silent), made a bit of money with every venture but now I just fish, golf in the summer and travel in the winter. The first year will be a bit difficult so have plenty to keep you busy and then you will wonder how you had time for work.
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Re: Coming Out!
Old 10-06-2006, 08:59 PM   #5
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Re: Coming Out!

Quote:
Originally Posted by donheff
Welcome out of the closet, lifeisgood. Have you actually tallied up all of your expenses and concluded $250K is a stretch? I have two houses and a BIG travel budget and I am not anywhere near that neighborhood. Maybe you are still looking at expenses during accumulation?
Yeah, I think about that $250K a lot, in fact, am amazed at it. I really look forward to it settling down over the new year or so, now that I have time to do more things myself. Also, the capital gains taxes and debt repayments will carry over into 2007, but should then drop, and then maybe the AMT will go away. I do use Quicken to track it, the "regular" expenses are really about $130K. We do have a big house and give a fair amount away, both of which could be cut in a pinch.

Quote:
Originally Posted by Nords
But, hey, they're your expenses... and presumably FIRECalc can give you good success rates for those seven-figure numbers.
I didn't find out about FIREcalc till right after I stopped working. With just a little bit of self-deception frugality, I can make the numbers work. Thanks for the comments!
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Re: Coming Out!
Old 10-06-2006, 09:12 PM   #6
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Re: Coming Out!

Heh, you spend several times more in a year than I've spent in my entire adult life.

Need a pool boy? How about someone to write jokes for you?
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Re: Coming Out!
Old 10-06-2006, 09:22 PM   #7
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Re: Coming Out!

My daughters vote yes on the pool boy. They say to send pictures. Should be an easy job since we have no pool.
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Re: Coming Out!
Old 10-06-2006, 11:16 PM   #8
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Re: Coming Out!

Oh, so they just want to objectify me, and judge me by my looks?!

Well, ok, I guess that sounds all right.
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Re: Coming Out!
Old 10-07-2006, 10:21 AM   #9
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Re: Coming Out!

Quote:
Originally Posted by Lifeisgood
Well, enough lurking, time to come out.

I'm 48, and I sold my share in the family business I still can't get used to the term "retired", but I really like the reality.
Oh, just another er, and I thought this was going to be a really interest thread!
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