Confused...Starting to get my ducks in a row

[Seattle]

I was definitely being snarky. I find it amazing someone making $500K is as clueless as portrayed in their post. This is also significantly outside our typical "Hi, I am..." type posts. My initial thought (and possibly Ed's) is that this guy is possibly trolling. However, I haven't seen any signs to indicate this so I am probably wrong on this point.

If a true post, the OP needs to get a solid handle on his lifestyle costs and learn about asset allocation. He may actually be one of the few people I would actually recommend that they should see a fee only financial adviser. Before he does this, he needs to read William Bernstein's The Investor's Manifesto and understand where his expenses are. If he truly can't see how he can get by on "only" $240K/yr, he definitely needs to work until he dies.

If you are talking about me, then I take that as insulting. Just because somebody is good at a particular job that is very financial rewarding doesnt mean they are great at actually managing money. Needless to say, my career is all consuming and havent left me with alot of time to focus on money...and quite honestly, ER hasnt come up as a subject for me until recently when I realized I cant do this for 20 more years and would be happy just hanging it up and calling it a career.

And also, probably wouldnt have any experience with ER so that is why they come on this board to ask questions. I know tons of executives that are making very large salaries but actually are terrible at managing money...

And to clarify, I am not trolling. I am asking very general ER questions and I thought there might be a few executives on this board that have had similiar experience to mine and could provide some color.

In closing, I actually know exactly what my living expenses are and have done some pre-planning with the calculators and with Vanguard support and I actually need around $120K a year in my expense model but I still wanted to ask general questions to people with real world ER experience to get a 2nd opinion.

I wasnt trying to cause any issues and I am sorry if I wasted your time. But I will tell you, you come off rude and judgemental.

Thanks to everybody else that has replied with data, it is very much appreciated and your feedback was spot on and helped me. Thank you.

Seattle

 

[Brat]

it is a reality that many very successful managers and professionals accumulate money but don't have the time to manage that resource. Many posters on this forum needed to master retirement savings management because they must, their margin for error is small.

Snarkyness is rude.

I understand Seattle's concerns. One of the reasons why we encourage you to manage your own savings is to avoid being in the situation of one of my friends, hand it off to the likes of Madoff to manage. We all sometimes regret an investment or two but no one will steal it all.

Written on my IPad w/o spellcheck...

 

[pb4uski]

+1 Good natured snarkiness is one thing, but some of the posts in this thread and the "I'm 46 and would like to retire in 2013" thread cross the line IMO and are rude, insulting and malicious.

It's sad that a couple jerks ruin the camaraderie here.

 

[Bestwifeever]

Welcome to the boards, Seattle. You're smart to figure out what you can do now to assure the retirement income you're hoping to achieve, and many people here have been very helpful to those of us who were clueless.

Lots of people in well-paid jobs say they can't afford to retire or end up retired into reduced financial circumstances--those outcomes certainly are not limited to people who make a fraction of your income.

 

[pb4uski]

Well, I say the toilet paper goes over, not under.

True in the northern hemisphere, but under in the southern hemisphere.

 

[PaddyMac]

+1 Good natured snarkiness is one thing, but some of the posts in this thread and the "I'm 46 and would like to retire in 2013" thread cross the line IMO and are rude, insulting and malicious.

It's sad that a couple jerks ruin the camaraderie here.

I agree. I've been reading this site for a few months now and mostly see helpful advice and good natured comments. Don't know some questions trigger such responses. Jealousy?

I can understand how someone can be making good money but are too busy to figure out how to invest it, never mind turn from saving to withdrawal. The methods for safely withdrawing your investments is much more complicated than I would have thought when I started researching it, especially when you factor in SS.

If I were in the OP's shoes I would be reading all I could about investing (the Bogleheads have a very good reading list), and then pulling the cord as soon as possible. It's not like there aren't ways to make a few bob doing something less stressful to supplement income - he's still very young.

 

[Seattle]

There are some very helpful people on this board. We are very blessed to have this community as we work through a very stressful and confusing time. I think nothing replaces experience and it is one thing to read a book, it is something else to talk to the guy who wrote it. I dont take this board for granted.

Are some of these responses jealousy? Perhaps. But I dont make any apologies for anything. I worked my butt off to get where I am at. I put myself through school, worked a full time job and went to school full time. I slogged countless hours and did all the crap jobs to get ahead. I took time away from my family and my friends and even myself and with alot of luck I was able to be rewarded for my hardwork - the American dream.

That is not to say that others didnt work equally or even harder then I did in tougher environments - just wasnt rewarded the same way. I wish that was different for everybody...

And some may say "wow, $5M, you have a problem living on that?" and I could agree with them. That is a ridiculous sum of money and anybody should be able to deal with it. I get that. But there things out there that need to be avoided (ie. Madoff scams, too high a withdrawl rate, medical catastrophy etc.) and you all have the wisdom that can help me navigate it. But also realize, there is a psychological issue to deal with as well in ER for somebody at the executive level that I am just starting to realize.

I have to be mentally prepared as well to go from literally a high net worth lifestyle to a more reserved lifestyle. But like all of you, I see that time is the most precious thing we have and I dont mind stream lining the trappings to just live life and not run so hard that I wake up some day and wonder what ever happened to my life.

I am literally writing this as I sit in another hotel room in China, slogging through another 15 hour day away from family and friends and know that I may just have to even accelerate my decision and not wait a year or two to pull the rip cord.

But again, thanks to all, your insight and your wisdom is very much appreciated. I still have one question about healthcare and how to best deal with that. But I think I will start another thread about that in the appropriate forum


Seattle

 

[Midpack]

I am asking very general ER questions and I thought there might be a few executives on this board that have had similiar experience to mine and could provide some color. There are all kinds here, including some with net worth in your range. Like the Community Rules say "People who are professionals in a variety of fields post on this forum and share their general knowledge. Many of them are brilliant. Some are doofi." I try to remember this as it's true here as everywhere.

I wasnt trying to cause any issues and I am sorry if I wasted your time. But I will tell you, you come off rude and judgemental. Wise to be a little humble and contrite as a newbie, but you have no reason to apologize. We have a member here who has insulted members on several threads recently. He/she says the Mods have reprimanded him/her, I hope they continue to do so. Mark Twain might be helpful here, "Never argue with a fool; onlookers may not be able to tell the difference." Another thought I try to keep in mind, though it's hard to resist at times.

Thanks to everybody else that has replied with data, it is very much appreciated and your feedback was spot on and helped me. Thank you. It's a good group overall, they've helped many people come to grips with FI and ER.

Seattle

My 2 cents...

 

[Sarah in SC]

My 2 cents...

Hey, I like that Mark Twain quote!

 

[aida2003]

I am literally writing this as I sit in another hotel room in China, slogging through another 15 hour day away from family and friends and know that I may just have to even accelerate my decision and not wait a year or two to pull the rip cord.

I often visit this community to read or lurk. I don't post as much since there're much more knowledgeable members than me. Sadly, some are rude or too snarky, but other members try to block their attacks. It's a nice community overall nevertheless. Don't give up on it.

As far as your plans to retire next year (probably), I think it's very doable, but first a few questions/suggestions:

- Like someone already advised, talk to a Vanguard rep to get your investment plan analyzed. You could learn a lot, plus it's free;
- Does your projected $120k/yr expense include healthcare premiums?
- You say nothing about your spouse. Is the $120k for both of you or does she w*rk too? If so, what does she plan to retire?
- Since you wish to teach and if it's paid, that would cover your health insurance premiums, IMO.
- If you're planning to retire next year, you definitely must get your 'money house' in order before jumping out the rat race. IMHO, you should evaluate your risk tolerance before saying "I want 5% after-tax return" and how it affects your AA.
(I have other thoughts, but they could be redundant especially since others have shared their thoughts about your situation).

 

[pb4uski]

I am literally writing this as I sit in another hotel room in China, slogging through another 15 hour day away from family and friends and know that I may just have to even accelerate my decision and not wait a year or two to pull the rip cord.

Safe travels Seattle.

When I was w*rking and traveled to unusual places, some people would say something like "Oh, isn't it nice that you get to go to <wherever>!!! and then I would explain about the long days, in many cases when working internationally they were even longer because you catch the working day there and in the US, only really seeing the office, hotel and perhaps a non-hotel restaurant if I was lucky. In a nutshell, business travel sounds glamorous until you actually do it, and then it is drudgery.

The beginning of the end was trying to get home after a winter snowstorm. After working a long Thursday, having one cancelled flight and getting rebooked on a connection through Dulles that was to get me home at midnight, my Dulles to home connection cancelled and the airline told me that they could not get me home until Saturday (two days later). I ended an exhausting day at 1am in a hotel further from home than where I started and was totally frustrated. To get home the next day I had to get up at 6am to take a $100 taxi to BWI, a flight to an airport that was not my home airport and then a 2 1/2 hour rental car ride home.

Enough!! Life is too short.

 

[Seattle]

- Like someone already advised, talk to a Vanguard rep to get your investment plan analyzed. You could learn a lot, plus it's free;

Great suggestion. I have spoke to them in the past, to set up my initial plan, but it is very much time for a tune up.

- Does your projected $120k/yr expense include healthcare premiums?

Yeah, it does. But I am planning a high deductible catastrophic plan that I can easily fit into my $120K. Plus something I didnt think about, when I finally quit, I have 8 weeks of vacation that I will cash out on. That is about $50K for me so I didnt put that into my overall plan and I can use that to pay for years of health care insurance using the HSA...

- You say nothing about your spouse. Is the $120k for both of you or does she w*rk too? If so, what does she plan to retire?

Yes, that includes both of us and she retired about 15 years ago to do charity work and she has no plans to ever work again lol

- Since you wish to teach and if it's paid, that would cover your health insurance premiums, IMO.

Another great idea, but the teaching I am planning would be charity based - teaching English 2nd language, or volunteering. I want the flexibility to not have a schedule and not interested in the horrors of substitute teaching

- If you're planning to retire next year, you definitely must get your 'money house' in order before jumping out the rat race. IMHO, you should evaluate your risk tolerance before saying "I want 5% after-tax return" and how it affects your AA.

Absolutely agree. I am a very calculating person and I will not do anything until my lawyer, accountant, tax people, medical doctor and everybody else gives me the thumbs up...that is why I am starting my homework now....accelerating my retirement date I think came out of jetlag


(I have other thoughts, but they could be redundant especially since others have shared their thoughts about your situation).

My answers are embedded in blue above

 

[Seattle]

Safe travels Seattle.

When I was w*rking and traveled to unusual places, some people would say something like "Oh, isn't it nice that you get to go to <wherever>!!! and then I would explain about the long days, in many cases when working internationally they were even longer because you catch the working day there and in the US, only really seeing the office, hotel and perhaps a non-hotel restaurant if I was lucky. In a nutshell, business travel sounds glamorous until you actually do it, and then it is drudgery.

The beginning of the end was trying to get home after a winter snowstorm. After working a long Thursday, having one cancelled flight and getting rebooked on a connection through Dulles that was to get me home at midnight, my Dulles to home connection cancelled and the airline told me that they could not get me home until Saturday (two days later). I ended an exhausting day at 1am in a hotel further from home than where I started and was totally frustrated. To get home the next day I had to get up at 6am to take a $100 taxi to BWI, a flight to an airport that was not my home airport and then a 2 1/2 hour rental car ride home.

Enough!! Life is too short.

Absolutely agree. To give you color, I did 245,000 miles in the air last year! And you are right about the days when you travel internationally. You actually catch the US waking up and I find that I literally work 15 hour days on the road. Couple that with 12-14 hour flights, connections, hotels, strange food, interpreters, not being able to work out and all the stress of the leadership requirements, and you have a receipe for "why am I doing this?"

People think business travel is glamourous, and some of it actually is. It is nice to see the world on a company dime, but it absolutely does come at a cost. I am averaging 20-22 trips overseas a year. And it isnt consistent. I can be in Europe one week, week at home catching up and changing out clothes and then be back on a plane to Asia the next week.

And what people dont understand is that you cannot simply just down throttle into a smaller job. There are people in those jobs and no space and the company would dramatically frown and be totally non-supportive of somebody who built a base of skills and in a leaderhsip position to just say "hey, I want to take a smaller job". It doesnt work that way. Its all or nothing. That is why I am going to pull the rip chord and be done.

Its been a great run. I have learned alot. I have been very blessed, but I do see alot of people getting cancer or heart attacks alot younger in this industry because of the stress and travel and I am smart enough to see where this is heading...

 

[Gumby]

People think business travel is glamourous, and some of it actually is. It is nice to see the world on a company dime, but it absolutely does come at a cost.

I never actually saw much of the world while I was doing all that traveling. My intinerary was generally to leave NYC at the last possible minute, fly somewhere, take a cab from the airport to some law firm or courthouse, conduct my business as quickly as possible and go right back to the airport. On trips where I stayed over, I was generally eating room service at the hotel while preparing for the next day's events. After the first few times, the conference rooms, courtrooms, hotels and airports all look the same.

 

[MichaelB]

I never actually saw much of the world while I was doing all that traveling. My intinerary was generally to leave NYC at the last possible minute, fly somewhere, take a cab from the airport to some law firm or courthouse, conduct my business as quickly as possible and go right back to the airport. On trips where I stayed over, I was generally eating room service at the hotel while preparing for the next day's events. After the first few times, the conference rooms, courtrooms, hotels and airports all look the same.

This sounds much like most of my travel as well, minus the courthouses.

 

[Sarah in SC]

This sounds much like most of my travel as well, minus the courthouses.

I thought you wrote minus the outhouses, which feature more prominently in my own travels.

 

[MichaelB]

I thought you wrote minus the outhouses, which feature more prominently in my own travels.

It sure gives one an appreciation for the conveniences of life in the US...

 

[aida2003]

I am a very calculating person and I will not do anything until my lawyer, accountant, tax people, medical doctor and everybody else gives me the thumbs up...

The thumbs up from everybody except the doctor is wonderful news. The thumbs up from the doctor may imply 'keep trucking as you've been doing'. Measure up his answer correctly

 

[pb4uski]

...And what people dont understand is that you cannot simply just down throttle into a smaller job. There are people in those jobs and no space and the company would dramatically frown and be totally non-supportive of somebody who built a base of skills and in a leaderhsip position to just say "hey, I want to take a smaller job". It doesnt work that way. Its all or nothing. That is why I am going to pull the rip chord and be done.....

While that may be true, once you decide to jump perhaps you could test the waters for a part-time consulting gig with your current employer. When I decided that I wanted out it was more because of the travel rather than the work. I was able to convert to part-time as a "consultant to the consultants", work from home and minimize my travel. Eventually, I tired of that and totally pulled the plug.

It was easier for me in that I was directly involved in client service and wasn't in a leadership position like you are; but it wouldn't hurt to have a discussion about the possibilities once you decide if the answer is no that you are ok with walking away.

 

[Lagniappe]

Seattle,

I am late to this thread, but wanted to post to encourage you to continue. I made a similar salary and was aiming for the exact same net worth at age 50. Earlier this year I had some medical problems, and decided to pull the rip cord at age 47. I could not be happier with the decision. The stress and toll on my health and outlook from executive level politics and travel is melting away slowly, and I just can't stop smiling - people tell me I look 10 years younger already. So go talk to an FP from Vanguard, read a few books, write down your plan, and be ready to pull the trigger. Once you feel confident that you've done all you need to do to prepare, you can leave whenever you want.

Lagniappe