High Paying Job - Hoping to Retire in 2016

[MooreBonds]

You may think he is not trying to brag. Others are free to question his motivation. I.e., we are all "thinking" our thoughts here. I am not sure if there is any "issue" raised other than some people passing their opinions as you have done in your reply. But I am not judging you or the OP, just wondering and questioning about the post. After all, this is an unusual post as far as "can I retire on $xyz?" post goes. I may have seen a few others like this but this one seems to top them all.

Understandable...but when the OP clearly states

I've been monitoring these forums since late last year and have occasionally posted on BH's since 2009

It didn't really take much effort at all to identify the OP's likely handle on the Boglehead's forum, which seems to match their story here. Since the poster on Boglehead's has been around since 2009 (like they said) with a variety of posts (not 10,000, but also not just 2 posts), there is some consistency to match the data.

I'm among the more naturally suspicious forum members towards certain internet personalities in the finance world - but there's nothing in the OP's posts on here or Bogleheads that leads me to have any more doubt about their intent or post data integrity than any other poster.

Obviously, there are very few that are able to achieve a $7MM portfolio - but your view towards them is no different than how someone working minimum wage would feel towards your investment portfolio, and why you "need" more than $30k-$40k/year to retire.

 

[daylatedollarshort]

To each his own.

Personally, you could very easily spend $80k/year on just 4 luxury vacations. Ever check out those cruises on Regent or Silver Seas (6-star level, where all wine, excursions, tipping, booze, balcony, etc. is included)? $3k/week per person. Just one 2 week cruise for 2 people is $12k. Add in a little buying of gifts, maybe a piece of jewelry, maybe some more activities, add on a few days at the beginning or end with a few great meals on your own and staying in a nice hotel, and you're easily at $20k for just one 2 week trip.

And if the OP hasn't done much traveling with the wife so far, and has been waiting for retirement, you'd actually be hard-pressed to pick "just" 4 places to go each year, even if you traveled for a decade, whether on a cruise or luxury land tour (hey, we live in a big world with tons to see, do, and experience!)

And I don't see the political winds blowing to reduce the OP's taxes in the future. If anything, I'd expect taxes for OP to increase down the road.

Sure, you can spend $50 million on a single house as well. I am not sure that people who live in $50 million houses are much happier than people who live in $25 million dollar houses, but I could be wrong.

There are always things to spend more money on. The question I am raising is it worth trading off a year of your life for more money when you are 50 years old when it means 65+ hours a week at a high stress job. We have had a number of friends in their early 50s die in the past few years.

The OP didn't have a specific question in the initial post that I can see, so my previous post is my opinion, which he is free to take or leave. But I am assuming he is wanting opinions or else he would not have posted.

 

[clifp]

Understandable...but when the OP clearly states

Obviously, there are very few that are able to achieve a $7MM portfolio - but your view towards them is no different than how someone working minimum wage would feel towards your investment portfolio, and why you "need" more than $30k-$40k/year to retire.

I don't think his post is anything that out of the ordinary. We have a number of recent poster with portfolio in the 3-6 million range, with big income and high stress jobs think about pulling the plug. I mentioned the estate tax cause my own net worth is near $5 million. I know that pretty much anything over $5 million (in today dollars) my estate will be subject to high estate tax. This is causing me to re-evaluate my aggressive portfolio.

The marginal utility of money is pretty significant. I imagine that value of spending $300K vs $250K a year is pretty minimal compared to spending $100K vs 50K. Even on a percentage basis say 20% I 't think it matters a lot less at high incomes.

I bring up the estate tax because if you already have a big pile of money at age 50 plus, don't kid yourself that you are going to benefit a lot from working longer to make more. The real beneficiaries are your kids, charities and Uncle Sam.

 

[Travelwanted]

Actually studies show beyond passing the poverty level, wealth does not increase happiness to your point daylatedollarshort. A great read about this topic and happiness is "What Happy People Know". I just read it. Fantastic book. Thanks to someone on this site who recommended it:
What Happy People Know: How the New Science of Happiness Can Change Your Life for the Better: Dan Baker, Cameron Stauth: 9780312321598: Amazon.com: Books

Sorry, Rob, but I took your entire post to be judgmental. I guess we can agree to disagree. I wish the OP the best of luck and to you, as well, Rob.

 

[Brat]

Perhaps the OP should talk to his wife, his retirement will impact her life as well. Partner Emeritus arrangement could occupy some of his time, after that determine how he would like to spend his time.

I have a minor concern about the pension. Remember what happened to Arthur Anderson, professional partnerships can implode. You need to assure that there is a firewall between your firm and the pension trust and that it doesn't depend on the success of the firm.

 

[braumeister]

I tend to agree with Totoro's analysis on the previous page.
You're looking to retire in the next year or two, and you should definitely do it, IMHO.

 

[MRG]

I tend to agree with Totoro's analysis on the previous page.
You're looking to retire in the next year or two, and you should definitely do it, IMHO.

+1

What happens if the OP accumulates the extra 1MM then a 20% correction occurs. Then are you willing to give up another 2 years of irreplaceable time?

Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app

 

[soupcxan]

Sure, you can spend $50 million on a single house as well. I am not sure that people who live in $50 million houses are much happier than people who live in $25 million dollar houses, but I could be wrong.

I would like to volunteer for this experiment, and I'll write a full report on my happiness.

 

[daylatedollarshort]

Actually studies show beyond passing the poverty level, wealth does not increase happiness to your point daylatedollarshort. A great read about this topic and happiness is "What Happy People Know". I just read it. Fantastic book. Thanks to someone on this site who recommended it:
What Happy People Know: How the New Science of Happiness Can Change Your Life for the Better: Dan Baker, Cameron Stauth: 9780312321598: Amazon.com: Books

Others may have recommended it as well, but this is one I read recently and mentioned here. It is a good read for any high income, high stress worker in the OMY syndrome.

It is written by a director of the Canyon Ranch, who works with all sorts of fabulously wealthy, stressed out executives. Many of these people have more money than I would ever have even if I never retired, let alone work one more year, yet they still are not happy. Here is a quote from the book:

"No matter how much money people have, almost all of us want just a little bit more. But it never makes us happier. This is the failure of success."

 

[robnplunder]

I would like to volunteer for this experiment, and I'll write a full report on my happiness.

I've signed up already. First come, first serve. I am just waiting for a confirmation for my acceptance from daylatedollarshort. Money accumulation is habit forming. The experiment will show I can break the habit. I think I can. I think I can.

 

[ulrichw]

I'll take a slightly different angle at this from the last few posts.

My thoughts on this are:
Texan, it sounds like retiring will represent a *drastic* (to say the least) change in how you spend your time. It sounds like your current job is nearly all-consuming.

My question to you is, how carefully have you thought through how changing your situation might affect your spending.

The way you see things from your current stressed perspective may change quite drastically once you remove the stress.

How carefully vetted is the $320k number? It seems designed to fit the amount of money you think you'll have at the time you think you want to retire rather than being a detailed estimate of what you'll actually spend.

I'd work on coming up with a few different spending scenarios (consider things like downsizing your home/vehicle/vacation home/etc.)

Also consider that your spending will probably decrease over time. You may try modelling a decrease in spending as you age and see how that affects your outcomes.

If the only reason you're staying on at work is to pad the retirement savings, I'd consider putting in some extra work to see if the extra time is really necessary.

 

[2B]

To each his own.

Personally, you could very easily spend $80k/year on just 4 luxury vacations. Ever check out those cruises on Regent or Silver Seas (6-star level, where all wine, excursions, tipping, booze, balcony, etc. is included)? $3k/week per person. Just one 2 week cruise for 2 people is $12k. Add in a little buying of gifts, maybe a piece of jewelry, maybe some more activities, add on a few days at the beginning or end with a few great meals on your own and staying in a nice hotel, and you're easily at $20k for just one 2 week trip.

And if the OP hasn't done much traveling with the wife so far, and has been waiting for retirement, you'd actually be hard-pressed to pick "just" 4 places to go each year, even if you traveled for a decade, whether on a cruise or luxury land tour (hey, we live in a big world with tons to see, do, and experience!)

And I don't see the political winds blowing to reduce the OP's taxes in the future. If anything, I'd expect taxes for OP to increase down the road.

DW and I spent 2 1/2 weeks in Italy earlier this year and spent about $18k total. We stayed in nice places and ate well. We didn't look to see how much we could spend but we didn't do picnics to save money. I don't see how anyone can eat the big, full blown European type meals more than a couple of times in a trip. We didn't fly business class but I bet Texan will. The airfare from Houston to Paris could easily run close to $18k for two business class tickets.

Texan and I have earmarked similar amounts for travel. I'm having trouble spending it all because DW gets traveled out and doesn't want to travel enough to spend it. I have trouble getting her excited about most trips. I've told her that after I retire she needs to realize I'm going to travel more whether she comes along every time or not.

 

[2B]

I have a minor concern about the pension. Remember what happened to Arthur Anderson, professional partnerships can implode. You need to assure that there is a firewall between your firm and the pension trust and that it doesn't depend on the success of the firm.

Texan is a OMYer and you've just given him another reason to work longer. He's created a scenario where he needs to work "just another year or two" and he'll have "enough." He's expanded his lifestyle to "need" this new wealth. Putting a risk factor on his pension makes his working even more necessary.

I say this because that's what I've done the last [-]two[/-] three years. I'm not at the $7MM level but then my basic living expenses aren't anywhere near his. Many here would probably say the same things to me about why am I still working with what I have. Yes, I really have enough. I'm definitely working for my grandkids.

Part of my continued working was aftershocks of 2008. What if it happens again? Oh my! Even in the darkest times of 2008 I still had plenty to fund my retirement. I might have adjusted my travel budget a little but that's about it. Then the damn market came roaring back. It may just go down again and I bet it will.

There's nothing wrong with working. In many ways it becomes addictive. I used to have that high pressure position with all the stress it could provide. There was a rush associated with "winning" and money is part of how you keep score. I now have a low stress postion knowing that if I was thrown out on the street today I really wouldn't care (except for an ungodly tax bill this year). The taxes are my current excuse for my OMY. Hopefully, I really, really, really will do what I plan and give it all up in January. Just 38 in-office daysafter today until resignation day. Then 2 weeks notice.

 

[Unpaintedhuffhines]

Have you thought about canceling netflix and just going with Amazon prime? I mean, pop them numbers into firecalc and you might be able to pull the plug a little early.

 

[Brat]

The OP seemed to me to be really counting on that pension. Were I he I would roll as much as possible into an IRA where he has control. My daughter is a CPA who had friends who worked for Arthur Anderson so their experience reflects my concern. A professional corporation is different than working for GE, Alcoa or IBM.

 

[bulbar]

Ok, I'll say it. Spend $320k per year? Seriously? That's 3 times what we spend and I thought we spent a lot. Here's a suggestion - cut that back to a human level and leave enough so your decendants can live worry free. You have a chance to set up future generations here.

 

[2B]

The OP seemed to me to be really counting on that pension. Were I he I would roll as much as possible into an IRA where he has control. My daughter is a CPA who had friends who worked for Arthur Anderson so their experience reflects my concern. A professional corporation is different than working for GE, Alcoa or IBM.

I agree. Unfortunately, there isn't anything he can do about the risk if he can't do a rollover except to keep working. I don't see where the pension risk would be any lower if he worked another year or two. If he wants to support his lifestyle even without a pension, he'll be working at least another decade.

 

[Live And Learn]

I get it, but I don't think it matters if we "get it". If he wants to spend a million/year to accomplish his goals in retirement, so be it. Why judge that? Everyone has their own number.

I think Texan is looking for reassurance about his WR relative to age, assets and spending. And I don't think he is trying to brag or show off his success. Not sure why that issue is even raised.

Totally agree with this.

Texan earned his savings and he can spend them how and when he wants.

The good news for him is that with a large discretionary budget he has some leeway should markets decline. BUT, if putting off luxury travel, or doing "not so luxury" travel is going to make him unhappy and wish he had stayed the 25 months, then I'd say "stick it out and remember that the end is near". I've found that has been both a blessing and a curse - on the one hand, the end is near and the nonsense will be over soon, on the other hand "I don't need to put up with this cr&p anymore" so I've become more intolerant of stupidity at w*rk.

 

[2B]

Ok, I'll say it. Spend $320k per year? Seriously? That's 3 times what we spend and I thought we spent a lot. Here's a suggestion - cut that back to a human level and leave enough so your decendants can live worry free. You have a chance to set up future generations here.

Lifestyle choices are an individual's responsibility. Some people are happy to retire on $30,000/yr and would consider your spending excessive.

The OP looks like he prefers working another 2 years to feel more comfortable with what others may consider extremely high spending. It's his choice. He's trading his time in a stressful position where he's being told he's on the glide path to lower pay to do this.

 

[daylatedollarshort]

Ok, I'll say it. Spend $320k per year? Seriously? That's 3 times what we spend and I thought we spent a lot. Here's a suggestion - cut that back to a human level and leave enough so your decendants can live worry free. You have a chance to set up future generations here.

We've cut over $100K off our budget to ER and we aren't done trimming expenses. It has been kind of wild that we still live in the same house and actually drive newer cars (just better repair records, resale value and MPG). We just really have time to optimize each expense now, more DIY and also pay a lot less in income and SS taxes. On top of the $100K we no longer need to save for retirement any longer.

Personally, I would rather leave our money to charity or to the kiddos so they can live like this and not have to ever work at soul sucking, never see the sun 60+ hours a week jobs than give it to luxury car or designer purse makers.

 

[Texan1636]

I realize that nobody who posted is likely to remember this set of posts from a year ago, but I just thought I would provide an update in case anyone happened to be interested. I'm feeling better about sticking it out in this career until the end of 2016. My pay hasn't been cut (yet), so we've been able to save a bit more than I estimated, but of course market performance this year hasn't been great. (And market performance last year wasn't great for our portfolio due to the tilt toward small and value and the international component).

I think we are still on track to have a bit more than $8 million by the end of 2016, assuming no market meltdown between now and then. Even if there is a meltdown, I think we just make the best of it at that point, rather than even considering trying to push back retirement any further. We'll just cut back the travel or whatever else is necessary to cut back at that point.

I appreciate all the advice I got here a year ago. I'll update the group when I actually pull the plug, in case anyone still remembers this.

Best to all of you, and thanks again.

 

[ulrichw]

Congratulations on staying on track, and thanks for keeping your thread updated. For me, it's always interesting to see how retirement plans come to fruition.

 

[Katiek]

Glad to hear the work situation hasn't gotten worse and that you're on track with your plan. congrats and thanks for the update.

 

[Helen]

Thanks for the update. Stay healthy so you and your spouse can enjoy that hard earned money you've amassed.

 

[Dreamer]

It is always interesting when updates are done. Glad to hear that your pay has not been lowered and that you have been able to save a bit more. As Helen said, stay healthy, so that you can enjoy your retirement. It sounds like it will be wonderful.