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One more bailing out ......
Old 04-08-2006, 09:52 PM   #1
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One more bailing out ......

This Board is a fantastic platform for giving “life" back to denizens of the corporate world.

Well, here’s my story.

I’m based in Malaysia. All figures here converted to US$ equivalent semi-adjusted for purchasing power parity.

I’m 42. Currently grossing $220,000 p.a. plus ~$100,000 net p.a. in Share Option proceeds plus all the perks that come with heading two subsidiaries of a Telco Megacorp. Liquid investments currently dumped in two main buckets: $530,000 in fairly conservative dividend-earning mutual funds and $580,000 in a government guaranteed retirement plan somewhat equivalent to the Australian Superannuation scheme (earning 4-5% int. p.a.) where I can make tax free lump-sum withdrawals of 1/5 at age 50 (about $200,000 in 2013 assuming no further contribution) and the balance 4/5 at 55 (about $800,000 in 2018 with same assumptions).* Currently contributing a mandatory 11% of gross salary to this retirement account, with megacorp contributing an additonal 12%.

I started working life as a retail banker and evolved into investment banking during the Asian economic boom days of the early 1990s. Smelling the sexiness of a fast deregulating telecommunications sector, I changed industries and served current employer from its embryonic origins as a fledgling telco start-up in 1995 to its current incarnation as a regional telco-entertainment-media giant. Six months ago, the thought of ER struck me like a tropical thunderbolt (….or was it my subconscious absorption of the stories and prescriptions in this forum?) and I began to question the sheer sanity of a two hour daily commute , mind-numbing boardroom politics, dumb corporate* rituals , and operational paralysis and …… yuggggh.*

A couple of mths back, I negotiated a voluntary severance package (the default sum is none so every buck is a bonus). The deal: Last work day April 11. Full pay/benefits till mid July. Lump sum ex gratia of $200,000 in July and to exercise share options vesting also in July.* All these add up to about $250,000 after tax. Add to my existing cash hoard of $530,000 (mostly in low-cost index funds), I’ll be sitting on $780,000. Plus, as mentioned, I’ll be receiving two sacks of government retirement scheme cash est. at $200,000 in 7 yrs and $800,000 in 12 yrs.*

I have a non-working wife and a 6 yr old son. House bought for cash 10 years ago and currently valued at about $350,000. Also have a paid-for ½-acre empty lot at a nearby golf resort valued at $330,000. No development plans for this plot. May sell if necessary. We have a commercial property valued at $290,000 with a mortgage balance of $190,000. The rent covers the monthly payments, but little free cash flow from this property. Our two cars are paid for. I’ve been salting away at least 60% of my net the past few yrs and the family could live in comfort on $45,000 p.a.

Bottom-line: $45,000 p.a. on $780,000 equals a SWR of 5.8%.* This may not epitomize conservatism but I’m also staring at $1 million in two tranches in future (of course, this may just be half that in today’s dollars).*

May also sell the land, use proceeds to pay off commercial property and invest the balance of $140,000. The net rental of $1,500 p.m. on the commercial property may substitute for part of the withdrawals from investments. Potential revised current SWR = (45k p.a. – (1.5k rental income X 12 mths)) / (780k + 140k net land sale) = 27k / 920k = 2.9%.* *

Plan to take a 3-mth sabbatical to regain sanity and physical fitness wretched by 12-hour days in a super-stressed corporate powderkeg. Will then “dabble” in pet projects – nothing fancy, maybe two 4-hour days a week as advisor to a couple of telco-related start-ups. May or may not make money on these, but no risk either as my “equity” will purely be coloured grey plus industry networking. Any fees or profits will be the froth to underwrite my wide-ranging interests in the natural sciences, paleontology and ancient cultures.* One of these ventures may actually strike it big in which case I may then be more inclined to partake in browsing the likes dupontregistry.com. On the other hand, I may well decide that I’m too lazy to dress up and go consult in some stuffy boardroom even for that two short days per week and may just extend my sabbatical to enjoy the scenic beauty and cultural richness of the blessed tropical paradise in my midst for literally a few dollars a day. * Yup, with basic needs fulfilled (full belly; comfy shelter; easy access to cool hills and powdery white beaches; and good non-work friends), it is, indeed, a challenge to propagate corporate servitude here in the tropics.*

Well, that’s a summary of my current state of affairs at age 42.* Heck, I may well let the rest of the plot evolve with the times. Thanks for “listening” to my story.


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Re: One more bailing out ......
Old 04-08-2006, 10:42 PM   #2
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Re: One more bailing out ......

under FIRE,

A very interesting story, you have.

It is gratifying to many of us that you have rebelled against corporate pressures. That is OK, and will help your successors by giving management notice that some people won't put up with too much sh*t.

However, it looks like you just want a long vacation--you aren't leaving the game just yet. You still have fire in the belly. Be aware that management does not like part-time contributors. You are in or you are out. Consultants are not very welcome. The first thing a consultant needs is a customer. Do you have one?

Quote:
...natural sciences, paleontology and ancient cultures
...and the latest Porche? It looks as if you are perfectly capable of takiing care of yourself. Come back here when you are ready.






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Re: One more bailing out ......
Old 04-08-2006, 11:54 PM   #3
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Re: One more bailing out ......

Quote:
Originally Posted by Ed_The_Gypsy
...and the latest Porche? (sic)
He he, ....... I'm not into Porsches, Eddie. Too cumbersome to slither in and out. The callisthenics of getting on board reminds me too much of Bangkok tuk-tuks.

Quote:
Originally Posted by Ed_The_Gypsy
It looks as if you are perfectly capable of takiing (sic) care of yourself. Come back here when you are ready.
Hmm, is one's inability to take care of oneself a prerequisite to participating in this forum?* * I don't think so my man. We are all here to share experiences and learn from one another. In fact, the many fine personalities here inspired me in my own ER journey. And perhaps I may inspire others with my own experiences.* Ya'll never know, I may actually learn something even from you* .

Cheers.


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Re: One more bailing out ......
Old 04-09-2006, 09:09 AM   #4
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Re: One more bailing out ......

Quote:
Ya'll never know, I may actually learn something even from you Wink.
Well, spelling won't be one of them.
Quote:
takiing (sic)
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Re: One more bailing out ......
Old 04-09-2006, 09:17 AM   #5
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Re: One more bailing out ......

Welcome to the board, Under FIRE. Sounds like a good plan.

Is it time to raise the rent on the commercial tenant? What's the zoning on your vacant land? This could be the beginning of an interesting real estate hobby.

Just kidding. Have a good time Tuesday (tomorrow in your time zone?) and try not to get everything done in the next three months. Kick back, relax, get caught up on sleep, let the fog clear from your head, and see how you feel about that consulting work. Many others have changed their minds about that when they get busy with other FIRE stuff...
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Re: One more bailing out ......
Old 04-10-2006, 02:43 AM   #6
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Re: One more bailing out ......

Quote:
We are all here to share experiences and learn from one another. In fact, the many fine personalities here inspired me in my own ER journey. And perhaps I may inspire others with my own experiences.* Ya'll never know, I may actually learn something even from you* .
Bingo my man!!!* I share you're opinion.* Everyone should feel welcome on this board and we are all learning from the people who are here (even the negative thinkers).* Because of some of the people on this board, I am making life changing moves.* I am thankful to be able to hear anyones story.*

Thank god for the internet and the opportunity to talk to like minded people.* Good luck!!!
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Re: One more bailing out ......
Old 04-10-2006, 04:47 PM   #7
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Re: One more bailing out ......

Quote:
Originally Posted by gtmeouttahere
Bingo my man!!! I share you're opinion. Everyone should feel welcome on this board and we are all learning from the people who are here (even the negative thinkers). Because of some of the people on this board, I am making life changing moves. I am thankful to be able to hear anyones story.

Thank god for the internet and the opportunity to talk to like minded people. Good luck!!!
Agreed

Everytime I have the nagging oh $hit am a nuts for quiting my job early and taking the 12% hit I say heck I am starting a new chapter in my life. I made it to 50 and want to move out of the cold northeast and stress and do something else. The people here on the site have given me some good ideas. Thanks.

Now if the state of NJ says hey mr we will give you 33,000 a year with a cola and medical beenies for life why would you not take it ! I SAY to myself these days ! NO?
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Re: One more bailing out ......
Old 04-10-2006, 10:18 PM   #8
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Re: One more bailing out ......

Well folks, I'm writing this from my bed (its noon on Tuesday the 11th here in KL) on my last official working day at Megacorp .......... its a public holiday here today, so my real last day was yesterday.*

I'm now immersed in a surreal new reality ............. for the first time since probably pre-school, I own 100% of my time on this earth. It'll be button-fly 501s and t-shirts on most weekdays now.

Quote:
Originally Posted by Nords
Is it time to raise the rent on the commercial tenant?* What's the zoning on your vacant land?* This could be the beginning of an interesting real estate hobby. Just kidding.
Yeah, good point Nords. I was so busy working and enriching Megacorp, I've not really analysed current rental rates in the area. My two tenants must be a happy lot as I get their rental checks attached with a thank you note on fine scented paper and the occasional Lindt mint chocolates.*

As for the vacant land in the golf resort, its zoned residential. Had planned to build a sprawling Balinese-themed abode but shelved it indefinitely as the real Bali is less than 3 flight hours away at the price of 2-3 tanks of gas. I've planted mangoes, guava and other tropical fruit trees on a portion of the parcel and they are now starting to bear fruit. Of course, maintaining a 23,000+ sq ft lot in this lush climate is a full-time "job" in itself. Well, in my new "going nowhere and having all day to get there" mode, working the land may be part of my post-job decompression techniques.*Heck, may plant most of my own food and rear my own livestock and ............* ....... time for another nap I guess.*

Yeaahh, this is the good life .......


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Re: One more bailing out ......
Old 04-11-2006, 09:21 AM   #9
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Re: One more bailing out ......

Quote:
Originally Posted by Under FIRE
Yeah, good point Nords. I was so busy working and enriching Megacorp, I've not really analysed current rental rates in the area. My two tenants must be a happy lot as I get their rental checks attached with a thank you note on fine scented paper and the occasional Lindt mint chocolates.*
Never mind-- with tenants like that I take back everything I said about raising the rent!

Quote:
Originally Posted by Under FIRE
I've planted mangoes, guava and other tropical fruit trees on a portion of the parcel and they are now starting to bear fruit.
Well, you're going to be exceedingly full of vitamin C and tired of the maintenance. We only have two mango trees but none of our friends will visit us during the fruit season anymore. I think we get more value from cutting the wood off the trees and selling it to artisans...
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Re: One more bailing out ......
Old 04-12-2006, 08:10 AM   #10
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Re: One more bailing out ......

UnderFIRE,

-Congratulations! Breathe it all in and enjoy the new freedom.
- Just before i quit full time work, we bought a house that needs considerable atenton. That was my decompression plan (maybe like you plot-o-land). I'm having a ball being Mr Plumber, Mr Electrician, Mr Mason, etc. As long as DWs patience hold up I'm having a blast. I'd think you could start a small farm on your land.

Best wishes, and let us know how things unfold.

samclem
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Re: One more bailing out ......
Old 04-16-2006, 01:48 AM   #11
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Re: One more bailing out ......

Quote:
Originally Posted by samclem
... we bought a house that needs considerable atenton.* That was my decompression plan (maybe like you plot-o-land).* I'm having a ball ...* I'd think you could start a small farm on your land.
samclem, good luck in your house rehab project.

Yeah, at least in my family, I do observe a link between "working the land" and longevity. My aunt's 70+ yr old husband retired as a school principal two decades ago and since then tends to his orchard 6-9am and 5-7pm with naps and leisure in between and after. He subsists on large portions of freshly grilled fish, fresh garden salad, vege/seafood soup and unmilled wholebran rice. Smokes liberally since 16. This guy is still built like a tank and enjoys his daily midday drives around the vast rice paddies and cocunut plantations in his small town in his new "young people's" subcompact . . . . . . unless, of course, he's asked to do errants by his still robust 99-yr old dad* :P


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