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Old 02-25-2016, 10:59 AM   #41
Confused about dryer sheets
 
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Originally Posted by FreeBear View Post
Mexpet,

Have you read "The Milionaire Next Door" (TMND)?? A couple of chapters in this book may be of interest because they discuss the challenges of financial successful parents raising independent, productive children that aren't handicapped by co-dependence and entitlement. Chapter 5 "Economic Outpatient Care" and Chapter 6 "Affirmative Action, Family Style" may be of greatest interest. Chapter 6 also discusses "Rules for Affluent Parents & Productive Children".
Thanks for the book recommendation. I will read it.


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Originally Posted by emerytura View Post
Good article, I can recommend this one:
The Happiness Hypothesis: Finding Modern Truth in Ancient Wisdom
by Jonathan Haidt

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Originally Posted by eta2020 View Post
Maybe for some... I am FI and I work and pretty much enjoy it.
I can also tell you that I feel much more relaxed as FI then before, since I do not need to give a F$%^. It actually makes my work even more enjoyable
Thats how I feel about it. Also Guanajuato (from your other post) is nice, but too small for me, and not enough to do.
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Old 02-26-2016, 09:25 AM   #42
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Only you can decide what will maximize your happiness. I was in a very similar position to you at a comparable age. My daughter was older than your kids and lived with her mother so not a real consideration. I wanted the freedom that retirement would provide and was getting tired of working. But the financial considerations were very important to me. I ended up retiring at age 56 after my net worth doubled over the preceding 3 years.

What about working for a few more years(you say you don't mind it) then using your enhanced net worth to set up a family foundation. You kids can help you give money away to worthy causes. That might be fun and would provide an excellent example to you kids.

On the other hand are you sure you will never have a use for more income? If you want a home in Europe it can be very expensive in desireable locations, Lake Como, south of France? I was quite happy in the end that I ended up with such a large nestegg. You may be very different.
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Old 02-26-2016, 02:48 PM   #43
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I rarely post but here goes:

At 14, 16 and 19 your kids are well on their way to adulthood. The example you set has already been imprinted and IMO is unlikely to change because you change your employment status. In other words they already know they have to work hard and it sounds like they already do!

My dad died suddenly at 54; I was 16. I was the youngest and the last at home with my very sad mom. After a few rough years we all adjusted, and after about seven years my mom met a widower and got to enjoy a long and active retirement in her second marriage. My siblings and I all have had reasonably successful careers (thanks in large part to that early parental influence). But my poor dad missed all of it.

My point is this - your retirement is about you. Sometimes the best example you can give your kids is to do what makes you happy - then they see that and learn how to be happy themselves.

I don't know if you are interested in retiring in the U.S. but if so, you might want to consider California. The weather is great and the activities you enjoy are close by and doable year round. No need for a second home. We are on the Central Coast and find the quality of life to be outstanding, plus we are close enough to go to San Francisco for the day or a weekend anytime. Excellent health care, international airports and access to fresh locally grown foods. I could go on, but I won't!
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Old 02-26-2016, 07:21 PM   #44
Confused about dryer sheets
 
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On the other hand are you sure you will never have a use for more income? If you want a home in Europe it can be very expensive in desireable locations, Lake Como, south of France? I was quite happy in the end that I ended up with such a large nestegg. You may be very different.
Lake Como is beautiful.

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I don't know if you are interested in retiring in the U.S. but if so, you might want to consider California. The weather is great and the activities you enjoy are close by and doable year round. No need for a second home. We are on the Central Coast and find the quality of life to be outstanding, plus we are close enough to go to San Francisco for the day or a weekend anytime. Excellent health care, international airports and access to fresh locally grown foods. I could go on, but I won't!
I just googled Central Coast. Santa Barbara and San Luis Obispo look like great year round locations. I have never been there though. Although I like the US, I never thought about retiring there, mainly because of the complicated tax situation, but I need to give that a second thought.
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Old 02-27-2016, 08:45 AM   #45
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We have met all kinds of interesting retirees in Mexico, and the ones that have multiple $10 millions all strive for fulfillment in their retired lives. Some live through their kids and grand-kids, while others are looking for the next challenge that is comparable to what kinds they got in the earning years.

I don't think spending days on the golf course qualifies. It is a pass-time without adequate external rewards. We have only been at it for 13 years and have not found the ideal formula, even though we are happy with our lives. All the causes seem to become all-consuming whether we like it or not. Our kids are independent and so need little discretionary attention.

So I think you have a tough decision on your hands and one size never fits. But good communications among the whole family will avoid assumptions. Also there are few one-way doors when it comes to life's decisions.
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Old 02-28-2016, 06:36 PM   #46
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Just a few reactions (some of this is purely financial, which is not your focus at this point, I realize). Just by way of background, I am a similar age and, while my assets are not quite what yours are, they are in the high 7 figures at this point. I work a stressful job; if you search my prior posts you will see from where I'm coming.

- I know that you are financially secure, but I think 85% of financial assets in equities is too high, unless you are really focused on legacy/end of life giving. A huge depression would hit that equity holding very hard, and I don't see your need to take that amount of risk, given what you've said. I would think about dialing-back the equity exposure to something like 60%.

- $1.8 million in stock options is a large enough amount that I think you should consider diversifying out of that "single stock" risk and exercising. I don't know if your employment situation practically restricts you from exercising while you continue as an employee (I have seen situations where there is pressure not to do that), but regardless of how "solid" your Megacorp is, I have seen financial shocks crater stocks of very solid companies (see GE's stock price during the 2008 "great recession" as an example).

- I don't think your pension fund growth at age 55 should come into play in your consideration, given your level of assets. The question for you is whether you otherwise want to work to 55 or not, but I don't see why the pension should tip the scales.

- Given your children's ages, I think you could face geographic limitations based on their high school educational needs. I'm not very familiar with what your options for them may be in, say, Puerto Vallarta v. other places in Mexico, but I would think this would have to be a consideration if you retire before they go to college.

- Your annual "burn rate" is lower than mine, and I don't know what your residential property desires are - if you wanted a REALLY high-end residential experience, there are places in Mexico (such as Punta Mita, outside Puerto Vallarto) where you could have a retirement-type lifestyle with beautiful ocean views and lots of room to hike, kayak, etc. That comes with a steep price-tag, but you can afford if it that is what you wish. I don't know that the school options for your children would be there.

- I think that your concern about the "example" you set may depend very heavily on the personalities of your children. My daughter, who is only a bit older, has seen me work so hard in my stressful career that she just wishes I would dial it back and focus on the charitable and other causes that I value. I don't think retiring when she was a teenager would have affected her in a negative way, but other children might be different.

Good luck to you!
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Old 02-29-2016, 11:23 AM   #47
Confused about dryer sheets
 
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- I know that you are financially secure, but I think 85% of financial assets in equities is too high, unless you are really focused on legacy/end of life giving. A huge depression would hit that equity holding very hard, and I don't see your need to take that amount of risk, given what you've said. I would think about dialing-back the equity exposure to something like 60%.

- I don't think your pension fund growth at age 55 should come into play in your consideration, given your level of assets. The question for you is whether you otherwise want to work to 55 or not, but I don't see why the pension should tip the scales.

- Given your children's ages, I think you could face geographic limitations based on their high school educational needs. I'm not very familiar with what your options for them may be in, say, Puerto Vallarta v. other places in Mexico, but I would think this would have to be a consideration if you retire before they go to college.

- Your annual "burn rate" is lower than mine, and I don't know what your residential property desires are - if you wanted a REALLY high-end residential experience, there are places in Mexico (such as Punta Mita, outside Puerto Vallarto) where you could have a retirement-type lifestyle with beautiful ocean views and lots of room to hike, kayak, etc. That comes with a steep price-tag, but you can afford if it that is what you wish. I don't know that the school options for your children would be there.

- I think that your concern about the "example" you set may depend very heavily on the personalities of your children. My daughter, who is only a bit older, has seen me work so hard in my stressful career that she just wishes I would dial it back and focus on the charitable and other causes that I value. I don't think retiring when she was a teenager would have affected her in a negative way, but other children might be different.

Good luck to you!

I had missed your other posts but have now read them. Very interesting.

Re My Asset Allocation: You are right, it is very equity heavy. I will rethink my allocation, and possibly move some of that equity into cash for the future purchase of a house.
Aside from that, i feel comfortable with equities, I am mostly in ETFs with some play money in more risky investments. Agree on your comment re my pension increase will not tip the scale.

School Options: Kids are currently at a great school. There would be nothing comparable in Puerto Vallarta or in San Miguel.

So my decision is to keep at it until the youngest one graduates from High School. There really is no big win for me from retiring now. Playing golf every day is not for me.

On differences between your and my burn rate: If I play it right , I might be able to pay very little in taxes. I am also a big believer in keeping our fixed cost low. That means I will Not buy a palatial house, nor expensive cars, and probably also not a second home. I know Punta Mita, and it is nice, but probably not for a permanent stay.
We will, however, like you, spend big time on travel, business class, nice hotels, etc. Our other big expense is and will be - eating out. The nice thing about these expenses are, that you can easily cut them, if something goes wrong.


Again, thanks for taking the time to comment.
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Old 03-01-2016, 10:08 AM   #48
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Also don't forget the option to dine in with an executive chef. Very popular here in PV.
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Old 03-01-2016, 10:40 AM   #49
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I think it takes a lot of nerve to tell a man with several children and $11+ million what to do with his life.

Perhaps should ask him what we should do? Or better yet, just realize that all these "you should blah blah blah's" are mostly for the edification of the poster.

Ha
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Old 03-01-2016, 10:41 AM   #50
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You forgot to say "...and get off my lawn!"
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Old 03-01-2016, 11:02 AM   #51
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I think it takes a lot of nerve to tell a man with several children and $11+ million what to do with his life.

Perhaps should ask him what we should do? Or better yet, just realize that all these "you should blah blah blah's" are mostly for the edification of the poster.

Ha
Good point. But since he asked and we love telling people what they should do...
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Old 03-01-2016, 11:34 AM   #52
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You forgot to say "...and get off my lawn!"
Thankfully Wahoo, you never forget to remind folks here of my grievous failings.

Ha
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Old 03-14-2016, 08:38 AM   #53
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I was glad to read this post as I am in the process of retiring at age 44 with three kids aged 6, 5 and 3. Basically the numbers are working now with $1.1 set aside for the kids and $6.2 in investments, we are looking to downsize from a 1.7 home to 1.1 or even less. I feel that things are a bit too cushy for our kids in a luxurious home, and I also want to be a good example. We live in a Connecticut suburb and most of our friends are bankers, hedjies or in corporate jobs. If we can sell our house, one idea would be to relocate and start a cottage industry type of business. The kids would learn some valuable lessons and it would be enjoyable for me without a huge up front capital expenditure.
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Old 03-14-2016, 09:56 AM   #54
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Originally Posted by Texan1636 View Post
Just a few reactions (some of this is purely financial, which is not your focus at this point, I realize). Just by way of background, I am a similar age and, while my assets are not quite what yours are, they are in the high 7 figures at this point. I work a stressful job; if you search my prior posts you will see from where I'm coming.

- I know that you are financially secure, but I think 85% of financial assets in equities is too high, unless you are really focused on legacy/end of life giving. A huge depression would hit that equity holding very hard, and I don't see your need to take that amount of risk, given what you've said. I would think about dialing-back the equity exposure to something like 60%.

- $1.8 million in stock options is a large enough amount that I think you should consider diversifying out of that "single stock" risk and exercising. I don't know if your employment situation practically restricts you from exercising while you continue as an employee (I have seen situations where there is pressure not to do that), but regardless of how "solid" your Megacorp is, I have seen financial shocks crater stocks of very solid companies (see GE's stock price during the 2008 "great recession" as an example).

- I don't think your pension fund growth at age 55 should come into play in your consideration, given your level of assets. The question for you is whether you otherwise want to work to 55 or not, but I don't see why the pension should tip the scales.

- Given your children's ages, I think you could face geographic limitations based on their high school educational needs. I'm not very familiar with what your options for them may be in, say, Puerto Vallarta v. other places in Mexico, but I would think this would have to be a consideration if you retire before they go to college.

- Your annual "burn rate" is lower than mine, and I don't know what your residential property desires are - if you wanted a REALLY high-end residential experience, there are places in Mexico (such as Punta Mita, outside Puerto Vallarto) where you could have a retirement-type lifestyle with beautiful ocean views and lots of room to hike, kayak, etc. That comes with a steep price-tag, but you can afford if it that is what you wish. I don't know that the school options for your children would be there.

- I think that your concern about the "example" you set may depend very heavily on the personalities of your children. My daughter, who is only a bit older, has seen me work so hard in my stressful career that she just wishes I would dial it back and focus on the charitable and other causes that I value. I don't think retiring when she was a teenager would have affected her in a negative way, but other children might be different.

Good luck to you!
I am also 85% equities and I am comfortable with it because I only allow myself to spend dividend income. Over time, dividend increases are very consistent, averaging 4-6% per year. Bonds are almost a guaranteed loss especially in real terms with the ten year at 1.9%. I have a very difficult time moving from the $1.1mm I currently have in bonds and cash, not that I am super high net worth, but as you get up in net worth you can tolerate volatility more I believe.
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