Cool FIRE article in MSN Money

[Major Tom]

Let's called that a sabbatical and not retirement. Same with taking a gap year, let's not called everything retirement.

For me, as long as they describe what they are doing, and how it's working out, then I am not going to become too preoccupied with what they call it, as I have the information at my disposal to decide how I would refer to it. I consider an accurate and authentic description to be more important than the label attached to it, and I believe they have provided that.

 

[Fedup]

For me, as long as they describe what they are doing, and how it's working out, then I am not going to become too preoccupied with what they call it, as I have the information at my disposal to decide how I would refer to it. I consider an accurate and authentic description to be more important than the label attached to it, and I believe they have provided that.

I'm all for honesty and not being manipulative by anyone. Of course everybody is different and we get to voice our opinion.

 

[eta2020]

I believe it was reported that MMM is pulling in 7 figures.

It is hard to make a blog about retiring at 55 with 6 Million but easy about retiring at 38 with 1.5 million.

Either case is very easily doable for married couple of Software Engineers. Such couple should be making 350-450k a year. You do the math.

 

[purplesky]

well I don't think its fake crap if your software engineers.. I have tons of friends that by their late 30s they were easily in the $3M+ category. They had their kids late which means they could accumulate early and stay home after they had their money banked. One of the keys.. bonuses and stock options. I have friends making $700k in a given year on those 2 items.. it really is a whole other world. I cashed in $200k by the time I was 30 and had to because they expired (very bad tax year).

Other friends kids are now fresh out of college, starting 6 figures the day they walk out (even in Boulder, CO.. ie so we are not talking New York or San Fran costs)...if they make even modestly smart choices it would not be that difficult. They have zero student loans because their parents did the prepay college plan Illinois offered.

Its certainly not for everyone, but there is still ways to accumulate wealth in specific industries.

In this MSN article and other millennial unicorn articles about retiring at 30 I have seen lately I didn't see enough math that showed their real income and the magic of their portfolio to believe they really saved 1 million free and clear in just 10 years.

Maybe they did. I mean they used Mint so it must have happened.

Saving 1 million dollars in 10 years at their income level is extremely difficult.

This latest trend is just like the high flying 90s .com bubble where so many people thought the stock market would take care of them for life like a lottery ticket.

 

[eta2020]

In this MSN article and other millennial unicorn articles about retiring at 30 I have seen lately I didn't see enough math that showed their real income and the magic of their portfolio to believe they really saved 1 million free and clear in just 10 years.

Maybe they did. I mean they used Mint so it must have happened.

Saving 1 million dollars in 10 years at their income level is extremely difficult.

This latest trend is just like the high flying 90s .com bubble where so many people thought the stock market would take care of them for life like a lottery ticket.

Simple Savings Calculator - Savings Interest & Investment Growth Calculator

If they save 10k a month at 6.5% growth they have 1 million in 7 years and 1.7 Million in 10 years.

How difficult is that if you do not waste money on Housing and cars? You seem to not understand that even 2 college grads can make 250k within 2-3 years out of school.

 

[Golden sunsets]

In spite of your evidence to the contrary, I will stick to my initial assertion (unsupported by any facts) that four weeks is the most that anyone receives for vacation time and purplesky doesn't really get 7 weeks because it's impossible.

Fuego; Start up tech no longer specifies how much paid leave its employees are entitled to. They can take whatever they want, the assumption being that if they abuse the privilege they will be fired. DS who is a thirty one year old SE plans his time off by insuring that he has met all deadlines and is otherwise extremely productive, and a highly valued employee.

 

[papadad111]

Really? You can make forty five grand a year blogging?

That's more than half of what I was making before I retired.

I've been doing this all wrong. Millennials Rock!

Mr. Money Mustache must really be stacking it up!

Yep. Several bloggers are forthcoming with their blog income and after 2 or 3 years it's pretty normal to net between 3 and 4 K monthly.

Joe over at retireby40.org is a good example - he writes well and provides lots of analytic data on his blog site income. Nice person he is too.

 

[papadad111]

Let's called that a sabbatical and not retirement. Same with taking a gap year, let's not called everything retirement.

+1. Exactly. Just a "time out".

 

[Focus]

Let's called that a sabbatical and not retirement. Same with taking a gap year, let's not called everything retirement.

+1

That's my main issue with this. The term is being co-opted. Some think it sounds like a greater achievement to say they've "retired" at a young age: "Hey, look at me, I retired 30+ years before most people, and my career was the shortest ever!"

To say they are pursuing a flexible career alternative with high saving/frugality doesn't sound as impressive, but actually, it is. Call it what it is.

 

[Bestwifeever]

Words do matter, maybe more to some of us. I will just describe the couple in the OP as "They call themselves retired" and leave it at that.

 

[daylatedollarshort]

I'm a fan of Juliet Schor, who wrote The Overspent American and The Overworked American and she uses the term downshifting, which the Google defines as "change a financially rewarding but stressful career or lifestyle for a less pressured and less highly paid but more fulfilling one."

Words do have meanings, but "retire" attracts more click bait than changing careers or working part-time.

 

[Sarah in SC]

I am also a fan of Juliet Shor. Her books about consumer culture are spot on, and gave me much food for thought when I read them. I also like the term downshifting to describe a lifestyle to which I try very hard to subscribe.

I always emphasize, because words matter to me a good bit, that my DH "quit his job", not "retired". That doesn't mean he's not going to pick up odds and ends to keep from having to "work" for me, or that he's pure-tee retired. It just means he quit his job and isn't looking for another one. Crystal clear to me, but we have plenty of friends who interpret it differently, and call him retired. I don't argue the point.

 

[purplesky]

Simple Savings Calculator - Savings Interest & Investment Growth Calculator

If they save 10k a month at 6.5% growth they have 1 million in 7 years and 1.7 Million in 10 years.

How difficult is that if you do not waste money on Housing and cars? You seem to not understand that even 2 college grads can make 250k within 2-3 years out of school.

If it's so easy how come college grads are not able to it? Because life happens. How many college grads can save. 8k a month.

And if a college grad pulls this amazing task off by age 32 why would they stop building wealth at 1 million to only produce an income level of the struggling middle class?

To blog and do a YouTube channel vs save 8 to 10k until age 42 and be broke proof ?

 

[MichaelB]

I always emphasize, because words matter to me a good bit, that my DH "quit his job", not "retired". That doesn't mean he's not going to pick up odds and ends to keep from having to "work" for me, or that he's pure-tee retired. It just means he quit his job and isn't looking for another one. Crystal clear to me, but we have plenty of friends who interpret it differently, and call him retired. I don't argue the point.

It took me a long time to transition from "I quit my job and am taking some time off" to "retired". It still feels funny. Most people associate retired with pension and the nosiest are surprised when they learn I don't have one.

 

[daylatedollarshort]

If it's so easy how come college grads are not able to it? Because life happens. How many college grads can save. 8k a month.

And if a college grad pulls this amazing task off by age 32 why would they stop building wealth at 1 million to only produce an income level of the struggling middle class?

Because a lot of the jobs are high reward, high stress, and long hours. Average salaries around LA and SF are over $100K a few years out of college for many tech jobs. Three twenty-something roommates in a house can easily have a household income of over $300K+. But is easy to get burned out doing that for too long and then free time becomes more important than money.

 

[JoeWras]

Because a lot of the jobs are high reward, high stress, and long hours. Average salaries around LA and SF are over $100K a few years out of college for many tech jobs. Three twenty-something roommates in a house can easily have a household income of over $300K+. But is easy to get burned out doing that for too long and then free time becomes more important than money.

So I guess high tech jobs in CA haven't changed for 160 years?

1850: "I'm going to CA to sell my services as a mine surveyor. I'll make a ton then move back."

2016: "I'm going to CA to sell my services as a programmer. I'll make a ton and then move back."

In retrospect, I *might* be retired now if I had moved to CA to sell my programming skills. I was just never comfortable living there, even if it was only for a few years. Love to visit though.

 

[purplesky]

Because a lot of the jobs are high reward, high stress, and long hours. Average salaries around LA and SF are over $100K a few years out of college for many tech jobs. Three twenty-something roommates in a house can easily have a household income of over $300K+. But is easy to get burned out doing that for too long and then free time becomes more important than money.

the millennials I work with all make in the 100k range after a few short years

They seem to view their career long term and not a sprint.

 

[bclover]

the millennials I work with all make in the 100k range after a few short years

They seem to view their career long term and not a sprint.

wow where do you guys live? I have phd scientist that only reach that salary after 10 years on the job.

My two sons (25 and 22) do not have one friend making 50K.

My neighbors kid just graduated law school. He got his first gig in February, working for the city of Philadelphia I think he's at 57K with a law degree and passed the bar.

I was a scientist with megacorp in delaware, after 25 years my ending salary was 82K

 

[bclover]

Question??

What do we do with the 10 million other college kids who are NOT software engineers. I can assure you college kids coming out of school with a BS in education are not making 10K a month.

Now considering from the information I googled quickly, the average salary of folks with an ADVANCED degree is between 81k-91K. where are all these millennials rocking 20K monthly

and if they are why the heck are they whining about having student debt

 

[purplesky]

Because a lot of the jobs are high reward, high stress, and long hours. Average salaries around LA and SF are over $100K a few years out of college for many tech jobs. Three twenty-something roommates in a house can easily have a household income of over $300K+. But is easy to get burned out doing that for too long and then free time becomes more important than money.

If you could discipline yourself to save cash in that situation for 10 years you could really build a nice nest egg if you keep your hands off and not buy a tesla.

 

[photoguy]

Now considering from the information I googled quickly, the average salary of folks with an ADVANCED degree is between 81k-91K. where are all these millennials rocking 20K monthly

See attached graph from Do You Earn Less Than a Silicon Valley Intern? - Bloomberg

I'm not sure of the source of the graph (Rodney Folz), but it doesn't seem out of line from my (admittedly old) experience. You can extrapolate out with 5-15% raises per year.

What do we do with the 10 million other college kids who are NOT software engineers. I can assure you college kids coming out of school with a BS in education are not making 10K a month.

I'm not sure that we need to do anything (other than maybe educate HS kids about career opportunities).

Also these tech companies hire a lot more than "software engineers" at high pay levels.

 

[JoeWras]

Question??

What do we do with the 10 million other college kids who are NOT software engineers. I can assure you college kids coming out of school with a BS in education are not making 10K a month.

You mean SW engineers in the Bay Area.

Somewhere along the line this thread got onto the the whole SW engineering thing. Problem is even in SW engineering, few of the new grads make the kind of clams being talked about there. There are exceptions and averages.

Don't even get me started on offshoring.

We're talking really small amounts of grads, so yeah, what about the 10 million others?

 

[daylatedollarshort]

If you could discipline yourself to save cash in that situation for 10 years you could really build a nice nest egg if you keep your hands off and not buy a tesla.

I think that was the point of the article. Many people succumb to lifestyle creep.

 

[eta2020]

wow where do you guys live? I have phd scientist that only reach that salary after 10 years on the job.

My two sons (25 and 22) do not have one friend making 50K.

My neighbors kid just graduated law school. He got his first gig in February, working for the city of Philadelphia I think he's at 57K with a law degree and passed the bar.

I was a scientist with megacorp in delaware, after 25 years my ending salary was 82K

Boston Massachusetts. 82k is first year out of school.

Software Engineer age 30-50 is making more like 150-200k. That means couple makes 300-400k. It is not overly complex to save 10-16k a month if you do not care driving Civic and living in a small house. Though even small house/condominium in nice area will cost huge sums of money.

But majority will waste their money on McMansions and BMWs

 

[JoeWras]

See attached graph from Do You Earn Less Than a Silicon Valley Intern? - Bloomberg

I'm not sure of the source of the graph (Rodney Folz), but it doesn't seem out of line from my (admittedly old) experience.

But getting an internship at many of those companies is difficult. Again, small numbers.

Back in the ancient days, when I was an intern at a well known large Megacorp, the interns got paid well too. I took a regular job there for only 15% more than my intern salary. Just saying these interns are generally a pretty good cream of crop. I know I recently did recruiting for this talent pool, and we put them through a pretty strict screening process. Nothing fell into their laps.