Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 03:39 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Did you have some form of windfall that significantly contributed to Networth?

Most of our networth has come from wages via work that was invested. We did inherit a small windfall that was stashed away several years agos. It has grown. It represents about 18% of the total portfolio.

I was wondering how many people recieved some sort of windfal that contributed to the bottom line. This could be inheritance, money gifts from family, Stock Options at work... almost anything (other than normal wage/bonus) that contributed a large lump sum to your networth (and perhaps was invested and grw further).

chinaco is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Did you have some form of windfall that significantly contributed to Networt
Old 04-23-2007, 06:03 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Re: Did you have some form of windfall that significantly contributed to Networt

I received a small windfall in the form of stock options that miraculously paid off after being underwater for many years. This occurred due to the sale of the company just as I hit my FI target and bumped our net worth up by an additional 8%.

While it was a very nice surprise and icing on our FI cake, it did not alter my chosen FIRE date in any way. I'd already hit our FIRE target and placed a stake in the ground to retire in May of 2005. I viewed the surprise stock option payout as a well-timed and very much appreciated parting gift.

__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 06:19 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
Re: Did you have some form of windfall that significantly contributed to Networth?

No...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 06:42 AM   #4
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
Re: Did you have some form of windfall that significantly contributed to Networth?

ditto...
__________________
Work is something you do to get enough $ so you don't have to....Me.
73ss454 is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 06:52 AM   #5
Thinks s/he gets paid by the post
happy2bretired's Avatar
 
Join Date: Mar 2007
Location: Nebraska
Posts: 1,543
Re: Did you have some form of windfall that significantly contributed to Networth?

My husband and I were already FI and getting ready to retire when he died. He left me with some survivor's benefits and a 200K life insurance policy as well.
happy2bretired is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 06:54 AM   #6
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
Re: Did you have some form of windfall that significantly contributed to Networth?

No inheritance yet, and I don't count on possible future inheritance in my ER computations.

My net worth on retirement will be less than a million, which is small for this group of people. I'll RE anyway, in three years or so. I'd rather live frugally on my own terms, than to live well as a wage slave. If I inherit, I doubt much will change.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 07:20 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2003
Posts: 18,085
Re: Did you have some form of windfall that significantly contributed to Networth?

Sort of. I got most of my MBA paid for by employers of either myself or my wife. But then again, I spent several years making less money in order to keep that benefit. So maybe not.
__________________
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networt
Old 04-23-2007, 07:28 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,067
Re: Did you have some form of windfall that significantly contributed to Networt

None yet. I just retired and I didn't base my retirement on a future inheritance. When it does happen, it really won't change much for me.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
Dawg52 is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networt
Old 04-23-2007, 07:30 AM   #9
Thinks s/he gets paid by the post
Goonie's Avatar
 
Join Date: Oct 2006
Location: North-Central Illinois
Posts: 3,228
Re: Did you have some form of windfall that significantly contributed to Networt

The only 'wind fall' that I ever got, was an inheritance from one of my great-uncles, back in the early '70s. He had made his fortune in the oil business. He became a multi-millionaire at a fairly early age, and ER'd in his 40's back to the Ozarks. He and my aunt had decided that if or when they got rich, they would return to the 'hills' and blow their entire fortune by living the way they wanted to. They had no "young'uns", so they gave money to some of our other relatives when ever it was needed.

They managed to squander away just about every red cent they ever had before they passed away. To which I say "Good for them!!!"

Anyway, when the estate was settled....assets sold and bills paid.....the remainder of their estate was split equally between their 4 nieces and nephews (of which I was one). I received a WHOPPING $900!!! WHOO-HOO!!

He succeeded in doing that without ever reading the book "Die Broke"

But any other 'wind falls'? Nope! All I have, I've earned myself! It's a family tradition.
Goonie is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networt
Old 04-23-2007, 07:42 AM   #10
Thinks s/he gets paid by the post
grumpy's Avatar
 
Join Date: Jul 2004
Posts: 1,321
Re: Did you have some form of windfall that significantly contributed to Networt

I inherited my mother's variable annuity in 1999. At the time it was worth $71K. I decided to leave it in the annuity to continue the tax deferred growth. The major upfront costs & surrender charges had passed but selling would trigger a large tax bill. I have shifted the $'s to different funds weighted toward international funds. The annuity is currently worth $130K. This represents only about 10% of my investable assets so it was not a major windfall.

Grumpy
__________________
...you can check out any time you like, but you can never leave...
grumpy is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 07:55 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,011
Re: Did you have some form of windfall that significantly contributed to Networth?

Yep. 90% or so of our net worth was from stock options which paid off after a very long time period. The company finally went public. When we exercised our options we really had no idea whether they would come to anything at all. Nothing better than being in the right place at the right time plus a boatload of good luck!

Audrey
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 07:55 AM   #12
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Re: Did you have some form of windfall that significantly contributed to Networth?

No....I know of one guy that got some kind of trust and blew through it in a couple of years so I think it can be like the lottery winners....something about building your own wealth that makes you work harder to keep it...
__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 08:02 AM   #13
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Re: Did you have some form of windfall that significantly contributed to Networth?

The collective wisdom is to never count on inheritance windfalls until the check has cleared. I have distant relatives who were counting on Mom's millions upon her death, having been told this was the plan and having seen the will.

Family strife, perhaps a bit of manipulation by a sibling, generation skipping provisions and a few other circumstances pared that puppy down to the point that the relatives ended up with nothing more than a nice car. The heirs don't talk to each other, and lawyers are involved.

Plan A was to retire at 57. They are now 61 and still working. Reminds me of the old Smith Barney ads -- something like (in a stuffy British accent), "We make money the old-fashioned way. We earn it."
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 08:16 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
Re: Did you have some form of windfall that significantly contributed to Networth?

Quote:
Originally Posted by Rich_in_Tampa
Reminds me of the old Smith Barney ads -- something like (in a stuffy British accent), "We make money the old-fashioned way. We earn it."
Yup!

__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networt
Old 04-23-2007, 08:30 AM   #15
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 3,679
Re: Did you have some form of windfall that significantly contributed to Networt

Not really a "windfall" but still a nice surprise......

A few years ago my husband's employer offered to buy out employees excess sick time. They get plenty of sick time per year and he never used much of his. The deal is that they will give you half your normal pay rate for hours that you cash in. He's cashed in over 800 hours since they started this. He spread it out over a few years so that we stayed in the same tax bracket.

__________________
Married, both 69. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networt
Old 04-23-2007, 08:58 AM   #16
Thinks s/he gets paid by the post
Goonie's Avatar
 
Join Date: Oct 2006
Location: North-Central Illinois
Posts: 3,228
Re: Did you have some form of windfall that significantly contributed to Networt

Quote:
Originally Posted by Sue J
Not really a "windfall" but still a nice surprise......

A few years ago my husband's employer offered to buy out employees excess sick time. They get plenty of sick time per year and he never used much of his. The deal is that they will give you half your normal pay rate for hours that you cash in. He's cashed in over 800 hours since they started this. He spread it out over a few years so that we stayed in the same tax bracket.
Like you say not really a 'windfall' but.......Although in my case it wasn't a surprise, since it was in my contract. They paid me for unused sick time, comp-time, personal days, and vacation days....a total of 618.81 hours at normal hourly wage. So my last pay check was that plus the 40 hours I had screwed around w*rked the last week.....about $14K.....sweet!!!

Also, 84 days of 'banked' sick time went toward my years of service with the pension fund. I get 1 additional month of service credit for each 20 days of sick time....so I get an additional 5 months of service credit which boosts my pension check about $60/month. ( I had a total of 129 sick days 'banked', but they have a 45 day cap for pay, then the days over that cap go toward pension)

All-in-all....very sweet!
Goonie is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networt
Old 04-23-2007, 08:58 AM   #17
Full time employment: Posting here.
 
Join Date: Jun 2006
Posts: 718
Re: Did you have some form of windfall that significantly contributed to Networt

No but Im counting on winning the lottery!
Mwsinron is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 09:15 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
Send a message via Skype™ to kcowan
Re: Did you have some form of windfall that significantly contributed to Networth?

Yes we had two lucky strokes. My share of Dad's estate grew to $400k by the time he passed on at 95yo. And we had hoped to win big on private company options but it never materialized so in 2001 after losing lots of equity in the market meltdown, we invested in 10 small cap companies. One of those was purchased at $.88 and is currently trading for about $30. We still have half of our original number of shares. Most of the others we sold at a loss or modest gain.

We continue to do this investing with about 5% of our portfolio and have had some other winners (e.g. 10x) but nothing as dramatic as this one. Ironically we are becoming more conservative now that we no longer need the big hits. But we are kicking around the idea of creating a charitable trust if we can repeat the process often enough to create a substantial buffer.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networt
Old 04-23-2007, 09:39 AM   #19
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Re: Did you have some form of windfall that significantly contributed to Networt

I got a sizable inheritance, however it only replaced what I lost in a divorce.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Re: Did you have some form of windfall that significantly contributed to Networth?
Old 04-23-2007, 09:47 AM   #20
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 944
Re: Did you have some form of windfall that significantly contributed to Networth?

I have had no windfalls...yet. I do stand to recieve quite abit when my Mom passes - but I am not counting on it/will be fine w/o it. If it happens I will just travel more and invite/pay for the kids w/ their families along (assuming they have em) - that would be great and is what money is for...in my opionion.
Freedom AND the pursuit of happiness!
__________________
Freed at 49. You only live once - live it
Donzo is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 05:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.