Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
OK what would u do?
Old 01-31-2019, 10:02 PM   #1
Recycles dryer sheets
Franklin's Avatar
 
Join Date: Jul 2018
Location: LA
Posts: 80
OK what would u do?

I am happily retired (age next week 63). The last thing I really wanted was to suit up and join the game. But.....the recent market drop cost be a few years of WD's. No worries a drop for me is around $400K!!!. So, Ive started takin the calls and am 50/50 on whether I should re-enter the race at 63!!. Still have about $8MM in eggs but will absolutely spend $300K annually (shoot me now!). Offer is for about a 2 year commitment for what looks like $3MM. Admittedly don't need this but I got 2 years till the magic 65.....ugh....I love this forum and don't judge just slap me and say get over it!!! This forum is full of honest feedback so give me your thoughts.
__________________

__________________
A persons wealth is measured by what they can afford to do without.
Franklin 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!

Old 01-31-2019, 10:07 PM   #2
Recycles dryer sheets
 
Join Date: Sep 2017
Posts: 227
Quote:
Originally Posted by Franklin View Post
I am happily retired (age next week 63). The last thing I really wanted was to suit up and join the game. But.....the recent market drop cost be a few years of WD's. No worries a drop for me is around $400K!!!. So, Ive started takin the calls and am 50/50 on whether I should re-enter the race at 63!!. Still have about $8MM in eggs but will absolutely spend $300K annually (shoot me now!). Offer is for about a 2 year commitment for what looks like $3MM. Admittedly don't need this but I got 2 years till the magic 65.....ugh....I love this forum and don't judge just slap me and say get over it!!! This forum is full of honest feedback so give me your thoughts.
Does 300 include taxes? If so, a SWR on 8mm is 320k. Do you want to be able to spend more than this? Is there something specific you want? Do you honestly think you'll still be spending 300k annually in 20 years?

It doesn't sound like you need to do it, so the question really is what will it give you. Do you miss working?
__________________

tb001 is offline   Reply With Quote
Old 01-31-2019, 10:10 PM   #3
Full time employment: Posting here.
 
Join Date: Jul 2017
Location: Long Island
Posts: 680
What would I do?

Cut spending, not return to work - unless I really WANTED to work.
__________________
Use it up, wear it out, make it do or do without.
MarieIG is offline   Reply With Quote
Old 01-31-2019, 10:16 PM   #4
Recycles dryer sheets
Franklin's Avatar
 
Join Date: Jul 2018
Location: LA
Posts: 80
I really don't miss work...and the number included taxes. I gotta sell a $2.5MM house in LA that will net me about $1.5MM not in these numbers so I got some room. I plan to move to a LCOL area where the house is already paid. DW spends way more than necessary so we gotta get that in focus. But no....in 2o years i doubt I'll spend near this much. Then why-am i so worried
__________________
A persons wealth is measured by what they can afford to do without.
Franklin is offline   Reply With Quote
Old 01-31-2019, 10:16 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 2,853
Quote:
Originally Posted by MarieIG View Post
What would I do?

Cut spending, not return to work - unless I really WANTED to work.
+1
__________________
TGIM
Dtail is offline   Reply With Quote
Old 01-31-2019, 10:21 PM   #6
Full time employment: Posting here.
Cut-Throat's Avatar
 
Join Date: Jan 2007
Posts: 942
See Here
Cut-Throat is offline   Reply With Quote
Old 01-31-2019, 10:24 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 11,121
Go back to work. No one should have to scrape by on $300K a year.
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 01-31-2019, 10:31 PM   #8
Recycles dryer sheets
Franklin's Avatar
 
Join Date: Jul 2018
Location: LA
Posts: 80
maybe u are the reason people are not as honest as they should be. No need for that
__________________
A persons wealth is measured by what they can afford to do without.
Franklin is offline   Reply With Quote
Old 01-31-2019, 10:31 PM   #9
Recycles dryer sheets
 
Join Date: Sep 2017
Posts: 227
Quote:
Originally Posted by Cut-Throat View Post
I disagree.

OP, I think you know you don’t *need* to go back. I get being worried though—it’s hard not to watch large swings and have it hurt. We’re not ER yet, but the idea of spending the nest egg instead of watching it grow, as has been the focus for so long, is stressful. Is your asset allocation where it should be? Maybe you need a lower equity percent?
tb001 is offline   Reply With Quote
Old 01-31-2019, 10:33 PM   #10
Recycles dryer sheets
 
Join Date: Sep 2017
Posts: 227
I’d also ask if your wife is fully on board with spending limited at 300k or if there’s a concern it would go above that.

Eta, is she the same age?
tb001 is offline   Reply With Quote
Old 01-31-2019, 10:36 PM   #11
Recycles dryer sheets
Franklin's Avatar
 
Join Date: Jul 2018
Location: LA
Posts: 80
Quote:
Originally Posted by travelover View Post
Go back to work. No one should have to scrape by on $300K a year.
really, why do u shame those who have done well? I cane here for logical advise not cheap quips
__________________
A persons wealth is measured by what they can afford to do without.
Franklin is offline   Reply With Quote
Old 01-31-2019, 10:37 PM   #12
Full time employment: Posting here.
 
Join Date: Jan 2013
Location: Santa Clarita, Palm Beach, Ecublens
Posts: 908
Quote:
Originally Posted by Franklin View Post
I am happily retired (age next week 63). The last thing I really wanted was to suit up and join the game. But.....the recent market drop cost be a few years of WD's. No worries a drop for me is around $400K!!!. So, Ive started takin the calls and am 50/50 on whether I should re-enter the race at 63!!. Still have about $8MM in eggs but will absolutely spend $300K annually (shoot me now!). Offer is for about a 2 year commitment for what looks like $3MM. Admittedly don't need this but I got 2 years till the magic 65.....ugh....I love this forum and don't judge just slap me and say get over it!!! This forum is full of honest feedback so give me your thoughts.
You should consider laddering bonds, CDs, or preferred stock and stay away from funds (bonds and equity). You should be able to earn 5-6% or more with investment grade short/medium term corporate notes (higher for longer duration notes) or 6%+ with investment grade preferred. Preservation of capital and predictable income stream should be your strategy. You missed a golden opportunity to pick up some quality investment grade preferred stock and baby bonds in December. Many issues dropped below par are up 10%-20% from their December low.
Freedom56 is offline   Reply With Quote
Old 01-31-2019, 10:42 PM   #13
Full time employment: Posting here.
USGrant1962's Avatar
 
Join Date: Dec 2016
Location: DC area
Posts: 838
Quote:
Originally Posted by Cut-Throat View Post
Serious LOL.

But to OP, the question is - Is is fun?

Once you are FI, fun is all that matters!

I just finished a week-long consulting gig in my old biz, and it was great fun without any management hassles, responsibility, or stress. I would like to do that once a month or two, just as a hobby job = Jobby.

OTOH, there was a thread here a year or so ago that asked "how much would it take for you to go back to work?". I gotta admit, for the right offer - noticeably more than I was making at peak earnings - I might go back for a 2-year gig.

OTTH (on the third hand) I'm 56 and you are 63. With that in mind, NFW.
__________________
Semi-ER March 24, 2017
USGrant1962
USGrant1962 is offline   Reply With Quote
Old 01-31-2019, 10:45 PM   #14
Dryer sheet aficionado
 
Join Date: Aug 2012
Location: San Antonio
Posts: 46
Looks like you don't have to go back to work. It looks like you are feeling vulnerable due to the loss. You just need to assess what you have and feel good about it. I used to do something similar when I had a bad day at work or was presented with challenge I was not sure of. I would pull out copies of past performance assessments and read about how great I was. Today I use a spreadsheet I started many years ago. I look at where I used to be, where I am now, and where I have projected I will be in years to come. I always find that I am better off than I projected in the past, living well today, and the future is no worse than the present and usually much better. We don't budget but do track what we spend for projections. If the wife spending is a problem, give her and allowance, don't act rashly on present losses, and believe in your future.
WWDog is offline   Reply With Quote
Old 01-31-2019, 11:06 PM   #15
Recycles dryer sheets
Franklin's Avatar
 
Join Date: Jul 2018
Location: LA
Posts: 80
7 years younger and never really made any $.
__________________
A persons wealth is measured by what they can afford to do without.
Franklin is offline   Reply With Quote
Old 01-31-2019, 11:21 PM   #16
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 41,522
What would I do? I'd retire ASAP.

$300K/year is only 3.75% of $8M. You're in your 60's, not your 30's, so that is a reasonable withdrawal rate.

Just make sure that the $300K includes taxes, medical, and a little buffer for unexpected big expenses that could arise now and then.

Sounds to me like you are all set!
__________________
Time >> Money
W2R is offline   Reply With Quote
Old 01-31-2019, 11:29 PM   #17
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,260
Quote:
Originally Posted by Cut-Throat View Post



I've learned a new word. Thanks.





To the OP - You should go back to work. You do not belong in ER world. Work, work, work, and have fun, fun, fun in what you do. If you find the answer to ER life, come back here and post. Until then, your post is really a strange one to my taste. These are the things I find to be strange even to a point of suspecting you are a troll or see Cut-Throat's post above.

  • 2018 market drop was preceded by strong market years. The gain in those years should have been more than enough to offset 2018 drop even with your spending splurge of $300k/year.
  • Can't make a living on $8M.
  • Must spend $300k/year when you are worried about market drop and considering going back. Most would look at cutting their budget first.
Work, work, work, you go.
__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 01-31-2019, 11:31 PM   #18
Thinks s/he gets paid by the post
robnplunder's Avatar
 
Join Date: Nov 2013
Location: Bay Area
Posts: 2,260
Quote:
Originally Posted by tb001 View Post
I disagree.

Well, I bet even money that Cut-Throat is right. I'd wager $1 on that.
__________________
Pura Vida
robnplunder is offline   Reply With Quote
Old 01-31-2019, 11:34 PM   #19
Recycles dryer sheets
Franklin's Avatar
 
Join Date: Jul 2018
Location: LA
Posts: 80
You are probably right. Maybe I don’t belong here. I tried
__________________
A persons wealth is measured by what they can afford to do without.
Franklin is offline   Reply With Quote
Old 01-31-2019, 11:39 PM   #20
Recycles dryer sheets
Franklin's Avatar
 
Join Date: Jul 2018
Location: LA
Posts: 80
Ther u go again
__________________

__________________
A persons wealth is measured by what they can afford to do without.
Franklin is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Would you stay or would you Go...... bclover FIRE and Money 31 04-19-2018 08:58 AM
Contractor problems...what would you do? cute fuzzy bunny Other topics 17 05-23-2004 09:19 AM
What book would you like to see written? dex Life after FIRE 13 05-16-2004 05:17 PM
Fallujah...What would you do? charlie Other topics 15 04-03-2004 10:55 AM
I would like to see more people posting ShokWaveRider Other topics 57 02-10-2004 05:08 AM

» Quick Links

 
All times are GMT -6. The time now is 04:14 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.