Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Retire Early with a fun $30K job?
Old 07-14-2006, 12:23 AM   #1
Dryer sheet wannabe
 
Join Date: Jan 2006
Posts: 15
Retire Early with a fun $30K job?

OK, new theory. I am 39 with $250K saved in money mkts, own half a business that I work my tail off in but makes about $300k/year for me. New idea is to sell my half to my partner for 250-300K and take the half million. Retire early, draw out 27K a year, get a "fun" job making 30K a year and live my life with no stress in partial retirement. Any thoughts?

Oh, and I will get a large inheritence when I am approximately 58 that will set me up for life. Main concern is capturing and enjoying the next 20 years.

Your thoughts are wanted. Am I crazy.

One other note, my business is a very stressfull, 12 hour a day, high turnover business that isn't much fun to go to anymore. Or perhaps I work one more year and tough things out for another 200K in savings.

- Shab
__________________

__________________
Shabber 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: Retire Early with a fun $30K job?
Old 07-14-2006, 12:35 AM   #2
Full time employment: Posting here.
 
Join Date: Jun 2006
Posts: 718
Re: Retire Early with a fun $30K job?

Must be pretty bad if you need to tough it out for 300k a year.... :
__________________

__________________
Mwsinron is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 01:10 AM   #3
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
Re: Retire Early with a fun $30K job?

Shabber I would say tough it out for another year and double your savings. Maybe setting an exit date would help it seem less stressful in the meantime. What kind of business are you in? If it's something like mortgage banking that might be hit hard in the near future, then maybe it would be better to sell out now while the valuation is higher.
__________________
macdaddy is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 05:15 AM   #4
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Re: Retire Early with a fun $30K job?

Quote:
Originally Posted by Shabber
I will get a large inheritence when I am approximately 58 that will set me up for life.
- Shab
- Shab,

I would recommend that one never includes any "assumed inheritence" in their plan.* That's one of the main things in life that can change in the next 20 minutes, let alone 20+ years (been there, done that...)

- Ron
__________________
rs0460a is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 06:20 AM   #5
Dryer sheet aficionado
 
Join Date: Sep 2002
Posts: 31
Re: Retire Early with a fun $30K job?

That's so true, my assumed inheritance is slipping right out the window, my extremely healthy 87 year old widowed father has hooked up with a 71 year old divorcee who (along with her children and grandchildren) are sucking every cent he has out of him and we (his children and grandchildren) are sitting by watching it happen, unable to do a thing about it. We never saw that one coming.
__________________
becca is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 07:36 AM   #6
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Re: Retire Early with a fun $30K job?

You have an interest in a business grossing $300K/y for you that you would sell for $250-$300K?
__________________
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: Retire Early with a fun $30K job?
Old 07-14-2006, 07:45 AM   #7
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Re: Retire Early with a fun $30K job?

Quote:
my extremely healthy 87 year old widowed father has hooked up with a 71 year old divorcee who (along with her children and grandchildren) are sucking every cent he has out of him and we (his children and grandchildren) are sitting by watching it happen, unable to do a thing about it.
...that must be so hard watching others spend your hard earned money

__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 08:09 AM   #8
Recycles dryer sheets
 
Join Date: Dec 2005
Posts: 388
Re: Retire Early with a fun $30K job?

"Fun job" is an oxymoron.

setab
__________________
I told you I'd taunt you a second time.
setab is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 08:16 AM   #9
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: Retire Early with a fun $30K job?

As with any financial decision, you need data.*
Can you live on $57k for the next 20 years?* Do you really want to based on your current income of $300k?* That is quite a difference.

Would you be able to fund health insurance?

Are you married of have a patner?* How do they feel about this?

Kids?* College?* Health insurance?* Other?

Housing situation.* Rent? Own? can you afford the mortgage or rent?

What do you want to do instead of what you are doing?* Can you do that for the next 20 years?*

Like Rich said...seems odd to only get one years income from selling your half of the business.*
__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 08:18 AM   #10
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
Re: Retire Early with a fun $30K job?

You're not crazy to want to enjoy life rather than be a slave to work. But, as most of the other posters have pointed out, it seems like your dream and your reality have some conflict. Not that they can't be brought into alignment, but it looks like the dream is to live on $57K a year and up to now you've been living on several times that amount. Seems like a mighty big adjustment to make.

I saw someone suggest this idea elsewhere on this board. I didn't do it, but it has some appeal. Figure out what you will be able to spend in ER and, while still working, cut your expenses to that amount for a year. If you pull it off you will know that you can make the necessary changes and will have saved some extra cash for ER - especially in your case it would seem.
__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 08:21 AM   #11
Full time employment: Posting here.
kaudrey's Avatar
 
Join Date: Feb 2006
Location: Alexandria, Va
Posts: 943
Re: Retire Early with a fun $30K job?

I'm with SteveR - I'd ask more questions.

The business makes $300k a year, you say you can save $200k if you work another year, which implies that you spend $100k a year now.

Your plan gives you $57K a year. *That's a big difference. *Have you crunched the numbers based on expenses instead of income? *

What if the inheritance doesn't happen? *

Some additional information would help us better think about your scenario.

Karen
__________________
Two roads diverged in a wood, and I - I took the one less travelled by...
kaudrey is online now   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 08:37 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Retire Early with a fun $30K job?

Quote:
Originally Posted by becca
That's so true, my assumed inheritance is slipping right out the window,* my extremely healthy 87 year old widowed father has hooked up with a 71 year old divorcee who (along with her children and grandchildren)* are sucking every cent he has out of him and we (his children and grandchildren) are sitting by watching it happen, unable to do a thing about it.* We never saw that one coming.
Well, your 87 year old father still has an eye for the "young" chicks.

Good for him. 8)
__________________
Jarhead* is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 08:52 AM   #13
Dryer sheet aficionado
 
Join Date: Apr 2006
Location: Chiang Mai
Posts: 42
Re: Retire Early with a fun $30K job?

I'd say if you made $400 now a year I'd retire not skimping by on $300.

Be a park ranger and enjoy your savings. You'll be 58 in no time.
__________________
Sendbaht
sendbaht is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 09:20 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
Re: Retire Early with a fun $30K job?

If you're willing to take some risk, I say your plan is doable. Here's my thinking:

1. You're only 39.

2. You have the skills necessary to start a successful business. So if things don't work out you could get a better paying job or start a new business.

3. If you invest your 500K and get 4% over inflation, you'll have 1,095,561.57 (today's dollars) when you're 59.

Problems:

1. You're assuming you can find a fun job. I think you're reasoning is "If a job that pays me $300,000 is hard and not fun, one that pays only $30,000 will be only 1/10th as hard."

2. You might find that you don't like working for someone else, start a new business, and have it fail.

For less risk, follow MacDaddy's advice (however, I think that setting an exit date will make it feel more stressful, not less).



__________________
Al
TromboneAl is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 09:53 AM   #15
Recycles dryer sheets
 
Join Date: Dec 2002
Posts: 129
Re: Retire Early with a fun $30K job?

Quote:
You have an interest in a business grossing $300K/y for you that you would sell for $250-$300K?
My thoughts exactly.

PM me dude, If due diligence comes thru maybe I'll buy it for $305k
__________________
WRBT is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 10:02 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,266
Re: Retire Early with a fun $30K job?

I am with a number of the posters with many questions...

You say you only have $250,000 at age 39, but are making $300,000 per years... where did you spend all the rest of the money

If you can save $200,000 in one year, then again, why only $250,000 in savings?

If it really is making $300,000 per year, then it would be worth a lot more than that to sell... at least over $1 million... but, is it really? Does you partner have to work twice as hard to get the $300,000 that you make?? If someone goes, someone else has to come in and do the work.. maybe he can not and your share is worth zero..

Like someone else said, can you live on $57K Not likely if you have been making $300K...

What is a fun job to you And why do you think there will be no or low stress in that job. Most of the low paying jobs I know of the people have to work like you are today but are low pay... so, you can do the same or similar, but earn on 10% of what you make now..
__________________
Texas Proud is online now   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 10:05 AM   #17
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 473
Re: Retire Early with a fun $30K job?

Quote:
Originally Posted by kaudrey
The business makes $300k a year, you say you can save $200k if you work another year, which implies that you spend $100k a year now.
Well, there is that thing called "taxes" as well * However, even ignoring the tax implications for now, the OP wrote that his/her savings were at $250K (at age 39) and that s/he could save another $200K in one year. Almost doubling one's savings in one year would be a sign of either drastically changed earnings or drastically changed saving habits. In either case, it's a sign of volatility, which usually makes giving advice difficult.
__________________
Scrooge is online now   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 10:29 AM   #18
Recycles dryer sheets
 
Join Date: Jun 2006
Posts: 473
Re: Retire Early with a fun $30K job?

TexasProud made a number of good points, but as far as the following comment goes:

Quote:
Originally Posted by Texas Proud
And why do you think there will be no or low stress in that job.* Most of the low paying jobs I know of the people have to work like you are today but are low pay... so, you can do the same or similar, but earn on 10% of what you make now..
it is conceivable that the OP has a particular job in mind that s/he knows well and is sure that it will be a low stress and satisfying one. Of course, s/he may still find out that s/he was wrong about that*
__________________
Scrooge is online now   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 10:53 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: Retire Early with a fun $30K job?

work <> fun...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: Retire Early with a fun $30K job?
Old 07-14-2006, 10:57 AM   #20
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: Retire Early with a fun $30K job?

Quote:
Originally Posted by HFWR
work <> fun...
Very true. If it were fun they would not call it work.
__________________

__________________
Work? I don't have time to work....I'm retired.
SteveR 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
Can you retire early using 401k? InSearchofBeauty Hi, I am... 10 02-15-2007 02:05 AM
500 search phrases for 2006 dory36 Other topics 2 01-16-2007 08:00 AM
Retire early, live longer dory36 Other topics 6 02-27-2004 09:36 AM
Retire Early Personality Test............ Cut-Throat Other topics 40 01-30-2004 10:39 AM

 

 
All times are GMT -6. The time now is 02:44 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.