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The Rich and Retirement
Old 08-02-2013, 11:39 PM   #1
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The Rich and Retirement

Yes, the rich are different: They don't retire - Yahoo! Finance

" When asked "At what age do you expect to retire?" nearly one-third of those with annual earnings of $750,000 or more answered "over 70." Fifteen percent of them say they never plan to retire.

On the other hand, only 6 percent of those making under $100,000 a year plan to retire after 70, and the same percentage say they never plan to retire. Most plan to retire by 65."

I guess those rich people don't frequent or post in this site.
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Old 08-02-2013, 11:41 PM   #2
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I am sure Steve Jobs would have worked till 70, if it weren't for a small problem.
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Old 08-03-2013, 12:10 AM   #3
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They roll their eyes at people like us.

"LOSERS!"
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Old 08-03-2013, 12:27 AM   #4
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It's hard to give up that kind of income.
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Old 08-03-2013, 12:53 AM   #5
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It's hard to give up that kind of income.
I don't think it is the income or money for those people. In that kind of income stratosphere, they often have and are likely addicted to power, which is even more difficult to give up for some people.
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Old 08-03-2013, 01:19 AM   #6
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I have known a number of people in that income range, some of my field and others not. Some things that are relevant for many in this range:

1. They love their work. There is no hobby or leisure activity that comes close to the enjoyment they get from their work. Why would they give up doing something that gives them immense pleasure?

2. They are often either the boss or very important to the company where they work. Therefore, as they get older they don't retire but they can schedule work and vacations to suit themselves. They can take off for vacation or come in late or leave early -- if they choose. Some do this a lot and really don't necessarily work full-time. Others mostly work full-time or full-time+ but they know they can arrange their schedule to their wants and needs whenever they want to.

3. Some - not all - never developed strong hobbies or leisure activities and so they truly would feel bored if retired.

4. They see retirement as being put out to pasture. They are used to being someone who does things, who makes a difference, who accomplishes things. They see retirement as ending this.
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Old 08-03-2013, 03:10 AM   #7
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I also know people in that income range and I agree with the 4 points below. I would add a fifth point though : ego.

Quote:
Originally Posted by Katsmeow View Post
I have known a number of people in that income range, some of my field and others not. Some things that are relevant for many in this range:

1. They love their work. There is no hobby or leisure activity that comes close to the enjoyment they get from their work. Why would they give up doing something that gives them immense pleasure?

2. They are often either the boss or very important to the company where they work. Therefore, as they get older they don't retire but they can schedule work and vacations to suit themselves. They can take off for vacation or come in late or leave early -- if they choose. Some do this a lot and really don't necessarily work full-time. Others mostly work full-time or full-time+ but they know they can arrange their schedule to their wants and needs whenever they want to.

3. Some - not all - never developed strong hobbies or leisure activities and so they truly would feel bored if retired.

4. They see retirement as being put out to pasture. They are used to being someone who does things, who makes a difference, who accomplishes things. They see retirement as ending this.
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Old 08-03-2013, 05:58 AM   #8
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They lack the imagination for a different way of life.
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Old 08-03-2013, 06:34 AM   #9
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If one looks at retirement as "being able to choose what you want to do without regard to money", in a sense many of them are retired.
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Old 08-03-2013, 06:36 AM   #10
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Quote:
Originally Posted by Katsmeow View Post
I have known a number of people in that income range, some of my field and others not. Some things that are relevant for many in this range:

1. They love their work. There is no hobby or leisure activity that comes close to the enjoyment they get from their work. Why would they give up doing something that gives them immense pleasure?

2. They are often either the boss or very important to the company where they work. Therefore, as they get older they don't retire but they can schedule work and vacations to suit themselves. They can take off for vacation or come in late or leave early -- if they choose. Some do this a lot and really don't necessarily work full-time. Others mostly work full-time or full-time+ but they know they can arrange their schedule to their wants and needs whenever they want to.

3. Some - not all - never developed strong hobbies or leisure activities and so they truly would feel bored if retired.

4. They see retirement as being put out to pasture. They are used to being someone who does things, who makes a difference, who accomplishes things. They see retirement as ending this.
+1. FI is a universal goal, ER is not...
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Old 08-03-2013, 06:58 AM   #11
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I have dealings with a number of businessmen in this category. All are very well off financially but don't retire for various reasons. Number one is that it is a lifestyle choice. Most aren't at the office all day and have a staff in place to take care of the details. Some have said it's difficult to give up something you created while others are unable to sell the business for what they feel it's worth.
This not uncommon, however it is a situation that isn't relevant to me. I'll continue to hang out at mega corp until it isn't fun then just walk away.
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Old 08-03-2013, 07:15 AM   #12
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In addition to the reasons already mentioned, they are probably defining "retirement" as "no paid work whatsoever." It doesn't mean they necessarily will continue doing their same work, at the same pace, until they are 70. They may dial it back considerably, but still keep their hand in the game somehow.
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Old 08-03-2013, 07:19 AM   #13
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I think for much of the 'rich' their careers/businesses are there 'legacy' and find it hard to walk away from. Like they are giving up what they've built. Whereas for people like myself, it's just a job and a means to afford things/experiences that we enjoy. It's not my life's worth.
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Old 08-03-2013, 07:27 AM   #14
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Being rich ain't all it's cracked up to be, btw. This is a bit off topic, but I found it interesting:

Money on the Mind - YouTube
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Old 08-03-2013, 08:07 AM   #15
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What if I call my 401K withdrawal each year my salary for wealth management and pay my "staff" or contractors for yardwork, remodeling, etc. of my "business". Oh, maybe I see the difference. I pay taxes on all that money so I guess it isn't a business expense.
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Old 08-03-2013, 09:38 AM   #16
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I was in that category (over 750k annual income). Many of my friends are, still.

Kat nailed the reasons for their aversion to traditional retirement.

I'm 44 and ER'ed but don't plan on being 100% removed from my past career world. I enjoy being an advisor, investor and mentor for upcoming entrepreneurs. I teach a class at the University. I'm working on a book outline. I do occasional talks at conferences and events. None of this generates much income but I enjoy giving back.

That is what l love about FI--we can make it look however we want!
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Old 08-03-2013, 09:47 AM   #17
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Quote:
Originally Posted by Katsmeow View Post
I have known a number of people in that income range, some of my field and others not. Some things that are relevant for many in this range:

1. They love their work. There is no hobby or leisure activity that comes close to the enjoyment they get from their work. Why would they give up doing something that gives them immense pleasure?

2. They are often either the boss or very important to the company where they work. Therefore, as they get older they don't retire but they can schedule work and vacations to suit themselves. They can take off for vacation or come in late or leave early -- if they choose. Some do this a lot and really don't necessarily work full-time. Others mostly work full-time or full-time+ but they know they can arrange their schedule to their wants and needs whenever they want to.

3. Some - not all - never developed strong hobbies or leisure activities and so they truly would feel bored if retired.

4. They see retirement as being put out to pasture. They are used to being someone who does things, who makes a difference, who accomplishes things. They see retirement as ending this.
I think that is an excellent summary. Yes, work is a four letter word to me, but work to those you mentioned above can be synonym for passion, excitement, and challenge. I can't imagine a person who loves being in charge and a "mover and shaker" of things being more miserable in the retirement I have (which is quite enjoyable to me, though).
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Old 08-03-2013, 10:52 AM   #18
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Originally Posted by bondi688 View Post
Yes, the rich are different: They don't retire - Yahoo! Finance

" When asked "At what age do you expect to retire?" nearly one-third of those with annual earnings of $750,000 or more answered "over 70." Fifteen percent of them say they never plan to retire.

I guess those rich people don't frequent or post in this site.
I'm not sure what the purpose of FI is if not to do what you want to. Apparently, those people WANT to continue working for some reason - maybe it's what gives them a sense of purpose.

Maybe they're the lucky ones who have found what they love to do, and it just so happens to make them millions.

Maybe they ARE addicted to power, ego, whatever.

We don't know, but I think for people wired like us, it's different.

My mom will turn 72 this year, she still works. My father worked until he was 77, and was recently diagnosed with Pancreatic cancer, though his prognosis is pretty good. I would think that would drive my mom to want to retire, like, yesterday... but it hasn't. She's just wired differently, I guess (Certainly not $750k in income!)
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Old 08-03-2013, 11:51 AM   #19
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I know someone who is worth probably $100+ million and makes in the neighborhood of $5-10 million each and every year. He's in his sixties and has a wife and kids, but comes into the office pretty much every day and often on weekends, too. He just loves being in the office and talking business with people... all day, every day. It's in his DNA, it seems. I once asked him why he didn't just retire and go enjoy spending all his money. He paused and then said "I wouldn't know what to do with myself if I stopped working." Knowing him like I do, I'd say he derives genuine pleasure from being immersed in and running the company he founded, and all the money he has and continues to make is just a by-product of that.
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Old 08-03-2013, 01:01 PM   #20
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Is this the beginning of a movement to get Charlie Munger to retire?
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