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Old 11-25-2015, 07:33 AM   #21
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RSUs and stock options will likely keep rolling in every year, so no matter when you quit you will leave some money on the table. That's the purpose of golden handcuffs - making it harder for you to quit. You just have to accept it. Nobody knows what the stock will be worth in 2-3 years so there is no telling how much you will actually make on these RSUs and options when they vest.
Ha ha, I laughed at that. I thought so too, and then RSUs suddenly started drying up.

So, they are going to make my ER easy. Handcuffs released. Thank you!

As for the future value: good point. I thought I was going to ER at 40. And then the dotcom bubble burst.
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Old 11-25-2015, 08:27 AM   #22
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I'll give my persinal perspective. Early in my career I had options (think late 90s). After a roller coaster... They expired worthless. So I started the FIRE path.

Fast forward 12 years and I take a job I like at a small company (turning down a "sure thing" at one of the high flying tech companies).

Since they couldn't pay me as well I got tons of options. Wouldn't you know... High flyer crashes.. small startup rockets. Suddenly my worthless options are worth more than I ever thought.

Made myself a promise in the 90s .. never... Ever... Risk something you need to get something you don't. So I cashed out. Needless to say it's still been going up. Thanks to my 90s experience I have 0 regret of "cashing out too early.". Lots of coworkers playing option roulette... No thanks .

So now I have MORE options and more and more... Because... Well... Once you can leave your value goes up. Now I was getting close to FIRE anyway... This just put it way over the edge.... Yet I'm still working.

So when I stop working in the next year or so I'm walking away from those options. It's not really a factor.

To be clear the potential value could possibly be 50% of my current NW but I don't really need it and I wasn't expecting to have the NW I have now anyway. If it made a difference if probably stay till it didn't. But DW and I are well above out original "number." This is just luck.

For detail... I'm 40,.2 young kids... NW around 3.8m. Burn rate around 90-100k/yr.. post tax. It's been dropping a bit.

So would 5.5m be nicer than 3.8m... Sure... But 4 years from now 7.8 will look better than 5.5 . The ladder goes up... I think I'll just get off here.

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Old 11-25-2015, 09:09 AM   #23
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To be clear the potential value could possibly be 50% of my current NW but I don't really need it and I wasn't expecting to have the NW I have now anyway. If it made a difference if probably stay till it didn't. But DW and I are well above out original "number." This is just luck.

For detail... I'm 40,.2 young kids... NW around 3.8m. Burn rate around 90-100k/yr.. post tax. It's been dropping a bit.

So would 5.5m be nicer than 3.8m... Sure... But 4 years from now 7.8 will look better than 5.5 . The ladder goes up... I think I'll just get off here.

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Wise. Amazing how greed gets hold of so many with options and they ride them into the dust.

Take it and run. Enough is enough. You are wise.
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Old 11-25-2015, 09:56 AM   #24
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Personally I would wait till after the 124K options vest as you will be 36 years old correct? I have found three years goes by quickly.
Me too. You are very young and three more years isn't that much at this stage. Very long retirements need a fair amount of funding to provide the flexibility you might want.

Now if you absolutely hate your job and your health is at risk, different story. But you didn't mention that. Options and other equity related incentive comp is a common way for ordinary people to get quite wealthy. Worked for me.
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Old 11-25-2015, 10:19 AM   #25
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Personally I would wait till after the 124K options vest as you will be 36 years old correct? I have found three years goes by quickly.
+1

I semi-retired a few years ago in my mid-40s and based on my experience, I think mid-30s could be a real challenge... mentally, socially, financially, and in many other ways. Hang in there for 3 more years and see how things look and feel to you then. In the meantime, take as much vacation and paid & unpaid leave as you can to test out the idea of ER.
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Old 11-25-2015, 11:05 AM   #26
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...

My wife and I have been talking about doing this before potentially having kids so it is a bit of a life goal thing. We also aren't averse to returning to work if needed and things don't completely work out.

I've also looked at potentially earning some side income and believe that even part time work could sustain us for quite some time.
I agree with others that you probably don't have enough assets IF you plan to retire permanently now. From this followup post, however, it looks like it could be more in the way of a sabbatical? How easy would it be for you to return to work/income?

Another question would revolve around your wife's age if this Caribbean sojourn is seen by the two of you as something to do before potential kids. If she is exactly your age, you probably don't want to delay the sailing while waiting for the RSUs--non-interventional fertility is not helped by putting things off in one's thirties--especially after 35.
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Old 11-25-2015, 11:51 AM   #27
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I agree with others that you probably don't have enough assets IF you plan to retire permanently now. From this followup post, however, it looks like it could be more in the way of a sabbatical? How easy would it be for you to return to work/income?

Another question would revolve around your wife's age if this Caribbean sojourn is seen by the two of you as something to do before potential kids. If she is exactly your age, you probably don't want to delay the sailing while waiting for the RSUs--non-interventional fertility is not helped by putting things off in one's thirties--especially after 35.
The wife is 30. We are unsure whether we want to have children.

Returning to work in the exact same position probably wouldn't be an option if I took a longer sabbatical and not sure I'd like to continue working for the organization at least where I'm located now. I've moved a few times for work and I'm in an area of the country we don't particularly care for (prefer the west coast).

I work in the tech industry in sales management, I've told a few of my friends who work for other companies what we are thinking about doing and each one said they would hire me after I returned. In short, I don't think I'd have a problem getting another 6 figure job at megacorp after returning if that is what we wanted to do. Would it be the same level of compensation, maybe not, but it would still be more than enough to cover living expenses and contributions to retirement.

I interviewed for a job in SoCal and before we got to the offer stage I bowed out because I didn't want to take a position and quit on them in about a year. I leveled with the hiring manager and HR manager and they both told me to call them when I get back from the trip.

Can I fully retire on the asset level that we have today just living off the assets and never make another dime... probably not.

Do I have a healthy cushion that provides flexibility that enables my wife and I to make some lifestyle based choices - absolutely. I am starting to get to the point where I have some goals I want to accomplish and my 60+ hour a week job is getting in the way.
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Old 11-25-2015, 12:11 PM   #28
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Based on this last post (11:51), I'd go for it. Take the time off and contemplate life and further options both family and financial.

DW and I agreed that I'd quit a few years to raise kids, which was a major AGI hit, and delayed our retirement, especially after "a few" turned into 15. I'm back working for seven years with excellent income--albeit far from the trajectory I was once on, but the lifestyle decision was worth it (DW agrees). Sounds like you are in similar situation.
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Old 11-27-2015, 05:16 AM   #29
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I quit at about the same age and left ~1mm in RSUs on the table, and it was a sizable percentage of NW. I am pretty sure I will go back to some form of earning in a while, but the downtime is also nice. We can stay RE if we want to.

If you do quit, I think you will look back at the 124k six months from now and laugh and say to yourself, "what was I thinking?" It's not material in your grand scheme... either you can live an RE lifestyle at 1.2m invested, or you can't do it at 1.3m. And this is 9 months of work for you anyway, so... yeah. Go have fun and find yourselves together!
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Old 11-27-2015, 09:05 AM   #30
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Thanks for clarifying the options. Only you and your wife can measure the value of the time off vs. plowing on and taking the money, but I'm not seeing a bad decision either way. Maybe it was already covered, but I assume you've got health insurance figured out?
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Old 05-08-2016, 11:32 PM   #31
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Wanted to provide an update on this post. My wife and I had made the decision to buy a boat and sail the Caribbean. I was about 2 weeks away from turning in my notice at work, but they approached me about moving back to the west coast. As a kicker, they threw in a bonus of 4 months base pay grossed up to cover taxes as an incentive to move. (about $60k). We accepted the position and we are moving within the next few months. It's a two year commitment or I owe back moving expenses, but this will enable us to capture all the equity and continue to pad the nest egg. The moving incentive enables us to purchase a boat with no change to our current net worth ($1.25m). We'll have two years to outfit the boat and sail around the west coast. it was definitely a struggle to change plans since we were so far down the path of going, but we both feel comfortable with this plan.
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Old 05-09-2016, 12:42 AM   #32
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Just do it ... walk away if you feel burnt out and you need some time off. Your work is not your life. And if you had no life before, now would be the time to Live the Life.
I don't think you will really retire. Maybe you'll find a new gig in 3 or 4 years, so taking a 2-3 year break is great.
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Old 05-09-2016, 06:02 AM   #33
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Wtanted to provide an update on this post. My wife and I had made the decision to buy a boat and sail the Caribbean. I was about 2 weeks away from turning in my notice at work, but they approached me about moving back to the west coast. As a kicker, they threw in a bonus of 4 months base pay grossed up to cover taxes as an incentive to move. (about $60k). We accepted the position and we are moving within the next few months. It's a two year commitment or I owe back moving expenses, but this will enable us to capture all the equity and continue to pad the nest egg. The moving incentive enables us to purchase a boat with no change to our current net worth ($1.25m). We'll have two years to outfit the boat and sail around the west coast. it was definitely a struggle to change plans since we were so far down the path of going, but we both feel comfortable with this plan.
Thanks for the update. Hopefully those two years will sail by quickly. you'll be able to collect all the options (especially that big RSU) and still have an opportunity to go sail the Caribbean.
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Old 05-09-2016, 06:44 AM   #34
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Congrats. Can you negotiate a 6 week paid timeoff transition? This could give you 1 - 2 weeks to move (pack/unpack) and maybe 4 weeks to "sail" to seize the moment and enjoy!
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Old 05-09-2016, 09:20 AM   #35
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Congrats. Can you negotiate a 6 week paid timeoff transition? This could give you 1 - 2 weeks to move (pack/unpack) and maybe 4 weeks to "sail" to seize the moment and enjoy!
I'm taking about 3 weeks off prior to the move. 2 weeks in May and then another separate week for a family commitment.

The relocation handles all the packing/moving/shipping cars etc. pieces of the move. We'll likely be in temporary housing for about a month when we get there as well (paid by the employer).

We'll be driving out to the west coast due to not wanting to fly our pets. Should take a few days and we'll stop and see some sites.
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Old 05-09-2016, 09:21 AM   #36
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Thanks for the update. Hopefully those two years will sail by quickly. you'll be able to collect all the options (especially that big RSU) and still have an opportunity to go sail the Caribbean.
I think the two years will go by pretty quickly. We've lived in this area before and had a blast.
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Old 05-09-2016, 10:56 AM   #37
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Sounds like a great plan! Seems to me when you make a decision like that and feel good with it, it's usually the right one.
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