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Re: What's life like with 100K/year or more?
Old 10-09-2006, 06:06 PM   #61
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Re: What's life like with 100K/year or more?

I agree. I too have no idea where CybrMike got that idea. The higher up you go, the harder you work (not neccessarily more productive). I envy the money they make, but not their position and effort.
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Re: What's life like with 100K/year or more?
Old 10-09-2006, 06:18 PM   #62
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by CybrMike

I will say that you'd be surprised how little some of the folks that make $200 - $300K per year actually work. Mostly managerial.

In my experience, the people at the top work a lot less than the people at the bottom, not the reverse.

Michael
CyberMike,

In my experience that is absolute garbage. I travel a lot and deal with many CEOs and senior execs and they earn every penny they get. They are on call 24/7 and they take the heat when there is a problem. Even at my (middle management) level, you have to WORK.

Meadbh

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Re: What's life like with 100K/year or more?
Old 10-09-2006, 06:38 PM   #63
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by astromeria
In my work experience, people with people skills usually end up in management. They were not the smartest, but usually above average in smarts, even more usually among the hard working and very organized, and always excellent at managing upward--and occasionally, downward
Yeah, I think that describes it well. I always prided myself in managing well downward - at least as well as I managed upward. But most were upward oriented.

I think the fact that senior managers are above average in smarts but not brilliant is probably good. Better selection for managers that handle the downward side well would be a definite plus for most organizations.
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Re: What's life like with 100K/year or more?
Old 10-09-2006, 06:48 PM   #64
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Re: What's life like with 100K/year or more?

I retired from GE, and I can assure you that the upper mgmt there is a hard-working bunch as they have a lot to lose, and every one of them are subject to the bottom 10% deal. If they manage to hang on they can get out of there with a few million or more in options & bennies, but damn do they (and their families) pay a price.

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Re: What's life like with 100K/year or more?
Old 10-09-2006, 08:26 PM   #65
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by Cb
I retired from GE, and I can assure you that the upper mgmt there is a hard-working bunch as they have a lot to lose, and every one of them are subject to the bottom 10% deal. If they manage to hang on they can get out of there with a few million or more in options & bennies, but damn do they (and their families) pay a price.

Cb

The price has a nice reward: "GE CEO Jack Welsh will get a pension valued at more than $8.4 million a year. Members of GE's board of directors receive a pension benefit of $6,250 a month."
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 08:21 AM   #66
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by Spanky
The price has a nice reward: "GE CEO Jack Welsh will get a pension valued at more than $8.4 million a year. Members of GE's board of directors receive a pension benefit of $6,250 a month."
They deserve every penny IMHO. Always prefer the $ to go to real people
(no matter how high on the food chain) than into government coffers
where you know it will be wasted or worse.

JG
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 08:41 AM   #67
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Re: What's life like with 100K/year or more?

Several years ago, after my divorce, I made a decision to get off the corporate fast track and stop going after promotions and all that comes with that kind of life. It cost me lots of $$$$ in future pay, options etc. but my personal and family quality of life went up.......priceless! Not having to work 24/7 even while on vacation is a pleasant relief. Could I have retired earlier? Yes, but the cost to my family would have been far too high.

Those who believe upper management does not work has never spent much time with them. Even in upper middle management, where I was most of my career, your time is not yours...it belongs to the company and you are expected to be available at anytime and go anywhere at their whim. Weekends, vacations, middle of the night, etc. are all "work" hours if your management wants you for something. The stress and hours away from family is huge. Even when you are with your family, your mind is usually on work so you are not really all there even then.

I left that life for a very good set of reasons and I don't regret the delay in FI becasue of it. I have managed to "smell the roses" along my daily life much more than I would have otherwise. My health is also much better and the heart attack that was coming straight at me has been averted or delayed.

Back to the OP's question....what is it like to spend $100K+/year.....
In our case it has allowed us to save more, invest a bit more aggressively, travel more, buy more expensive toys (TVs, motorhomes, nice cars, nice house, gifts of $$ to needy family members, and a hundred other things that most folks have to struggle in their budgets to find the cash to do or have to go into debt doing so. To us work is a means to making enough $$$ to fund our lifestyle while still adding to our stash which will allow us to FIRE next year.

We are also frugal in many ways. We shop Walmart, Sam's Club and Costco. We don't fly first class despite having tons of FF miles (justed used some for a trip next week), we stay at nice hotels but not luxury ones. We eat out when we want but are careful about how much we spend. We shop for low prices on every major item over $100 we buy. We give to charities in many ways including time, house hold items, and cash. We share our good fortune with our family when a need is there. We support kids in college and have created 4 college 529 accounts for our grandkids. We spend but we don't waste it on poor quality goods or on things we will not use. Each major purchase is researched and well considered before it is made. I would rather spend my time getting a good deal than spending my money give too much profit to someone because I did not do my homework.

How does it feel? It feels like freedom. We do not consider ourselves rich. Our kids might think so but we know the value of what we have and what it will buy. We choose to spend it wisely and it will keep us well funded for the rest of our lives. That is a very liberating feeling. Taxes are the worst of it but one learns to keep taxes in mind most of the time when making financial choices. The most lucrative choice might actually be the most expensive one when taxes are thrown into the mix.

It's not the money itself, it is what you can do with it that makes the difference.
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 09:24 AM   #68
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by SteveR
It's not the money itself, it is what you can do with it that makes the difference.
I think this pretty much sums it up on here.............

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Re: What's life like with 100K/year or more?
Old 10-10-2006, 09:33 AM   #69
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Re: What's life like with 100K/year or more?

Great post, these threads are really informative. It confirms that you don't need 100K in disposable income to RE. So for those (including myself) that are still comptemplating wether you have enough to RE or not, think again.

Quote:
Originally Posted by CybrMike
My expenses this year will be in the $300K range.
CybrMike, Not to challenge your statement here but how do you manage to spend that much? We got a big house on the lake, one kid in college and one teenager, we fly FC for long trips, we drive lexus and vette, we take cruises, we own vintage cars, we do just about whatever we want to do, we don't have a monthly budget but we do LBYM because we spend less than what we make but our annual expenses is no where in the 100K mark.

Mach1
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 09:38 AM   #70
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by Mach1
Great post, these threads are really informative. It confirms that you don't need 100K in disposable income to RE. So for those (including myself) that are still comptemplating wether you have enough to RE or not, think again.

CybrMike, Not to challenge your statement here but how do you manage to spend that much? We got a big house on the lake, one kid in college and one teenager, we fly FC for long trips, we drive lexus and vette, we take cruises, we own vintage cars, we do just about whatever we want to do, we don't have a monthly budget but we do LBYM because we spend less than what we make but our annual expenses is no where in the 100K mark.

Mach1
Perhaps, Mach1, it's time for you to consider the most wonderful purchase for yourself and your family that you could ever make...... buy yourself RE!
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 09:54 AM   #71
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by SteveR
Taxes are the worst of it but one learns to keep taxes in mind most of the time when making financial choices. The most lucrative choice might actually be the most expensive one when taxes are thrown into the mix.
SteveR....... I agree 100% and I'm surprised that taxes haven't been mentioned more.

We're RE but still in the stage where all spending is derived from sources that are fully taxable as ordinary income. By a wide margin, income and real estate taxes are our largest budgeted line items.

No whining or complaining here, I'd rather pay taxes than not have the money/property that's causing them. But taxes are the annual expense that require the most planning.
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 09:59 AM   #72
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by youbet
Perhaps, Mach1, it's time for you to consider the most wonderful purchase for yourself and your family that you could ever make...... buy yourself RE!
Youbet, Thanks for the advice. I am almost there, I am already slowing up on my w*rk and planning to hang it up in 2010.

Mach1
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 10:04 AM   #73
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by Mach1
Youbet, Thanks for the advice. I am almost there, I am already slowing up on my w*rk and planning to hang it up in 2010.

Mach1
Good for you! You will love it!

I didn't mean it as "advise." but as recent RE's, DW and I are very pleased so far and always ready to give testimonials.
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 10:20 AM   #74
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by Spanky
The price has a nice reward: "GE CEO Jack Welsh will get a pension valued at more than $8.4 million a year. Members of GE's board of directors receive a pension benefit of $6,250 a month."
Jack and the folks on the BOD do pretty well, no doubt. The top 75 or so execs in the company do very well also. The next several hundred are kickin' it pretty hard for $150K-$250K and semi-regular stock options - moving their families on short notice repeatedly, working long hours with intense scrutiny, and there's always the possibility of winding up on the street if they have a few rough quarters...

I passed $100K/yr as an individual contributor then put it on cruise control until I hit FI rather than "reaching for the brass ring". It's a pretty competitive company, especially at the plant manager and higher levels.

Different strokes...
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 10:59 AM   #75
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by SteveR
Back to the OP's question....what is it like to spend $100K+/year.....
In our case it has allowed us to save more, invest a bit more aggressively, travel more, buy more expensive toys (TVs, motorhomes, nice cars, nice house, gifts of $$ to needy family members, and a hundred other things that most folks have to struggle in their budgets to find the cash to do or have to go into debt doing so. To us work is a means to making enough $$$ to fund our lifestyle while still adding to our stash which will allow us to FIRE next year.

We are also frugal in many ways. We shop Walmart, Sam's Club and Costco. We don't fly first class despite having tons of FF miles (justed used some for a trip next week), we stay at nice hotels but not luxury ones. We eat out when we want but are careful about how much we spend. We shop for low prices on every major item over $100 we buy. We give to charities in many ways including time, house hold items, and cash. We share our good fortune with our family when a need is there. We support kids in college and have created 4 college 529 accounts for our grandkids. We spend but we don't waste it on poor quality goods or on things we will not use. Each major purchase is researched and well considered before it is made. I would rather spend my time getting a good deal than spending my money give too much profit to someone because I did not do my homework.

How does it feel? It feels like freedom. We do not consider ourselves rich. Our kids might think so but we know the value of what we have and what it will buy. We choose to spend it wisely and it will keep us well funded for the rest of our lives. That is a very liberating feeling. Taxes are the worst of it but one learns to keep taxes in mind most of the time when making financial choices. The most lucrative choice might actually be the most expensive one when taxes are thrown into the mix.

It's not the money itself, it is what you can do with it that makes the difference.
Thank you SteveR. I like the "helping the needy family members" part the most. In your opinion, is that the most satisfying act one can do with their extra money?
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Re: What's life like with 100K/year or more?
Old 10-10-2006, 12:26 PM   #76
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Re: What's life like with 100K/year or more?

Quote:
Originally Posted by Sam
Thank you SteveR. I like the "helping the needy family members" part the most. In your opinion, is that the most satisfying act one can do with their extra money?
I married into a large family and with all large families there are personal problems with some members that allows for some "charity starts at home" kind of spending. I would much rather help out a family member than write a check to some faceless organization where I have no idea where the money goes. This is a direct relationship and I can see the effect. It also gives me a chance to see if I would ever help them again.

Some have been loans due to some personal issues and other times it was a gift to keep the wolf away from the door.....no expectation of being repaid by other than being thanked for the help.

The gifts have come with a price tag however. The recipient has to endure my speaches on LBYM, FIRE and getting out of debt. I have distributed a few books to some family members and when I see them again I ask to see if they have read it yet. For one member, I researched a ton of information that I provided to them with the expecation that they actually apply for some help from the state. They did so and are very happy to have been shown what was available to them. We have had only one negative issue so far and we hope to resolve that pretty soon. Otherwise, I am very happy to be able to help out my family when there is a true need. No one has asked for a hand out and no one would. These are very proud people that have fallen on some hard times.

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Re: What's life like with 100K/year or more?
Old 10-11-2006, 12:10 PM   #77
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Re: What's life like with 100K/year or more?

On the original question: I'm also surprized to see 100k spending characterized as the "high life." I spend almost that just maintaining my typical middle class family without any fancy cars or expensive vacations. Layer on a nice house, a place on the beach, couple of BMW or Suburban's, boat, private school for the kids, all the electronics/cable/phones/computers, a cruse or two, the occassional remodeling and landscaping job, and it is easy to get to $300k.

I fly a lot of first class, and it's nice but not worth anything like $1k, let alone $5k. Virtually no one in first class is paying that much either. Either they fly so much that the airline's put them there for free, they got some package deal from a travel company, they are using miles to get up front, or they are buying such an expensive ticket anyway (last minute full fare or something) that it is only a couple bucks more.

Personally, I hate private planes, and you have to pay me to sit in one. They are convenient -- I'll give them that.
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Re: What's life like with 100K/year or more?
Old 10-11-2006, 12:26 PM   #78
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Re: What's life like with 100K/year or more?

I can see how a middle/upper class family with a nice house, vacation house, multiple cars and kids to educate (plus the need for some extra toys to counteract the stress of professional life) could spend 100K+ per year, especially if you live in one of the more expensive parts of the country.

But once you are retired, educations paid for, kids no longer financially dependent, home(s) paid for, less need for maintaining multiple homes or extra toys - then spending 100K+ per year seems harder.

Travel expenses can be a bottomless pit, but once you become an experienced traveler it's easy to get close to the same bang for much fewer bucks (if not do even better).

All I know is that we are spending significantly less, and we don't even "try". We don't worry about how expensive a campground is or how often we eat out and buy top quality groceries. In fact, our expenses have come down every year. By RV fulltimer standards we are probably living the high life, but it's still way less than 100K/year.

Maybe we don't have expensive tastes. But then again, there is really only so much "stuff" you can buy. We really don't buy much "stuff" anymore. We tend to spend on experiences instead.

Audrey

P.S. Well, I think we do have expensive tastes - or at least my husband does. If he's going to buy a piece of camera equipment, for example, it's going to be the top of the line or close. Fortunately he only occasionally identifies a new "need".
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Re: What's life like with 100K/year or more?
Old 10-11-2006, 12:43 PM   #79
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Re: What's life like with 100K/year or more?

fulltime babysitter + remodelling investment properties + typical LBYM couple with 1 babe = $100k plus

we still save more than we spend though.

BTW, while interviewing for our DS childcare, didn't notice much difference between "nanny" and babysitter, except that the former charges more.
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Re: What's life like with 100K/year or more?
Old 10-11-2006, 01:08 PM   #80
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Re: What's life like with 100K/year or more?

All this talk of $100K/yr being a lot of $$$ caused me to go look at our budget. Here are the major line items. "Checking" is based on a pre-retirement average of 48.5K over the past four years. "Pocket" at 500/mo might be a little high and if so some will be moved to vacation.

Checking 45
Taxes - income 25
Hospitalization 15
Pocket 6
Vacation 10
House maint. 5
Cars 4
Total 110

So far,we're just not having any problem spending at a rate over $100K without doing anything outrageous. We're only 3.5 months into this. Maybe a year from now we'll discover we don't need that much and will have to find ways to pick up the pace.


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