When would you turn down $1 million?

[H2ODude]

I don't think that most people really know what they want; by "most people" I don't mean you, but just people in general. Instead of looking within to try to figure this out, they pursue illusory goals that never seem to lead to the genuine satisfaction that they hope to achieve. To me, that is sad because they are wasting their brief time on this earth.

The fact that most people (again, not meaning you) never know how much is enough, and would constantly be willing to work for more, seems awful to me if this is a goal that has not come from within. So many work all their lives seeking approval first from their parents, then their peers, or others and never get around to trying to figure out how they themselves want to spend their moment on earth.But then if it doesn't bother them, who am I to say that it is wrong? Perhaps their satisfaction is in the journey. I just wish I felt assured that such people had spent the time to introspect and know themselves before setting off on an endless quest for enough money. Also I am just so glad that I am not in that endless ratrace right now. I so enjoy being the one to determine how I will spend my time each day, and I enjoy knowing that I have enough.

Well written; I found this rather profound. I have no regrets having worked as long as I did (til 60) but could have bailed earlier. DW and I have struggled last 3 years continuing to care for her mother which has severely limited our options. We've made some concrete decisions about placing her in next month or two, which places us in a new era of freedom. So we are finally struggling with how to finally spend our bucks; travel, move, etc. We've been actually spending less than 2% of assets, so OMY clearly not necessary.

Would I go back for a day for $1mm? Sure! It wouldn't interfere with any conceivable plans and if nothing else it'd be fun to give it all to charity (in all honesty I can't say I would though!). In the end I'm sure it would reinforce my assessment that I would not go back to work if you put a gun to my head. Of course, that assumes I'd actually have to be there for more than a day.

This thread, like many, reminds me of a good financial manager friend counseling my father (at ~65) from whom I inherited a strong dose of financial conservatism. He asked my father if he'd figured a way to take his money with him (when he died). I don't think my father thought it funny!

 

[Spanky]

Shawn is probably right that most people, especially those who are young and energetic, would accept a $1 million per year position as they feel additional money would provide additional security or financial freedom. Many people feel financially insecure regardless of the amount of money that they have because they are in constant fear that they may lose it. Walking away from a lucrative job, I think, is very difficult, especially the job is enjoyable and not too demanding. If the job is toxic, that's another story, however.

If I have $4M in financial assets, I still would consider working for a year or two if they pay me $1M per year for what I do now but not for some high stress and time demanding job in finance (or Wall Street).

 

[martyb]

My 2 pensions and our combined 401k/TSP would probably require a stash of just a hair under 2 million to spin off the equivalent at 4% withdrawal, so with that in mind, under the same circumstances, I'd work one additional year for the additional $1 million. No more, though.

 

[LoneAspen]

Once I leave the working world, I wouldn't go back for anything less than what I've always called "crazy stupid" money. Meaning, the company would be crazy and stupid for offering it, and I'd be crazy and stupid for turning it down.

After I've left, and am free, the value of my time is going to shoot WAY up. To the point if somebody offered me $1m after-tax to go back to work for a year, I don't think I'd do it. It's not enough.

I think it would take $5m after-tax a year for me to sell my soul for another year sitting in a cube. Anything less, I wouldn't even consider it. I'd keep on enjoying my free time.

 

[Cobra9777]

I originally planned to retire at 55. At that age, there was a substantial bump in DB pension value, and I would have retained all restricted stock and unvested stock options. Instead, I retired at 52 and gave up all of the above, plus salary and bonus, totaling around $1.4M (possibly more depending on stock price).

Not exactly the same scenario as the OP, but my various bosses and coworkers all thought I was nuts for not working 3 more years. For me, it was pretty simple... once it was clear the numbers worked for the lifestyle I desired, that extra money meant nothing. Literally, zero value. Like ice to an Eskimo.

Life is short and highly unpredictable. So for me, once FI is achieved, any amount of time has greater value than any amount of money. Even $1M for a year.

 

[Derslickmeister]

I'm having a very hard time believing most of these replies declining this offer. Either you guys are very good liars or ER is really as good as I hope it to be, please tell me you are not lying

 

[REWahoo]

No lie. I would not trade a year of my freedom for $550,000 (~$1,500/day) which is roughly what you'd end up with after taxes. I thought I had "enough" when I retired at age 58, and at age 67 it appears as though I do.

I've already won. No reason to run up the score, especially since I no longer have any interest at all in playing the game.

 

[Derslickmeister]

No lie. I would not trade a year of my freedom for $550,000 (~$1,500/day) which is roughly what you'd end up with after taxes. I thought I had "enough" when I retired at age 58, and at age 67 it appears as though I do.

I've already won. No reason to run up the score, especially since I no longer have any interest at all in playing the game.

Plus you are in the Hill Country, life must be good indeed.

 

[robnplunder]

I'm having a very hard time believing most of these replies declining this offer. Either you guys are very good liars or ER is really as good as I hope it to be, please tell me you are not lying

I am a bit surprised, too. Most ER'd folks are saying no way. OMYer like me is saying take the money for X more years. But the OP is only in his early 30s. Doesn't he have other things he can "work" on before calling it quits. All his RE peers will be his father's age .

 

[scrabbler1]

I've already won. No reason to run up the score, especially since I no longer have any interest at all in playing the game.

Very nice analogy!

 

[Spanky]

I am a bit surprised, too. Most ER'd folks are saying no way.

I am not too surprised. Members on this forum, in general, share the wisdom that once FI is achieved, the need to acquire more is not warranted. That's all RE about. Time is more important than money.

 

[2B]

Thanks for all the comments. I agree more money beyond a certain amount doesn't bring anymore happiness. I'm just trying to make sure I have that "certain" amount for life.

Almost everything I earn is saved. We live a relatively modest lifestyle, but don't deprive ourselves by any means. Our spending has not really increased as my earnings have throughout my career.

You can never be "certain." Unfortunately, the events that make a "certain" amount inadequate are horrible. I discovered after being ejected from Mega Corp in 2002 and finding a position as a NASA contractor in 2004 that I had be FI for quite awhile. Since then, assets have grown significantly and I've decided that I am now working for my grandchildren.

Based on the 95% "safe" amount from FireCalc, I haven't ever spent that much on my living expenses. iOPR says I can spend an almost obscene amount. Yeah, this is my last year -- I think.

In what I am assuming to be my last OMY, I've bought a new car, installed a new patio and will do my pilgrimage to Europe twice if DW can be inspired. My only derail is that there are now openings in the company office outside of London for people with my skill set. I'd be easily corrupted to stay on with a salaried vacation in Europe even if I had to show up and pretend to work.

 

[clifp]

Two ways to be rich: earn more or desire less.

One thing I've seen with myself, and big time with my 89 year old mom, is that there is a large downside with acquiring things and even experiences.

For instance buying a new gadget, you need to research it first, spend some finding the best price,when you get it you have set it up, learn how to use it, and adjust your life to use it. My mom and her boyfriend have had a cell phone for the last four year or so. I'd say perhaps this last year the convenience of having one has finally outweighed the hassles, of partly learning how to use it (voicemail is a confusing mystery), rememberingto carry it with her,and charge it at night etc. On the other hand for her boyfriend, if he could travel back in time I'm sure he demand a $1,000 to put up with the hassles of a cellphones.

In theory, I'd like to travel more. In practice the hassles, find pet and house sitters, putting up with airplane flights, and risking uncomfortable accommodations, greatly reduce my desire.

I'd consider going back to work for $100,000/year for a really great job (especially with equity) but a $1 million for soul sucking megacorporate very stressful job no.

In economic terms the marginally utility of an additional $ is greatly reduced.

 

[haha]

When it required me to have sex with a zombie. Not just a lackadaisical woman, a real zombie.

Ha

 

[REWahoo]

When it required me to have sex with a zombie. Not just a lackadaisical woman, a real zombie.

Ha

I'm beginning to detect a recurring theme in many of your posts...

 

[haha]

It's good to know that you are a fan.

Ha

 

[clifp]

When it required me to have sex with a zombie. Not just a lackadaisical woman, a real zombie.

Ha

Obviously you just haven't meet the right zombie woman yet..

 

[48Fire]

That question is at the heart of my OMY repetition. I make safe six figures so it's not at the $1MM mark but it is still substantial. I effectively add this to my networth (less my SS and Medicare taxes) since it allows me to make no withdrawls for living expenses or medical insurance. What I do is frequently interesting from a nerd engineer standpoint. There are no significant or frequent hassles. The worst part of my day is driving in and back.

I had a similar philosophical discussion with an engineer right before I pulled the ER plug. He said he could not afford the cut in pay to retire. I showed him my hourly rate after I retire to be x$ / 0 hours = infinity He was mildly amused, but not enough to join me on the way out.

 

[steelyman]

I'm beginning to detect a recurring theme in many of your posts...

Give that man a hand!

 

[Shawn]

No lie. I would not trade a year of my freedom for $550,000 (~$1,500/day) which is roughly what you'd end up with after taxes. I thought I had "enough" when I retired at age 58, and at age 67 it appears as though I do.

Didn't you have one year of OMY syndrome?

If so, do you regret it today - 10 years later? Without that extra year, you might have 5-10% less than what you have today. Do you regret retiring at 58 instead of 57?

 

[NW-Bound]

...
When making these decision I think it is really important factor in all financial info especially taxes.

So if you are making $1 million a year and your portfolio is $5 million. After tax you probably are only making an additional $500K $600K if you live in very low tax state.

Assume your portfolio earns 5% and spending is $150K. If you were retired your net worth would $5.1 million, if you continue working it is a $5.6 or roughly a 10% growth. Is 10% worth an extra year of your life perhaps.

Oh, that's right. After all the "friction losses", the $1M amount can shrink quite a bit, to $500-600K perhaps.

Your post got me thinking a bit. So, I looked at what my portfolio is now vs. what it was exactly 1 year ago. Add to the present value the amount that I spent in the last 12 months, and the increase is ...

No, can't tell the whole world here . It is less than $600K, but a nice percentage of that. Nice, nice... Of course, all that could vaporize with a "Wh***" post...

Still, as I mentioned in an earlier post, if they would pay me $1M gross annual salary to do what I did on my last contract job, I would gladly do it and might even go to a few silly meetings, and suffer some fools.

It is a joy to develop something, build a prototype hardware and software and see it work. If somebody pays you handsomely to do your hobby, how could you say no?

 

[haha]

More fantasy. How many us us are ever going to be offered $1mm for one year's work?

Yet we have spent a lot of posts discussing why we would never do it. Me too, I would never do it because I would never be offered the opportunity, the same as 99% of the rest of us.

 

[CaliforniaMan]

Oh, that's right. After all the "friction losses", the $1M amount can shrink quite a bit, to $500-600K perhaps.

Your post got me thinking a bit. So, I looked at what my portfolio is now vs. what it was exactly 1 year ago. Add to the present value the amount that I spent in the last 12 months, and the increase is ...

No, can't tell the whole world here . It is less than $600K, but a nice percentage of that. Nice, nice... Of course, all that could vaporize with a "Wh***" post...

Still, as I mentioned in an earlier post, if they would pay me $1M gross annual salary to do what I did on my last contract job, I would gladly do it and might even go to a few silly meetings, and suffer some fools.

It is a joy to develop something, build a prototype hardware and software and see it work. If somebody pays you handsomely to do your hobby, how could you say no?

+1

I guess I am in my first month of retirement now (hard to tell since for the past 30 years I have been a mostly work at home software consultant) and want to second your post that I bolded. Indeed I did what I have been hired to do at at first did as a hobby and was pleasantly surprised to learn people would actually pay me for it.

Many years ago I ruminated on what it was exactly that made me happy, when I was happiest. I came to the conclusion it was when I had been given a project that 1) was very difficult but not impossible, 2) for some lucky reason I had the skill set to do it, 3) it was very important to someone (ie. their business success relied on it), 4) I worked with very smart people who let egos aside to complete the project as best we could. And finally to bask a short while in the glory when it was successfully completed.

It comes along only once in a while, but when it does there really is great joy, and I guess I have been lucky in my career to have been able to participate in these wonderful events.

But now after 30+ years I am ready and anxious to try this retirement thing, but do wonder if I will find the same joys (without the stress of course) that some of these projects presented.

And thinking about the question, I really don't think I would go back for another year, even if I were paid a lot. It would have to be some passion, not the money, and right now some of those old passions have changed, been there, done that kind of thing.

So no, I really wouldn't go back another year for just the money. No amount is enough to buy my time right now.

 

[aja8888]

When it required me to have sex with a zombie. Not just a lackadaisical woman, a real zombie.

Ha

I think I had sex with a zombie about three decades ago, but she was disguised pretty well. I married her and then lost a million over the next 17 years. Be careful, my friends...

 

[steelyman]

Wow. I thought they say if it goes longer than 4 hours, you should dial 9-1-1.