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-   -   If FI, would you keep working for $100k a month? (http://www.early-retirement.org/forums/f28/if-fi-would-you-keep-working-for-100k-a-month-34281.html)

hoping 03-23-2008 06:18 PM

If FI, would you keep working for $100k a month?
 
If you are in a very high-earning job, and will never again earn anywhere close to this much money, how long do you stay? Assume that you no longer enjoy your job but do not detest it, and that you already are FI. All thoughts welcome! Thanks.

W2R 03-23-2008 06:24 PM

I suppose that I would if there was something I wanted to buy with that kind of money, and I wanted it more than the time. Work is always a trade-off between time and money.

So for me, the answer is no. I would not continue working beyond FI.

growing_older 03-23-2008 06:48 PM

To me there are degrees of FI. If I had only reached a minimal FI, I would sure be tempted to stay on at that outrageous income and build more safety and possibly a slightly higher standard of living into my FI plan. I strongly believe in make hay while the sun shines. But it's all relative. At some point the extra safety or marginally better SWR is no longer worth the time on the job, even at high high pay. I've never been in such a situation as you describe, but I think I'd be tempted to stay long enough to get SWR down to 3. I doubt I'd stay on after SWR was down to 2.

Texas Proud 03-23-2008 07:27 PM

Let's see....

For $1.2 mill a year... yes, I would stay on....

It would get me a lot more freedom in the future... and would allow me to do some things that less money would not allow...


But there are some caveats... it would not affect my health, I am not already 'old' where it is really taking away some of my final years, and my net worth was already not so hight that the extra was 'pocket change'....

FinanceDude 03-23-2008 07:28 PM

Quote:

Originally Posted by Texas Proud (Post 632957)
Let's see....

For $1.2 mill a year... yes, I would stay on....

It would get me a lot more freedom in the future... and would allow me to do some things that less money would not allow...


But there are some caveats... it would not affect my health, I am not already 'old' where it is really taking away some of my final years, and my net worth was already not so hight that the extra was 'pocket change'....

CFB walked away from a job like that.........:o

hoping 03-23-2008 07:33 PM

Texas proud,

What do you consider a high enough net worth so that this is "pocket change"?

RockOn 03-23-2008 07:46 PM

Stess. How much stress goes with earning $100k per month. If not much, I'd stay. Stress does kill.

honobob 03-23-2008 08:08 PM

Texas Proud

What do you consider "'old' where it is really taking away some of my final years"?

bbbamI 03-23-2008 08:28 PM

If I am correct, you are 40. That's a great age. If I had made that kind of money, I would have stuck with my job a little longer. Yep, that's my story and I'm stickin' to it.

Never had to have this worry though. :p

hoping 03-23-2008 08:53 PM

What's a little longer? 6 months? A year? What if your DH wanted to move cross-country? Do you live separately for a while? Or just go with him and accept the fact that you are foregoing a lot of money?

RunningBum 03-23-2008 08:58 PM

Each person will probably have a different answer depending on how badly they want to retire early vs. what they'd like to do in retirement (especially with respect to what extra funds they'd need for what they'd like to do above what they need for FI) vs. age vs. family situation vs. stress vs. a dozen other factors probably.

Not really knowing all of the details, I'd probably want an extra million or so above FI to be able to relax more in ER and not have to worry about dips in the market and unexpected expenses, splurge now and then, etc. I'd trade a year or two of stress in a job to take away the stress of being on the low end of FI for the rest of my life.

I say this with no doubt because I feel like I'm already FI, but on the low end, so I'm still working to add a buffer. And I'm certainly not making an $100K/month.

hoping 03-23-2008 08:58 PM

Oops. I meant forgoing.

Spanky 03-23-2008 09:05 PM

It's hard to say when many details are missing, such as the nature of the job, the stress, the work environment, your financial situation, your health, your living style, your retirement plan, etc. Based on the limited info, stay a while if you do not hate the job, can handle the stress gracefully, have no clue what you really want to do after retirement, and feel that you have not achieved your financial goals.

UncleHoney 03-23-2008 09:07 PM

Lets see, for $100K/month there's bound to be some perks with it. I'm game with a few stipulations.

It would have to be a "position with a firm" not a "job with a company" and I'd want my own parking spot, an office with a view overlooking the city and a small space off my office, maybe 20 x 30 ft, with a fully equipped woodworking shop. I hope they wouldn't expect me to be doing much before about 10-10:30 and then I'd be off to lunch about 11. Back at 1, maybe 2 and then head home about 3:30 to avoid traffic.

I guess I could choke down a year or two. Sure hope they don't mind a little sawdust on the board room carpet. :D

Spanky 03-23-2008 09:08 PM

Quote:

Originally Posted by hoping (Post 632981)
What's a little longer? 6 months? A year? What if your DH wanted to move cross-country? Do you live separately for a while? Or just go with him and accept the fact that you are foregoing a lot of money?

You have to identify what's more important to you - relationship or money.

hoping 03-23-2008 09:14 PM

Job is highly stressful, not very fulfilling; working conditions are fine; colleagues are fine. My health is fine; DH wants to keep working, at least for now; he is a doctor and will earn 200-300k per year. I could get a new job for 80-100K a year that may be a better fit for me. We have approx $4.5 million saved so far.

RunningBum 03-23-2008 09:18 PM

Quote:

Originally Posted by hoping (Post 632981)
What's a little longer? 6 months? A year? What if your DH wanted to move cross-country? Do you live separately for a while? Or just go with him and accept the fact that you are foregoing a lot of money?

I think there's a totally different question about why your DH wants to move across country, and apparently would even without you. It seems to me that the question is on him first, before it's on you to choose between the relationship and money.

But you asked what I would do. I know my situation. I don't know about yours, so I have no idea what to advise you. I just know the factors I'd think about for myself.

hoping 03-23-2008 09:20 PM

Running bum, he does not want to go without me. He wants me to move with him, which is something we have talked about for a while. I am the one getting cold feet, because of what I would be giving up in income.

Spanky 03-23-2008 09:27 PM

Quote:

Originally Posted by hoping (Post 632988)
... We have approx $4.5 million saved so far.

A 4% safe-withdrawal rate will provide $180K yearly expenses. Is that enough?

hoping 03-23-2008 09:33 PM

That is more than enough, but given my age, I am thinking a 2% SWR makes more sense. 90k probably would be enough, but when taxes are factored in, probably not. But we probably won't be withdrawing any money for at least a few more years, giving the money more time to grow.


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