Walking away from the money

[big-papa]

Congrats Big-Papa!! It's your time!

VW

Many thanks!!!!! Just hoping the time flies by between now and exit then greatly decelerates once I pull the plug.

 

[TimSF]

For me, I had a number and when I reached it, I retired from a very lucrative career. Been happy ever since!

 

[freedomatlast]

Just like we're all going to die some day, we're all going to retire some day. You just have to find the point at which raking in more money won't affect your standard of living in any way. When the average earnings on your investments are larger than your annual compensation, it's time to consider taking the plunge.
The tipping point for me was when I was already FI at 59 1/2, and I had the opportunity to take advantage of a pretty sweet early out severance package. So now after accepting the severance package, I'm collecting the MegaCorp pension and in addition, I was offered an opportunity to come back to work again earning big bucks doing only the technical aspects of the former job, which I enjoyed. When this isn't fun anymore, I'll be able to experience that great feeling of walking away from MegaCorp for the second time!

 

[big-papa]

Heck yes this is difficult. But as travelover says, you are trading time you will never get back for money you'll never spend. For me, Firecalc, 4% rule, Fidelity planner, own complicated spreadsheet all say I can spend ~$230K/year in retirement and not (likely) ever run out. Budget is $150K. So easy one, right? Difficultly is leaving $1M in RSUs on the table, not to mention a very high paying position. I'm ready this time though. If you have enough, go on to the next adventure!

Yes indeed, those RSU's make the decision more difficult, don't they? They're clearly designed to do just that. Having the bufffer like yours (and mine) certainly makes the decision easier, though, doesn't it?

 

[Taco]

If you have enough, having more than enough is not worth too much. So if you have enough you shouldn't focus about the money you walk away from but rather what path will maximize life for you. i.e. What makes you happy?

What will you do when retired? You mentioned your life has been about moving up in your career - do you have interests outside of work that will keep you engaged? Some people are bored in retirement, others don't know how they had time to work. Which do you think you will be?

How is your health? We are at the age where every year that goes by is likely to be the best year we have left, health wise.

 

[GATime]

Appreciate some of the thoughts here. Yes, all the numbers work. Yes, we have our retirement plan on what we'll do and our current hobbies (mine is motorcycles) We started retirement planning over 5 years ago. Started living at the retirement budget then, have zero debt now, and can live at our current lifestyle in retirement. Saving more, will not impact how we live now. So yes, it's purely phycological and this is why I'm planning on the transition to part-time (if they agree).

 

[Car-Guy]

Been there and done that... Ten years later I wish I had done it sooner. YMMV

 

[Bryan Barnfellow]

Keep in mind this fact: You can add time to the beginning of your retirement life, but not to the end of it.

Also, you can choose to continue to make more money. But now you may be ready to make a transition from that phase in your life to a new one. You cannot know the possibilities for gratification in this new phase until you close the door on the current one.

-BB

 

[Markola]

….I'm trying to wrap my head around voluntarily giving up the money.

Anyone else been here?

Only everyone here who voluntarily gave up their earned income. It’s the precise price we paid to do something different.

 

[pacergal]

Need VS Want
Do you need more money or do you want more money?
Have you run Firecalc and double checked your budget?

How much is enough?

 

[tmitchell]

Our identity as wage earner is ingrained from the start. But you are more than that and at a certain point you have to ask yourself what the point of continuing to accumulate is.

I just read a good book on this called From Strength to Strength by Albert Brooks. Highly recommend.

 

[travelover]

......... When the average earnings on your investments are larger than your annual compensation, it's time to consider taking the plunge.........

It doesn't even have to be nearly that much. When I retired, I quit saving for retirement, quit paying a mortgage and all of the expenses associated with working. Plus, I knew at some point Social Security was there and in my case, a pension. So, between those sources of income and a conservative draw down on my stash, once I met all my spending needs, working was for naught.

 

[Aiming_4_55]

Walking away from the money?

For me, it's part of it even tho the calculators tell me SWR is below 3% for current expenses & spending, so I should RE, but I'm ok with being FI for now. I'm in my early 50's with teenagers at home and elderly parent that needs some assistance, so the idea of traveling for more than a week is not available.

You have your reasons for being hesitant, your BS bucket isn't full and/or those hobbies aren't as appealing. Don't know. If I personally had more hobbies that I enjoyed, I would consider RE more, but I'm not forcing it. You will decide when you are ready, going part time will probably help you.

 

[MichaelB]

I'm 61 and about to take the plunge, or at least a half-way plunge. Next week I plan to ask my boss to transition my role to a 3-day a week schedule. It's my way to then move to full retirement perhaps at the end of the year.

What I need to come to grips with is walking away from a high paying job. My whole life has been about moving up and making more in my career. I recently got my 2022 comp package so I'm trying to wrap my head around voluntarily giving up the money.

Anyone else been here? How did you deal mentally/emotionally with walking way from the money?

The key for me was to understand how much we needed, not how much I was giving up. This was [-]probably[/-] the most important factor in my decision to walk away.

The pay package was a hook, at the executive level there was a boatload of money along with intense peer pressure to consume, and also intense pressure to be a team player. An exec who spends it all can be relied on to always toe the line and never threaten the team, even when the objectives are increasingly outrageous and the environment emotionally oppressive.

 

[6miths]

You can't retire early without leaving money on the table. But if you keep working when you don't have to you are leaving your life on the table.

Every year you work is one less year of living life on your own terms.

These realities helped me.

Agree. At some point time becomes more important than money. Some people have jobs that they love and result in a net positive in their lives but I suspect that for most a job is work. Obligations to work can take away from time with family and friends, travel, self-care and other things. I loved aspects of my job but it was clearly a net negative in terms of my family and health. It is critical to have things that provide satisfaction and fulfillment in retirement but the beauty is that retirement provides the flexibility to live on one's own terms.

 

[jollystomper]

It was easy for me. The older I got, the more I gained perspective on having money vs. having a life. Having friends and acquaintances with a lot more money than me and being able to see their lives contributed to figuring out what was important to me. At a certain point, having much more money for me was less about gaining a nicer life than I already had, and more about dealing with the increasing inconvenience it would bring.



"Bragging rights" for how much I had was never important. At one of my college reunions I saw someone with an 8 figure net worth being miserable when the fond out someone who they deemed "inferior" had a 9 figure net worth. That just seemed stupid to me. Sometimes the desire for more money is less about needing it and more about bragging rights. As others have said, I had what I needed to not be dependent on others, live a life without working for anyone else, or have to work for myself, so why not?

 

[djsander]

I enjoyed my j@b. Even made anywhere from 200k to 300k in a very low cost of living area so we lived good but still well beneath our mean. The j@b was good the people were good to work with and the money was really good with bonus and LTI. I was offered an early retirement package and DW and I decided it was time to go so we could have time to do what we want when we want. Sold the house moved and have been a lot happier. No calls, emails and texts 24/7 year round. No getting up on Mondays. As one of my coworkers said we don’t have an expiration date printed on us so get out while you can. You never know what will happen. I liked what I did, but I like being retired a whole lot more. I gave up a lot of money by leaving a couple years before we planned, but it was well worth it. Only you and your SO can decide what you want out of the remainder of your life. I ramble, but life is short. Now everyday is a Saturday.

 

[Koolau]

I wish I could do a fault tree analysis here (with the boxes and arrows, etc.) But since I don't know how, here is the way I look at it (how I DID look at it).

Do I need the money? YES------- NO------ If YES, stay, if NO go to:

Am I enjoying what I'm doing (independent of the money) YES----- NO-----

If YES stay until it's a NO. If NO then give your notice.

It's my opinion that the "money" question is strictly a question of need. If you don't need it, it's not a part of the equation IMHO.

I actually did this mentally. One day (literally, one day) the YES (I'm enjoying what I'm doing) switched to NO. I was gone by end of that week. I had long ago answered the money question with a NO.

Very much a personal situation so you need your own "fault tree analysis." Or just go with your gut as YMMV.

 

[Badger]

Appreciate some of the thoughts here. Yes, all the numbers work. Yes, we have our retirement plan on what we'll do and our current hobbies (mine is motorcycles) We started retirement planning over 5 years ago. Started living at the retirement budget then, have zero debt now, and can live at our current lifestyle in retirement. Saving more, will not impact how we live now. So yes, it's purely phycological and this is why I'm planning on the transition to part-time (if they agree).

FWIW I also had a plan with a retirement date. I also rode motorcycles for a lot of years. A year before my retirement date I blew out my back and had 3 surgeries ending with a lower back fusion and a few other problems. My planned coast to coast ride to celebrate retirement AND any future riding was never going to happen. After years of PT with no results that would allow me to ride again I finally sold one of my motorcycles. The other has been sitting long enough that it needs some work before I can sell it.

Cheers!

 

[Midpack]

I'm 61 and about to take the plunge, or at least a half-way plunge. Next week I plan to ask my boss to transition my role to a 3-day a week schedule. It's my way to then move to full retirement perhaps at the end of the year.

What I need to come to grips with is walking away from a high paying job. My whole life has been about moving up and making more in my career. I recently got my 2022 comp package so I'm trying to wrap my head around voluntarily giving up the money.

Anyone else been here? How did you deal mentally/emotionally with walking way from the money?

All of us who retired voluntarily walked away from additional income, no matter what age, so we've all dealt with it. You have to decide how much is really enough, and that's an individual decision depending on your risk tolerance, longevity expectations, planned spending, income sources (or lack thereof), etc. And having some idea "what you will do all day" in retirement, having something to retire to, not just a job to retire from. That's easy for some, and surprisingly hard for others - you'll have to decide for yourself. If you still enjoy your career, you may regret retiring and giving up more money. FWIW I was ready to retire when we reached 200% FI, but I still worried about what I would do all day. Going through Zelinkski's Get-A-Life Tree exercise showed me I was ready, and I retired with no regrets then. Good luck.

 

[MRG]

Tough choices.

After 29 years at Megacorp, most of which I throughly enjoyed, I walked away. Why? They crossed a bridge into my home life and I became done.

While I really enjoyed my career and I was able to do things I was very proud of. After being gone 9 years I sometimes wonder was it worth it? I wouldn't do it the same way if the opportunity was there.

 

[ExFlyBoy5]

I am working on my 8th year of retirement and can say...without fail...I am glad I did it. Was there an identification with what I did in my w*rking days? Of course. There was a lot of pride for what I did and that was a powerful motivator. I w*rked with good people. I generally liked what I did and had one of the coolest j*bs someone could have. But looking back, I have enjoyed retirement a WHOLE LOT MORE! Yes, I could have made more $$$, but at some point, enough is enough.

Do have regrets for retiring early? Nope. And when I was discussing something with my neighbor who is very much a "company man" and he told me he would "circle back" about something, it was a great reminder that retirement is much, MUCH better for me than w*rking was.

 

[Go-NoGo]

I And when I was discussing something with my neighbor who is very much a "company man" and he told me he would "circle back" about something, it was a great reminder that retirement is much, MUCH better for me than w*rking was.

Aaah yes, "circle back", "let's take the discussion offline", "table that issue", "let's unpack that", goals and objectives, personal development --
Nope, don't miss it all.

 

[donethat]

You may want to also consider the status and respect you get at work over and above the money. Some people miss that more. Some not at all.

 

[skyking1]

I've given that last point some thought and I realized that's okay to quietly know what I know, to see people messing up royally, and choose to either say something or not. In that regard, I'm ready