The Rich and Retirement

[NW-Bound]

As an engineer, I have always enjoyed building things (hardware design and writing firmware), as well as analysis and simulation of complex and unique electromechanical systems. They did not pay me megabucks, but more than perhaps 95% of engineers, so that made me feel good. I am not rich, and when I was working, never enjoyed being "in charge" of other people (for a sense of power), and just wanted to be an independent contributor.

I have been trying to design and build things at home for myself as a hobby, but it's not quite the same. When I did it for pay, I would have to pay more attention to details, to meet certain requirements or specifications. I have to prove to people my stuff is "good stuff". There was pressure, but that provided an impetus to get the job finished.

I have so many unfinished projects at home, many half-baked. When my health recovers, I should take some time off to finish them.

 

[RunningBum]

I have so many unfinished projects at home, many half-baked. When my health recovers, I should take some time off to finish them.

If you want to. Maybe what you like to do is start projects. If that doesn't hurt anything or cost too much, do what you like. I doubt you're leaving kitchens or bathrooms unusable. Sounds like you had a career of having to take things to completion, you don't have to do that anymore.

 

[redduck]

If you want to. Maybe what you like to do is start projects. If that doesn't hurt anything or cost too much, do what you like. I doubt you're leaving kitchens or bathrooms unusable. Sounds like you had a career of having to take things to completion, you don't have to do that anymore.

Thanks RunningBum, there's something rather comforting in your response about someone maybe liking to start projects and not needing to finish them. I think for me there's a bit of a sense of failure if I start a project and don't see it all the way through.

 

[NW-Bound]

There's a thing called job satisfaction, and when I do something for pay, I tend to get there. For myself, not all the time.

 

[ERhoosier]

I've known many successful businessmen in that income range- and huge NW to match. Often "retirement" is a never something they will admit to. It's not PC. OTOH- Delegating all real w#rk to underlings then devoting their lives to playing golf with their rich buddies 3-5 days/wk, holding regular dinner 'meetings' at which no real business is discussed, traveling across the country to meet with old associates. etc. is not considered "retirement" to this crowd. Some have not made a meaningful (or profitable!) business deal in years yet do not consider themselves "retired".
Apparently, they use a different dictionary

 

[harley]

If you want to. Maybe what you like to do is start projects. If that doesn't hurt anything or cost too much, do what you like. I doubt you're leaving kitchens or bathrooms unusable. Sounds like you had a career of having to take things to completion, you don't have to do that anymore.

Haha! Excellent. I'm showing this post to DW.

 

[Spanky]

I've known many successful businessmen in that income range- and huge NW to match. Often "retirement" is a never something they will admit to. It's not PC. OTOH- Delegating all real w#rk to underlings then devoting their lives to playing golf with their rich buddies 3-5 days/wk, holding regular dinner 'meetings' at which no real business is discussed, traveling across the country to meet with old associates. etc. is not considered "retirement" to this crowd. Some have not made a meaningful (or profitable!) business deal in years yet do not consider themselves "retired".
Apparently, they use a different dictionary

Maybe they should call it semi-retired.

 

[ERhoosier]

Haha! Excellent. I'm showing this post to DW.

+1.
Except one of my unfinished projects is an upgrade of a bonus room half bath which, fortunately for me, we don't use anyway. But DW has put this one on my ER honey-do list

 

[Sesq]

but work to those you mentioned above can be synonym for passion, excitement, and challenge. I can't imagine a person who loves being in charge and a "mover and shaker" of things being more miserable in the retirement I have (which is quite enjoyable to me, though).

I am high enough at my job where they did a personality test on me. Since I am a technical specialist I was something of an outlier. The psychologist I spoke with noted that I had the lowest desire for power over others that he had seen tested at my level in the company. I am guessing most of my peers aren't motivated by FIRE. Probably explains why I am lousy at the mixers at the leadership retreats. ha-ha.

 

[jerome len]

A good life is when you enjoy the beginning of every time.....while working or retired. I feel sorry for those with jobs they hate doing.....for them retirement is a blessing. My Doc doesn't want to retire....she enjoys seeing and talking to the same patients that she has been seeing for over 20 years.

Basically to each it's own. ....working or retired. If you enjoy each day, have your health and enough money, you've got it made......especially if you have a combination of family and money to share each day with.

I guess I believe rich may start with money but no one is rich unless they have health, financial freedom and people to share it with.

 

[chasesfish]

If one looks at retirement as "being able to choose what you want to do without regard to money", in a sense many of them are retired.

+1. I have clients that meet this description

 

[traineeinvestor]

I have known a number of people in that income range, some of my field and others not. Some things that are relevant for many in this range:

1. They love their work. There is no hobby or leisure activity that comes close to the enjoyment they get from their work. Why would they give up doing something that gives them immense pleasure?

2. They are often either the boss or very important to the company where they work. Therefore, as they get older they don't retire but they can schedule work and vacations to suit themselves. They can take off for vacation or come in late or leave early -- if they choose. Some do this a lot and really don't necessarily work full-time. Others mostly work full-time or full-time+ but they know they can arrange their schedule to their wants and needs whenever they want to.

3. Some - not all - never developed strong hobbies or leisure activities and so they truly would feel bored if retired.

4. They see retirement as being put out to pasture. They are used to being someone who does things, who makes a difference, who accomplishes things. They see retirement as ending this.

While I know many people (including some of my partners) to whom some or all of these factors apply, when I told people I was FIREing I had some interesting discussions and came accross some "interesting" reasons for wealthy people who intend to keep working:

5. one who keeps working even though he does not like the job because he is addicted to collecting antique chinese jade - he works to pay for his hobby

6. one who is currently going through his third divorce (children from all three marriages) - sometimes I think this guy is working to pay for his hobbies too

7. a few who keep working because they are scared that they will lose their savings (I believe that most of these people have a lot more than I do)

8. one who tells me he could have retired years ago but both he and his wife want to keep working to set an example for their children

 

[Independent]

I recall many comments on this board along the lines of "I enjoyed the work - I hated the job".

I was a financial analyst and enjoyed figuring out the financial aspects of decisions. I enjoyed my work. But, I had to deal with an oppressive bureaucracy and a CEO who was just over the top in ego. I hated the job.

I expect that lots of people in that $750k plus group have the clout to overcome the stuff they hate (e.g. some don't get frustrated with the CEO because they are the CEOs). Some actually enjoy the challenge of working with frustrating individuals - it's what makes the work fun to them.

Lower income people tend to be lower in the pyramid. They can't avoid or offload the frustrations. *&*&^ runs downhill and all that.

 

[Rich]

I have a friend (of twenty years) who is around 70 and retired when he was 37. He needs no money. I retired in 2010. I have no debt and have plenty of money (three decent pensions~it's a long story). Yet I find myself, while happy, a bit bored. Anyway, he’s talked me into helping him start up a new business venture. It’s exciting, I’m learning many new things (I’d always been in the public sector and this is a private sector business) and I’m meeting some really interesting people.

So, put down my vote for continuing to work so long as it entertains you.

 

[Redbugdave]

Yet I find myself, while happy, a bit bored. Anyway, he’s talked me into helping him start up a new business venture. It’s exciting, I’m learning many new things (I’d always been in the public sector and this is a private sector business) and I’m meeting some really interesting people.

So, put down my vote for continuing to work so long as it entertains you.

That's not a job Rich. That sounds like adventure! Grab the ball and run! That's great!

 

[Chuckanut]

I retired because I wanted control of my time. I think high income people often have more control of their time than most of us. Also, their jobs don't place a lot of stress and wear on aging bodies.

 

[shasta]

I retired because I wanted control of my time. I think high income people often have more control of their time than most of us. Also, their jobs don't place a lot of stress and wear on aging bodies.

I think in this economy high income people work harder than ever.

I see anyone 400K$+ per annum pay range burning off their 9 cat lives on 18 hour - 20 hour days often.

 

[gozer]

I would think that what many of the "Rich" consider work, is what I would consider "Retired". i.e. doing what I want, when I want. If that is running my own company, or being some high paid cog in the corporate machine then so be it.

My current "what I want" list includes; travel, scuba diving, dabbling in code and determining if the color of the little umbrella, in the drink at the beach bar, influences the flavor of the drink.

 

[Which Roger]

The article defines "rich" by income, not net worth. If I was earning a million a year and also had a net worth that would allow me to retire, I would be more inclined to continue w*rking that if I was earning an average salary and had a net worth that would allow me to retire.

 

[wmc1000]

I think the definition of retirement is you choose what you do each day and are not "required" to be available and working certain days and hours. If a person is choosing to go to work each day and it didn't really matter if they did this or not I would say they are retired by definition and going to the office is their retirement. It is all in what the definition of retirement is. In the way I would define retirement many if not most of the rich who answered the question would already be considered retired.

 

[gozer]

The article defines "rich" by income, not net worth. If I was earning a million a year and also had a net worth that would allow me to retire, I would be more inclined to continue w*rking that if I was earning an average salary and had a net worth that would allow me to retire.

Good point, but I still think I would have to enjoy the work to stay.

I only consider "Rich" to be high net worth. I've known too many high income colleagues that struggle to make it to pay day.

 

[rodi]

My observation is at my megacorp is that the big-buck C-Execs can line up enough board of director positions when they leave, to still generate income, with not a lot of time commitment.

One former exec is "retired" but still sitting on 3 boards - income is less than his CEO pay was - but still about 5 times what I make. All for a few weeks work a year.

 

[chasesfish]

My observation is at my megacorp is that the big-buck C-Execs can line up enough board of director positions when they leave, to still generate income, with not a lot of time commitment.

One former exec is "retired" but still sitting on 3 boards - income is less than his CEO pay was - but still about 5 times what I make. All for a few weeks work a year.

Those are few and far between. Also, remember that these folks are in non-qualified plans, they may have $1mil in comp, but elect to defer 25-50% of it and take it I post separation benefits. I'm not sure they ever qualify for SS due to income earned that's considered active.

In most professions the very best get paid well, athletes, actors, medicine, and business.

 

[Spanky]

In most professions the very best get paid well, athletes, actors, medicine, and business.

The reason is that these are super human beings that make significant contributions to society and generate more revenue than what they receive from their employers that would fight with each other to hire these talented and gifted individuals.