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Old 06-28-2020, 08:49 AM   #21
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I'm in a similar situation but 10 years older and half as wealthy.

First off, you have a ton of money for your age, so I really wouldn't worry about that. The more pressing question is your happiness. You have the privilege of youth, wealth, and I assume health. That would point me to the sabbatical.

How likely or unlikely is it that you would be able to get another job? At your income you must be good at your job and therefore some one somebody would want on their team. So what if you take a year off? If/when you start the job hunt you just be honest: "I saved up enough money to travel for a year and consider how I wanted to shape my career for the next decade." Probably the person hiring will think you're amazing and offer you a job on the spot. Also s/he'll be incredibly jealous!

Or maybe you realize during your sabbatical that you want to do a completely different job. Maybe it's lower pay and just covers your expenses, but you'll have the ability to watch your money grow in the background. In ten years it will have doubled and you'll have had a chance to work on something you like a lot better.
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Old 08-21-2020, 04:46 AM   #22
Recycles dryer sheets
 
Join Date: Jul 2017
Posts: 88
So just a quick update here, I ended up taking the severance. It just made sense:
  1. I could probably get a job back in industry if somehow I start doing cocaine, making it rain, and lost all my money
  2. I'm getting paid to do something I've been wanting to do forever, take an extended time off.
  3. I don't have to go to work, no more meetings where i'm questioning my life choices
  4. I can see how my cash flow holds up to not working.
An additional note, my portfolio has skyrocketed back up with the fed-fueled money injection and i bought another property for "passive" cash flow, my nw sank to 2.8m in March during the plummet:

NW = 3.3m -> 3.7m -> 3.85m (when severance check comes in).
Cash = $425k -> $300k, bought a property
Stocks = $755k -> $975k
401k/IRA = $630k -> $715k
HSA = $6.5k -> $7k

Properties
Prop 1 - val - $425k, paid off, rent: $2025, HOA: $295; cash flow = $1550/mo
Prop 2 - val - $740k (owe $315k), rent: $2550, HOA: $485; cash flow = $300/mo
Prop 3 (Primary) - val - $600k (owe $220k)
Prop 4 - val - $300k (owe $180k) rent: $3600, cash flow = $1400/mo
Prop 5 - val - $560k (owe $360k) rent: $5250, cash flow = $1800/mo
New Prop 6 - val - $465k (owe $280k) rent: $4000 cash flow=$1500/mo, target rent raises to hit $3,000/mo conservatively.

So total conservatively around: $6,550/mo

Dont' really know what the next few months will hold for me, but hoping to enjoy this time off Who knows? I might like it.
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Old 08-21-2020, 06:30 AM   #23
Recycles dryer sheets
 
Join Date: Oct 2016
Posts: 415
Quote:
Originally Posted by refi View Post
So just a quick update here, I ended up taking the severance. It just made sense:
  1. I could probably get a job back in industry if somehow I start doing cocaine, making it rain, and lost all my money
  2. I'm getting paid to do something I've been wanting to do forever, take an extended time off.
  3. I don't have to go to work, no more meetings where i'm questioning my life choices
  4. I can see how my cash flow holds up to not working.
An additional note, my portfolio has skyrocketed back up with the fed-fueled money injection and i bought another property for "passive" cash flow, my nw sank to 2.8m in March during the plummet:

NW = 3.3m -> 3.7m -> 3.85m (when severance check comes in).
Cash = $425k -> $300k, bought a property
Stocks = $755k -> $975k
401k/IRA = $630k -> $715k
HSA = $6.5k -> $7k

Properties
Prop 1 - val - $425k, paid off, rent: $2025, HOA: $295; cash flow = $1550/mo
Prop 2 - val - $740k (owe $315k), rent: $2550, HOA: $485; cash flow = $300/mo
Prop 3 (Primary) - val - $600k (owe $220k)
Prop 4 - val - $300k (owe $180k) rent: $3600, cash flow = $1400/mo
Prop 5 - val - $560k (owe $360k) rent: $5250, cash flow = $1800/mo
New Prop 6 - val - $465k (owe $280k) rent: $4000 cash flow=$1500/mo, target rent raises to hit $3,000/mo conservatively.

So total conservatively around: $6,550/mo

Dont' really know what the next few months will hold for me, but hoping to enjoy this time off Who knows? I might like it.
Will be curious to hear how this goes for you. Keep us posted & congrats!
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Old 09-16-2020, 06:27 AM   #24
Recycles dryer sheets
 
Join Date: Jul 2017
Posts: 88
Less than a month into this sabbatical/Early FI, I received an opportunity to interview for a new role. If I get the role, it would pay around $500k/yr. With that said, every bone in my body says I should I relax and enjoy where i've gotten to. I LOVE not having to worry about work, the Sunday dread, the everyday dread, and have kept myself way more than busy with my daily activities. For those already FIRE and overly ambitious folks, how do you relax and focus on what you love rather than what makes you the most money? Up to this point, I've been hyper-vigilant about making money and having all my decisions, even sometimes at the sacrifice of health and relationships, focus on the accumulations of wealth. Even the thought having to prep for this interview gives me anxiety. Any advice would help!
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Old 09-16-2020, 07:10 AM   #25
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Posts: 518
I would see how the interview goes and see whether you would like it.

Here is my framework for decision making. For context, I'm a bit older than you, have had highly comp'd positions, and have a withdrawal rate of ~2% (including a travel budget of $25k), so I don't need to work ever.

There are two conditions where I would return:

1) I love the company, people, role, and mission. It's something that I can sink my teeth into and I will (actually) have a positive societal impact.

And/or: 2) It will have a reasonable shot at a meaningful impact on my net worth. While I have more than enough, if I could 10x+ my net worth, I would do it. This requires that I have substantial equity. The way I see it, I don't need incremental increases in my net worth, but if there is an opportunity to truly leave a lasting legacy, it's worth my time.

Good luck!
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Old 09-16-2020, 07:18 AM   #26
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Location: Texas: No Country for Old Men
Posts: 50,003
Quote:
Originally Posted by refi View Post
So just a quick update here, I ended up taking the severance. It just made sense:
  1. I could probably get a job back in industry if somehow I start doing cocaine, making it rain, and lost all my money
  2. I'm getting paid to do something I've been wanting to do forever, take an extended time off.
  3. I don't have to go to work, no more meetings where i'm questioning my life choices
  4. I can see how my cash flow holds up to not working.
An additional note, my portfolio has skyrocketed back up with the fed-fueled money injection and i bought another property for "passive" cash flow, my nw sank to 2.8m in March during the plummet:

NW = 3.3m -> 3.7m -> 3.85m (when severance check comes in).
Cash = $425k -> $300k, bought a property
Stocks = $755k -> $975k
401k/IRA = $630k -> $715k
HSA = $6.5k -> $7k

Properties
Prop 1 - val - $425k, paid off, rent: $2025, HOA: $295; cash flow = $1550/mo
Prop 2 - val - $740k (owe $315k), rent: $2550, HOA: $485; cash flow = $300/mo
Prop 3 (Primary) - val - $600k (owe $220k)
Prop 4 - val - $300k (owe $180k) rent: $3600, cash flow = $1400/mo
Prop 5 - val - $560k (owe $360k) rent: $5250, cash flow = $1800/mo
New Prop 6 - val - $465k (owe $280k) rent: $4000 cash flow=$1500/mo, target rent raises to hit $3,000/mo conservatively.

So total conservatively around: $6,550/mo

Dont' really know what the next few months will hold for me, but hoping to enjoy this time off Who knows? I might like it.
Quote:
Originally Posted by refi View Post
Less than a month into this sabbatical/Early FI, I received an opportunity to interview for a new role... Even the thought having to prep for this interview gives me anxiety. Any advice would help!
Read your 8/21 post above. You started snorting coke? Really?
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Old 09-16-2020, 08:03 AM   #27
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Join Date: Jun 2007
Posts: 13,202
Quote:
Originally Posted by refi View Post
Less than a month into this sabbatical/Early FI, I received an opportunity to interview for a new role. If I get the role, it would pay around $500k/yr. With that said, every bone in my body says I should I relax and enjoy where i've gotten to. I LOVE not having to worry about work, the Sunday dread, the everyday dread, and have kept myself way more than busy with my daily activities. For those already FIRE and overly ambitious folks, how do you relax and focus on what you love rather than what makes you the most money? Up to this point, I've been hyper-vigilant about making money and having all my decisions, even sometimes at the sacrifice of health and relationships, focus on the accumulations of wealth. Even the thought having to prep for this interview gives me anxiety. Any advice would help!
Seems to me that with more money comes even more responsibility, expectations, and pressure. Since it sounds like you have enough money already, why would you do this and continue to put your health and relationships at a lower priority?

Another way to look at it is to see your lifestyle as it is today. Say you work 2 more years and put away another 1/2 $million. Would your lifestyle improve with that extra money, enough to warrant 2 more years of work? I find in my own case that there's very little extra I would want and enjoy with more money, so it wasn't work it for me to work any longer.
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Old 09-17-2020, 02:37 PM   #28
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Quote:
Originally Posted by refi View Post
When is enough enough? My initial post target was $2M + primary real estate paid at that time = ~$2.6m. I’ve passed that and I’m still working. I could honestly just pay off my primary and just have an outgoing of $2,000 and be pretty well set; I don’t spend much except for food or travel. Main things that stop me:

- These are my prime earning years, shouldn’t I continue to work, it seems I’m leaving cash on the table?
- Do I want a better forever home? I could work 5-10 more years and I could live in a $2M home and have way more money.
- Not married and don’t have kids, but haven’t ruled them out.

Was thinking time for a sabbatical? Maybe time for some soul searching?
DISCLAIMER: I wrote this before reading the entire group of posts, so it's obsolete.

Great job to date! The generally accepted maxim to the question when is enough is enough is "When you have enough, and you've had enough." Obviously, this is something that only you can answer. If you want a better forever home, is the sacrifice of 5-10 more years of your life worth it? I worked 5 years longer than I wanted to (moving RE from age 50 to 55) to be able to afford a great 'forever' home. Now that I'm four months away from 55, I'd say it's totally worth it.

Contingencies. 40 is really young to stop. I didn't marry until 47. If my wife had wanted kids, and we hadn't wanted to travel extensively, then we might have had one! Your desires, what you value, and your activities are likely to change throughout your lifetime. You're in a great position to FIRE should you choose, but will you regret not increasing your budget, buying that better home, or not being able to do things you'd like to do because you don't have enough income? If I were you, with the little I know, I'd continue to at least 45, since you've already expressed a desire for a better home.

Good luck!
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Old 11-12-2020, 03:50 AM   #29
Recycles dryer sheets
 
Join Date: Jul 2017
Posts: 88
Quote:
Originally Posted by REWahoo View Post
Read your 8/21 post above. You started snorting coke? Really?
Welp, no coke, no hookers, though have I thought about it? Maybe

Quote:
Originally Posted by RunningBum View Post
Seems to me that with more money comes even more responsibility, expectations, and pressure. Since it sounds like you have enough money already, why would you do this and continue to put your health and relationships at a lower priority?

Another way to look at it is to see your lifestyle as it is today. Say you work 2 more years and put away another 1/2 $million. Would your lifestyle improve with that extra money, enough to warrant 2 more years of work? I find in my own case that there's very little extra I would want and enjoy with more money, so it wasn't work it for me to work any longer.
Yea, that's the dilemma, I think another $1m would give me a little more security, I'm generally risk adversed, but you do bring up good points. With the market fluctuations, I'm up to $3.9M now. I ended up doing the interview and am expecting around a $500k/yr offer. Decisions around the corner! At this point, i'm leaning to take and see if I like it, if i'm stressed out, I'll just call it a day w/ a little more money in my pocket. I'll see if I made the right choice!

Again, don't know if this is the right board for this post as it's more an on-going update. @Mods, let me know if this goes elsewhere.
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Old 11-13-2020, 07:11 AM   #30
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Quote:
Originally Posted by refi View Post
Less than a month into this sabbatical/Early FI, I received an opportunity to interview for a new role. If I get the role, it would pay around $500k/yr. With that said, every bone in my body says I should I relax and enjoy where i've gotten to. I LOVE not having to worry about work, the Sunday dread, the everyday dread, and have kept myself way more than busy with my daily activities. For those already FIRE and overly ambitious folks, how do you relax and focus on what you love rather than what makes you the most money? Up to this point, I've been hyper-vigilant about making money and having all my decisions, even sometimes at the sacrifice of health and relationships, focus on the accumulations of wealth. Even the thought having to prep for this interview gives me anxiety. Any advice would help!
I have nowhere near as much as you and I retired a lot older at 53. Two things to consider:

1. Every year you continue to work is probably the healthiest remaining year left in your life.

2. You can always earn more so one of the keys to a happy retirement is knowing that you have enough.
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