OK what would u do?

[garyt]

See Here

Hard not to feel that way sometimes when you see these posts

 

[medved]

Hard not to feel that way sometimes when you see these posts

Why is it hard for you? Do you assume that anyone who who has a financial/life decision they are struggling with -- and who has accumulated significant assets and expenses --must be bragging by posing their question on this forum? That seems like a pretty uncharitable perspective. Or is it just that you find it hard not to be jealous of someone who has accumulated more money than you have? Maybe you are not alone there, but it is good to resist jealousy if you can. There will always be people who have more than you do, or less than you do.

I know lots of people who have very limited incomes and assets and who have financial and "time versus money" decisions to make. Like a young physical therapist, for example, who was offered an extra $8,000 a year income to become a supervisor, and was trying to figure out if it would be worth the added stress. I also know some wealthy people -- much wealthier than the OP -- who are struggling with decisions about whether to continue to work, balancing their desire for free time against their desire to maximize their charitable or family legacies. They all have real decisions to make that are important to them. If they ask their questions, they are doing so in good faith, seeking advice and input. Why should we assume the worst about people, or resent their success? I don't get it.

 

[24601NoMore]

They all have real decisions to make that are important to them. If they ask their questions, they are doing so in good faith, seeking advice and input. Why should we assume the worst about people, or resent their success? I don't get it.

It does seem a bit odd - there's been some very good advice given to OP as to how he can stay retired and eliminate his financial stress entirely..but so far, no indication that the advice given is going to be acted on. Many of us are also wondering WHY does he think he needs the additional $$? He's set for life..possibly several lifetimes. And the sale of the $2.5M home (which we haven't even talked about Cap Gains that would increase the kitty even further) puts him more in the catbird seat with reduced spending down to $250K. He's golden, and we haven't heard any reason why anyone in that situation would consider going back to work..he seemed to imply it was financially motivated - yet, the feedback given by all shows pretty conclusively he has absolutely nothing to worry about whatsoever in terms of financial security and the ability to live the rest of his life on the $8M..for those reasons, some here are wondering...

 

[tmm99]

Just reading your first post about your other two brothers dying early (65), if I were in your shoes, I wouldn't go back to work for any amount of money. I had a cancer scare which turned out to be negative but gave me about 2 weeks to re-evaluate what was important to me and re-prioritized my life. I re*ired within 6 months of this re-evaluation period. We tend to forget our lives are finite. It's fine if your work brings you pleasure, but if you have other things you want to do more, you have enough money to not go back to w*rk.

 

[dixonge]

You say the recent market drop cost you a few year's worth of withdrawals - but the market (as a whole) is very close to being completely recovered back to September's high. I guess you are invested in such a way that your portfolio has *not* yet recovered?

 

[travelover]

Why is it hard for you? Do you assume that anyone who who has a financial/life decision they are struggling with -- and who has accumulated significant assets and expenses --must be bragging by posing their question on this forum? That seems like a pretty uncharitable perspective. Or is it just that you find it hard not to be jealous of someone who has accumulated more money than you have? Maybe you are not alone there, but it is good to resist jealousy if you can. There will always be people who have more than you do, or less than you do.
.......

I think that you are being judgmental of someone that you think is being judgmental. Pot meet kettle.

 

[gwraigty]

DW spends way more than necessary so we gotta get that in focus.

This is the reason why I started talking about expenses. I'd be hard-pressed to come up with enough to spend $300K/yr. on. I cannot relate to this level of spending at all. However, Franklin seemed concerned about it, so I don't feel it was inappropriate for anyone to mention cutting expenses.

The other alternative, which I also mentioned, was to invest the $8M a little differently so that a significant chunk of annual spending is covered by the investment income. No need to cut expenses then, although always optional.

 

[pletal]

I am in the same boat .... almost

I am happily retired (age next week 63). The last thing I really wanted was to suit up and join the game. But.....the recent market drop cost be a few years of WD's. No worries a drop for me is around $400K!!!. So, Ive started takin the calls and am 50/50 on whether I should re-enter the race at 63!!. Still have about $8MM in eggs but will absolutely spend $300K annually (shoot me now!). Offer is for about a 2 year commitment for what looks like $3MM. Admittedly don't need this but I got 2 years till the magic 65.....ugh....I love this forum and don't judge just slap me and say get over it!!! This forum is full of honest feedback so give me your thoughts.

I have a chance to retire at 57 with about 8.8MM . I can stay on till 60 and hit almost 10mm. DW looked at me last night and asked if I was ready, she wants us to retire ASAP. Don't think I will spend 300K per year, but could. I am torn on your situation , and mine. I need to find a hobby!

 

[Franklin]

I have a chance to retire at 57 with about 8.8MM . I can stay on till 60 and hit almost 10mm. DW looked at me last night and asked if I was ready, she wants us to retire ASAP. Don't think I will spend 300K per year, but could. I am torn on your situation , and mine. I need to find a hobby!

Thanks...to all reading this, go back and find all those surveys that ask about NW. I think you will see we have memebers (likely 10%) that have assets in this range. So it is also likely we struggle with decisions like this. I know I can’t go next door and ask a neighbor. What I didn’t ask is whether I could afford this.....but rather what you would do. I know my numbers work but it’s logical that I would pause and look at all opinions. I’ve found the majority here offer great advise and it matters. I don’t make decisions based upon solely my financial advisor or family’s wishes, I get as much advise as reasonable. Here we have over 100 hopefully like minded honest people who mostly give good advise. I appreciate that greatly. Untimately I will make the decision. For now I am just listening.

 

[swakyaby]

What I didn’t ask is whether I could afford this.....but rather what you would do.

I would feel tempted by an offer that allowed you to increase your net worth by nearly a third for 2 years of work. I think the snarky replies come mainly from those who doubted the sincerity of your question. But I think many members on this forum do understand you. What would I do? If I found that the work demands were keeping me from enjoying those outside interests and hobbies due to time, I would not accept the offer. But if the work provided psychological benefits and a reason for getting up in the morning, and I didn’t feel like my life was being put on hold, then I might consider it. In my case, I was a well-compensated employee, and the thought of walking away from that kind of income at 56 gave me pause. But I had more than enough savings, and I yearned to have more time to nurture those outside interests that I could only touch upon while working. And my health could change at any time, as surprising as that would be. So I walked away and never looked back.

In comparison, my investable assets dropped by nearly 600K last quarter, and that represented a larger percentage of my smaller portfolio than yours. It was somewhat disturbing, but I had enough cushion to tolerate temporary swings in the market, so I was still able to sleep at night.

 

[Gumby]

This is an interesting question for someone like me, who is less than 4 months from my planned retirement.

I know how long and hard I had to work to get my net worth to the point it is now. So the idea of increasing it by a third in return for working only two more years would greatly tempt me. But then I'd ask myself what I would do with that extra money. I already have enough to live the way I want in retirement, and I'm running out of time to do and see all the things that I want to do and see. I've always enjoyed work, but it takes away from the limited time I have left.

Whatever you decide, just make the decision and move forward. Don't second guess yourself; life is too short for regrets.

 

[24601NoMore]

OP - what would you be looking to accomplish by having the extra $$? You're already beyond financially secure and should easily be so the rest of your life. So, what would having the extra $$ (whatever it is - you didn't seem to indicate whether it was $3M before or after tax..if after, that's probably ~$1.5M net at your bracket) provide you?

Unless you can answer this question for yourself with a great deal of conviction, not sure you are going to come to an answer with or without ER.com's help that you will be confident in..you need to determine WHY you would consider going back. If it's just to "run up the number", that's seldom a good reason..

 

[ckelly78z]

My question would be, 2 years from now, your extra time is coming to a close, and you've made the extra compensation that you asked about in the OP, would you be content ?

What would happen if you got the same deal for another 2 years from that point, would you take it, and live like a king (albeit for 4 years less) ?

 

[redduck]

I am happily retired (age next week 63). The last thing I really wanted was to suit up and join the game. But.....the recent market drop cost be a few years of WD's. No worries a drop for me is around $400K!!!. So, Ive started takin the calls and am 50/50 on whether I should re-enter the race at 63!!. Still have about $8MM in eggs but will absolutely spend $300K annually (shoot me now!). Offer is for about a 2 year commitment for what looks like $3MM. Admittedly don't need this but I got 2 years till the magic 65.....ugh....I love this forum and don't judge just slap me and say get over it!!! This forum is full of honest feedback so give me your thoughts.

What to do? I don't know, but I can tell you what I did:
I worked an extra two years past my original quitting time. I liked my job and I've always enjoyed making money and I had no great passion outside of work. (Well there was this one UCLA co-ed...). Anyhow, I retired at 70 and never looked back (but that's only because it's hard for me to turn my head).*

My idea for continuing working was to have extra money so I wouldn't experience money anxiety. That worked out. Now if I want something slightly too expensive, I can say to myself, "This is what I worked two extra years for." Hey, I buy avocados no matter what the price. And, when the market drops, I have a much thicker cushion than I would have had if I retired earlier.

Did I need the extra money in real life. "No" ( is the answer). But, psychologically, the answer is "It seems so" ( as in psychology nothing seems to be definite).

My guess is whatever choice you make will work out just fine. After all, you do have two terrific options.

*A tip for you: I do suggest that if you want to look back, don't wait until your too old to do so. I mean, there's still ways to look back, but you'll need to use a mirror and that can be fairly inappropriate in social situations. (Or, so I've been told........on several occasions).

 

[RenoJay]

I think that for some of us whose w*rk is relatively fun, easy and lucrative, our dilemma is more about the joy of total freedom vs the joy of watching the numbers on our spreadsheet get bigger. If you get honest with yourself about which one brings more joy then you’ll have your answer.

 

[Bestwifeever]

If you take the gig and hate it, you can always bow out. If you don’t take it, you might always wish you had.

A friend’s DH is still working at 80 and she (retired for ten years) is finally resigned to it. He loves his work and has time off whenever he wants, so they can travel a lot.

Different strokes.

 

[Scratchy]

What am I missing here? He said 300k included taxes? It would be very surprising if the majority of this $ was not invested in taxable accounts. Probably ~ a 50% cost basis, with some dividend income, so say 150k of his own money, 75k of dividend income and another 75k of capital gains. Taxes on that are pretty cheap, no? By my estimates about 15-20k, assuming capital gains taxes don’t get massively changed of course.

At 4% swr he could take 320k and I would assume he’s got another 35-40k per yr of SS income that he’s not counting in there.

Mea culpa, I missed that part about 300k including taxes. Agree completely, OP appears to be sitting pretty.

 

[flintnational]

OP, you are financially independent. IMO, you can continue your current spending level and be fine. So, do what makes you happy. If you enjoy work, then go back to work. I would not go back just for the money. If you truly are concerned about having enough but do not want to work, then focus on reducing spending.

Since you are recently retired, you may just be feeling the early retiree jitters that many feel. They go away with time. I have one other thought. If you have the potential to earn $1.5M per year, you may not be use to budgeting (never had to - always had a high income). If this is the case, I suspect you can reduce your expenses without much impact on your lifestyle.

 

[Franklin]

Mea culpa, I missed that part about 300k including taxes. Agree completely, OP appears to be sitting pretty.

Thanks Scratch....your wisdom is appreciated. This has been a subject that keeps me awake at nights and DW and I are at a crossroad. We are in Cali and my wife's mum is in Georgia and just found out open heart is necessary. I have a lovely home there and it appears I need to take advantage of it and be there. It's funny how each day reveals a new page of revelation.

 

[Franklin]

OP, you are financially independent. IMO, you can continue your current spending level and be fine. So, do what makes you happy. If you enjoy work, then go back to work. I would not go back just for the money. If you truly are concerned about having enough but do not want to work, then focus on reducing spending.

Since you are recently retired, you may just be feeling the early retiree jitters that many feel. They go away with time. I have one other thought. If you have the potential to earn $1.5M per year, you may not be use to budgeting (never had to - always had a high income). If this is the case, I suspect you can reduce your expenses without much impact on your lifestyle.

again a wize poster. You are right Ive never had to budget in the last 10 years and that is an issue. I grew up quite poor and know how to cut back and have plans to reduce my real estate exposure which will get be back in the comfort range. FTI, my work really never made me happy but it paid me far more than I had ever anticipated. I am having to learn how to chill and not feel the need to keep adding to the portfolio. I appreciate your thoughts.

 

[steveark]

I am 63, been retired three years. I turned down $1.2 million last year because when you have enough, you have enough. And I have enough and you do too.

 

[2177V]

Sounds like you need a financial advisor.

First of all, your investment should have been diversified into many different asset classes so that when the market drop or crashes, you should have some asset class that holds its value. This strategy provides "liquidity". Liquidity is overlooked by some investors. However, liquidity become vital when you are close to retirement.

When the market drops or crashes, it essentially "freezes" certain asset classes simply because seliing that asset class that lost say 30% will locks in your losses. You will also break the golden rule of "selling low".

For example, US treasuries to provide liquidity. However, some investors dismisses US treasuries because they earn so little. They become a life saver during a crash because people can live off this asset class until the other asset class recovers.

Remember buy low and sell high. Never do the opposite. With a diversified investment portfolio in many different asset classes, you can pick the one asset class that is relatively higher than the other asset class to liquidate and live on during retirement.

This is one reason that I do not like balanced funds or target fund because they comingle asset classes. However, if the market crashes 30% and your balance fund only loses 15%, you still lock in a 15% loss when you sell. On the other hand, having a separate stock fund and a separate bond fund allows you to liquidate only the bond fund and allow time for your stock fund to recover.

A financial advisor will explain the importance of having a diversified portfolio with many difference asset classes that provides liquidity.

 

[Retch The Grate]

So it doesn't sound like you are loving what you are doing, in which case, the extra $3MM is at a very real cost of two of your remaining years of good health. Do you have additional things you would enjoy splurging on that that money would enable to make up for continuing to work? If you don't need the money to enjoy your life, and you don't need the work to fill your time with activities you value, then it's pretty easy, walk away. If you would really enjoy the money, then it's how much fun will it be versus how much you dislike work? Finally, if you would have fun doing the job and that works with your other family commitments, then its an easy choice of sure, go do the fun thing and get a big pile of money for blow that dough time.

It sounds like you are in the first case, you don't want to do the job, and you don't need the money to enjoy yourself, so probably time to go have fun.

 

[pb4uski]

Just had an additional thought. OP is 63. According to actuarial tables has about 20 years left on average... would he want to waste 10% of his likely remaining time working?

Not this 63 yo!

 

[CardsFan]

Just had an additional thought. OP is 63. According to actuarial tables has about 20 years left on average... would he want to waste 10% of his likely remaining time working?

Not this 63 yo!

I'm with you on this, same age. BUT some folks just thrive on the excitement of the job. If it floats his boat, have at it. But since he posted here, maybe there are second and third thoughts?