OK what would u do?

Franklin

Franklin

Recycles dryer sheets
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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.
 
Franklin said:
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.
Click to expand...

Does 300 include taxes? If so, a SWR on 8mm is 320k. Do you want to be able to spend more than this? Is there something specific you want? Do you honestly think you'll still be spending 300k annually in 20 years?

It doesn't sound like you need to do it, so the question really is what will it give you. Do you miss working?
 
What would I do?

Cut spending, not return to work - unless I really WANTED to work.
 
I really don't miss work...and the number included taxes. I gotta sell a $2.5MM house in LA that will net me about $1.5MM not in these numbers so I got some room. I plan to move to a LCOL area where the house is already paid. DW spends way more than necessary so we gotta get that in focus. But no....in 2o years i doubt I'll spend near this much. Then why-am i so worried:confused:
 
Cut-Throat said:
See Here
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I disagree.

OP, I think you know you don’t *need* to go back. I get being worried though—it’s hard not to watch large swings and have it hurt. We’re not ER yet, but the idea of spending the nest egg instead of watching it grow, as has been the focus for so long, is stressful. Is your asset allocation where it should be? Maybe you need a lower equity percent?
 
I’d also ask if your wife is fully on board with spending limited at 300k or if there’s a concern it would go above that.

Eta, is she the same age?
 
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Franklin said:
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.
Click to expand...

You should consider laddering bonds, CDs, or preferred stock and stay away from funds (bonds and equity). You should be able to earn 5-6% or more with investment grade short/medium term corporate notes (higher for longer duration notes) or 6%+ with investment grade preferred. Preservation of capital and predictable income stream should be your strategy. You missed a golden opportunity to pick up some quality investment grade preferred stock and baby bonds in December. Many issues dropped below par are up 10%-20% from their December low.
 
Cut-Throat said:
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Serious LOL.

But to OP, the question is - Is is fun?

Once you are FI, fun is all that matters!

I just finished a week-long consulting gig in my old biz, and it was great fun without any management hassles, responsibility, or stress. I would like to do that once a month or two, just as a hobby job = Jobby.

OTOH, there was a thread here a year or so ago that asked "how much would it take for you to go back to work?". I gotta admit, for the right offer - noticeably more than I was making at peak earnings - I might go back for a 2-year gig.

OTTH (on the third hand) I'm 56 and you are 63. With that in mind, NFW.
 
Looks like you don't have to go back to work. It looks like you are feeling vulnerable due to the loss. You just need to assess what you have and feel good about it. I used to do something similar when I had a bad day at work or was presented with challenge I was not sure of. I would pull out copies of past performance assessments and read about how great I was. Today I use a spreadsheet I started many years ago. I look at where I used to be, where I am now, and where I have projected I will be in years to come. I always find that I am better off than I projected in the past, living well today, and the future is no worse than the present and usually much better. We don't budget but do track what we spend for projections. If the wife spending is a problem, give her and allowance, don't act rashly on present losses, and believe in your future.
 
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What would I do? I'd retire ASAP.

$300K/year is only 3.75% of $8M. You're in your 60's, not your 30's, so that is a reasonable withdrawal rate.

Just make sure that the $300K includes taxes, medical, and a little buffer for unexpected big expenses that could arise now and then.

Sounds to me like you are all set!
 
Cut-Throat said:
See Here
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:D I've learned a new word. Thanks.





To the OP - You should go back to work. You do not belong in ER world. Work, work, work, and have fun, fun, fun in what you do. If you find the answer to ER life, come back here and post. Until then, your post is really a strange one to my taste. These are the things I find to be strange even to a point of suspecting you are a troll or see Cut-Throat's post above.


  • 2018 market drop was preceded by strong market years. The gain in those years should have been more than enough to offset 2018 drop even with your spending splurge of $300k/year.
  • Can't make a living on $8M.
  • Must spend $300k/year when you are worried about market drop and considering going back. Most would look at cutting their budget first.
Work, work, work, you go.
 
Franklin said:
You are probably right. Maybe I don’t belong here. I tried
Click to expand...

You might try the fatfire forum on reddit. I personally appreciate the diversity of experiences and budgets here. We're targeting a similar spend for the first portion of RE, so while not at your NW yet, have a similar goal.

If you have the option to go back and make that kind of money in two years, I think you likely also have the personality type that makes it hard to say no, even if it's just not necessary. At some point you have to decide if you have 'enough'. Only you can judge if you're there yet, or if you want to hit that even 10, which I suspect is in your head somewhere.
 
OP - Honestly you can stay retired, you do have enough $$$.
A big issue is if you have the emotional strength to withstand market drops, without panicking. After all this recent dip is something that has been rare in recent history, but normally would happen every year or so. It is also a far cry from a serious plunge of say 40-50%.

Perhaps your asset allocation is not correct, mine is not.

As for the job offer, if I was offered it, I would be very tempted, probably even take it. Then I could blow an extra $100K per year just for fun for the rest of my life
 
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