Poll: Should I stay or should I go now

[dayzero]

Wow, amazing, thoughtful responses. Thanks everyone! Such a hard decision.

 

[Woodsrider]

I am slightly leaning toward staying. I don't know what your sport is but I am into extreme sports and I have seen many friends that got injured. Depending on the injury you may not be able to pursue your sport or work, so 2 years would be insurance.

 

[CaliKid]

You are young. I'd stick it out two more years for the big pay day. That's a nice extra cushion.

 

[Winter]

I would hang around for the two extra years of excellent income, especially since you said it is a one time situation and can't be replicated. Huge payoff with little risk and then you are set for the rest of your life. That amount of security for such a little investment (2 years will go very fast) is huge. Best wishes for whatever you decide!

 

[RunningBum]

If you go, there will be trouble
And if you stay it will be double.

Can't believe you all saved this for me.
Thank you.

I know it's lyrics from a Clash song, but in reality the OP is in great shape and really can't go wrong either way.

 

[sheehs1]

Since you are in your early 40's, don't hate your job, and this opportunity may not present itself ever agin, I would stay the 2 more years. That extra money will give you a lot of options going forward

I agree with this as well. Also agree with another whose point was for 5% of the rest of your life, you become more than set for life and can weather just about anything...at least anything financial. Great position to be in!

 

[jollystomper]

To the OP, maybe I did the math wrong and misread the initial post, but if all of your money to live off of is from the expected sale of your home, does that mean you have nothing else currently saved/invested? It just surprises me that, with your current compensation, your lifestyle is eating up all of your earning. It seems that would then be a challenge to whittle it down to $75K a year.

I understand the "follow your passion" mantra, but in this situation, with the information provided, I'm leaning towards the pragmatic side at saying stay.

 

[ncbill]

I am slightly leaning toward staying. I don't know what your sport is but I am into extreme sports and I have seen many friends that got injured. Depending on the injury you may not be able to pursue your sport or work, so 2 years would be insurance.

+1000

I personally knew an Olympic skier whose career ended from what for most of us would be a minor, common injury, & which happened through no fault of their own.

OP should absolutely stick around for the full 2 years to significantly goose their asset base.

 

[Midpack]

- I am not passionate about my job, at all. Don't hate it...

- ...if I stay two more years the walkaway number would be closer to $5M instead. Kind of a lot of money to walk away from.

- I'm equally afraid I'll regret selling these two prime years of my life for money that I don't really end up needing.

So... what would you do?

What I'd do doesn't really matter, but you asked. Sounds like you're pretty young. If you don't hate your job and you can add $1.2M (or 31%+) in compensation alone by working two more years, I'd stay even though I'm older than you are. There is simply no way to know now whether $3.8M is all you'll need, odds are you're going to be retired for 40-50 years, and you're not going to know if it was enough or not for decades - at which time resuming any well paying career is highly unlikely.

And the anonymous people who vote "go now" have absolutely no skin in your decision. You'll have to live with the decision for the rest of your life...

 

[Odiedog]

Go now. Who cares about the extra money. You've got college expenses covered, $75K/year to live on, and a passion to do something else.

Congratulations, you made it. Enjoy it.

+1. It looks like you know that but want someone to talk you into having more $ rather than time. You can make more of one, not the other IMHO.

 

[foxfirev5]

If you need a poll to tell you what to do you're not ready.

 

[pb4uski]

If $2 million fell into your lap today so you have $5 million rather than $3 million, how would your life be different? While you would have a bigger and stronger balance sheet, would the quality of your life be substantially different? Your answer to those questions may provide insights as to your answer to the stay/go question.

In my case, staying would have meant more financial security and more money for our kids and charities.... but where we were was plenty good and time is a valuable commodity so I resigned.

 

[travelover]

..........And the anonymous people who vote "go now" have absolutely no skin in your decision. You'll have to live with the decision for the rest of your life...

How much skin do the anonymous people that say "stay" have in the decision?

 

[Luck_Club]

Math is hard

From the way you described your situation you have 1 asset the house. It is a big asset, so I assume you have earned very well over the years to be able to get that big asset. (WHERE DID THE REST OF THE MONEY GO?)

Any way you slice it if you can increase your nest egg by 30% for one more year you need to take it. One way of looking at it is; it took you 20+ years to save $3 million, but in only 1/10 the time you can save another 2/3 that amount.

Finally you $75K spend rate is way too low for a $500K house, with no health insurance, and kid(s) not even in college yet. At current insurance rates, tax rates etc, you are going to have less than the median household earning left. I'm not saying that is bad, but it isn't going out in a blaze of glory after grabbing what I assume is the brass ring.

 

[RunningBum]

I don't think the OP has a $3.8M house, more like a combination of investments and house equity after all closing costs adding up to $3.8M. Could be $2.8M + $1M or $3.3M + $500K or something like that. I know it could be $0 +$3.8M but I really doubt it.

I'm curious what the sport is if you're willing to disclose.

 

[Midpack]

How much skin do the anonymous people that say "stay" have in the decision?

None, but they’re not recommending he pass on $1.2M that he/they probably will never get back, hardly the equivalent risk. The OP is probably going to be retired to pursue his passion for 40-50 years either way.
indeed

 

[ugeauxgirl]

I'm in a similar situation. In order to be in the situation you're in, you have sacrificed a lot. You've been telling yourself for years that you're going to quit when you reach whatever number, and now you're there and you are not giving yourself the reward you promised yourself. My husband is a few years older and his attitude about work is different from mine. He can't imagine retirement and thinks working is a sort of virtue- someone told me this is typical of Baby boomers- I don't know. I'm a gen-xer (i'm a year or two older than you) and my attitude is that work is what you do when you need money. When you have enough you should quit.

I am not voting. I have waffled back and forth several times on my own situation, how could I vote yes or no on yours? My job situation has changed (I used to be just tired of it, but "hate" is becoming more frequent) and I'm leaning in the direction of quitting. I'm going to make a decision after the end of the year. But when I didn't hate my job, I was going to hold out for the payout. I feel your pain. Keep us posted as to what you decide.

 

[militaryman]

If it was me and the DW ( no children ) I'd go now but since that's not the case I'd stay and get the extra cushion. I'm always thinking things like what if one of my children has a special needs child or an accident that they required long term care --- I'd just feel alot better with the 1.2 mil of cushion as insurance against Murphy's law ... Even thinking that without having nearly as much as you in 7 years when I am ready to retire that I'll gauge going based on whether everything with my kids looks like "a go" vs whether me working a couple more years could make a significant difference in their futures.

 

[Ready2Go]

I voted stay. 2 years is a small price to pay for HUGE peace of mind. $75k for a family of 4...incl HI....is too tight for me. 2 years will go by in a snap.

 

[traineeinvestor]

Another vote for stay - it's effectively what I did and I sleep very well as a result. In an uncertain world, I'd rather front end load a couple of years at high income when I'm relatively young and valuable to employers than be cutting expenses or scrambling for work when I'm older.

Zero regrets.

 

[dayzero]

Thanks again for all the votes and responses.

To clarify, no I do not own a $3.8M house with no financial assets. You can think of the $3.8M as net worth after incurring the selling and moving costs involved in executing our RE plan.

It seems like the consensus is to stick it out. There is always the compromise position - do one year of the two and get half the money. The sticking point in my mind is that my remaining years are not fungible - a year now is worth a lot more to me than a year later because of what I love to do. I just hope I don't regret selling this year 10 or 20 years from now, but even if I do, hey, more money for my daughter and for charity.

 

[CoolChange]

Another Similar Situation

I'm in a similar situation. In order to be in the situation you're in, you have sacrificed a lot. You've been telling yourself for years that you're going to quit when you reach whatever number, and now you're there and you are not giving yourself the reward you promised yourself. ....
I am not voting. I have waffled back and forth several times on my own situation, how could I vote yes or no on yours? My job situation has changed (I used to be just tired of it, but "hate" is becoming more frequent) and I'm leaning in the direction of quitting. I'm going to make a decision after the end of the year. But when I didn't hate my job, I was going to hold out for the payout. I feel your pain. Keep us posted as to what you decide.

I have been in a similar situation for a few years now (several OMY’s). The details are a bit different: I am a bit older but not much; my annual payoff isn’t quite as good as yours but has been available for a few more years; etc.

I also made the mistake of creating a spreadsheet similar to the one flintnational posted; the numbers if I keep working another 20 years (to a more traditional retirement age) are very impressive. Honestly, a bit depressing to consider what I plan to give up. Of course, I have also watched many family and friends die or become disabled younger than my current age.

On a positive note for my day to day: Every time I tell my management that I am done, my job gets better (less bureaucracy, more of what I really want to be doing). So, I continue to do OMY; eventually corporate cost cutting is likely to make my decision for me. Even so, I would much rather be spending time outdoors than sitting at my desk.

Since I cannot seem to make the decision for myself, I am not voting on yours. Rather, I am just letting you know that you are not alone.

 

[Midpack]

Thanks again for all the votes and responses.

To clarify, no I do not own a $3.8M house with no financial assets. You can think of the $3.8M as net worth after incurring the selling and moving costs involved in executing our RE plan.

It seems like the consensus is to stick it out. There is always the compromise position - do one year of the two and get half the money. The sticking point in my mind is that my remaining years are not fungible - a year now is worth a lot more to me than a year later because of what I love to do. I just hope I don't regret selling this year 10 or 20 years from now, but even if I do, hey, more money for my daughter and for charity...

...or unexpected expenses. You’ll have some/many, guaranteed.

 

[Dash man]

The unknowns are the scary part. Will everyone in your family maintain good health? What will quality health insurance cost from the time you leave until you qualify for Medicare, and what will that cost? What will happen to the property taxes on that $500k home? My home value is about the same and costs me $7700/year now...and rises every year. So with health care and property taxes together possibly taking 30-40% of your income, I personally wouldn't be comfortable leaving a job in your situation. I'm about 20 years your senior and a little more than double your net worth, but still am concerned about the health care costs and taxes eating away at our assets. Especially if we have a long term downturn in the markets.

 

[dayzero]

The unknowns are the scary part. Will everyone in your family maintain good health? What will quality health insurance cost from the time you leave until you qualify for Medicare, and what will that cost? What will happen to the property taxes on that $500k home? My home value is about the same and costs me $7700/year now...and rises every year. So with health care and property taxes together possibly taking 30-40% of your income, I personally wouldn't be comfortable leaving a job in your situation. I'm about 20 years your senior and a little more than double your net worth, but still am concerned about the health care costs and taxes eating away at our assets. Especially if we have a long term downturn in the markets.

It all depends what you're scared of. Me, I'm scared of dying rich, it means I wasted too much of the most precious and scare commodity we have - time. Things I'm not scared of - downsizing my lifestyle if necessary or even moving to a cheaper country. Healthcare can only bankrupt you in the good old USA.