OK what would u do?

[HI Bill]

Regarding taking the offer, I have mixed emotions. If money was not in the discussion I would not take the offer. My only hesitation was and is how much money might get my attention. That is a reasonable question!

You started the original post with 'happily retired'. So, the question is, how much less or more happy would you be going back to work for two years? Would it make you and/or your wife miserable or overly stressed? How's your health? How satisfied with what you're doing in retirement? Are there things you want to do in retirement that you haven't done? Do you have grandkids and you'd miss out being involved in two years of their formative years? Do you want to leave a larger inheritance to someone or some charity? Are you happier having more time away from your wife? What difference will $3MM make in your lifestyle at 65 and beyond?

You have 'enough' to meet your current lifestyle. So, the question is more about lifestyle, and how you want to spend your remaining years, than it is about the $.

Best wishes! Most of us are here because time>$. Many of us live OMY syndrome because we're afraid of running out of $. You don't seem to have a significant possibility of that. Enjoy life. Cheers!

 

[Dtail]

Interesting thoughts on both sides of the equation.
As one who supported a trader earning 5mm per year in the 80's, any jealousy concepts were quickly vanished.
The die hard LBYMers on this site can't imagine spending 300k per year. It depends on one's exposure I guess. My DGF's best friend's hubby earned 8mm per year. They spent way more than 300k.

 

[HI Bill]

The die hard LBYMers on this site can't imagine spending 300k per year.

To get where I am (~$2M), I've been LBYM for two decades. To get to $8MM, I'd have to work about 16 more years, until 69.

I can certainly imagine spending $300K per year (mostly through continuous dive travel), but by then, I wouldn't have enough energy to do it. And my eye condition might get worse, eliminating the possibilty of doing that. Or I might just keel over from stress!

 

[imoldernu]

I guess I was one of the snarky ones. Just out of utter amazement. A little more than two years of the $300K expenses has sustained us for the past 30 years, and we still have it... and a little more. Here:

http://www.early-retirement.org/forums/f27/sharing-23-years-of-frugal-retirement-62251.html

I wish you the best of luck and many, many years of happiness. Hope you'll come back and share some of your experiences, like Souschef... who has provided jeanie and I adventures from around the world to enjoy.

 

[Dtail]

To get where I am (~$2M), I've been LBYM for two decades. To get to $8MM, I'd have to work about 16 more years, until 69.

I can certainly imagine spending $300K per year (mostly through continuous dive travel), but by then, I wouldn't have enough energy to do it. And my eye condition might get worse, eliminating the possibilty of doing that. Or I might just keel over from stress!

I hear ya. I have been LBYM my whole career years, but not saving 30/50% of income.
I agree in your case and many others it would not be worth it.
My angle was more so for those that live on let's say ~50k per year, it might be hard to imagine why one needs 300k spending.

 

[Scrapr]

For your entire cell plan? We have unlimited data on our lines. $150 is my best estimate of what it would be. Right now DH is on AT&T and I’m on Verizon and we both pay ~100/mo each for our plans. Don’t ask... the waste drives me nuts

We need unlimited data for work—have no idea how much we use now, but I tried a lower tier plan and went over. I get a lot of large data heavy emails...

Eta I think this also includes insurance for our phones. We have a bad track record there...

Metro PCS has 4 lines, unlimited data for $100/mo

rent out 2 lines for $50 per and get free phone! Bam...$200/mo in your jeans

 

[eytonxav]

I retired at 63, but probably would have kept working if not for a commute that became unbearable. Any how, if I was offered the gig you mentioned at that age I would have seriously considered it even with the commute, but now as I close in on 70, no way for any amount of money, as time in an enjoyable retirement trumps any $ amount at this point in life.

 

[Chuckanut]

All I can say is you aren’t going to get any healthier working two more years. As many people can tell you, anything can happen in this stage of life to put an end to your plans. You seem to have won the game, but now want to play an extra quarter to run up the score. My 2¢. Take what you wish and leave the rest

 

[ckelly78z]

All I can say is you aren’t going to get any healthier working two more years. As many people can tell you, anything can happen in this stage of life to put an end to your plans. You seem to have won the game, but now want to play an extra quarter to run up the score. My 2¢. Take what you wish and leave the rest

Well said^^^, I tend to agree with an earlier post, that $300,000 would last me 8-10 years, and I would never gamble my health on getting even more.

 

[Franklin]

I guess I was one of the snarky ones. Just out of utter amazement. A little more than two years of the $300K expenses has sustained us for the past 30 years, and we still have it... and a little more. Here:

http://www.early-retirement.org/forums/f27/sharing-23-years-of-frugal-retirement-62251.html

I wish you the best of luck and many, many years of happiness. Hope you'll come back and share some of your experiences, like Souschef... who has provided jeanie and I adventures from around the world to enjoy.

as u so eloquently said.ONE SIZE DONT FIT ALL.. Luv u

 

[Brat]

My granddaughter mentioned that you can't buy time with money (out of the mouth of a 10 yo), there is wisdom in that observation. I did what the OP did after I early retired (without the $$$$$$ offered) because I thought I could further what is important to me and I would enjoy it. The other issue was what I would do if I didn't accept the offer.

To me, value the time you spend on this earth as it is priceless.

 

[Helen]

I've been retired for almost 5 years and no amount of money would draw me back into the working world. We have more money than we will ever spend and we are enjoying our good health and travel.

I wish you the best in making your decision. We are fortunate to have this forum because these aren't the kinds of topics that are easy to hash out with friends and family.

 

[Aiming_4_55]

It looks like you retired in July 2018, so just an extended vacation so far and then the markets took a hair cut. Ask yourself, do you miss the "game" and be honest. I've lived in LA area for about 6 years now and met many people, some truly enjoy the lifestyle beyond money... the scene, famous people, community, etc.

Market drop (400k) is a small % of your net worth and recovering ok. Perhaps a few new hobbies will take your focus away from that.

In one of your other threads, you posted.... I am the youngest of 3 boys and both died at 65. My brother just passed from a stroke after receiving 3 SS checks. The 3rd check was recalled because he died a week into the period. All this was sobering enough for me to say it's time to stop and smell the flowers!!

If you miss the game a little, offer to do it part time and enjoy the safety net of some extra $$ and benefits otherwise enjoy your retirement.

Note: I'm not retired and doing OMY or TMY as I'm enjoying the LA tech game a bit with young children at home so limited travel options.

 

[24601NoMore]

For your entire cell plan? We have unlimited data on our lines. $150 is my best estimate of what it would be. Right now DH is on AT&T and I’m on Verizon and we both pay ~100/mo each for our plans. Don’t ask... the waste drives me nuts

We need unlimited data for work—have no idea how much we use now, but I tried a lower tier plan and went over. I get a lot of large data heavy emails...

Eta I think this also includes insurance for our phones. We have a bad track record there...

T-Mobile has a 55 and over plan with unlimited "everything" (including data) for $70/mo, 2 lines.

We switched from AT&T and are saving a BUNDLE every month.

 

[24601NoMore]

OP - since you mentioned you're cutting expenses by at least $50K/yr with the sale of the $2.5M home, that would mean you're already down to $250K with no other changes. That's a roughly 3% SWR, which is imminently doable in any number of ways, from simply tucking it all in FDIC or NCUA insured CDs, EASY return on a 40/60 or even 30/70 portfolio, bonds, etc.

You have "enough" to last the rest of your life, and probably several additional lifetimes.

The question IMHO that you need to ask yourself is - what would you be trying to achieve by getting the extra $3M (before taxes, of course). YOU DON'T "NEED" ANY ADDITIONAL MONEY. Is your time worth the extra $2M or so?

 

[24601NoMore]

PS - I walked away from a pretty good pile of unvested RSUs when I ER'd this year. Enough for 5 or so additional years of spending for us, post-tax. These are the choices we make, so that we can have the time to spend with those we love, doing the things we enjoy. You only go around once. Use your time well.

 

[Amethyst]

Do you like the work? That, I think, is the question! Don't you have to work pretty hard to earn $1.5M a year?

I would be the last to shoot you for spending $300K, but when are you spending it? Just for high-end basics (home, car, family's needs and wants), or are you squeezing in vacations around the edges of 60-hour work weeks?

If it is going to seem like "work" to you, then my advice would be to suck it up and spend less.

Edit: We are touring Florida real estate right now with an agent who is 87 years old, and the widow of a WW2 vet. She knows we are unlikely to buy on this trip. She purely loves houses - quite a few real estate agents do, I've fond. So it is possible to work forever, because you enjoy it (not be in need).

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.

 

[bobandsherry]

Guess I would look to see how I could save some $$$ each month and be sure I never had to go back to work simply because the market moves down. I think your current pot of gold should be sufficient.

 

[retired1]

Don't watch markets especially when it's going down. You are still young enough (aren't we all on this forum ) to recover any losses over the next 10-15 years. Watch your spending carefully and live happily. You've done something right to amass $8MM. That's an impressive number.

 

[Golden sunsets]

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.

We just reviewed our month end position as of the end of January and increased our net worth for the month by an amount greater than the decrease in our net worth for all of 2018. Our AA is 52/46/2. Did you not experience a similar gain to offset the $400,000?

 

[audreyh1]

OPs WR is less than 4%. He'll probably get SS in 10 years dropping it close to 3.5%. He's over 60 yrs old. He's got some equity in the house he's planning on tapping.

And most are saying he should cut expenses!

Suspenders, belt, and duct taping the pants into your hips.

You're fine OP, .....

Totally agree.

Why advise someone to cut spending who is clearly well funded, can afford it, and already 63?

Just because they are spending way more than you would?

They just need to review their priorities plus review their investment strategy and see whether it is too aggressive for this stage of their life.

 

[audreyh1]

+1 Totally unnecessary snarkiness. If he had taken 20% of his numbers and said he had $1.6m, spend was $60k/year and he could go back to work and earn $300k for two years work I wonder how the responses would have differed.

Definitely!

 

[audreyh1]

Well I have not bailed on this post and appreciate everyones opinions (even the snarky ones). I do find it funny that most of the post seem to boil down to cell phone cost, milk prices etc. I had a legitmite question that I valued the forums thoughts. Some posters do seem to have an issue when a member takes the time to share their number and they are higher than their own. No need for that if we are honest with each other.

Now to answer some questions. I am spending today to maintain 2 expensive houses. One will be sold by mid year and the equity will payoff the balance on the other and add a decent amount to my portfolio. This will save taxes, interest, insurance , and upkeep on a $2.5MM house. That cuts the annual spend by $50K. The move is to a lower cost area with no mortgage. Have already gone over all this with DW and she understands in inflow and outgo. Time will tell whether this works. I did reduce my AA to about 50/50 but I may get more conservative. The swings, while small in percent, scare me when I look at real dollars.

Regarding taking the offer, I have mixed emotions. If money was not in the discussion I would not take the offer. My only hesitation was and is how much money might get my attention. That is a reasonable question!

50/50 seems like a reasonable AA and not too aggressive. Perhaps you could lower equities just enough to have another year in short-term high quality fixed income if that would improve your peace of mind. Realize that market drops may feel painful and scary, but are temporary, even if lasting a few years. So the trick is to come up with reasonable strategies to weather those dips, then you’ll be more prepared and should be able to sleep at night.

You have enough already. I think the question is how to live with it psychologically and in practical terms if some adjustments need to be made.

We all deal with a lot of anxiety as new retirees when the paychecks stop and we face dependence on our stash.

Of course if it would be a positive experience for you to take this gig, by all means go for it.

 

[cooch96]

OP, I think you’re fine. Your anxiety is understandable, just not relatable for many of us. I bet you can find better ways to distract yourself so you won’t worry about the markets so much. Is there some hobby that you find fascinating? With your resources, you could literally build a small lab or shop, hire a machinist, and try to build a better mousetrap, golf ball, shampoo, or really anything moderate or boutique.

Or, considering your professional success, I bet the entire industry is familiar with you. Would sitting on a board of some kind spark your interest?

My point is, if going back to work is really the last thing you want to do, I wouldn’t.


P.S. The following may not be helpful to most or even anyone, but the OP did ask what I would do.

I wouldn’t return to work. Instead, I’d try to yank my spending up to 10%/yr and try to live a life of high consumption; the challenge is I wouldn’t allow myself to acquire or do anything gaudy or gauche. $800k is so far beyond my experience, it’d be both a real challenge and an interesting social experiment. I’d likely be exhausted at the end of one year but, assuming a flat market, I’d only have to spend $720k the next year... Hah! This really stretches my imagination. I really don’t think I could spend that much month after month. If I could, I’d stop this experiment after blowing through $3mm and live more normally everafter.

 

[HarveyS]

We just reviewed our month end position as of the end of January and increased our net worth for the month by an amount greater than the decrease in our net worth for all of 2018. Our AA is 52/46/2. Did you not experience a similar gain earlier in 2018?

Interesting thought to consider. My AA is 75/20/5. Jan 31, 2018 to Jan 31, 2019 change in net worth about -2%.
June 30, 2018 to Jan 31, 2019 is actually +1%.
Looking at a larger window helps keep things in perspective. I suggest OP do the same. It should take the sting out of the Q4 decline and could help with his decision.