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Ask HN: Do you have the courage to abandon your high paying job?

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Re: Ask HN: Do you have the courage to abandon your high paying job?

#71

Post by AstralStorm »

Trundle wrote: post #62
mykull wrote: post #56

Earlier quoted context omitted.

I don't understand the idea that living off investments is "independence". It's just a different kind of dependence. You're depending on other people to do work while reaping the benefits. Sounds great, except when too many people do it.

Isn't anything bad by definition when "too many" people do it?

This is also morally suspect. You're putting extra load (taxes if anything) on people while you're not working.

If you think you can repay this cost to society with volunteer work or otherwise, this might work.

Re: Ask HN: Do you have the courage to abandon your high paying job?

#72

Post by AstralStorm »

andymoe wrote: post #3

I spent two years on a self funded hardware startup. It failed and I spent all but 10k of my money (including retirement) by the time I paid off debt that would have trashed my credit for years. (Thanks partner) It was hard and painful and I’m not sure I’d do it again. Certainly not that way. There is something to be said for capital preservation. On the other hand.. my absolute worst case was losing all my money and…

Second worst case would be doing that then... not getting a job. This is always a possibility, the old adage of markets staying irrational longer than you can stay solvent is very true.

Re: Ask HN: Do you have the courage to abandon your high paying job?

#73

Post by thisisit »

The real question you have to ask is - What do you want to do in your life? There is no shame in saying - I want a well paid job which helps me sleep at night. There is nothing wrong with it. The whole idea of going out and building your own is romantic but it is not for everyone.

But, if your aim in life has been to build something of your own, then Go for it.

Talk to people closest to you - friends, families and colleagues. They are the best people to help you arrive at a decision.

Lastly, if you get stressed easily over thinking stuff then maybe take up meditation.

Re: Ask HN: Do you have the courage to abandon your high paying job?

#74

Post by kvz »

kvz wrote: post #25

Translation gradually if you can! See if you can work a day less, maybe via contracting at your current firm, or for different ones. Make sure that you have at least 1 real workday to crank out a MVP (and if you can, add evenings and/or weekends sometimes). As soon as you have real customer/investor interest, you can dial down your contracting as you dial up your business. This is not without risk but it’s way less r…

/Translation/Transition/

sorry for the typos I was on mobile, a dutch keyboard, and in a hurry :)

Re: Ask HN: Do you have the courage to abandon your high paying job?

#75

Post by throwaway93192 »

drenvuk wrote: post #63
throwaway93192 wrote: post #45

Earlier quoted context omitted.

At many companies, including all FANG-like companies, you can't start a business on the side. Your employer may claim ownership and you can be fired for breaking your employment contract.

In California, that's not the case. As long as it's not a competitor or in a similar space the company should have no claim to your business or ideas generated while not using the companies resources.

I made the assumption that the new startup would be in tech, in which case it almost certainly overlaps with his FANG employer.

Re: Ask HN: Do you have the courage to abandon your high paying job?

#76

Post by Trundle »

AstralStorm wrote: post #71
Trundle wrote: post #62

Earlier quoted context omitted.

Isn't anything bad by definition when "too many" people do it?

This is also morally suspect. You're putting extra load (taxes if anything) on people while you're not working. If you think you can repay this cost to society with volunteer work or otherwise, this might work.

Huh? You contribute with your assets. People get to use your stuff in exchange for giving you stuff.

Re: Ask HN: Do you have the courage to abandon your high paying job?

#77

Post by shoo »

tachyonbeam wrote: post #49
poof131 wrote: post #10

Avoid drastic moves. The older I get the more I realize most “drastic move” stories are bs PR pieces. Think how you can move in the direction you want to go in steps. Move to a cheaper location: see if you can move to a satellite office or work remote. No, then look at other jobs you could interview at in the area you want to move to. Translate your FANG experience into a career jump. Then you will have experience an…

I agree that drastic moves are not always wise. OP said they had 1.1M in the bank. If that money was invested in dividend stocks, they could have over 38K of passive income a year. In the US, dividend income is only taxed at 15%, too. They could opt to withdraw the 600K from the 401K, use that to buy a condo in cash, and live off the dividend income. Retire now, basically, and live a fairly comfortable life. It's not…

> If that money was invested in dividend stocks, they could have over 38K of passive income a year. In the US, dividend income is only taxed at 15%, too. They could opt to withdraw the 600K from the 401K, use that to buy a condo in cash, and live off the dividend income. Retire now, basically, and live a fairly comfortable life.

Yep, I agree. This is my first thought as well. I don't think it necessarily needs dividend stocks either, general stocks should do the trick. My back-of-the-envelope is:

  * expected return on investment from US stocks at current valuation [+]: ~6%
  * expected inflation rate: ~2%
  * expected real return: ~4%
  * assumed tax rate: 15%
  * annual investment return: (1100000 * 0.04) * (1 - 0.15) = USD $37.4k / year after tax
Assuming you don't have a large family with many dependants or unusually high expenses (medical care, etc) it certainly sounds doable, but perhaps with a dramatic decrease in annual spend for non-essentials (overseas holidays, living in an expensive part of the country, etc).

[+] Compared to historical prices, US stocks are currently very highly priced, hence expected real returns (~4%) are lower than historical average real returns (~7%). See e.g. http://www.philosophicaleconomics.com/2018/01/future-u-s-equ...

Re: Ask HN: Do you have the courage to abandon your high paying job?

#78

Post by Naritai »

drenvuk wrote: post #63
throwaway93192 wrote: post #45

Earlier quoted context omitted.

At many companies, including all FANG-like companies, you can't start a business on the side. Your employer may claim ownership and you can be fired for breaking your employment contract.

In California, that's not the case. As long as it's not a competitor or in a similar space the company should have no claim to your business or ideas generated while not using the companies resources.

The problem is that 'similar space' is too easily misconstrued. What exactly is the 'space' that Google or Amazon operates in?

Re: Ask HN: Do you have the courage to abandon your high paying job?

#79

Post by lasgsf »

Somewhat similar...I was at a FANG and not as high salary as you about $250K/year but had about $2.5M in net savings (mix of 401k, retirement and cash). Just wasn't happy being in a large company as came in via an acquisition. Once the golden handcuffs expired left for a small start-up with only about 40 people. The start-up did not go anywhere but overall I am happy with the decision and would never go back to FANG. I think if you worked at FANG the pedigree is easy to get another job anywhere for the most part. Now would it give you a $500K salary? prob not.

Re: Ask HN: Do you have the courage to abandon your high paying job?

#80

Post by spyspy »

tachyonbeam wrote: post #49
poof131 wrote: post #10

Avoid drastic moves. The older I get the more I realize most “drastic move” stories are bs PR pieces. Think how you can move in the direction you want to go in steps. Move to a cheaper location: see if you can move to a satellite office or work remote. No, then look at other jobs you could interview at in the area you want to move to. Translate your FANG experience into a career jump. Then you will have experience an…

I agree that drastic moves are not always wise. OP said they had 1.1M in the bank. If that money was invested in dividend stocks, they could have over 38K of passive income a year. In the US, dividend income is only taxed at 15%, too. They could opt to withdraw the 600K from the 401K, use that to buy a condo in cash, and live off the dividend income. Retire now, basically, and live a fairly comfortable life. It's not…

15% is for long-term capital gains. Dividend income is taxed at a much higher rate.
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