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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?

#121

Post by [deleted] »

segmondy wrote: post #119
tachyonbeam wrote: post #49

Earlier quoted context omitted.

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 you retired with a family and have 38k and got $28.5k after tax. Do you know how much health insurance costs for a family? Property tax on a property that's $600k is not going to be cheap either. Add utilities, property maintenance. You are going to be looking for another job fast or dipping into your savings.

[deleted]

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

#122

Post by toomuchtodo »

segmondy wrote: post #119
tachyonbeam wrote: post #49

Earlier quoted context omitted.

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 you retired with a family and have 38k and got $28.5k after tax. Do you know how much health insurance costs for a family? Property tax on a property that's $600k is not going to be cheap either. Add utilities, property maintenance. You are going to be looking for another job fast or dipping into your savings.

In the right states (ie, those who took ACA subsidies from the federal gov), your premiums are based on your income. Low income = low health insurance premiums.

Agreed that a 600k condo is a poor choice; move to a college town where you can get a single family home for $150k-200k and the property taxes are only ~$2-3k/year. Avoid an HOA.

You can retire at any time if your investment income can support your expenses. Think about those expenses carefully. It is entirely possible for a family of four to live off of ~$30k/year if you receive ACA subsidies, your house is paid off (no housing expense), and you have no outlier expenses.

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

#124

Post by CyanLite2 »

chrisherd wrote: post #114

Just founded my startup - left a high paying job, have two kids, own my house, a lot of liabilities etc. Figured if I didn't take the risk now I'd always regret it. Things are tight, but each morning I awaken invigorated by the opportunity to create something that matter. Never underestimate the vitality gained by working on something you love. Realise the liklihood that I don't succeed is high, but when faced with t…

This!

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

#125

Post by mdn0420 »

I'm at a similar crossroads right now albeit with different numbers. I actually work for a mobile gaming company, making a solid salary and get to work fully remote. The job is no longer fulfilling and I feel like I need to try going on my own at least once. Perhaps forming a support group for individuals making this transition would be helpful :P

Have you thought about looking for a cofounder to share some of this risk with you? However, I hear that's not an easy task either.

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

#126

Post by AnimalMuppet »

soneca wrote: post #102

I am 38 yo now and I made 3 career decisions in my life that significantly reduced my income. I never regretted them, quite the contrary. I was never as wealthy as you, but proportionally, it is a similar situation. My reserve wouldn't allow me to live for 3 years with no income, but I had the benefit (in my last move) of my wife being able (and willing) to pay the bills on a stable job she likes. My decision process…

Yeah. Your enjoyment of your work matters. It really does. It affects your mental health. You don't just leave it all at the office when you walk out at night.

But your family also matters. Whether your spouse is comfortable with your move matters. If you're happier at work, but she hates living in the new state, or is stressed about the new financial situation, you don't get to leave that at the office, either.

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

#128

Post by toomuchtodo »

mykull wrote: post #56
Trundle wrote: post #36

Have you looked in to FIRE (financial independence; retire early) at all? At your income it doesn't seem like it would take all that long to get to a point where retirement is a possibility. Then you'd be free to pursue your low cost hobby business without fear of returning to the job market in a reduced capacity. It would come down to how important your lifestyle is to you and your spouse I guess, but if you conside…

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.

> Sounds great, except when too many people do it.

It's a self regulating system. The more money that flows into investments, the lower returns will be pushed, causing more money to be required to support yourself off of investments alone.

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

#129

Post by siculars »

Clearly you're very good at what you do. Speak to the folks at your company and help them help you make the situation better. Stay at your job. Especially if you have people depending on you like a spouse, kids or parents. Hold out longer and build a bigger cushion. Remove the risk from your plan by building a passive income stream now through investments in the market and/or real estate. Life is a long time if you're lucky. You don't want to get to the latter parts and not be able to afford the things you want or need.
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