161–170 of 241 posts
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Those two things are not equivalent to me. Yes I have savings, but I also have no income right now.
Unless that $1M is stuffed under your mattress, you likely have some income from is. Even sitting in a CD at 2% you'll be pulling in $20k/year - that's not "no income". What I think you mean is you don't have steady W2 income from an employer.
Here we go. Another humblebrag.
Amazing.
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$1m is not enough for most people in the US to never work again, unless they are quite frugal. It's barely enough to retire with.
What bubble/ivory tower part of the country are you in? $1m is enough. Especially with a paid-off mortgage. Most people get by for way, way less than that.
i.e. "$1m is not enough for most people in the US to never work again assuming they want to live to the standard that I have become accustomed to."
Which very likely does not apply to "most people". We do pretty well for ourselves and it's easy to forget that "most people" live paycheck to paycheck on far less.
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Why would you retire in a high cost of living area?
Because you like living there
So, the ivory tower remark seems appropriate.
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What bubble/ivory tower part of the country are you in? $1m is enough. Especially with a paid-off mortgage. Most people get by for way, way less than that.
If at any point in ones life you’ve made over $300k, I doubt $40k a year would feel like anything other than relative poverty - not that that’s a terrible thing. It’s plenty of money except if you’re used to vacations to Europe in 4 star hotels, nice gym and golf memberships, cars, etc.
Neither here nor there. The GP was responding to "$1M is not enough for most people to retire on."
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You're looking at it the wrong way (i think). The point is not that he is starving, or that he is desperate. The point of that number is what he gave up! The point is he gave up a job of 0.5 million, potentially 1 million in a few years. To top it off the job had reasonable hours, great people and he was getting positive feedback. You would not expect people to give that up. The question is why? Instead, you're point…
> You would not expect people to give that up. The question is why? I would absolutely expect people to give that up, as well as any senior economist student would tell you, the labor preference curve is backward-bending after you start making a certain amount of money. > He was so lucky and is giving it up! Aren't you curious why? Not in the slightest. There are multiple studies saying that happiness plateaus after…
Are you sure this is a good student? The bend in the curve demonstrates the preference for incremental wealth. So you might forego $500k to $600k. Going down to $0 takes you through the steepest part of the curve.
(I guess with interest on savings, the person is going down to something like $25k-$40k.)
> There are multiple studies saying that happiness plateaus after a certain amount of income. It's his life and he probably found his own plateau.
I am not sure what you mean by "probably found his own plateau".
Do you mean he found he didn't need as much money to live?
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> you'd have $275k net. If you remove generous expenses, you have $200k a year in savings. In Seattle Washington? You'd have an extremely hard time making ends meet on $75K, it certainly isn't "generous." For example median home value in Seattle is $725K.
It's generally a bad idea to buy a house, so I don't really see how the median home value is relevant.
Why's that?
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I live a comfortable life in Seattle and my mortgage is $3k a month including taxes, in a house that’s too big for us to keep clean. I think “comfortable” might be understating things. If I moved into my neighborhood now it might be closer to $5k (without a bigger down payment) but I wouldn’t recommend it.
$5K includes property taxes, HOA, and home insurance. The total was $4K originally when I bought a $850K townhouse in 2015. But I refinanced recently to get some cash out and that got it to $5K.
A lot of the things in your post resonated with me, but seeing this in the comments really got me curious about your math.
Good luck with your endeavor!
Why not stay there and milk it for a few years? Once you have that safety net built up, there is little reason to care. So do as little as possible... Come in late, leave early. Do this a little bit at a time. With your good reputation, you can probably get another mil out of them.
Yeah. Or like why not build something on the side first? If he was in fact only working 40 hours (which is mind blowing, but I guess there’s no reason to lie), he could have easily bootstrapped an idea to revenue in 6-12 months all while making that insane amazon money.
He could still do it but that is risky as he could get sued later and I have even heard that it can block any future sale until it gets ironed out.
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I know you're looking for attention or validation, but I have a feeling you'll probably get more negative attention than positive when you seem to be equating having $1M in liquid assets to "starting with no income, no product, no business".
$20k a year in interest after taxes if he’s not a complete moron. I could survive on around $45k a year (including health insurance) so I could putter for a long time before I had to deliver something. But domain knowledge and contacts will probably be the biggest assets OP turns out to possess. Don’t undersell those.