Early Retirement (2006)
philip.greenspun.com
Early Retirement (2006)
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Re: Early Retirement (2006)
#2How much money can a Silicon Valley software engineer expect to have at retirement?
This article says $7 million: https://www.wealthmeta.com/blog/being-a-doctor-vs-being-a-so...
Here's the back-of-the-envelope calculation: Annual salary: $250K (it is much higher at FAANG). Assume 25% tax (effective, not marginal), which leaves us with $187.5K, which is about $15K per month. Assume $5000 in monthly expenses, which leaves us with $10K per month investable money. (Note: since net worth includes house and 401(k) I have not deducted mortgage or 401(k) payments). So $10K includes those items.) Now use a compound interest calculator to see what $10K per month at 8% interest (assume investment in S&P 500 and allow for some market crashes) will result in, at the end of 30 years. It is about $14 million, which would include your house and your 401(k).
Here's a spreadsheet that allows you to plug in your own numbers: https://docs.google.com/spreadsheets/d/1Ryu_-mVYxSdJbW8lmf1z...
Re: Early Retirement (2006)
#3> Retirement forces you to stop thinking that it is your job that holds you back. For most people the depressing truth is that they aren't that organized, disciplined, or motivated.
Maybe, but I don’t know anyone who’s less happy being retired. They might not be living their retirement fantasy, but the pressure and stress of having to work is gone.
Re: Early Retirement (2006)
#4He's always been an interesting chap. I wish him well.
> Most important, do not retire in the expectation that it will be easy to find rewarding non-profit volunteer work.
Thankfully, this has not been an issue with me.
I definitely don't have the massive nest egg that another commenter mentioned, but I've got enough to avoid starving, and I am happier than I ever thought I'd be.
Re: Early Retirement (2006)
#5> How much work does the average college student get done? Almost none. Yet the same person, injected into a corporate bureaucracy, becomes a reasonably effective worker. Why? Most people have terrible time management skills. This limitation is of no consequence in public school. The school tells you where to sit and what to do and when, at least for six hours per day. This limitation is of no consequence at most jobs. The employer tells the workers where to sit and what to do and when, at least for eight hours per day.
No, the average worker is not doing a lot of work.
https://www.inc.com/melanie-curtin/in-an-8-hour-day-the-aver...
Re: Early Retirement (2006)
#6> Retirement forces you to stop thinking that it is your job that holds you back. For most people the depressing truth is that they aren't that organized, disciplined, or motivated. Maybe, but I don’t know anyone who’s less happy being retired. They might not be living their retirement fantasy, but the pressure and stress of having to work is gone.
Maybe, but I don’t know anyone who’s less happy being retired.
I've known lots of people who spiraled into various levels of depression after retirement. It's even more likely if the retirement wasn't voluntary.
Re: Early Retirement (2006)
#7> Retirement forces you to stop thinking that it is your job that holds you back. For most people the depressing truth is that they aren't that organized, disciplined, or motivated. Maybe, but I don’t know anyone who’s less happy being retired. They might not be living their retirement fantasy, but the pressure and stress of having to work is gone.
Both my grandfathers have repeatedly tried to retire and within 3 weeks went back to work until in the case of one his boss changed and in the case of the other, at 77 he is still working.
For many their work is very core to their identity and without it, they have little to do.
Re: Early Retirement (2006)
#8How much money can a Silicon Valley software engineer expect to have at retirement? This article says $7 million: https://www.wealthmeta.com/blog/being-a-doctor-vs-being-a-so... Here's the back-of-the-envelope calculation: Annual salary: $250K (it is much higher at FAANG). Assume 25% tax (effective, not marginal), which leaves us with $187.5K, which is about $15K per month. Assume $5000 in monthly expenses, which lea…
Those numbers are pretty optimistic for expenses if you live somewhere expensive, ever plan to get into a long term relationship and/or have kids, or ever plan to make a down payment on a house.
I think your tax calculation is way low too, but haven't done the math.
Re: Early Retirement (2006)
#9[deleted]
Re: Early Retirement (2006)
#10I couldn't understand how he continues to work for harvard and still call himself retired.