Facing a potential exit and not sure if I should take it.
Ask HN: How much money is enough?
1–10 of 24 posts
Re: Ask HN: How much money is enough?
#2When you first started the company, was your goal to be an exit or to keep running the company? If it was an exit, and this chance will give you enough money to live on a comfortable salary for 10 years, I would take it.
Re: Ask HN: How much money is enough?
#3What is the future potential of the business?
Do you personally have what it takes to lead it to that potential?
Are you a starter, who gets bored after the technically hard parts are solved?
Would the proceeds, if invested in a combination of bonds and dividend bearing stocks, provide an annual income that you could live on in a modest manner for the rest of your life? By this I don't mean SF, NY or London but a nice location with a more modest cost of living.
If you are getting bored and the exit would provide you a base salary for the rest of your life so that you could explore other new ventures ... I would take the exit.
In the end no one but you can really decide but these are some of the questions I would ask myself.
Re: Ask HN: How much money is enough?
#4Probably 7 million after taxes. The first million will buy you a decent house. The next million will let you buy other materialistic goods and/or give away. The next 5 million can go into a very safe savings account which will net you 6 figures a year in interest.
With 7 million, you should be set for life with a decent lifestyle.
Re: Ask HN: How much money is enough?
#5It's always just one more dollar. I think you have to consider the opportunity costs involved with the exit versus the potential financial upside. The right number is the amount for which you are comfortable to part with your current business.
Re: Ask HN: How much money is enough?
#6When the only thing the 'company' has to offer you is:
A corner office with two windows
A private toilet/shower
A wet bar
A kitchenette
Because you already have all the money.
Re: Ask HN: How much money is enough?
#720 million. This will cover any accidental losses.
Re: Ask HN: How much money is enough?
#8When related to happiness, some have said (annually) $75,000: http://www.forbes.com/sites/robertglatter/2012/07/27/how-muc...
Others claim $161,0000: http://www.cnbc.com/id/50027184
There was a good study about diminishing marginal utility of wealth I read a while back. I'll see if I can find and post it. Don't quote me on this, but I think $5M was a good number.
Re: Ask HN: How much money is enough?
#9Don't forget to factor your age into the equation. The more years you have left to invest and/or earn more, the less you really need. And don't forget to think about your skill with money too. The younger you are, the longer time you will have to avoid wasting away your fortune. If you are smart with money then you will need less than someone who is not.
Re: Ask HN: How much money is enough?
#10I actually retired at age 40 with less than 700k. My wife and I own a house. We both moved back to Canada, so we don't worry about health care costs. And, we really don't spend money on much. I figured our food/living costs comes out to $1000 a month. We don't have kids or any other big expenses. We're pretty frugal too. Anyways, it all depends. Some will tell you 7 million. That's fucking absurd. If that was true, hardly ANYONE in the US would be able to retire. Others will probably tell you 5 million, which I still find absurd. Anyways, regardless of what people on here will say, you already sound like someone who is indecisive. I've noticed that people who are always searching for their answers from others will never be satisfied by them.