You're making 800k a year now.....

[FlyWf]

"Assume you're working 5 days a week from 8:30 til 5:30. In other words, a more or less normal work week for a full time professional person. You enjoy your job to a degree, but it's not something you're passionate about.

You get 4 weeks paid vacation per year. "

At least 10 under this hypothetical. 4 weeks of paid vacation and a job you enjoy to a degree(at all!) are both very, very high end outcomes for the average person. For most readers this makes the job not just an increase in income but an increase in job satisfaction, which I think ruins your point.

[By-Tor]

3 weeks

[The Dude]

If we assume a 40 hour work week and no major impacts at home, I would do it for at least 10 years, perhaps more if I anything but hated it. If it's 70 hrs/ wk and leaves me no opportunity for a family life, probably 4 or 5 years.

[stabn]

About ten years. With inflation and my age going much less isn't very smart. Too many years left for some event to wipe out part of my net worth and for inflation to eff me when i'm older. Probably gives me somewhere around 5.5-6mil after taxes if i invest safely at 5% and spend say 60k of it a year in order to build a good nut. Gives me 150k to live on, 50k to reinvest and 100k for taxes after i retire.

edit: didn't read the [censored] about adjusting for inflation, that doesn't really change much though since it won't adjust for it after i retire.

[TheMetetron]

[ QUOTE ]
almost no one has the discipline to put away most of the $500K you would have after taxes to the point that they would be comfortable after 4-5 years. Expenses rise to meet income. You would want a balla car and pad. You would buy a lot of expensive stuff actually. You would travel. You would take on debt because you have the cash flow to handle it (i.e. you could buy a house for a million bucks say, and plan to pay it off over 10-15 years) You would also invest money in non-liquid assets that would help your retirement but wouldn't be available to you immediately.

My point is, that if you take someone making $40K/yr and bump them to $800K/yr they become an "$800K/yr person" Almost all would stay on the job as long as they could.

This is somewhat analogous to a lottery winner i think.

[/ QUOTE ]

This is entirely untrue. I will very likely make $300,000 this year and even with a month long vacation to Europe, two weeks in Australia or Africa, two weeks vacation in the United States, a few week-long ski trips, and a couple of short vacations to Chile/Brasil I'd be extremely hard pressed to spend over $40,000 during this entire year. My taxes will be about $15k in self-employment tax and about $65k in federal income taxes. $180k is getting saved out of $300k pretax or out of $220k post tax.

Clearly I could spend more and save less and that is what you are trying to argue has to happen, but that isn't true at all. FWIW, before I was a professional poker player I made somewhere in the neighborhood of $12,000 a year. I'm pretty sure my income increase is comparable, though in the interest in full disclosure I've made > 6 figures the last two years from poker, but not as much as I'll make this year. So there was some time to get accustomed to making more.


Edit: Just realized this doesn't account for my deductions, expenses, and retirement account contributions. So adjust the tax owed down a bit (around $15-20k seems right). So $200k saved out of $300k pretax or $240k post tax.

[renodoc]

[ QUOTE ]
About ten years. With inflation and my age going much less isn't very smart. Too many years left for some event to wipe out part of my net worth and for inflation to eff me when i'm older. Probably gives me somewhere around 5.5-6mil after taxes if i invest safely at 5% and spend say 60k of it a year in order to build a good nut. Gives me 150k to live on, 50k to reinvest and 100k for taxes after i retire.

edit: didn't read the [censored] about adjusting for inflation, that doesn't really change much though since it won't adjust for it after i retire.

[/ QUOTE ]


This is just insanity. Everyone on this thread is the guy who is "given" $500K a year (and that is about all it is depending on what state you live in) and then only "spends" 10% of it for 10 years, thus saving a huge retirement fund.

Makes sense to me. Live like a pauper while you are young and strong to save all your money for when you are old and weak. Nice plan.

[TheMetetron]

To answer the question:

With kids 5-6 years to set them up for life.

Without kids 4-5.

I have no reason to work more.

Edit: Yes, this means if my income doesn't drop in the the meantime (obviously a big if), I'll definitely be retiring by 40.

[trapsetter]

[ QUOTE ]

"Assume you're working 5 days a week from 8:30 til 5:30. In other words, a more or less normal work week for a full time professional person. You enjoy your job to a degree, but it's not something you're passionate about.

You get 4 weeks paid vacation per year. "

At least 10 under this hypothetical. 4 weeks of paid vacation and a job you enjoy to a degree(at all!) are both very, very high end outcomes for the average person. For most readers this makes the job not just an increase in income but an increase in job satisfaction, which I think ruins your point.

[/ QUOTE ]

I don't make a point. I ask a question.

[TheMetetron]

[ QUOTE ]
[ QUOTE ]
About ten years. With inflation and my age going much less isn't very smart. Too many years left for some event to wipe out part of my net worth and for inflation to eff me when i'm older. Probably gives me somewhere around 5.5-6mil after taxes if i invest safely at 5% and spend say 60k of it a year in order to build a good nut. Gives me 150k to live on, 50k to reinvest and 100k for taxes after i retire.

edit: didn't read the [censored] about adjusting for inflation, that doesn't really change much though since it won't adjust for it after i retire.

[/ QUOTE ]


This is just insanity. Everyone on this thread is the guy who is "given" $500K a year (and that is about all it is depending on what state you live in) and then only "spends" 10% of it for 10 years, thus saving a huge retirement fund.

Makes sense to me. Live like a pauper while you are young and strong to save all your money for when you are old and weak. Nice plan.

[/ QUOTE ]

See above. I don't live like a pauper, but I'm smart enough to save for the future. The sooner I get to stop working, the better.

[stabn]

[ QUOTE ]
[ QUOTE ]
About ten years. With inflation and my age going much less isn't very smart. Too many years left for some event to wipe out part of my net worth and for inflation to eff me when i'm older. Probably gives me somewhere around 5.5-6mil after taxes if i invest safely at 5% and spend say 60k of it a year in order to build a good nut. Gives me 150k to live on, 50k to reinvest and 100k for taxes after i retire.

edit: didn't read the [censored] about adjusting for inflation, that doesn't really change much though since it won't adjust for it after i retire.

[/ QUOTE ]


This is just insanity. Everyone on this thread is the guy who is "given" $500K a year (and that is about all it is depending on what state you live in) and then only "spends" 10% of it for 10 years, thus saving a huge retirement fund.

Makes sense to me. Live like a pauper while you are young and strong to save all your money for when you are old and weak. Nice plan.

[/ QUOTE ]


? I plan to do this job in TN where 60 will go a long way, especially because i am single. Ten years from now i will not be old and week. I won't even be 40.