People with $5M+ NW, why do you still choose to work?

[Anonymous]

Anonymous wrote:

Anonymous wrote:For the people in their 40s or younger with HHI at $5 mil or above, what do y'all do for work?! Were you given a financial launch from your families?

Engineer and fed. No financial launch, except college paid for by military (academy).

We live below our means, saved a lot and invested in real estate.

Every 10 years, we bought by up. We also saved max on our 401K.

We drive regular cars, travel a lot but we are always looking for deals. We thrive in getting good deals on anything. It’s almost a game for us. We also love estate sales and goodwill!

We are very regular. No one would ever guess we have millions.

[Anonymous]

Anonymous wrote:How exactly does someone accumulate 5 million dollars especially do many years away from a normal retirement age of 55+?

Bull market and high enough incomes to invest $150K a year for decades

[Anonymous]

Anonymous wrote:

Anonymous wrote:20 years of assisted living would cost about $5M according to Google. Per person so $10 if you need it for both.
3 kids going to private college is another 1.5, and if they want to be doctors or lawyers you can add onto that.
I also have anxiety about one of my kids getting a serious medical condition or injury where you need to pay $$$$ out of pocket to get appropriate care. If that happened and I didn’t have th money because I retired at 50, I’d feel

20 years of assisted living? For both partners?? Risk assessment not your strength I see.

Right! Who could possibly need 20 years of assisted living! That is insane to plan for that. Also by age 50 your kids should be grown enough that their getting a serious medical condition is not a risk either. You are not super smart in your calculations.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:20 years of assisted living would cost about $5M according to Google. Per person so $10 if you need it for both.
3 kids going to private college is another 1.5, and if they want to be doctors or lawyers you can add onto that.
I also have anxiety about one of my kids getting a serious medical condition or injury where you need to pay $$$$ out of pocket to get appropriate care. If that happened and I didn’t have th money because I retired at 50, I’d feel

20 years of assisted living? For both partners?? Risk assessment not your strength I see.

Right! Who could possibly need 20 years of assisted living! That is insane to plan for that. Also by age 50 your kids should be grown enough that their getting a serious medical condition is not a risk either. You are not super smart in your calculations.

All the woman in my family live past 100 so 20 years of some sort of care doesn’t seem unreasonable to me. I’m in my mid 50s and my kids are between 14 and 20. Clearly I m not saying that I definitely would need that cushion but if I retire in my mid 50s and then blow through my money in my 80s and expect my kids to take care of me, I’ll feel bad about it. I’m very risk averse, it’s true, but I think I’d rather work until a normal age and then if it turns out I have too much, I can donate it all to the food bank or pbs or something. Me sitting on my butt watching Netflix and knitting doesn’t seem like it’s a positive addition to society.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:20 years of assisted living would cost about $5M according to Google. Per person so $10 if you need it for both.
3 kids going to private college is another 1.5, and if they want to be doctors or lawyers you can add onto that.
I also have anxiety about one of my kids getting a serious medical condition or injury where you need to pay $$$$ out of pocket to get appropriate care. If that happened and I didn’t have th money because I retired at 50, I’d feel awful.

20 years of assisted living? For both partners?? Risk assessment not your strength I see.

Do: yes most are not 20 years. But the 6-24 months estimates are not accurate for most in my family. Had one relative in memory care for 6.5 years and another in nursing care for 2.5. Had covid not happened (both took turns for worse health after contracting it) it might have been 10+ years for one and 4-5 for the other

So plan accordingly

My grandmother was in memory care for 13 years until we finally got a court order basically allowing us to kill her. They didn’t call it that, of course. And that was full on memory care, not just assisted living. My other grandmother lived for more than 40 years after retiring but she lived with us and my mother cared for her for free. My kids ain’t never gonna do that.

[Anonymous]

Anonymous wrote:How exactly does someone accumulate 5 million dollars especially do many years away from a normal retirement age of 55+?

Lots and lots of living beneath our means. Not buying the nicest house you can, not trading up when you can. Same with cars, same with travel. No “yolo, treat yo self!” attitude on everything. It actually requires a ton of disciple from both partners over and over and over again. You have to recommit every day, every year. And it wasn’t easy watching people buy amazing homes and cars and remodeling kitchens. And we had to wait 20+ years to see the fruit of our sacrifice and diligence.

[Anonymous]

So basically OP is asking why any parent -- since she's a stay at home parent with kids still at home -- whose family net worth is over $5 million still works.

That really narrows things and changes the nature of the question. She isn't asking why people aren't "retiring" since there's no "retiring" when you're still raising kids.

What's she's asking is why both parents in relatively wealthy family still choose to work when they have kids at home.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How exactly does someone accumulate 5 million dollars especially do many years away from a normal retirement age of 55+?

Lots and lots of living beneath our means. Not buying the nicest house you can, not trading up when you can. Same with cars, same with travel. No “yolo, treat yo self!” attitude on everything. It actually requires a ton of disciple from both partners over and over and over again. You have to recommit every day, every year. And it wasn’t easy watching people buy amazing homes and cars and remodeling kitchens. And we had to wait 20+ years to see the fruit of our sacrifice and diligence.

Doesn’t sound fun. I’d prefer a middle ground where I still sufficiently save but enjoy nice vacations and a nice kitchen along the way. Life is short.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:20 years of assisted living would cost about $5M according to Google. Per person so $10 if you need it for both.
3 kids going to private college is another 1.5, and if they want to be doctors or lawyers you can add onto that.
I also have anxiety about one of my kids getting a serious medical condition or injury where you need to pay $$$$ out of pocket to get appropriate care. If that happened and I didn’t have th money because I retired at 50, I’d feel awful.

20 years of assisted living? For both partners?? Risk assessment not your strength I see.

Do: yes most are not 20 years. But the 6-24 months estimates are not accurate for most in my family. Had one relative in memory care for 6.5 years and another in nursing care for 2.5. Had covid not happened (both took turns for worse health after contracting it) it might have been 10+ years for one and 4-5 for the other

So plan accordingly

My grandmother was in memory care for 13 years until we finally got a court order basically allowing us to kill her. They didn’t call it that, of course. And that was full on memory care, not just assisted living. My other grandmother lived for more than 40 years after retiring but she lived with us and my mother cared for her for free. My kids ain’t never gonna do that.

Exactly! So while most may not exceed 2 years in advanced care, it happens to plenty. Most females in my family live to 95+. And even the morbidly obese family members live to 90+ so I'm gong to assume my healthy body (I manage my health issues well and am not overweight either) might just last well into my 90s. So plan accordingly.
We plan to join a CcRC while we are still healthy. You pay entry fee and care is basically covered for all levels for as long as you need it without any additional costs (beyond 3 meals per day). It's one way if you can afford it to minimize costs

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How exactly does someone accumulate 5 million dollars especially do many years away from a normal retirement age of 55+?

Lots and lots of living beneath our means. Not buying the nicest house you can, not trading up when you can. Same with cars, same with travel. No “yolo, treat yo self!” attitude on everything. It actually requires a ton of disciple from both partners over and over and over again. You have to recommit every day, every year. And it wasn’t easy watching people buy amazing homes and cars and remodeling kitchens. And we had to wait 20+ years to see the fruit of our sacrifice and diligence.

Doesn’t sound fun. I’d prefer a middle ground where I still sufficiently save but enjoy nice vacations and a nice kitchen along the way. Life is short.

We only had to live frugally until mid 30s and then we could start spending a bit more. But even then, it's easy not to overspend when kids are still toddlers or ES aged. No need for fancy vacations--they won't appreciate it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How exactly does someone accumulate 5 million dollars especially do many years away from a normal retirement age of 55+?

Lots and lots of living beneath our means. Not buying the nicest house you can, not trading up when you can. Same with cars, same with travel. No “yolo, treat yo self!” attitude on everything. It actually requires a ton of disciple from both partners over and over and over again. You have to recommit every day, every year. And it wasn’t easy watching people buy amazing homes and cars and remodeling kitchens. And we had to wait 20+ years to see the fruit of our sacrifice and diligence.

Doesn’t sound fun. I’d prefer a middle ground where I still sufficiently save but enjoy nice vacations and a nice kitchen along the way. Life is short.

We only had to live frugally until mid 30s and then we could start spending a bit more. But even then, it's easy not to overspend when kids are still toddlers or ES aged. No need for fancy vacations--they won't appreciate it.

Right it’s called getting away without kids.

[Anonymous]

This is where having involved, local family makes a difference. Reduced daycare/childcare frees your family up for saving so much in the early years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How exactly does someone accumulate 5 million dollars especially do many years away from a normal retirement age of 55+?

Lots and lots of living beneath our means. Not buying the nicest house you can, not trading up when you can. Same with cars, same with travel. No “yolo, treat yo self!” attitude on everything. It actually requires a ton of disciple from both partners over and over and over again. You have to recommit every day, every year. And it wasn’t easy watching people buy amazing homes and cars and remodeling kitchens. And we had to wait 20+ years to see the fruit of our sacrifice and diligence.

Doesn’t sound fun. I’d prefer a middle ground where I still sufficiently save but enjoy nice vacations and a nice kitchen along the way. Life is short.

We only had to live frugally until mid 30s and then we could start spending a bit more. But even then, it's easy not to overspend when kids are still toddlers or ES aged. No need for fancy vacations--they won't appreciate it.

It's not that hard, but it depends on your salary. If both working spouses make good money, it's easy enough to live well below your means - mostly by not buying a mansion and keeping our cars a long time. Then one-time splurges are no big deal and we do enjoy those, including a new kitchen and nice vacations.

[Anonymous]

Anonymous wrote:“You can’t do anything with 5, Greg. Five is a nightmare.”

Five will drive you un poco loco, OP.

Seriously, though, some people are motivated by wanting to leave as much as possible for their kids. Some want to ensure a healthy cushion in case they need a lot of care when they’re older. Some people want the option of higher-end retirement homes, which can cost a lot. Some people like their jobs, like to be busy, like to contribute, want to model good work ethic for their kids.

Do a mental experiment: how would you feel about going to your job every day if you knew that if you truly got fed up, you could just quit and walk away? That would make the experience of working a lot different.

[Anonymous]

Anonymous wrote:So basically OP is asking why any parent -- since she's a stay at home parent with kids still at home -- whose family net worth is over $5 million still works.

That really narrows things and changes the nature of the question. She isn't asking why people aren't "retiring" since there's no "retiring" when you're still raising kids.

What's she's asking is why both parents in relatively wealthy family still choose to work when they have kids at home.

OP here. No, I work full-time. I would like to quit my job, but my spouse wants me to keep working. Also, I know people who worked well past retirement age even though they had way more money than they could ever spend, and I wanted to know why.