What’s the motivation for big shots?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

Do you have kids? We spent about $50,000 a year on daycare and of course we will have college tuition heating up a huge trunk of money.

Yea but I spaced out my kids every 5 years. College tuition is almost fully paid for by having dumped 20k 10 years ago and let it ride the SP500

$20k in 2015 would only be $60k today. UVA instate for 4 years is $167k.

Not to mention, who has $20k lying around in after tax money to lock up in a 529. How much did your house cost? It seems like your housing costs and childcare costs were very low if you had this much free cash.

[Anonymous]

They want money. So they can travel first class, do what they want etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

Do you have kids? We spent about $50,000 a year on daycare and of course we will have college tuition heating up a huge trunk of money.

Yea but I spaced out my kids every 5 years. College tuition is almost fully paid for by having dumped 20k 10 years ago and let it ride the SP500

$20k in 2015 would only be $60k today. UVA instate for 4 years is $167k.

Not to mention, who has $20k lying around in after tax money to lock up in a 529. How much did your house cost? It seems like your housing costs and childcare costs were very low if you had this much free cash.

If you dump 20k 2 years before your child is born, then contribute $200 a month until they turn 18 (so, a total of 20 years), that’s 184k in today’s dollars.

House cost 1M, in Rockville. I’m just very frugal otherwise. I’ve never used DoorDash for example. I go out to eat once a week. I don’t do expensive sports for my kids to signal to other parents. I swear parents in the DC region (and elsewhere I guess) treat kids activities like mowing the lawn was before, a virtue symbol. It’s insane the time and money people put for “swim practice”. I don’t think my kids are in want or need for lack of it

[Anonymous]

Anonymous wrote:For most people 50-65 are often the most EXPENSIVE years. Kids in college, mortgage on your trade up home, car insurance with kids on policy. Saving for retirement.

At 58 I had two kids in college at same time,my car insurance skyrocked with kids on plan and home expenses shut up as property taxes, home insurance and repairs post covid way up.

You might also in your 60's now have weddings, new grandkid, medical bills.

And most people around 60 start thinking, let me get home repairs all done, get new cars or car repairs caught up, get medical caught up. Max out all retirement savings.

200K is not cutting it at all at 58 when bills are roaring into your life. It is not 45 when in starter home and kids public school days. It is big bills time.

I’m sorry but this is all excuses from a lifetime of not saving enough. I don’t buy it.

[Anonymous]

^what do I mean? By 50 you should have paid off your house. Have fully funded 529s.

Property tax increasing is what happens when a neighborhood appreciates and improves along various metrics. It’s just a price signal. Put up or move.

Medical. That’s what the HSA is for

Anyway, this is quite off topic. I don’t think people that move from government to consulting are in need of money that hard…

[Anonymous]

I basically work pt for myself and get better than ft pay. 250 with the feds to 600 for myself and a PT assistant. I happily worked as a fed to be a civil servant. I didn't sign up to be a king's servant.

[Anonymous]

I work in consulting and attended a panel of feds who recently joined. It was clear they cared deeply about their work/mission and wanted to continue to serve in any capacity they could. I don't know the reasons for their departures but it was not fake or self serving.

[Anonymous]

Anonymous wrote:

Anonymous wrote:For most people 50-65 are often the most EXPENSIVE years. Kids in college, mortgage on your trade up home, car insurance with kids on policy. Saving for retirement.

At 58 I had two kids in college at same time,my car insurance skyrocked with kids on plan and home expenses shut up as property taxes, home insurance and repairs post covid way up.

You might also in your 60's now have weddings, new grandkid, medical bills.

And most people around 60 start thinking, let me get home repairs all done, get new cars or car repairs caught up, get medical caught up. Max out all retirement savings.

200K is not cutting it at all at 58 when bills are roaring into your life. It is not 45 when in starter home and kids public school days. It is big bills time.

I’m sorry but this is all excuses from a lifetime of not saving enough. I don’t buy it.

I saved enough however at 58 I only had a net-worth of 5 million. I cant retire early with that much bills still rolling in. Now 5 years later I got those two college tuitions done and 5 years more of mortgage done and now at 8 million.

However bills are still rolling in as still have a kid in college, I still like my job. No desire to be old retired guy in Florida in a 55 plus HOA. I like mentoring staff, going to Board meetings, going to conferences. So have no desire to retire. Maybe 68. Maybe grow my accounts to 12 million.

Money to be honest is really meaningless compared to I enjoy meaningful work and good health.

At work we have board members who are 70-80 who still consult some are on other boards too. They are lot richer than me.

When I do “retire” i will still be busy as I am on a board already, manage a rental property already and may teach as an adjunct professor and join a second board.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You acknowledge the compensation increase. I think many, if not most, people would be motivated to go from $200,000-500,000. That’s a life-changing difference.

I just don’t get why they need the money I guess. When I’m 50 I’m supposed to have 2.8M in today’s dollars by maxing all my tax advantaged accounts and “just” throwing 10k a year into my brokerage. My wife will have about 3.2M by then. So at a total of 6M liquid net worth (excluding the house), which I think may be standard for a 25 year career of gs-15/managers, why not do something that gives good to the world, rather than sell your soul and defend corporations for a bajillion dollars…

Do you have kids? We spent about $50,000 a year on daycare and of course we will have college tuition heating up a huge trunk of money.

Yea but I spaced out my kids every 5 years. College tuition is almost fully paid for by having dumped 20k 10 years ago and let it ride the SP500

$20k in 2015 would only be $60k today. UVA instate for 4 years is $167k.

Not to mention, who has $20k lying around in after tax money to lock up in a 529. How much did your house cost? It seems like your housing costs and childcare costs were very low if you had this much free cash.

If you dump 20k 2 years before your child is born, then contribute $200 a month until they turn 18 (so, a total of 20 years), that’s 184k in today’s dollars.

House cost 1M, in Rockville. I’m just very frugal otherwise. I’ve never used DoorDash for example. I go out to eat once a week. I don’t do expensive sports for my kids to signal to other parents. I swear parents in the DC region (and elsewhere I guess) treat kids activities like mowing the lawn was before, a virtue symbol. It’s insane the time and money people put for “swim practice”. I don’t think my kids are in want or need for lack of it

Parents like you are very cheap, not bc you save a lot, but because you expect your kids who grow up with subpar resources to go to highest IRR major and find the most lucrative job and still find something imperfect about them. For you kids are business project, the bottom line is always raising.

[Anonymous]

Anonymous wrote:^what do I mean? By 50 you should have paid off your house. Have fully funded 529s.

Property tax increasing is what happens when a neighborhood appreciates and improves along various metrics. It’s just a price signal. Put up or move.

Medical. That’s what the HSA is for

Anyway, this is quite off topic. I don’t think people that move from government to consulting are in need of money that hard…

People now buy first homes around 40. Hard to pay of off by 50. HSA is nonsense. I got five kids on my work health plan, two are not dependents meaning I can’t use HSA money and me retiring throws all five of us off plan.

Plus with 401k super catch up 60-63 you can really juice 401k.