When do you say "I've earned enough, its time to retire" and what do you do?

[Anonymous]

My spouse and I have been incredibly fortunate and self generated a net worth of approxtimately $10M as we are about to turn 40. We both really like our jobs, but they are not without stress. We would like to extensively travel, but we have school aged children. We've also toyed with the idea of moving to Manhattan, but our jobs are not easily transferrable (I could in theory open up a new business in NYC, but I'm not sure I feel like bootstrapping a company again at this point in my career). We could easily double our net worth 2-3 times more if we waited to retire until we are 65, but I'm wondering whether it is worth it. We definitely don't want to be bored. Part of me would secretly like to do some really luxurious things to (like hire a full time chef and housekeeper).

Any else in the same boat? Even if not, honestly what would you do?

[Anonymous]

What a wonderful problem to have! I would retire with half that amount in a heartbeat. But I love my job and would probably keep doing it anyway. Do you have to earn more money? Why not do substantial volunteer work. Travel around the world with the kids and homeschool for awhile.

[Anonymous]

Whether you work or not, definitely get a housekeeper and chef! I don't know if I'd ever want a full time housekeeper, but I dream of having a chef. Imagine, someone else to plan, shop, chop, grill, etc. and then clean up the mess. AAaaaahhhhhhh heaven. Please do it for yourself -- you sound like you deserve it!

[Anonymous]

You should hire the other poster to do something. She's got a law degree and needs a job.

[Anonymous]

From 'Broadcast News':

Tom Grunnick: What do you do when your real life exceeds your dreams?
Aaron Altman: Keep it to yourself.

[Anonymous]

CHARITY! I say since you have so much, help some of us that are struggling here.

[Anonymous]

We also have about the same but it's inherited not earned. DH works in government/public service. Used to live in Manhattan and plan to retire there eventually once our youngest goes off to school. To be honest, 10M will make you middle class there not rich. DH does not plan to retire until 65 which I agree with. Think he'll be terribly bored. We are involved in various charities and causes.

I'm a SAHM and never had a nanny and do my own housework and cooking. Actually grew up in a house with a nanny, cook, housekeeper, etc. - kind of like a train station
- and prefer doing it myself.

[Anonymous]

I think I would try to work part-time or on a contract basis. That way you still are busy and there is always the option to re-enter the work force if necessary. And you would have more time to be with your children and travel.

[Anonymous]

Anonymous wrote:We also have about the same but it's inherited not earned. DH works in government/public service. Used to live in Manhattan and plan to retire there eventually once our youngest goes off to school. To be honest, 10M will make you middle class there not rich. DH does not plan to retire until 65 which I agree with. Think he'll be terribly bored. We are involved in various charities and causes.

I'm a SAHM and never had a nanny and do my own housework and cooking. Actually grew up in a house with a nanny, cook, housekeeper, etc. - kind of like a train station
- and prefer doing it myself.

The median income in NYC is somewhere just under 50K. If you feel like a 10 million dollar nest egg does not make you rich, then I think you need to leave the upper east side for a second or two and look at the world around you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We also have about the same but it's inherited not earned. DH works in government/public service. Used to live in Manhattan and plan to retire there eventually once our youngest goes off to school. To be honest, 10M will make you middle class there not rich. DH does not plan to retire until 65 which I agree with. Think he'll be terribly bored. We are involved in various charities and causes.

I'm a SAHM and never had a nanny and do my own housework and cooking. Actually grew up in a house with a nanny, cook, housekeeper, etc. - kind of like a train station
- and prefer doing it myself.

The median income in NYC is somewhere just under 50K. If you feel like a 10 million dollar nest egg does not make you rich, then I think you need to leave the upper east side for a second or two and look at the world around you.

Never lived on the UES. Did live in SoHo but will move back to Chelsea when we go back. Income is relative, we have friends who make 10M in a year, fly around in private jets, etc. but I suppose you are right.

[Anonymous]

Making radical changes will probably not make you happy, and may bankrupt you if you are not careful.

I would cut back a little on the job if possible and enjoy luxurious vacations during school breaks with the kids.

Also try a little household/chef help.

Do things little by little. Don't lose your friends.

[Anonymous]

I'll be very interested in your final analysis. We are lucky enough (through dint of some pretty hard work) to be in almost exactly the same position. We've taken a hard look at our priorities and our hopes for "life Part II" and one of us has already retired from a lucrative career and retrained to start a satisfying and barely compensated second career in a field of particular interest and passion. We're running numbers to see if we can both do that, now. $10mil seems like a lot until you really look at how that supports you for the rest of your life, which will hopefully be a long and healthy one. What income can you reasonably expect and what will your expenses be? What are your lifestyle expectations (we, fortunately, are really modest people, but even so I am horrified at how much you need to maintain a modest lifestyle)? What backup plans can you put in place? What do you want to do? What are your kids' needs for college and after? I know that so many do so much with a whole lot less, but the amount you're talking about (assuming it's your entire net worth) could be less than you think it is in the long run.

[Anonymous]

How long do you plan to live? $10 million for 2 people over 40+ years -- that isn't a whole lot. I'd start by hiring a financial expert who specializes in retirement and understands retirement needs.

[Anonymous]

Anonymous wrote:Making radical changes will probably not make you happy, and may bankrupt you if you are not careful.

I would cut back a little on the job if possible and enjoy luxurious vacations during school breaks with the kids.

Also try a little household/chef help.

Do things little by little. Don't lose your friends.

I agree with this, 100%. Make your life easier and more enjoyable in all sorts of little ways here and there, and work to minimize stress wherever possible. But no radical changes at this point.

FWIW, we're not quite in the same position as you, but we're getting there. Looking ahead, I know we'd never retire/stop working while our kids were at home because we'd worry a lot about the signal it would send to them.

We've worked very hard to build the financial security we have, and we want our children to have strong work ethics and the skills and motivation to support themselves as adults someday. So we think it's important for them to see us working, evaluating our spending choices, talking about tradeoffs, and modeling delayed gratification when it comes to purchasing/spending.

Basically, I think it's all about balance -- enjoying the benefits of financial security without losing touch with the values that got you there. For us, that will likely mean working part time in jobs that we truly enjoy but that are not overly stressful or taxing on our family time.

[Anonymous]

The question is not about money it is about how happy you really are, I would rather be broke, happy and free of stress than have any amount of money with stress.

Quality of like is much more important than money