Why do people with millions of dollars still work?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm in my mid-40s with about $3 mil. I plan to work at least 25 more years. Only in the last 5 years or so has our HHI approached 7 figures and I gotta say - I like this level of income, a lot. I'm able to save well, but also just do these amazing things I could never do before. Big trips with our family and not stressing out while on those trips about what things cost. I like being able to buy whatever clothes I want to buy without factoring in cost that much. I love living in a beautiful home and being able to furnish it nicely and improve it when it needs improving. I love being able to treat others - take my kids and their friends to a major league game, take my mother on a long weekend together and cover all expenses. Someone commented earlier that no one needs more than $140k or something like that and I agree, I don't NEED more than that to survive, but now that I've experienced this higher level of income, my goal is to not take a step back. In order to do that, I've got to keep working. We'll hit $1 mil HHI for the first time this year and we save, all in, about 20% of that each year. It's a lot of savings, but we're going to need well into 8 figures to generate an income comparable to what we earn now in retirement. So that's my answer to your question. I work because I earn a lot and I love the lifestyle those earnings afford me. I'm going to need many millions saved to continue this lifestyle through retirement. Also - I enjoy my career. Would I still get up and go to it if I hit the lotto for $100 mil? Probably not. But I like going to work, I'm proud of my career, I feel appreciated, I'm not overly stressed out, I have time for family and other things I enjoy.

This is the only thing that would keep me working, if my earning power scaled with my net worth growth. If I have $10M but somehow can earn millions a year I might decide to keep working, but if I have $10M and only earn 250k… not worth it. If you earn 1M+ a year and “only” have $3 million, you’re leaving a lot on the table by quitting. But if you only make 50k and have 3 million, it’s not worth it financially to work.

I agree. If you are earning $1M and have NW of $3M you are living way beyond your means (according to me). I'd live on half that sock the rest away and retire early, but those are my priorities. PP said she only just started making thay money, so she's still in the expansive phase, living it up.... that novelty might wear off. Buying stuff doesn't make me happy. It actually stresses me out because then I have to maintain more stuff, store it, etc. I do love vacations, experiences, and treating people though. I also feel guilty about what a consumeristic culture does to the environment an the messages it sends our kids. I don't think PP is there yet - she seems very new money just getting a first taste - that's fine - I understand where she is.

[Anonymous]

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Anonymous wrote:We take a lot of baller vacations that cost a lot and I'm not willing to give that up anytime soon, lol

Same. We have a little under $40m.

Maybe work a few more years….would be happy at $75-100.

What kind of vacations do you take? Rent a yacht at 100K a week? Own multiple vacation homes that are $$$$ to maintain? I am trying to imagine what type of work someone does who has NW like this that they love outside of managing a successful business where employees run it and there is no day to day work. I know some successful business owners like this who don't go to work every day, but they still have enough stress that they dream about selling it and retiring. What is it that you do that you love so much that gives so much money without you dreaming about retiring with a very healthy sum to afford luxury lifestyle, but needing multiples of this for what exactly? Are you investing actively, that's all you do?

The most important question to ask is how those who work a lot to earn major coin have time to take these many lavish vacations.

CEO
We go away at least 4-5.5 weeks a year (not counting weeks at summer home ; working remotely there).

Generally working everywhere but all good.

+1
CEO as well. Will spend at least 8-9 weeks away this year, working during some of those trips.
Could easily retire, but the hope of more $$$ (another $40M+) and just enjoying the job keeps them at it. Will likely retire once the younger kid is out of college and launched

This is crazy. Why not slow down and enjoy the $$$?

We do enjoy them. But still 3-4 years away from the original target retirement date—just turned 47. Also made commitment to other employees/execs to lead them thru this next phase and wants to honor that. So sure don’t need to work but wants to (and loves it 95% of the time)

[Anonymous]

My husband could have retired in his early 50’s when his company was acquired but with all of his friends working and our kids still in HS he would have been bored to death. So he cofounded another business and it was very successful but at 60 he retired from full time as the work/travel wear and tear was catching up to him. He ended up making a lot more money but we would have been fine if he had retired early but it just wasn’t for him.

[Anonymous]

My husband always enjoyed his work and early on he set a net worth goal. When he reached it he just set a much higher one and then another. If he didn’t like his work I’m sure he would have retired earlier but he enjoyed it and it was very rewarding. Finally, we had more money than we ever imagined years ago and the work was tiring so he retired. I’m pretty sure he retired at just the right time for him. He was able to spend a good amount of time with his parents before they passed and he loves spending time with all of our little grandchildren.

[Anonymous]

$12 million in assets.
Will inherit additional $7-$10 million that we will likely just funnel right to our kids when it happens.

Two kids to go to college
Owe $500,000 at 2.85 % on home worth about $2.5m
No other debt

My husband owns his own business and now only works about 15-25 hours a week from home. He’s bored if he does nothing.

He wants to take care of his family and leave money to the kids. Our oldest is probably going into social work one day so my husband keeps working so this child he be financially ok.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No one takes the time to study investing, so they have to slave away for decades. Most people don't know there are stocks yielding 10%+ dividends with minimal risk. If you can get a 7% overall withdrawal rate for the rest of your life, which is very doable, you check out at $2M - no one needs more than $140K income in retirement.

But since people are told to buy bonds and other nonsense, they can only safely withdraw 2.5% or 3% of their portfolio and so must slave away until they're 65.

Except that the stock can stop paying dividends and the companies could go out of business.

That's why you sell that company. If one out of 20 goes out of business, why do you care? Buy a dividend etf and they will do it for you.

Ok I think I’ll do this(not joking). We had been keeping about $300k in hy savings as we were thinking of buying a house. But with interest rates etc, we haven’t found anything, so I’d like to do more with my money.. does it bother you that you pay more taxes in the dividends or do you still get out way ahead?

[Anonymous]

Anonymous wrote:$12 million in assets.
Will inherit additional $7-$10 million that we will likely just funnel right to our kids when it happens.

Two kids to go to college
Owe $500,000 at 2.85 % on home worth about $2.5m
No other debt

My husband owns his own business and now only works about 15-25 hours a week from home. He’s bored if he does nothing.

He wants to take care of his family and leave money to the kids. Our oldest is probably going into social work one day so my husband keeps working so this child he be financially ok.

I read this as we have failure to launch, but enough money for the first generation of failure. So your grandkids from this child are basically screwed. Why not use the money to train your kid to fish for themselves; far better for future generations. To me, it rings like the folks who say they want to give their kids an inheritance but don’t want to spend the money to send them to a good private school. Just strange thinking.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$12 million in assets.
Will inherit additional $7-$10 million that we will likely just funnel right to our kids when it happens.

Two kids to go to college
Owe $500,000 at 2.85 % on home worth about $2.5m
No other debt

My husband owns his own business and now only works about 15-25 hours a week from home. He’s bored if he does nothing.

He wants to take care of his family and leave money to the kids. Our oldest is probably going into social work one day so my husband keeps working so this child he be financially ok.

I read this as we have failure to launch, but enough money for the first generation of failure. So your grandkids from this child are basically screwed. Why not use the money to train your kid to fish for themselves; far better for future generations. To me, it rings like the folks who say they want to give their kids an inheritance but don’t want to spend the money to send them to a good private school. Just strange thinking.

Working in the social work field isn’t failure to launch.

[Anonymous]

I need the structure and find it gives me a purpose. I don't find many hobbies fulfilling and little kids keep me from being able to do a lot of travel or even more than a few hour pursuit of a hobby. If I just have open hours, I end up wasting them on pointless things like running unnecessary errands, procrastinating on the things I do need to do, and fiddling on my phone.

Everyone says "oh just volunteer" and I do some. But (rightfully in my opinion) the important / high impact roles in most nonprofits are paid positions. So I could volunteer to read to kids for several hours a week and drop meals off for another organization and sort used clothing for another organization or I could take the paid job and run a whole program. I find the later more fulfilling and a better use of my skills.

[Anonymous]

Anonymous wrote:

Anonymous wrote:$12 million in assets.
Will inherit additional $7-$10 million that we will likely just funnel right to our kids when it happens.

Two kids to go to college
Owe $500,000 at 2.85 % on home worth about $2.5m
No other debt

My husband owns his own business and now only works about 15-25 hours a week from home. He’s bored if he does nothing.

He wants to take care of his family and leave money to the kids. Our oldest is probably going into social work one day so my husband keeps working so this child he be financially ok.

I read this as we have failure to launch, but enough money for the first generation of failure. So your grandkids from this child are basically screwed. Why not use the money to train your kid to fish for themselves; far better for future generations. To me, it rings like the folks who say they want to give their kids an inheritance but don’t want to spend the money to send them to a good private school. Just strange thinking.

This struck me as a really obnoxious and superficial post. There’s a lot more to the world than just making money and social working is a respectable profession that makes the world a better place. People’s worth shouldn’t be defined solely by how much they earn.

Signed,
Someone who makes close to $1m annually and doesn’t expect my kids to do the same

[Anonymous]

My husband was able to wind down over about a ten year period when he retired from full time. Instead of going cold Turkey he stayed in the game doing work he enjoyed but also having free time to have more fun. Over time he reduced the work to about a full day a week to keep his brain functioning. He would have had a very difficult time being completely retired from day 1 and he would have driven me crazy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I love Succession but this is the thought that runs through my head when I watch it. Why not just quit and live a life of leisure, live off of investments? I guess I'm just not a killer.

We have about $7m and I was laid off a couple of years ago. Was already losing interest in working anyways. DW still continues to work at an hectic pace. She wants to get to $10m and no amount of explaining will convince her that we'll never get there by her just working (we are mid-50s) for a few more years. But she won't listen. ?

Hi we are in a similar situation and Im trying to get to 10million as well. Why do you think you wont get there Im 52 btw

[Anonymous]

Anonymous wrote:I don't have to commute, I love my coworkers, can work from bed if I want (though I never have), and overall enjoy what I do plus I'm good at it.

We have a lot of money, but we defininity do not have "co-workers" We have people who work for us. We also dont really have a WFH arrrangement, it is more meeting with people, but definitly no grunt work.

DH and I run a company and many people rely on us. We do not have to put in an insane amount of time and effort as the infrastructure is there, plus our kids are still living at home and in middle/high school so that severely limits our ability to travel for pleasure.

[Anonymous]

I would continue to do my job if I won millions in a lottery tomorrow. I like it. I enjoy the people I work with. I feel the need to contribute something, to be accountable in some way. I don't want to sit in my house -- I would hate that.

[Anonymous]

Anonymous wrote:I would continue to do my job if I won millions in a lottery tomorrow. I like it. I enjoy the people I work with. I feel the need to contribute something, to be accountable in some way. I don't want to sit in my house -- I would hate that.

I don’t understand how people on dcum can be so smart but then imagine that people who have millions and quit their jobs just sit in their houses.

There are SO MANY fun/meaningful/challenging things to pursue for which you don’t get a salary and indeed have to pay money.