Why do people with millions of dollars still work?

[Anonymous]

48 $7m with young kids. It’s not enough. College will be $750k each.

[Anonymous]

Anonymous wrote:

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

Sure, Jan. Mom and Dad only have enough inheritance for one kid. I hope you married up.

[Anonymous]

Inflation.

[Anonymous]

Anonymous wrote:We loved our jobs and thought we’d keep working until our kids were out of HS, until one day we we looked at each other and said “We’re done.” For most of the reasons you’ve described. We retired, moved out of the DMV and never looked back. I miss the people I worked with, but I don’t miss being away from my family, commuting, being tied to a specific place, having no control over my schedule, stress, etc etc etc.

I imagine this will happen to us. It doesn't make much sense to me to retire while I have kids in school. It's not like I can travel the way I expect I would at retirement. I don't have $7 million-- more like $3 andthen my husband has his savings so I bet we will be ready to reitre in a couple years as empty nesters.

[Anonymous]

Anonymous wrote:48 $7m with young kids. It’s not enough. College will be $750k each.

Agree in part 55 with 10 million NW. Want to get to 15 plus to retire. Planned on 62 but now thinking about extending. Doubt I will be really ready at 62.

Don't agree on college cost though. My kids are in and almost in. But with young kids you have time for funds to grow ---- probably only need 300k each; rest will be gains on that money. If youy had that today you could be done.

[Anonymous]

I love to work. Work keeps you younger. People who retire early generally decline.

I also have 10 workers that I employ.

[Anonymous]

The two millionaires I know—both with fortunes in the mid-double-digits—still work because they enjoy working and founding new companies. It’s that simple. They have more than enough money to live very comfortably and are not ostentatious so are not driven by wanting more money and stuff.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We loved our jobs and thought we’d keep working until our kids were out of HS, until one day we we looked at each other and said “We’re done.” For most of the reasons you’ve described. We retired, moved out of the DMV and never looked back. I miss the people I worked with, but I don’t miss being away from my family, commuting, being tied to a specific place, having no control over my schedule, stress, etc etc etc.

I imagine this will happen to us. It doesn't make much sense to me to retire while I have kids in school. It's not like I can travel the way I expect I would at retirement. I don't have $7 million-- more like $3 andthen my husband has his savings so I bet we will be ready to reitre in a couple years as empty nesters.

The typical person who has the kind of money we’re talking about on this thread (earned income in the millions) has a graduate degree and can assume their kids will all get graduate degrees as well. $750k seems reasonable for each kid for 7 years of potential private education. And someone will say oh you can send your kid to public’s or get scholarships so it doesn’t have to cost that. But again if you’re the typical person posting on here with millions of earned income in your forties, you have enough money that you feel like your kid should be able to go to the best school they get into, and that cost shouldn’t be the deciding factor. I mean, if my kid gets into local great public and gets into MIT no scholarship, and I make $1m a year, isn’t part of the point of having that $1m income to say to my kid they should go to MIT if they want to?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I work for myself as a reseller and have been a stay at home parent since my first kid was born thirteen years ago.

People work because, especially in this area, people look at you like you have two heads if you don't.

We live in a workaholic world and you're pretty socially isolated / a pariah if you don't have a normal work life to talk about.

I'm a high earning woman and I disagree with this. I have a good amount of SAHM friends and in no way are those women socially isolated or pariahs. I'm a bit fascinated by them and, sometimes, envious. I wonder what it would be like not to have the responsibility to earn money. To be a "lady of leisure." Not saying I would trade places with them, necessarily, because I like my work and I'm not sure I'd be comfortable depending on someone else, but I find them interesting and I admire a lot of things about them. I'm definitely not looking like them like they have two heads. That's ridiculous.

+1

Been a SAHP for over 20 years, with a few years of PT fun work mixed in when the kids were in ES/MS. I have plenty of friends, both SAHP, PT working parents and FT working parents---you just get together at different times if they work FT.
I'm a highly educated woman two BS degrees from a T10 uni, MS from a T20 university. But decided staying home with the kids was the right path for our family. Was making 6 figures by age 29 when I "retired" to be SAHM and had the potential to easily be making double that. Never regret my decision. You have to do what works for you and your family. And you have to trust your partner in order to make that decision

I don’t doubt this is accurate.

[Anonymous]

You people are all insane to keep working with these amounts of money unless you have easy-peasy, seven-figure jobs that you absolutely love.

And/or kids totally change the picture. I am single and will be retiring in a few years at age 45 with around $1.5 million and a paid-off condo (which I will be selling and then getting tf out of DC). Even now with inflation, life for a single person is just not that expensive unless you have real luxury tastes, and trading away the vibrant years of your life for some luxury is one of the stupidest decisions imaginable.

[Anonymous]

Anonymous wrote:You people are all insane to keep working with these amounts of money unless you have easy-peasy, seven-figure jobs that you absolutely love.

And/or kids totally change the picture. I am single and will be retiring in a few years at age 45 with around $1.5 million and a paid-off condo (which I will be selling and then getting tf out of DC). Even now with inflation, life for a single person is just not that expensive unless you have real luxury tastes, and trading away the vibrant years of your life for some luxury is one of the stupidest decisions imaginable.

No sh*t Sherlock that kids change the picture. You work for another 10 years, and you change your kids' lives. You don't work, and the future is horrifyingly bleak for kids today if they aren't getting a wealth transfer from their parents. Do you not read the news? The difference between people who have parents who can pay for school and give a down payment on a house at age 25 compared with those who won't get that support is the difference between financial stability, choices, sleeping at night, vs slaving for the next 45 years. Of course their are many exceptions to the rules, but to know you can set your kids are for a much much higher likelihood of a not terrible life? Why wouldn't you do that?

[Anonymous]

Anonymous wrote:

Anonymous wrote:You people are all insane to keep working with these amounts of money unless you have easy-peasy, seven-figure jobs that you absolutely love.

And/or kids totally change the picture. I am single and will be retiring in a few years at age 45 with around $1.5 million and a paid-off condo (which I will be selling and then getting tf out of DC). Even now with inflation, life for a single person is just not that expensive unless you have real luxury tastes, and trading away the vibrant years of your life for some luxury is one of the stupidest decisions imaginable.

No sh*t Sherlock that kids change the picture. You work for another 10 years, and you change your kids' lives. You don't work, and the future is horrifyingly bleak for kids today if they aren't getting a wealth transfer from their parents. Do you not read the news? The difference between people who have parents who can pay for school and give a down payment on a house at age 25 compared with those who won't get that support is the difference between financial stability, choices, sleeping at night, vs slaving for the next 45 years. Of course their are many exceptions to the rules, but to know you can set your kids are for a much much higher likelihood of a not terrible life? Why wouldn't you do that?

WTF? I didn't come from money, and have a very comfortable life. Same for the vast majority of people I know, actually. Not sure what you think has changed that will make this impossible for the next generation.

[Anonymous]

Anonymous wrote:You people are all insane to keep working with these amounts of money unless you have easy-peasy, seven-figure jobs that you absolutely love.

And/or kids totally change the picture. I am single and will be retiring in a few years at age 45 with around $1.5 million and a paid-off condo (which I will be selling and then getting tf out of DC). Even now with inflation, life for a single person is just not that expensive unless you have real luxury tastes, and trading away the vibrant years of your life for some luxury is one of the stupidest decisions imaginable.

So you will have 20 years to pay for health insurance. Right now that will be $10-15K/year for just decent insurance. If you live in a HCOL area (DCUM area) you will pay high HOA fees and property taxes. So lets say another $20K. So you are at 35K/year with just that. Add in another $5K for maintenance as your condo gets old, and continue that. You will likely need $60K+ just to live at a minimum.

Unless you live really cheap, you will not have enough to retire at 45, unless you plan to die by 65.

[Anonymous]

My father could have retired in his early 50’s. I’m not sure how much he had but he was the CEO of a large company that got acquired so I assume it was a lot. But I had a sister still in HS and all of his friends were working and after a brief break he knew he needed to get a job because he was bored so he worked with a private equity company and acquired a business that he ran for another 6 or 7 years. He was around 60 at the time and my mother said enough is enough and it’s time to enjoy life. So they sold the business and he retired. It was ten years ago and he’s having a great time but he’s still on a few company boards because enjoys business. Some guys aren’t wired to retire at 45-50.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You people are all insane to keep working with these amounts of money unless you have easy-peasy, seven-figure jobs that you absolutely love.

And/or kids totally change the picture. I am single and will be retiring in a few years at age 45 with around $1.5 million and a paid-off condo (which I will be selling and then getting tf out of DC). Even now with inflation, life for a single person is just not that expensive unless you have real luxury tastes, and trading away the vibrant years of your life for some luxury is one of the stupidest decisions imaginable.

So you will have 20 years to pay for health insurance. Right now that will be $10-15K/year for just decent insurance. If you live in a HCOL area (DCUM area) you will pay high HOA fees and property taxes. So lets say another $20K. So you are at 35K/year with just that. Add in another $5K for maintenance as your condo gets old, and continue that. You will likely need $60K+ just to live at a minimum.

Unless you live really cheap, you will not have enough to retire at 45, unless you plan to die by 65.

+1 This is the problem. Retiring with $1.5M at 65 as an empty nester with social security/Medicare is very different from retiring with $1.5M as a single mom with a kid at home and having to pay out of pocket for health insurance and possibly living for 40+ more years.