Windfall and Early Retirement

[Anonymous]

Anonymous wrote:Sure you can afford it. I would hold off for a sec though. You want to be able to answer clearly: What are you retiring TO. Common advice is to get specific about what you’re retiring TO - not just what you want to retire FROM. This will keep you from being my formally high-powered neighbor, who retired early, did some traveling and volunteering … at first. And now just blows leaves off of his grass yard obsessively. I do mean obsessively. He’s my living early retirement plan cautionary tale.

I’ve always heard this too, but now that I think of it, all the people I know or have heard about adjusting poorly to retirement though they have sufficient funds are (1) men; and (2) Boomer generation or older.

Is that just me? Have others noticed this being problem with retired women as well?

[Anonymous]

After confirming with a financial planner, and investing the $3mm, yes.

If I got bored or needed an income after a couple of years, I’d probably take on PT advisory or project based work.

[Anonymous]

I enjoy working, so I would not, but I would hire a lot of help for the parts of life I don’t enjoy. I would hire a housekeeper/cook, like, tomorrow.

Ahhhhhhh……..

[Anonymous]

Anonymous wrote:I did it without the windfall BUT 200k doesn’t go very far and you are young. So $$$ to travel, do things, fly to a broadway show and back, has to be factored in. I didn’t like being on a tight budget I felt we couldn’t enjoy life and we were still young. So do the math and figure out what fills your life first and then pull the chute once you know you’re ready.

What are people doing with their lives where $200k/yr spending money doesn't cut it?

[Anonymous]

Um, yes absolutely.
You only live once. Some people on this thread have very different ideas about money and work than I do. 200k a year is plenty and per the other poster, most of us are raising families on less.
If you dislike your job, it’s a no brainer.
Set up a solid investment plan, run all the numbers one more time, then for gods sake go live the rest of your life in peace.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I did it without the windfall BUT 200k doesn’t go very far and you are young. So $$$ to travel, do things, fly to a broadway show and back, has to be factored in. I didn’t like being on a tight budget I felt we couldn’t enjoy life and we were still young. So do the math and figure out what fills your life first and then pull the chute once you know you’re ready.

What are people doing with their lives where $200k/yr spending money doesn't cut it?

NP. We are in our 60s and $200k is tight even with a paid-off house in a major metropolitan district. Considering retiring next year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sure you can afford it. I would hold off for a sec though. You want to be able to answer clearly: What are you retiring TO. Common advice is to get specific about what you’re retiring TO - not just what you want to retire FROM. This will keep you from being my formally high-powered neighbor, who retired early, did some traveling and volunteering … at first. And now just blows leaves off of his grass yard obsessively. I do mean obsessively. He’s my living early retirement plan cautionary tale.

I’ve always heard this too, but now that I think of it, all the people I know or have heard about adjusting poorly to retirement though they have sufficient funds are (1) men; and (2) Boomer generation or older.

Is that just me? Have others noticed this being problem with retired women as well?

Of course it would be boomers and older since those are the majority of retirement aged Americans. Retired women usually have more balanced lives and are the social directors of their house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I did it without the windfall BUT 200k doesn’t go very far and you are young. So $$$ to travel, do things, fly to a broadway show and back, has to be factored in. I didn’t like being on a tight budget I felt we couldn’t enjoy life and we were still young. So do the math and figure out what fills your life first and then pull the chute once you know you’re ready.

What are people doing with their lives where $200k/yr spending money doesn't cut it?

Living a normal UMC life. Inflation is going to skyrocket.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I did it without the windfall BUT 200k doesn’t go very far and you are young. So $$$ to travel, do things, fly to a broadway show and back, has to be factored in. I didn’t like being on a tight budget I felt we couldn’t enjoy life and we were still young. So do the math and figure out what fills your life first and then pull the chute once you know you’re ready.

What are people doing with their lives where $200k/yr spending money doesn't cut it?

+1

If housing is paid for and kids are grown, I can’t imagine this not being enough. And I’m not that frugal!

[Anonymous]

Similar situation, but not “retiring”. Experimenting with a few things with the idea of getting back to work on my own terms, doing stuff I want to do and with the people I want to do it with.
Very grateful, believe this will be a trend in a certain group of people in the K shaped economy. Between investment gains, inheritances from boomer parents and two income families, I see more people having the choice to optimize for happiness in midlife over simply collecting for retirement. And will clear the decks for some younger folks to move up faster.

[Anonymous]

Anonymous wrote:Similar situation, but not “retiring”. Experimenting with a few things with the idea of getting back to work on my own terms, doing stuff I want to do and with the people I want to do it with.
Very grateful, believe this will be a trend in a certain group of people in the K shaped economy. Between investment gains, inheritances from boomer parents and two income families, I see more people having the choice to optimize for happiness in midlife over simply collecting for retirement. And will clear the decks for some younger folks to move up faster.

OP - exactly. In real life these are the conversations I’m having. Anyone who can pull the cord after a few decades of the grind is doing it! And charting new courses.

[Anonymous]

i will get at least this but never considered stopping working bc i also want my kids to have inheritance. i know that's an unpopular opiinion on dcum for some reason but for me it's super important to ideally leave my kids $1.5-$2m each which means even if I inherit $3m i still need to keep working.

[Anonymous]

200k would not cut it for me. I would have to make drastic changes to my life style that would not be worth it. I think OP should keep working. 3 million is not a big inheritance by any means.

[Anonymous]

It's 3 million IN ADDITION to what OP has already saved. I would do it in a heartbeat, life is short.
Volunteer, travel, reconnect with friends you have been to busy to get together with, cook healthy meals every day, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you came into enough money (say an unexpected $3 million inheritance on top of what you'd already saved for retirement) that you could retire from a stressful job (say finance or litigation) at 52 but had to live on a fixed income - say $200k a year but no mortgage or debt and kids were grown and college saved for, would you quit your job and just enjoy life? Assume spouse has a very low stress but low-pay job (say academia) and is happy to keep working for health care and steady income but can also take tons of PTO and will not resent you.

How did you get the unexpected $3 million inheritance?

Normally, when someone unexpectedly dies.