Did you inherit a large amount of money (>$2 million) mid-career?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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Anonymous wrote:I know a few people who in their early 40's inherited a lot of money and decided to retire. Strangely, they don't seem very happy as they don't seem to have a real purpose or goals in life. Instead of being at the peak of their careers they live a very sedentary life style more like someone 65+. Yes, some early retirees are able to refocus their time on things they love but many just seem to drift. I'd love to inherit a lot of money but before I would retire I'd need to have a new plan in place to keep me growing and developing.

You have no idea who’s happy and who isn’t, as recent events make clear.

Sincerely,

Retired Young with $$ and I Don’t Do Sh*t and I’m EXTREMELY Happy

You must be an inspiration to your kids. "Hey Billy, what does your Dad (or Mom) do'? "Oh, they're rich and don't do sh*t."

My kids are all grown up, out of college, and gainfully employed doing what they want to do. They don’t want, need, or seek inspiration from me. And they’re happy for me. To be clear, I didn’t inherit. I earned.

I’m just betting that the PP who feels sorry for the sad early retirees is actually feeling another emotion: jealousy.

I thought this thread was about inheriting money mid-career (around early 40's?). You worked hard and earned it and must be older than early 40's. That's a whole different story.

Yeah, I assume big difference between retiring at 34 (which we could do now on the $1 million inherited and $1 million earned as long as we moved out of DC area and bought a townhouse somewhere cheap, e.g., NC) and like 55.

I have no interest in retiring now, I'd prefer to work for a nonprofit, but I could definitely see hanging up my cleats earlier than 65, depending on how things go.

Are saying you could retire AT 55? That would be tough with $2 million, even in NC.

[Anonymous]

Right but I think the difference is he has 2 million NOW. He is not planning on retiring now. He will have much more accrued if invested wisely by the time he retires at 55. He would be more than fine. I am in my 30s and have a net worth of 3.5 million now thanks to an inheritance. I don't plan to retire until my 60s but I imagine that I will have more than enough to retire on by then. I could do it now I guess, but that doesn't appeal to me.

[Anonymous]

To be super specific:

Investments / Retirement: $1.625 million
Home Equity: $250-300k
529s: $100k
Savings: $50k

The home equity could be a paid-off townhouse in NC. The college fund could with 15 more years of compounding get us a long way to state college for two. The investment accounts could throw off $65k per year according to the 4% rule (per Mr. Money Mustache and others).

Our current expenses are $60k living expenses, $40k mortgage, $10 preschool. So the reality is living in the DC area we could only cover half our expenses and would soon be broke. But if we eliminated the mortgage and preschool (soon enough) we could live off less than $65k. Our budget includes a lot of frivolous spending as-is. But things would be tight, in perpetuity.

By contrast, in ten years (mid 40s) assume $50k in extra savings per year plus 5% real returns, compounded = $3.25 million per bankrate.com. Interestingly, if I knocked that down to a government job and only saved $25k the difference is not that dramatic. Ditto in terms of getting salary increases unless it's big. Basically we just need to not **** things up.

Of course I could lose my job before then.

Or die.

[Anonymous]

Anonymous wrote:
To be super specific:

Investments / Retirement: $1.625 million
Home Equity: $250-300k
529s: $100k
Savings: $50k

The home equity could be a paid-off townhouse in NC. The college fund could with 15 more years of compounding get us a long way to state college for two. The investment accounts could throw off $65k per year according to the 4% rule (per Mr. Money Mustache and others).

Our current expenses are $60k living expenses, $40k mortgage, $10 preschool. So the reality is living in the DC area we could only cover half our expenses and would soon be broke. But if we eliminated the mortgage and preschool (soon enough) we could live off less than $65k. Our budget includes a lot of frivolous spending as-is. But things would be tight, in perpetuity.

By contrast, in ten years (mid 40s) assume $50k in extra savings per year plus 5% real returns, compounded = $3.25 million per bankrate.com. Interestingly, if I knocked that down to a government job and only saved $25k the difference is not that dramatic. Ditto in terms of getting salary increases unless it's big. Basically we just need to not **** things up.

Of course I could lose my job before then.

Or die.

Is this for real? I’m currently contributing 51k per year to retirement and it’s a slog. I’d love if it actually amounted to something. Now I feel like I’m treading water.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
To be super specific:

Investments / Retirement: $1.625 million
Home Equity: $250-300k
529s: $100k
Savings: $50k

The home equity could be a paid-off townhouse in NC. The college fund could with 15 more years of compounding get us a long way to state college for two. The investment accounts could throw off $65k per year according to the 4% rule (per Mr. Money Mustache and others).

Our current expenses are $60k living expenses, $40k mortgage, $10 preschool. So the reality is living in the DC area we could only cover half our expenses and would soon be broke. But if we eliminated the mortgage and preschool (soon enough) we could live off less than $65k. Our budget includes a lot of frivolous spending as-is. But things would be tight, in perpetuity.

By contrast, in ten years (mid 40s) assume $50k in extra savings per year plus 5% real returns, compounded = $3.25 million per bankrate.com. Interestingly, if I knocked that down to a government job and only saved $25k the difference is not that dramatic. Ditto in terms of getting salary increases unless it's big. Basically we just need to not **** things up.

Of course I could lose my job before then.

Or die.

Is this for real? I’m currently contributing 51k per year to retirement and it’s a slog. I’d love if it actually amounted to something. Now I feel like I’m treading water.

Starting amount 0. Contribution $4200 a month. Compound return of 5% real (e.g., after inflation). 10 year result = $651,000.

Starting amount 0. Contribution $4200 a month. Compound return of 8% real (e.g., after inflation). 10 year result = $761,000.

Starting amount 1,000,000. Contribution $4200 a month. Compound return of 5% real (e.g., after inflation). 10 year result = $2,280,000

Starting amount 1,000,000. Contribution $4200 a month. Compound return of 8% real (e.g., after inflation). 10 year result = $2,920,000

Try it out over 20 and 30 year periods too. Eventually it adds up wildly: https://www.americanfunds.com/individual/planning/tools/investment-calculator.htm

[Anonymous]

I’m not even looking at all the math above. Suffice it to say: my mistake. Yes, 2 million now will be worth plenty in 20 years. You’re absolutely set. Congrats!

[Anonymous]

We didn't inherit money but my DH hit a big home run ($10-15 million) when he was about 52 and he briefly retired. But all of his friends were working and he was bored and restless so he started another business at 54. It did incredibly well but when he reached 60 he stunned me....happily....by telling me it was time to have some fun before we get too old to really enjoy it. So he exited with even more money but this time he did it with a plan to continue to work part time because he needed the intellectual stimulus but have time for us to do fun things. Sudden wealth, whether inherited or earned, can be a great thing but you need to have a plan to live a full life, not just a leisure life. Five years later he is winding down his part time work but filling his time with things he loves to do.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I did. I took advantage of it and took 11 years off to raise my three kids from birth till late elementary, being able to savor every moment with them, to show them daily how they are more important to me than making money I don't need. I am going back to work now, to show them what it means to have a healthy work/life balance. I take exciting trips and have them fully funded for college. I buy the best produce. Nothing much else is different about my life than most anyone else who is UMC, I'd bet. Nobody knows.

I love that you are now crazy rich and your indulgence is great produce!

honestly just buying things willy nilly at Whole Foods is the best part about being rich.

[Anonymous]

Anonymous wrote:We didn't inherit money but my DH hit a big home run ($10-15 million) when he was about 52 and he briefly retired. But all of his friends were working and he was bored and restless so he started another business at 54. It did incredibly well but when he reached 60 he stunned me....happily....by telling me it was time to have some fun before we get too old to really enjoy it. So he exited with even more money but this time he did it with a plan to continue to work part time because he needed the intellectual stimulus but have time for us to do fun things. Sudden wealth, whether inherited or earned, can be a great thing but you need to have a plan to live a full life, not just a leisure life. Five years later he is winding down his part time work but filling his time with things he loves to do.

You mean HE needed more than a liesure life. I don’t!

[Anonymous]

Anonymous wrote:

Anonymous wrote:We didn't inherit money but my DH hit a big home run ($10-15 million) when he was about 52 and he briefly retired. But all of his friends were working and he was bored and restless so he started another business at 54. It did incredibly well but when he reached 60 he stunned me....happily....by telling me it was time to have some fun before we get too old to really enjoy it. So he exited with even more money but this time he did it with a plan to continue to work part time because he needed the intellectual stimulus but have time for us to do fun things. Sudden wealth, whether inherited or earned, can be a great thing but you need to have a plan to live a full life, not just a leisure life. Five years later he is winding down his part time work but filling his time with things he loves to do.

You mean HE needed more than a liesure life. I don’t!

With all of your free time you should learn to spell.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No but for it to happen I need a new set of parents! Anyone out there want to adopt me?

Be thankful you still have your parents.

Or maybe the PP has already lost their parents and didn't inherit a bundle from them.

From her post it didn’t sound like that. I think you know that.

PP - my comment was meant to be funny. My parents are alive and I adore them.

I happen to admire people who made their own money, by their own talent, skills and abilities - than someone who had it handed to them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No but for it to happen I need a new set of parents! Anyone out there want to adopt me?

Be thankful you still have your parents.

Or maybe the PP has already lost their parents and didn't inherit a bundle from them.

From her post it didn’t sound like that. I think you know that.

PP - my comment was meant to be funny. My parents are alive and I adore them.

I happen to admire people who made their own money, by their own talent, skills and abilities - than someone who had it handed to them.

This post is about inheritance. So if you inherited millions of dollars you would not take it? Or are you saying you agree with earlier poster who said that she believes everyone who is able should work?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We didn't inherit money but my DH hit a big home run ($10-15 million) when he was about 52 and he briefly retired. But all of his friends were working and he was bored and restless so he started another business at 54. It did incredibly well but when he reached 60 he stunned me....happily....by telling me it was time to have some fun before we get too old to really enjoy it. So he exited with even more money but this time he did it with a plan to continue to work part time because he needed the intellectual stimulus but have time for us to do fun things. Sudden wealth, whether inherited or earned, can be a great thing but you need to have a plan to live a full life, not just a leisure life. Five years later he is winding down his part time work but filling his time with things he loves to do.

You mean HE needed more than a liesure life. I don’t!

With all of your free time you should learn to spell.

Ha ha. Too lazy to proofread. That’s what a life of leisure did to me!