Financial/career and life advice requested

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Genuinesarcasm
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Financial/career and life advice requested

Post by Genuinesarcasm » Thu Feb 13, 2020 10:28 am

Dear Bogleheads:

I am seeking some honest help
And Opinions on our situation. I like this board a lot both financial and non financial topics give me something to think about.

Pardon the ramble I will try to make this coherent as I am in somewhat of a career stress point. Let me also preface as I have read some others, I am grateful for what we have and this is not a “humble brag”.

My wife and I have good paying jobs right now her at $100,000 and me at $200,000. The problem is my
Job likely will go Away with the sale of the company Likely to happen. Most people I enjoy working with are leaving due to the owners apparent lack of interest. I run the company operationally but both the stress and lack of future has worn me out emotionally.

We are both early 50’s with one kid out of college on his own and another son 11 where we have about $100,000 in a 529.

We don’t have debt but live in a HCOL area.

Taxable and tax advantages funds total 3.7 million.

We have a paid off house.

Social security states around $2800/month for each of us but we both have only about 27 years of work history into SS.

I fear the emotional impact of taking a job likely so far below my current salary and autonomy. However I am miserable in all other ways.

We have a good marriage but I fear with no debt and an annual spend of $130,000 money can become an issue when I downshift career wise. My parents were financial train wrecks and money was the root of most of their issues.

I read a lot of posts here and don’t think I could retire financially( would love to be independent financially) but don’t have any pensions or other income streams as so many seem to do on this site.

I am worried we don’t have enough, I
Am worried about not being wanted in my early 50’s professionally.

I was a low cost indexer for a long time and think portfolio wise we have been pretty good, we are 55/45 in AA.

I guess i am asking if anyone has been at a similar age, faced the same worries, downsized financially and been ok or have advice.

Hope that makes sense and hoping to get some financial and maybe career and yes, life advice.

Thanks

bloom2708
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Re: Financial/career and life advice requested

Post by bloom2708 » Thu Feb 13, 2020 11:15 am

3.5% of $3.7 million is ~$130k. Pretty darn close to your spend.

You are way ahead and that buys you options. You can easily afford to make less.

Does your wife like her career? Who's plan has health insurance?

My wife is 50 and I am 49. Our youngest of 3 is 12. We live in a lower COL area.

My wife was burnt out at mega-corp a few years ago. She has been staying/working at home now for ~3 years. Even with older kids it is working out well.

Sure, we make less, save less. I still max my pre-tax 401k, 2 Roths, Family HSA. College accounts are in pretty good shape.

What would probably be best is a 3-6 month break. Re-energize. Of course, if your spouse is still working, this can cause other issues.

Some families are willing to do most anything to be able to pull back. Downsize house, move to a lower cost area, get rid of all the extra crap. We are a bit stuck because my wife insists no changes until the last kid is out of high school.

Have long/deep conversations. Go over alternatives. Maybe you take a break, find yourself. Find a career that pays $125k. Now let your wife take a break. With your savings you can certainly get by on less. You don't have to save as much.

Deep breath. Make a plan. What I've found is it doesn't really matter if you don't work for 3, 6, 12 months. Break the tie to work = life.
Last edited by bloom2708 on Thu Feb 13, 2020 11:39 am, edited 1 time in total.
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PoultryMan
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Re: Financial/career and life advice requested

Post by PoultryMan » Thu Feb 13, 2020 11:26 am

Interesting post. i think MANY of us think the same things you do. I agree, take a breath. You are in decent shape.

I am not one that believes a career is over after 50. the workforce is getting older as less and less people have kids, more older workers are needed.

Also, don't underestimate having one child under the roof still can be expensive, that will get better in a few years.

quantAndHold
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Re: Financial/career and life advice requested

Post by quantAndHold » Thu Feb 13, 2020 11:27 am

If I’m reading this right...

* Assets of $3.7M
* Paid off house
* $67k in SS at some age (when? 62? 70?)
* $130k spend rate
* kid that still needs to go to college

Once you’re collecting $67k in SS, you only need another $63k to make up your current spending. If you have $3.7M in assets, your withdrawal rate is less than 2%. Even before SS kicks in, your withdrawal rate would be 3.5% ($130k/$3.7M).

The two wildcards are healthcare expenses, and college expenses. At your asset level, I don’t think college will move the needle. Healthcare is iffier, and you should check prices and calculate it out. But it looks like you could completely retire yesterday if that’s what you want. Or you can downshift, continue to work but make less money. I suspect your issue is more a family issue than a financial one.

retired@50
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Re: Financial/career and life advice requested

Post by retired@50 » Thu Feb 13, 2020 11:31 am

bloom2708 wrote:
Thu Feb 13, 2020 11:15 am
3.5% of $3.7 million is ~$130k. Pretty darn close to your spend.
^^^ This.

If your wife is earning $100,000 you could easily kick in the remaining $30,000 needed. Shoot, fast food workers are getting $15/hour nowadays. I'd suggest you find a job that is reasonably close to your home, enjoy a short commute and reduced responsibility and stress, and if needed, tap some of the retirement money to make ends meet. This is a long way from a tragedy. Sure, this might lead to a slightly lower Social Security payout, so what? You've already saved enough to meet your spend without social security. Your retirement portfolio has taken on a life of it's own, in case you haven't noticed. I'll bet your account appreciated by more than half a million dollars in 2019 alone. That growth isn't going to go away just because you stop working, or slow down into a lower paying job.

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

Keenobserver
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Re: Financial/career and life advice requested

Post by Keenobserver » Thu Feb 13, 2020 11:36 am

Ok. So you have a paid off house and $3.7 Million in your accounts. Wife works at a $100k job, and you are worried about your finaces?

Rexindex
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Re: Financial/career and life advice requested

Post by Rexindex » Thu Feb 13, 2020 11:39 am

Keenobserver wrote:
Thu Feb 13, 2020 11:36 am
Ok. So you have a paid off house and $3.7 Million in your accounts. Wife works at a $100k job, and you are worried about your finaces?
Well, could be a humblebrag, but lets take him at his word. It can be stressful to think about change or downsizing or slowing down at that age. One can feel pretty small on this website when you read how much people have, this is a pretty high net worth group. I for one think what he is going through is common, I've felt it too.

Change is good but gets harder with age.
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Stinky
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Re: Financial/career and life advice requested

Post by Stinky » Thu Feb 13, 2020 12:08 pm

Rexindex wrote:
Thu Feb 13, 2020 11:39 am
Keenobserver wrote:
Thu Feb 13, 2020 11:36 am
Ok. So you have a paid off house and $3.7 Million in your accounts. Wife works at a $100k job, and you are worried about your finaces?
Well, could be a humblebrag, but lets take him at his word. It can be stressful to think about change or downsizing or slowing down at that age. One can feel pretty small on this website when you read how much people have, this is a pretty high net worth group. I for one think what he is going through is common, I've felt it too.

Change is good but gets harder with age.
Financially they should be in good shape. Especially if he can find another job, and get health insurance taken care of until Medicare kicks in.

Emotionally, there are probably other issues. Having a steady job is so much more than getting a paycheck. A job gives you a certain rhythm and structure to your life, gives you a consistent set of human interactions (and maybe some friends to boot). When that structure is involuntarily jerked out, a person can feel totally lost.

I agree that OP should take a few months off after lay-off (if it comes), to reassess and recharge for what lies ahead.
It's a GREAT day to be alive - Travis Tritt

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Tamarind
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Re: Financial/career and life advice requested

Post by Tamarind » Thu Feb 13, 2020 12:16 pm

OP, I would suggest you take a breather once the sale is done to let yourself decompress. 3-6 months should not stop you from going back to work if you want, after. Please give yourself a minimum of 6 weeks.

I really recommend you do some meaningful volunteering during that time. Work on a project/team that helps you feel like you are contributing positively to the future. It may help you to get a little daylight between "good paying job" and "meaningful job" that would serve you well in your next phase.

As others have said, provided your wife wants to keep working, you do not need a well-paying job to be okay financially.

Mr.BB
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Re: Financial/career and life advice requested

Post by Mr.BB » Thu Feb 13, 2020 12:45 pm

There is two sides to your coin; savings and expenses. To get a really good handle on where you are and where you want to go know how much is going out of pocket; in detail.

Spend this next year recording every penny you spend; especially if it's cash. Once you do that you'll be able to understand more about the lifestyle you want to live and what you're actually able to do with the income/ savings you have.
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

RedTailedHawk
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Re: Financial/career and life advice requested

Post by RedTailedHawk » Thu Feb 13, 2020 12:50 pm

OP, I'm a worrier and my strategy for dealing with stress and anxiety when it comes to big life changing events is to explore and map out the likely outcome/options. I then visualize what life would be like for each and what I would need to do to be OK in each scenario. This helps me deal with the unknowns and to lessen the impact for any likely scenario. Life changes and you have to be flexible or else you will break. You have a decent net worth and you have some leeway even in the worse case scenario. You have to think about taking a lesser job and retirement and how you can be successful if you to take either path. I was in a somewhat similar situation as you, HCOL, decent income, higher than necessary expenses, toxic work environment. I took the retirement path. We started seriously planning for it around 50 and retired at 55.

rgrbic
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Re: Financial/career and life advice requested

Post by rgrbic » Thu Feb 13, 2020 1:02 pm

Hi Genuinesarcasm,

Lots of feedback already, relative to your financial position, but what I keep going back to is the sale of the company you work for. I'm not sure what the situation is with the (current) business, but if it is still a viable operation, I would imagine this would be a perfect scenario for you. It sounds like a new owner is exactly what the business needs...and the second most important thing this business needs is someone who knows the current business inside and out. Speaking in terms of corporate rescue / turnaround management, someone like you is priceless to the new ownership. You already know your companies' strengths and weaknesses, line(s) of business, and customers. You literally cannot put a price tag on that kind of knowledge. Not to mention, you're not interested in leaving (or at least that's how you pitch yourself!) and have a genuine desire to keep things going and/or grow the business further with the new owners' involvement.

I'm not sure what the new owners intentions are, but if there's any talk of expansion or influx of capital, etc - you're a big piece to that puzzle, my man. New owners will obviously bring new headaches and baggage, but that's a hell of a lot easier to deal with than learning an entirely new business/industry/customers/etc (should you up and switch to some other job). You could even offer to stay on in a consulting fashion for 2, 3, or 5 years. If you think think there's a chance this company can turn around and pick up steam again, try and weasel a little piece of the pie (equity) out of them, like a performance target for yourself (for example). A couple percent of something is a hell of a lot better than 100% of nothing!

The other advantage with sticking with the current company is your comfort level with that part of your life. I'm sure the salary is nice, but even if you went somewhere and made $300k per year, I guarantee you won't be any happier because it's something new, outside of your comfort level (knowledge). You're obviously not living paycheck to paycheck, so +/- $50k or $100k isn't going to send you into the poorhouse.

Just offering a different take on the situation. Hope it was helpful. Best of luck.

Thanks,
Bob

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djpeteski
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Re: Financial/career and life advice requested

Post by djpeteski » Thu Feb 13, 2020 1:22 pm

For me, I would take one step at a time. Leadership is a coveted skill and you may be able to land an appropriate position. Why not put your resume out and test the waters? You may move into a career that you like much better than your current, and as such all these issues go away.

Given your stress level, you may want less authority. Taking a job with no responsibility for less money, but being able to work 40 hours a week might be a God send.

I think you are getting ahead of yourself and worrying about things that you should not be worried about at this juncture.

Topic Author
Genuinesarcasm
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Re: Financial/career and life advice requested

Post by Genuinesarcasm » Thu Feb 13, 2020 1:26 pm

rgrbic wrote:
Thu Feb 13, 2020 1:02 pm
Hi Genuinesarcasm,

Lots of feedback already, relative to your financial position, but what I keep going back to is the sale of the company you work for. I'm not sure what the situation is with the (current) business, but if it is still a viable operation, I would imagine this would be a perfect scenario for you. It sounds like a new owner is exactly what the business needs...and the second most important thing this business needs is someone who knows the current business inside and out. Speaking in terms of corporate rescue / turnaround management, someone like you is priceless to the new ownership. You already know your companies' strengths and weaknesses, line(s) of business, and customers. You literally cannot put a price tag on that kind of knowledge. Not to mention, you're not interested in leaving (or at least that's how you pitch yourself!) and have a genuine desire to keep things going and/or grow the business further with the new owners' involvement.

I'm not sure what the new owners intentions are, but if there's any talk of expansion or influx of capital, etc - you're a big piece to that puzzle, my man. New owners will obviously bring new headaches and baggage, but that's a hell of a lot easier to deal with than learning an entirely new business/industry/customers/etc (should you up and switch to some other job). You could even offer to stay on in a consulting fashion for 2, 3, or 5 years. If you think think there's a chance this company can turn around and pick up steam again, try and weasel a little piece of the pie (equity) out of them, like a performance target for yourself (for example). A couple percent of something is a hell of a lot better than 100% of nothing!

The other advantage with sticking with the current company is your comfort level with that part of your life. I'm sure the salary is nice, but even if you went somewhere and made $300k per year, I guarantee you won't be any happier because it's something new, outside of your comfort level (knowledge). You're obviously not living paycheck to paycheck, so +/- $50k or $100k isn't going to send you into the poorhouse.

Just offering a different take on the situation. Hope it was helpful. Best of luck.

Thanks,
Bob
Very appreciative of the kind words. Its helpful and yes, I do have a lot to offer but in my industry the likelihood of keeping me (wouldn't want to stay anyway) is limited. people move their own people in. I would almost certainly have to go into another field.

Mr.BB
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Re: Financial/career and life advice requested

Post by Mr.BB » Thu Feb 13, 2020 1:42 pm

One more idea I had for you. One of the best ideas I heard to test to see if you're ready for retirement financially is to live for a year only on your retirement income ; or in your case you can estimate your reduced income levels and play the same game. Since it's going to be less than what you would normally spend when you're working (or should be). It will atually help you save even more money during the year, and you can see how it feels to live with less income.
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

evilityb
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Re: Financial/career and life advice requested

Post by evilityb » Thu Feb 13, 2020 2:20 pm

This sounds like a phenomenal opportunity to jump and reinvent yourself. Just think of the possibilities! Early 50s is young and it's absolutely silly that we, culturally, act like we stop growing as people after some super young age. You have several more decades to live a robust life and become a new version of yourself every day.

My advice to you is this:
1) Do some soul searching and really focus on your values. What matters the most to you in this world?
2) Begin to dedicate more and more of your time, effort, and money to those things and less and less on the things that aren't in line with them.
2a) Take a hard look at your finances. Is all $130k of that spending in line with your core values?
2b) Trim down your spending with the focus on those values. While you don't *need* to cut back, I think it will give you additional security through the transition.

Above, people have already laid out the math for you. With your current savings, a paid off house, your wife's income, your ability to go back to work if necessary, ability to cut down expenses, and future social security income, you are financially fine to leave the work force. Also, your kid can get a job when they're in high school to pay for things you don't want to spend money on.

Good luck! I feel like the future holds great things for you.
She/her/hers | Make sure the fortune that you seek is the fortune that you need - Ben Harper

Topic Author
Genuinesarcasm
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Re: Financial/career and life advice requested

Post by Genuinesarcasm » Thu Feb 13, 2020 2:30 pm

evilityb wrote:
Thu Feb 13, 2020 2:20 pm
This sounds like a phenomenal opportunity to jump and reinvent yourself. Just think of the possibilities! Early 50s is young and it's absolutely silly that we, culturally, act like we stop growing as people after some super young age. You have several more decades to live a robust life and become a new version of yourself every day.

My advice to you is this:
1) Do some soul searching and really focus on your values. What matters the most to you in this world?
2) Begin to dedicate more and more of your time, effort, and money to those things and less and less on the things that aren't in line with them.
2a) Take a hard look at your finances. Is all $130k of that spending in line with your core values?
2b) Trim down your spending with the focus on those values. While you don't *need* to cut back, I think it will give you additional security through the transition.

Above, people have already laid out the math for you. With your current savings, a paid off house, your wife's income, your ability to go back to work if necessary, ability to cut down expenses, and future social security income, you are financially fine to leave the work force. Also, your kid can get a job when they're in high school to pay for things you don't want to spend money on.

Good luck! I feel like the future holds great things for you.
Thank you. I feel I've run the race so hard to get financially secure that now I doubt the secure part and need a break from what I've been doing.

recalcitrant
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Re: Financial/career and life advice requested

Post by recalcitrant » Thu Feb 13, 2020 7:31 pm

When I run firecalc It looks to me you could retire today and not work again. Essentially, find a job you like for the health insurance alone.

260chrisb
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Re: Financial/career and life advice requested

Post by 260chrisb » Thu Feb 13, 2020 7:47 pm

Genuinesarcasm wrote:
Thu Feb 13, 2020 10:28 am
Dear Bogleheads:

I am seeking some honest help
And Opinions on our situation. I like this board a lot both financial and non financial topics give me something to think about.

Pardon the ramble I will try to make this coherent as I am in somewhat of a career stress point. Let me also preface as I have read some others, I am grateful for what we have and this is not a “humble brag”.

My wife and I have good paying jobs right now her at $100,000 and me at $200,000. The problem is my
Job likely will go Away with the sale of the company Likely to happen. Most people I enjoy working with are leaving due to the owners apparent lack of interest. I run the company operationally but both the stress and lack of future has worn me out emotionally.

We are both early 50’s with one kid out of college on his own and another son 11 where we have about $100,000 in a 529.

We don’t have debt but live in a HCOL area.

Taxable and tax advantages funds total 3.7 million.

We have a paid off house.

Social security states around $2800/month for each of us but we both have only about 27 years of work history into SS.

I fear the emotional impact of taking a job likely so far below my current salary and autonomy. However I am miserable in all other ways.

We have a good marriage but I fear with no debt and an annual spend of $130,000 money can become an issue when I downshift career wise. My parents were financial train wrecks and money was the root of most of their issues.


There's an awful lot of good in this! Congrats! Let the job situation work itself out, take some time off, and find something else (better and less stressful) to do. You don't need to make as much as you do now, your wife is still working, and while you've got enough to retire, another 4-5 years will make things even better. You're too young to retire anyway!! :P

I read a lot of posts here and don’t think I could retire financially( would love to be independent financially) but don’t have any pensions or other income streams as so many seem to do on this site.

I am worried we don’t have enough, I
Am worried about not being wanted in my early 50’s professionally.

I was a low cost indexer for a long time and think portfolio wise we have been pretty good, we are 55/45 in AA.

I guess i am asking if anyone has been at a similar age, faced the same worries, downsized financially and been ok or have advice.

Hope that makes sense and hoping to get some financial and maybe career and yes, life advice.

Thanks

Freddobbs
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Re: Financial/career and life advice requested

Post by Freddobbs » Fri Feb 14, 2020 8:14 am

I've learned an AA you can feel comfortable with is very important. I see yours and would only wanr, you will need growth with an expected long life span. So don't shortchange the Stocks.

I think there is a psychological component here (many have gone through) and I think you have the time and resources to take a breather and figure out what you want to do. I think you are in a pretty good position. Good luck

Nowizard
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Re: Financial/career and life advice requested

Post by Nowizard » Fri Feb 14, 2020 8:57 am

It sounds like you are well on your way to being able to support the future you want, but in what some call the Contemplation stage of planning next steps. In that sense your "problem" is arriving at a point of psychological comfort with a major change more than a financial one. It is difficult when you first begin to think of these changes involving a move from accumulation to preservation stages of investing. There are alternatives that go far beyond the either/or of continuing as you are or retiring completely. A less demanding job with less pay could make the difference. As one who had the good fortune of moving from five to four to three days of FT work before finally moving to 1/2 day, the change over several years would be highly recommended and can be accomplished by either working fewer days if your job allows it, finding one that does or working FT in a less demanding job. Your finances are such that you have many options if you follow contemplation with other aspects of that particular theoretical approach. They are: Precontemplation, Contemplation, Planning, Implementation and Maintenance.
Tim

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Sandtrap
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Re: Financial/career and life advice requested

Post by Sandtrap » Fri Feb 14, 2020 9:06 am

Actionable considerations:

1. Relocate from HCOL to LCOL area.
2. Reduce debts and don't take on new debt.
3. Medical insurance.
4. Maintain some type of income stream, even part time. Makes financial sense.
5. Restructure or transition into a lifestyle that fits the altered financial picture.
6. Take care of family dynamics, health, relationships.
7. Take care of self. Re-evaluate, make a plan, act, repeat.
8. Any transition is stressful. Accept that. Then be proactive.
9. Mentaly and emotionally, you don't wear holes in the ground as long as you are moving.

j :happy
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carolinaman
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Re: Financial/career and life advice requested

Post by carolinaman » Fri Feb 14, 2020 9:20 am

I would think that your experience running the company operationally would make you attractive to companies in need of such talent. You may be underestimating your ability to get a good job. It sounds like you have time on your side to look for something similar to your current job. IMO, your age is not a hindrance for a senior position like that. Give it a shot!

drgenefish
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Re: Financial/career and life advice requested

Post by drgenefish » Sat Feb 15, 2020 11:26 am

Why would you take a job making less? Why not find a job making double? You’ve already proven you are worth $100k and you haven’t even shopped your skills around. (Or tried to run your own biz in a similar field)

I think one thing that may help you...if you haven’t already...is to write out a budget with your wife. So you can see what you’re spending and both agree on what you can cut out in the WORST case scenario (to me that would be you not wanting to pull from your nest egg and you making $0) and still be comfortable.

Other than that, what’re you going to do with the rest of your life? You’re not going to just sit around and watch Price is Right. Do some deep searching on what you WANT to do. Money will fall in place when you find a passion. It may be hard to search now while you’re still at your current job. Give yourself a deadline to decide and just pick something. You can always change your mind. You’ve worked hard and set yourself up for this kind of freedom and opportunity. Accept that you’ve made it. You’re not your parents (financially). You did it! Only more great things to come. I hope you find joy and excitement in this next chapter of your life rather than worry. Best of luck.

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Watty
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Re: Financial/career and life advice requested

Post by Watty » Sat Feb 15, 2020 12:16 pm

Genuinesarcasm wrote:
Thu Feb 13, 2020 10:28 am
I fear the emotional impact of taking a job likely so far below my current salary and autonomy. However I am miserable in all other ways.

We have a good marriage but I fear with no debt and an annual spend of $130,000 money can become an issue when I downshift career wise. My parents were financial train wrecks and money was the root of most of their issues.
You might consider getting some professional counseling or couples counseling to work through the issues that you are facing since it sounds like the emotions and fear are likely more of a concern than the actual finances.

Luckywon
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Re: Financial/career and life advice requested

Post by Luckywon » Sat Feb 15, 2020 12:34 pm

Watty wrote:
Sat Feb 15, 2020 12:16 pm


You might consider getting some professional counseling or couples counseling to work through the issues that you are facing since it sounds like the emotions and fear are likely more of a concern than the actual finances.
Agree, and also consider mindfulness meditation which may help with these feelings.

Reading your post, I understand your feelings but I really think you and your family are going to be more than fine. You already have a very decent safety net. You clearly have the skills to cope and succeed with changes and challenges in life, given what you have achieved so far.

coffeeblack
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Re: Financial/career and life advice requested

Post by coffeeblack » Sat Feb 15, 2020 12:55 pm

Genuinesarcasm wrote:
Thu Feb 13, 2020 10:28 am
Dear Bogleheads:

I am seeking some honest help
And Opinions on our situation. I like this board a lot both financial and non financial topics give me something to think about.

Pardon the ramble I will try to make this coherent as I am in somewhat of a career stress point. Let me also preface as I have read some others, I am grateful for what we have and this is not a “humble brag”.

My wife and I have good paying jobs right now her at $100,000 and me at $200,000. The problem is my
Job likely will go Away with the sale of the company Likely to happen. Most people I enjoy working with are leaving due to the owners apparent lack of interest. I run the company operationally but both the stress and lack of future has worn me out emotionally.

We are both early 50’s with one kid out of college on his own and another son 11 where we have about $100,000 in a 529.

We don’t have debt but live in a HCOL area.

Taxable and tax advantages funds total 3.7 million.

We have a paid off house.

Social security states around $2800/month for each of us but we both have only about 27 years of work history into SS.

I fear the emotional impact of taking a job likely so far below my current salary and autonomy. However I am miserable in all other ways.

We have a good marriage but I fear with no debt and an annual spend of $130,000 money can become an issue when I downshift career wise. My parents were financial train wrecks and money was the root of most of their issues.

I read a lot of posts here and don’t think I could retire financially( would love to be independent financially) but don’t have any pensions or other income streams as so many seem to do on this site.

I am worried we don’t have enough, I
Am worried about not being wanted in my early 50’s professionally.

I was a low cost indexer for a long time and think portfolio wise we have been pretty good, we are 55/45 in AA.

I guess i am asking if anyone has been at a similar age, faced the same worries, downsized financially and been ok or have advice.

Hope that makes sense and hoping to get some financial and maybe career and yes, life advice.

Thanks
So you were making 300K per year combined. 200/100. Can you find another job that has a 50% pay cut? If you got paid 100K and your wife 100K that would be 200K. You stated you have a 130K spend. I don't know if that before tax or after tax but either way you wouldn't have to touch your savings/investments even if you took a 50% pay cut.
It seems to me that the thing to do is take some time and find something that you would enjoy doing. I think even at low 50's you can find something like that. Find a good recruiter. Interview several of them and let them go to work finding you a good job. In the mean time you have plenty of investment to do just fine.

Financologist
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Joined: Wed Jan 01, 2020 11:16 pm

Re: Financial/career and life advice requested

Post by Financologist » Sat Feb 15, 2020 4:01 pm

Have you considered therapy to work through your worries? Sometimes the biggest challenge lies in the emotional turmoil of change. Even if you are otherwise mentally healthy, personalized therapy could help you make a good decision free of emotional distraction.

You are in a great position. Good luck.

Old Sage(brush)
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Joined: Sat Dec 08, 2018 8:27 am

Re: Financial/career and life advice requested

Post by Old Sage(brush) » Sat Feb 15, 2020 4:45 pm

I will offer my own somewhat related experience. At about your age my company that I'd been with for 17 years in senior positions was acquired and while I could have stayed (they wanted me to) I had the opportunity to leave with a lucrative package, but unknown future. Not yet FI. I was burnt out in the corporate world, so took the opportunity to leave. I was less financially ok than you are, but also running a more modest life-style. I'd guess I left several million, conservatively, behind had I stayed, but I was really pretty miserable. I did get professional transition coaching, and would recommend as some others have, that you check into it. I was out of work about a year, and had as a goal professionally for my next thing to have a mission based aspect to it, not just about money. I'm sure I was lucky (I actually attribute luck to people's success and path as a very significant factor, perhaps the most, although we can do things to improve the potential of luck coming our way), and in the end was able to start a second career in higher education using my past professional skills and experience. With compensation, to start, at about a quarter of what I had made. Yes, you read it right. I adopted a glide path approach of having my reduced income cover my expenses but not contribute much in retirement, the idea being that as long as I didn't touch in a big way my savings the extension of time would allow it to work (I did have to dip into savings a bit from time to time at the start, but received increases in compensation so that reasonably soon my salary covered our expenses). For me, it was one of the best moves I ever made professionally and for life. No guarantees. I'd recommend you read a book titled "Transitions" by William Bridges. Good luck.

Twiggsapproved
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Joined: Sun Jan 06, 2019 2:58 pm

Re: Financial/career and life advice requested

Post by Twiggsapproved » Sat Feb 15, 2020 4:56 pm

I think many would envy your position. Financially don’t you think you are in good shape? Outside of covering healthcare and treading water on expenses, work a few more years and do what you want!

Get some emotional help. I have gone through similar feelings. Be well!

Kingpin
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Joined: Mon Dec 28, 2015 12:41 pm
Location: Santa Fe NM

Re: Financial/career and life advice requested

Post by Kingpin » Sat Feb 15, 2020 8:04 pm

Is 3.7 million NOT a lot of money?

blahblahsunshine
Posts: 91
Joined: Sun Jan 14, 2018 8:11 pm

Re: Financial/career and life advice requested

Post by blahblahsunshine » Sun Feb 16, 2020 12:43 am

I'd spend some quality time looking at your expenses. You might find that there are some very minor changes you can make that add up to a significant reduction in what you spend and thereby the amount of money you need in savings. We went through the exercise earlier this year and pulled out 30K or so, which nets up to around 900K not needed in savings.

quantAndHold
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Joined: Thu Sep 17, 2015 10:39 pm

Re: Financial/career and life advice requested

Post by quantAndHold » Sun Feb 16, 2020 12:53 am

Kingpin wrote:
Sat Feb 15, 2020 8:04 pm
Is 3.7 million NOT a lot of money?
$3.7m is plenty, especially since they only spend $130k/year, and are expecting $65k in Social Security. I’m baffled why people keep telling them ways to save money. OP’s issue isn’t really financial. It’s a life and family issue.

PHD-2
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Joined: Mon May 14, 2018 2:36 pm

Re: Financial/career and life advice requested

Post by PHD-2 » Sun Feb 16, 2020 1:15 am

Well I don't think you've got alot to worry about if you want to call it a career if thats what you desire. I'm very close to your situation except my wife is at about $30k and wants to keep working another 5-7 years. I'm happy retiring with my $2.7M and using a Guyton Klinger variable withdrawal rate starting with spending at $115k. The initial withdrawal rate seems high on the surface but buffered by my wifes income for the first 5-7 years and the fact that in about 15 years roughly 1/2 our spending will come from SS, the numbers work out in cfiresim and any number of other tools and all the worried calculations I've done. However my actual expenses are about $80,000 a year, dropping to about $60,000 when the kids leave home. So if I have to I have alot of room to cut if I have to.

But if you can't do it then I must be crazy. I think if you can figure out health care for the long term you are in a position to make the choice you wish to.

Montgomery
Posts: 17
Joined: Sun Nov 17, 2019 1:11 pm

Re: Financial/career and life advice requested

Post by Montgomery » Sun Feb 16, 2020 3:52 am

quantAndHold wrote:
Sun Feb 16, 2020 12:53 am
Kingpin wrote:
Sat Feb 15, 2020 8:04 pm
Is 3.7 million NOT a lot of money?
$3.7m is plenty, especially since they only spend $130k/year, and are expecting $65k in Social Security. I’m baffled why people keep telling them ways to save money. OP’s issue isn’t really financial. It’s a life and family issue.
This saved amount represents being in the top 3% of US wealth. Worldwide it is top 1%. Yes, there is a wide swath in that 1%, but by any standard that is a lot of money saved.

Most of this is emotional, as it is for me and others I assume. How much is enough to allay fear and worry? But can’t changes be made along the way? Does one living in a HCOL area HAVE to live there? It may be nice, but that answer is no. Can someone cut out some spending with little to no debt? Of course.

We could go on and on about the emotional side of investing and saving, but people DO have control and hearing from those who retire happily with far less who have adjusted along the way would calm many of these fears. And by the way, mid 50’s can be peak earning years despite the sometimes valid age discrimination.

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