Can I early retire from my corporate job?

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Topic Author
mobileagent
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Joined: Fri Jun 23, 2017 9:15 pm

Can I early retire from my corporate job?

Post by mobileagent »

I am seeking some guidance from many seasoned Bogleheads in this forum on my retirement plans. Here are some details about me:

Personal: Age 47, DW Age 43, 2 kids - 16, 12 years of age. Kids are expected to attend college in 2 and 6 years respectively. DW is a stay at home parent. We live in US coast and are US citizens.

Networth: Total assets of $5.3M without any debt (Home - $1.6M, Taxable investments - $1.6M, Tax advantaged - $1.4M, International real estate - $0.7M)

Expenses: We expect the annual cost to be $90K including the health insurance. The upcoming college expenses can vary a lot, but we are prepared to set aside $400K in today's dollars.

Job: I work in a tech company with an annual compensation of $500K-$600K. The job is OK with enough political issues, long hours, and stress. It can be draining at times. I would not be in this job if I am not getting compensated this well.

Now, let me share more details about current thinking around retirement plans.

Rationale: I want to make sure that we enjoy the life while our bodies are still in a decent shape. We are already seeing some body pains that can limit our mobility as we age past sixty. The work stress is making me grumpy. I would like to spend more time with kids while they are still at home. DW and I enjoy our time together and doing simple things like cooking in a relaxed environment without stress. We also like to spend some time with our parents while their faculties are still in a good condition, who live in Asia. Once both kids are out of the house in 6 years, we would like to downsize/sell the current house and spend a few years travelling. We have an apartment in Asia which could also be used as a base so that our expenses are even lower. If money is not an issue, I would quit today, but want to be sure that our plans are sound.

Retirement Plan: Here is the current thinking
  • Retire in 2021 after saving additional $200K.
  • Live in the current house for next 7 years until both kids leave for college.
  • Prepared to spend $400K in today's dollars on kids education. Actual cost may vary.
  • Health insurance is through ACA.
  • Sell the current house in 7 years. Invest the proceedings in taxable account. Move to the apartment in Asia.
  • Live in Asia in our paid off apartment and travel once a year to US; Alternatively pay for kids flight tickets for them to visit us.
  • While in Asia, let the investments grow in US accounts for 10 years while the expenses are $50K a year.
  • After 65 years of age, return to US. Buy a smaller house in US (<=$500K), ideally closer to at least one of the kids
  • Spend traditional retirement years closer to kids and grandkids. Leverage Medicare and social security withdrawals after 67
I am ignoring the possibility of coming back to workplace in this evaluation. If our Asia plan doesn't work out, we could move to a LCOL town in US where our annual expense will still be lower than $90K in current dollars. I really appreciate your feedback on whether I am ready to retire this year without taking big risks or scarifying lifestyle for the family. Thank you!
Escapevelocity
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Re: Can I early retire from my corporate job?

Post by Escapevelocity »

Yes without hesitation. Suggest you model it out using Bigfoot RPM.
manuvns
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Re: Can I early retire from my corporate job?

Post by manuvns »

why not take up a low-paying 100k job and chill.
sailaway
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Re: Can I early retire from my corporate job?

Post by sailaway »

Can you do it? Yes, no problem.

However, I would question your plan in so far as it regards the youngest. At many schools, dorms close over breaks and often over the summer term. You will need to have a plan for them during those weeks, whether that is flying them to Asia severe times a year or putting them in an apartment or a condo or some other arrangement.
OnTrack2020
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Re: Can I early retire from my corporate job?

Post by OnTrack2020 »

You can, if you are pretty much certain about your expenses.

Honestly, if it were me, I'd forego all that moving/traveling around. Logistically, it's only going to get harder as you get older. I'd sell the apartment in Asia in a heartbeat. Is it sitting empty? There are many cities in the U.S. where you can buy a nice house for that amount of money. Find the place where you would like to live here in the U.S. and buy a house/multi-family home and move your parents in.
Nathan Drake
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Re: Can I early retire from my corporate job?

Post by Nathan Drake »

Yes, why didn’t you retire years ago?
ut2sua
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Re: Can I early retire from my corporate job?

Post by ut2sua »

Your annual expense of 90K seems to be on the low side. Make sure you have taken property tax, insurance and HI into account. If expense is verified, you should be good to retire. Also, can you rent out the condo for some extra $ during the first 7 years?
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

ut2sua wrote: Wed Apr 07, 2021 3:45 pm Your annual expense of 90K seems to be on the low side. Make sure you have taken property tax, insurance and HI into account. If expense is verified, you should be good to retire. Also, can you rent out the condo for some extra $ during the first 7 years?
This includes $13K for property taxes and $15K for health insurance. Our cars are new and are paid off. We don't have a mortgage. Our actual expenses may vary between $80K and $100K based on whether we have a big vacation(s) in a year. Regarding renting the condo out, we don't feel like it is worth the hassle and dealing with potential issues. The condo cost us $70K. Thanks.
Pikel
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Re: Can I early retire from my corporate job?

Post by Pikel »

Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

sailaway wrote: Wed Apr 07, 2021 3:10 pm However, I would question your plan in so far as it regards the youngest. At many schools, dorms close over breaks and often over the summer term. You will need to have a plan for them during those weeks, whether that is flying them to Asia severe times a year or putting them in an apartment or a condo or some other arrangement.
I didn't think through this clearly. We would learn more about the challenges with college going kids before our youngest kid is ready for college. By then, our eldest would have completed the college. So, there are a few options to consider:
  • Stay in the current house until both kids are out of college, but travel extensively after 7 years.
  • Move to Asia after 7 years. Either second kid stays with the elder kid or visit us during the breaks.
  • Sell the house in HCOL after 7 years and move to a LCOL town as a base.
Thanks!
Tingting1013
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Re: Can I early retire from my corporate job?

Post by Tingting1013 »

Pikel wrote: Wed Apr 07, 2021 4:32 pm Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
25 years of super high income will yield more SS than 35 years of average income.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

manuvns wrote: Wed Apr 07, 2021 3:08 pm why not take up a low-paying 100k job and chill.
This is an option, but the job must be inspiring and exciting to take a steep cut from $600K while putting similar hours. With any job, we would not have the same freedom and flexibility we would get without a job. If we must expend our energy at a job, it seems more logical to maximize the earnings if the hours are similar. I might be more open to this option after I take a long break. Thanks!
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

Tingting1013 wrote: Wed Apr 07, 2021 4:34 pm
Pikel wrote: Wed Apr 07, 2021 4:32 pm Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
25 years of super high income will yield more SS than 35 years of average income.
At this point, I am only counting on using SS at 67 as a potential upside to cover for any surprises in market. I am fairly sure there will be a negative impact to the SS payout from early retirement, but I am OK with it. Thanks!
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Cobra Commander
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Re: Can I early retire from my corporate job?

Post by Cobra Commander »

mobileagent wrote: Wed Apr 07, 2021 4:32 pm
sailaway wrote: Wed Apr 07, 2021 3:10 pm However, I would question your plan in so far as it regards the youngest. At many schools, dorms close over breaks and often over the summer term. You will need to have a plan for them during those weeks, whether that is flying them to Asia severe times a year or putting them in an apartment or a condo or some other arrangement.
I didn't think through this clearly. We would learn more about the challenges with college going kids before our youngest kid is ready for college. By then, our eldest would have completed the college. So, there are a few options to consider:
  • Stay in the current house until both kids are out of college, but travel extensively after 7 years.
  • Move to Asia after 7 years. Either second kid stays with the elder kid or visit us during the breaks.
  • Sell the house in HCOL after 7 years and move to a LCOL town as a base.
Thanks!
Winter break is like a month long. Older kid will probably live in a 1 bedroom apt or with roommates so unlikely to be a comfortable arrangement for the youngest for that long. The other two options sound good.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

Thanks for all the replies. I am wondering about the following two questions on whether they make a difference in the plan:
  • Our primary house is in a desirable location and has been growing at 9% over the past 10 years. Does it make sense to sell a house in such a desirable location with lots of jobs even if we move?
  • Our liquid portfolio of $3M should support the annual expenses and college expenses if we just stay where we are for rest of our lives. Can we support occasional larger expenses by treating $1.2M out of $1.6M house as part of the portfolio? I am wondering as the house value is growing closer to stock market rate than at inflation rate.
Thanks!
jarjarM
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Re: Can I early retire from my corporate job?

Post by jarjarM »

mobileagent wrote: Wed Apr 07, 2021 5:16 pm Thanks for all the replies. I am wondering about the following two questions on whether they make a difference in the plan:
  • Our primary house is in a desirable location and has been growing at 9% over the past 10 years. Does it make sense to sell a house in such a desirable location with lots of jobs even if we move?
  • Our liquid portfolio of $3M should support the annual expenses and college expenses if we just stay where we are for rest of our lives. Can we support occasional larger expenses by treating $1.2M out of $1.6M house as part of the portfolio? I am wondering as the house value is growing closer to stock market rate than at inflation rate.
Thanks!
What about the 10 years before 2010? Has the price also increase by 9% a year? Usually long term real estate return matches inflation but local area can grow faster. For me, I think you can't treat the housing value as the same as stock allocation due to liquidity issue (of course HELOC helps but it's been known to be shut down at the worse time, during GFC before).
Your plan is fine in terms of retiring and I think you'll be even fine with the occasional splurges. Congrats :beer
coalcracker
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Re: Can I early retire from my corporate job?

Post by coalcracker »

My income and retirement savings are similar to yours (although we have debt and our house is worth closer to $1M), but I don't mind my job and could continue working indefinitely.

If I were in your situation, I would approach my employer honestly and tell them you'd like to drastically reduce hours and pay. Choose whatever you want , maybe 25% of the you current hours/pay. Worst case scenario they say no, and you give your notice. But they might say yes :D
SRenaeP
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Re: Can I early retire from my corporate job?

Post by SRenaeP »

I would use EMoney or similar to model your plan and see if it works. If not, tweak as needed until you have a feasible plan.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

jarjarM wrote: Thu Apr 08, 2021 12:18 pm What about the 10 years before 2010? Has the price also increase by 9% a year? Usually long term real estate return matches inflation but local area can grow faster. For me, I think you can't treat the housing value as the same as stock allocation due to liquidity issue (of course HELOC helps but it's been known to be shut down at the worse time, during GFC before).
Your plan is fine in terms of retiring and I think you'll be even fine with the occasional splurges. Congrats :beer
Thanks for the feedback. I was primarily thinking of the equity in the house as part of the contingency planning. At some point after the kids leave, we have to move as the current house too big and can't even keep it clean without the help of maid services. We can invest the proceedings from the sale into the stock market.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

coalcracker wrote: Thu Apr 08, 2021 12:30 pm If I were in your situation, I would approach my employer honestly and tell them you'd like to drastically reduce hours and pay. Choose whatever you want , maybe 25% of the you current hours/pay. Worst case scenario they say no, and you give your notice. But they might say yes :D
When I am ready to resign, I will discuss the option of part time work (like 2 day X 10 hours) with my employer. If something can be worked out, it will be good for a little longer. If not, I would be resigning any way. Thank you.
gowest
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Re: Can I early retire from my corporate job?

Post by gowest »

Pikel wrote: Wed Apr 07, 2021 4:32 pm Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
True, but it's not linear. There are bend points. I found this video explanation to be very insightful: https://www.youtube.com/watch?v=G-J5tVCjq9A

So if you have high income for many years, adding in the zeroes isn't too big of a deal.
2020content
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Re: Can I early retire from my corporate job?

Post by 2020content »

Escapevelocity wrote: Wed Apr 07, 2021 3:04 pm Yes without hesitation. Suggest you model it out using Bigfoot RPM.
Can you tell me more about Bigfoot RPM? What is it?

Thanks
simas
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Re: Can I early retire from my corporate job?

Post by simas »

mobileagent wrote: Wed Apr 07, 2021 2:46 pm
Retirement Plan: Here is the current thinking
  • Retire in 2021 after saving additional $200K.
  • Live in the current house for next 7 years until both kids leave for college.
Multiple things here
- what is the rush to retire in 2021 if you can not move back to Asia for at least 7 more years until your kids are in college? Is it health, stress, desire for more time, etc. ?
- financially you are ok to do all of that, however people typically struggle in other areas where identity/self-worth gets mixed up in their career. Are you sure you are ok with taking it easy/cooking meals at home for 7 years and more time with the family _without_ that self fulfillment that successful career and other adult interactions would bring? Again, financially you are ok.

If asked for advice, I would probably have done it differently - instead of outright quitting, I would changing your employments towards less career/less growth/less time/ less stress/ etc. Set boundaries so you can cook with family, set limits. Ok, you will not be overachiever, you will not get the most bonus, however you may be surprised in getting to arrangement that works. And if it does not and you are released to 'spend more time with the family' :happy , wasnt that the end result anyway?
flyingaway
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Re: Can I early retire from my corporate job?

Post by flyingaway »

OnTrack2020 wrote: Wed Apr 07, 2021 3:18 pm You can, if you are pretty much certain about your expenses.

Honestly, if it were me, I'd forego all that moving/traveling around. Logistically, it's only going to get harder as you get older. I'd sell the apartment in Asia in a heartbeat. Is it sitting empty? There are many cities in the U.S. where you can buy a nice house for that amount of money. Find the place where you would like to live here in the U.S. and buy a house/multi-family home and move your parents in.
I think that the OP's parents and probably many relatives are in Asia where they want to live. Selling house in Asia is not an option in their plan.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

simas wrote: Thu Apr 08, 2021 2:13 pm
Multiple things here
- what is the rush to retire in 2021 if you can not move back to Asia for at least 7 more years until your kids are in college? Is it health, stress, desire for more time, etc. ?
- financially you are ok to do all of that, however people typically struggle in other areas where identity/self-worth gets mixed up in their career. Are you sure you are ok with taking it easy/cooking meals at home for 7 years and more time with the family _without_ that self fulfillment that successful career and other adult interactions would bring? Again, financially you are ok.

If asked for advice, I would probably have done it differently - instead of outright quitting, I would changing your employments towards less career/less growth/less time/ less stress/ etc. Set boundaries so you can cook with family, set limits. Ok, you will not be overachiever, you will not get the most bonus, however you may be surprised in getting to arrangement that works. And if it does not and you are released to 'spend more time with the family' :happy , wasnt that the end result anyway?
These are good questions and suggestions. I am putting in 12-14 hour days with some work spilling over into the weekends. Our work environment is fast paced with multiple concurrent deadlines for that team I manage. The work is technical requiring a lot of breadth and depth, which adds to the stress. If I can only put 40 hours max a week with much reduced stress, I can continue to work longer while taking advantage of the vacation time and weekends. As someone who always worked hard throughout my career, this would be a substantial change of pace and mindset.

I have to think more about how to only put 40 hours by leveraging the team more and lowering the expectations on the rewards. This seems to be the most logical next step to lower the pace and stress. If this doesn't work, then I need to pursue a part time job in the same team or try a new job in a different company/team. Resigning is the last option when nothing works, which is financially OK based on the feedback from this thread. I have to figure out how I can have 40 hour weeks with reduced stress.

Thank you.
Escapevelocity
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Re: Can I early retire from my corporate job?

Post by Escapevelocity »

2020content wrote: Thu Apr 08, 2021 2:03 pm
Escapevelocity wrote: Wed Apr 07, 2021 3:04 pm Yes without hesitation. Suggest you model it out using Bigfoot RPM.
Can you tell me more about Bigfoot RPM? What is it?

Thanks
Check out this link. It includes the download link

https://www.bogleheads.org/wiki/Retiree_Portfolio_Model
simas
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Re: Can I early retire from my corporate job?

Post by simas »

mobileagent wrote: Thu Apr 08, 2021 3:01 pm
simas wrote: Thu Apr 08, 2021 2:13 pm
Multiple things here
- what is the rush to retire in 2021 if you can not move back to Asia for at least 7 more years until your kids are in college? Is it health, stress, desire for more time, etc. ?
- financially you are ok to do all of that, however people typically struggle in other areas where identity/self-worth gets mixed up in their career. Are you sure you are ok with taking it easy/cooking meals at home for 7 years and more time with the family _without_ that self fulfillment that successful career and other adult interactions would bring? Again, financially you are ok.

If asked for advice, I would probably have done it differently - instead of outright quitting, I would changing your employments towards less career/less growth/less time/ less stress/ etc. Set boundaries so you can cook with family, set limits. Ok, you will not be overachiever, you will not get the most bonus, however you may be surprised in getting to arrangement that works. And if it does not and you are released to 'spend more time with the family' :happy , wasnt that the end result anyway?
These are good questions and suggestions. I am putting in 12-14 hour days with some work spilling over into the weekends. Our work environment is fast paced with multiple concurrent deadlines for that team I manage. The work is technical requiring a lot of breadth and depth, which adds to the stress. If I can only put 40 hours max a week with much reduced stress, I can continue to work longer while taking advantage of the vacation time and weekends. As someone who always worked hard throughout my career, this would be a substantial change of pace and mindset.

I have to think more about how to only put 40 hours by leveraging the team more and lowering the expectations on the rewards. This seems to be the most logical next step to lower the pace and stress. If this doesn't work, then I need to pursue a part time job in the same team or try a new job in a different company/team. Resigning is the last option when nothing works, which is financially OK based on the feedback from this thread. I have to figure out how I can have 40 hour weeks with reduced stress.

Thank you.
I was in your position too - I found for me it was simplest to talk to my manager (who is also in the same 'team' with me in this political infighting game that we all played) and just see what that person things. Be upfront with them , kids are getting older and I am missing time that would never be returned, family demands and needs, etc .
That we can go many different paths from here , i.e. I can groom a successor and handle properly/orderly transition, I can step back and re-align the responsibilities to peers, we can find someone to promote from within and I can move to advisory capacity, etc. This is not 'I am plugged in 250%' or 'I'm done and I quit!' type false binary choices. Talk to your lead/mentor (be it CEO, head of the group, etc) and you may be surprised on what is possible assuming you have credibility there. Your team, company, etc would function just fine without you working 14 hours aday. Yes, some deadlines may be missed but so what?

Have that conversation. Have it before you go with 'i retire/resign/quit'. see where it takes you. This is also seen as 'honorable' thing (he gave us a chance to work it out vs just dumped it on us)

and if nothing else works, you can always quit.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

Thank you for all the advice in this thread. It is good to have a few options.
Golf maniac
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Re: Can I early retire from my corporate job?

Post by Golf maniac »

Yes, you can easily do your plan. On the younger child’s breaks how about taking vacations and meeting them there for the break? I would not keep the house in the US. Do you really want the hassle of managing a rental? You have won the game, no need to pile on more.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

Golf maniac wrote: Fri Apr 09, 2021 9:40 am Yes, you can easily do your plan. On the younger child’s breaks how about taking vacations and meeting them there for the break? I would not keep the house in the US. Do you really want the hassle of managing a rental? You have won the game, no need to pile on more.
We have to stay in the current house for next few years until the younger kid leaves for college. After that, I have no plans to work and we can certainly relocate for a few years either to Asia or to a LCOL city in the US. Until then, we don't have complete freedom to travel or do things as we please as we will be constrained by kids' schedules as they go to school and prepare for college. I am thinking primarily about the next seven years regarding the options to relax or do part-time or resign to reduce my stress and enjoy more life. Thank you.
azianbob
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Re: Can I early retire from my corporate job?

Post by azianbob »

Tingting1013 wrote: Wed Apr 07, 2021 4:34 pm
Pikel wrote: Wed Apr 07, 2021 4:32 pm Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
25 years of super high income will yield more SS than 35 years of average income.
Even though the OP makes 500k a year for social security purposes I believe they are maxed out at 142k this year. So the 25 years they've worked will be limited to the max each year.
Tingting1013
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Re: Can I early retire from my corporate job?

Post by Tingting1013 »

azianbob wrote: Fri Apr 09, 2021 12:40 pm
Tingting1013 wrote: Wed Apr 07, 2021 4:34 pm
Pikel wrote: Wed Apr 07, 2021 4:32 pm Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
25 years of super high income will yield more SS than 35 years of average income.
Even though the OP makes 500k a year for social security purposes I believe they are maxed out at 142k this year. So the 25 years they've worked will be limited to the max each year.
I agree. The question is which SS payout is higher?

1. $142k for 25 years and then $0 for 10 years
2. The national median income of $60k for 35 years
Afty
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Re: Can I early retire from my corporate job?

Post by Afty »

mobileagent wrote: Thu Apr 08, 2021 3:01 pm These are good questions and suggestions. I am putting in 12-14 hour days with some work spilling over into the weekends. Our work environment is fast paced with multiple concurrent deadlines for that team I manage. The work is technical requiring a lot of breadth and depth, which adds to the stress. If I can only put 40 hours max a week with much reduced stress, I can continue to work longer while taking advantage of the vacation time and weekends. As someone who always worked hard throughout my career, this would be a substantial change of pace and mindset.

I have to think more about how to only put 40 hours by leveraging the team more and lowering the expectations on the rewards. This seems to be the most logical next step to lower the pace and stress. If this doesn't work, then I need to pursue a part time job in the same team or try a new job in a different company/team. Resigning is the last option when nothing works, which is financially OK based on the feedback from this thread. I have to figure out how I can have 40 hour weeks with reduced stress.

Thank you.
FWIW, if you are able to successfully grow your team to the point that you are not shouldering this heavy burden, you will likely find yourself working less yet moving up quickly in the organization. A great manager doesn’t do all the work themselves; they grow and empower a team and make themselves unnecessary. They multiply their impact beyond what a single person (even an exceptional single person) can do.
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

Afty wrote: Fri Apr 09, 2021 2:44 pm
FWIW, if you are able to successfully grow your team to the point that you are not shouldering this heavy burden, you will likely find yourself working less yet moving up quickly in the organization. A great manager doesn’t do all the work themselves; they grow and empower a team and make themselves unnecessary. They multiply their impact beyond what a single person (even an exceptional single person) can do.
True. I have been managing teams for 20 years and I am relatively good at recruiting, growing and delegating to the talent in the team. Some of the stress is self-inflicted by going aggressively in the career for the past few years by taking on more responsibilities. As the depth and breadth of the scope increased, it is also adding more stress, which may get better as the recruited talent ramps up. Having said that, I do need to find a better balance than today. Thanks.
stan1
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Re: Can I early retire from my corporate job?

Post by stan1 »

mobileagent wrote: Wed Apr 07, 2021 4:39 pm
manuvns wrote: Wed Apr 07, 2021 3:08 pm why not take up a low-paying 100k job and chill.
This is an option, but the job must be inspiring and exciting to take a steep cut from $600K while putting similar hours. With any job, we would not have the same freedom and flexibility we would get without a job. If we must expend our energy at a job, it seems more logical to maximize the earnings if the hours are similar. I might be more open to this option after I take a long break. Thanks!
Rather than taking a lower paid job I'm sure there would be consulting opportunities that keep you engaged with the cohort of people you are accustomed to working with once you clear any non-competes and non-disclosures. You could be more selective about who you work with such as only working with the people you most enjoy and who value your contributions and you could also establish going in that your hours would be limited and there would be periods when you would not be in the US. Much easier to do that as a consultant than as a full time employee.

A friend of mine was a C-level executive in start up pharmaceuticals for about 20 years. I suspect his net worth is about like yours, maybe a little higher. Above is the path he took at about your age. He is quite happy. Gets the excitement of working with new companies and maintains his professional relationships but does not have the responsibilities of his old job. If the consulting dries up no big deal.
esteen
Posts: 137
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Re: Can I early retire from my corporate job?

Post by esteen »

mobileagent wrote: Fri Apr 09, 2021 3:18 pm Some of the stress is self-inflicted by going aggressively in the career for the past few years by taking on more responsibilities.
I know this feeling. Given the correct work environment you may be able to self-regulate into a much less stressful position... but you may not, because some of it is self inflicted (I do it too). So even if your company says "sure, you can work part-time" or "sure, you can just consult for us on the side"... are your work habits going to drive you right back into a stressful place or will you truly be able to step away from all the stress without stepping away from the job? If you can't step away from the stress effectively, a part-time job might not work well for you.

The only other thing I'd mention that others haven't yet: double-check all your insurance needs are fully accounted for (first that you have all the policies you need, and second that you've accounted for their premiums and any potential premium increases in your expense calculation). Not just health & home & auto, but Life, LTC, umbrella, etc. I'm not saying you need any/all of these policies, but before I hit the "retire" button I would do a full assessment on how I would pay for catastrophic occurrences. I know it's unlikely, but what if... a friend of your 12yo has an accident on your property and gets brain damaged? And in the same year you are diagnosed with a long-term debilitating disease that costs 6-figure treatments for the rest of your life? Then your house burns down? It's awful to think about these things... but good to plan for them.

All the best!
-es
tj
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Re: Can I early retire from my corporate job?

Post by tj »

mobileagent wrote: Wed Apr 07, 2021 4:45 pm
Tingting1013 wrote: Wed Apr 07, 2021 4:34 pm
Pikel wrote: Wed Apr 07, 2021 4:32 pm Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
25 years of super high income will yield more SS than 35 years of average income.
At this point, I am only counting on using SS at 67 as a potential upside to cover for any surprises in market. I am fairly sure there will be a negative impact to the SS payout from early retirement, but I am OK with it. Thanks!
Not much. Do the actual math. http://ssa.tools
Topic Author
mobileagent
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Re: Can I early retire from my corporate job?

Post by mobileagent »

I did account for umbrella/auto/health/home insurance in the annual costs. There is still some apprehension or nervousness about walking away from my job that pays quite well. For example, our net worth grew by $1M in the last year from the growth in investments, house price and new savings. I am concerned that I would be walking away during my peak earning years. Yet, I fantasize every day that I am no longer working for living and don't want to have the same grind when the 'game is won'. What I need is a 6-month break from work and then figure out if I need to keep myself occupied with my skills/experience. It is good to have options, but it seems like the objective function needs to be clearer in my mind. It is also switching from maximizing income/net worth to maximizing time/life experiences. Thanks everyone!
cacophony
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Re: Can I early retire from my corporate job?

Post by cacophony »

Tingting1013 wrote: Fri Apr 09, 2021 12:50 pm
azianbob wrote: Fri Apr 09, 2021 12:40 pm
Tingting1013 wrote: Wed Apr 07, 2021 4:34 pm
Pikel wrote: Wed Apr 07, 2021 4:32 pm Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
25 years of super high income will yield more SS than 35 years of average income.
Even though the OP makes 500k a year for social security purposes I believe they are maxed out at 142k this year. So the 25 years they've worked will be limited to the max each year.
I agree. The question is which SS payout is higher?

1. $142k for 25 years and then $0 for 10 years
2. The national median income of $60k for 35 years
1 should be a higher payout.

The second bend point for social security happens at $5,397 average indexed monthly earnings, which would be $64,764 / year (in today's dollars) for 35 years.

IIRC a higher salary would allow you to surpass the second bend point in just 18 years.
tj
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Joined: Thu Dec 24, 2009 12:10 am

Re: Can I early retire from my corporate job?

Post by tj »

cacophony wrote: Sun Apr 11, 2021 6:33 pm
Tingting1013 wrote: Fri Apr 09, 2021 12:50 pm
azianbob wrote: Fri Apr 09, 2021 12:40 pm
Tingting1013 wrote: Wed Apr 07, 2021 4:34 pm
Pikel wrote: Wed Apr 07, 2021 4:32 pm Not sure if it makes a difference for you, but remember that social security is calculated off of your highest 35 years of earnings. So if you have worked 25 years you're going to end up with 10 years of $0 income.
25 years of super high income will yield more SS than 35 years of average income.
Even though the OP makes 500k a year for social security purposes I believe they are maxed out at 142k this year. So the 25 years they've worked will be limited to the max each year.
I agree. The question is which SS payout is higher?

1. $142k for 25 years and then $0 for 10 years
2. The national median income of $60k for 35 years
1 should be a higher payout.

The second bend point for social security happens at $5,397 average indexed monthly earnings, which would be $64,764 / year (in today's dollars) for 35 years.

IIRC a higher salary would allow you to surpass the second bend point in just 18 years.
Maybe that's last year's numbers/ According to ssa.tools, The second bend point is just over $6000.00
Last edited by tj on Sun Apr 11, 2021 10:21 pm, edited 1 time in total.
cacophony
Posts: 620
Joined: Tue Oct 16, 2007 9:12 pm

Re: Can I early retire from my corporate job?

Post by cacophony »

tj wrote: Sun Apr 11, 2021 10:03 pm
cacophony wrote: Sun Apr 11, 2021 6:33 pm
Tingting1013 wrote: Fri Apr 09, 2021 12:50 pm
azianbob wrote: Fri Apr 09, 2021 12:40 pm
Tingting1013 wrote: Wed Apr 07, 2021 4:34 pm

25 years of super high income will yield more SS than 35 years of average income.
Even though the OP makes 500k a year for social security purposes I believe they are maxed out at 142k this year. So the 25 years they've worked will be limited to the max each year.
I agree. The question is which SS payout is higher?

1. $142k for 25 years and then $0 for 10 years
2. The national median income of $60k for 35 years
1 should be a higher payout.

The second bend point for social security happens at $5,397 average indexed monthly earnings, which would be $64,764 / year (in today's dollars) for 35 years.

IIRC a higher salary would allow you to surpass the second bend point in just 18 years.
Maybe that's last year's numbers/ According to ssa.tools, The second end point is just over $6000.00
oh yeah you're correct, it looks like the 5,397 number was from 2018. The current number is 6,002 per month or $72,024/year.
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