Two and a Half Years to Start Over

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DJP1944
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Joined: Tue Jan 02, 2018 9:12 pm

Two and a Half Years to Start Over

Post by DJP1944 » Tue Sep 11, 2018 2:03 pm

I couldn't think of a good title for this thread but for some reason a "starting over" theme seemed right.

I am in the fortuitous position to have about 22 times annual spending in 401k, cash, and taxable. I'm 44 and have a bit of an unusual situation in that I have golden handcuffs on at my present job for 2.5 years. When this time is up I expect I'll be around 25 X expenses at 47. For simplicity, let's say that my total cash compensation at megacorp is 2 X annual expenses currently. While my job is not bad as it pays well and the people are generally ok to be around, it is a megacorp and it's growing old.

Ideally, I'd like to start my own business when my time at megacorp is up. The challenge though is deciding what to do. I have this feeling that given 2 + years to prepare how can you not figure out a way to "start over" on your own terms and do something more fulfilling. The flip side is, if I just put my head down and plow forward, I can probably walk away in 6-8 years fully financially independent.

I'm curious if folks have any advice (especially if you've been down a similar path). Or, if anyone has any good resources that can help in the decision making and/or planning process.

much appreciated.

Uniballer
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Re: Two and a Half Years to Start Over

Post by Uniballer » Tue Sep 11, 2018 2:27 pm

It doesn't sound like you have a burning desire to do something specific (e.g. I want to be a lumberjack!). So if you are just looking for more freedom then think about it some more while you put in the rest of your time to reach FI.

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rob
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Re: Two and a Half Years to Start Over

Post by rob » Tue Sep 11, 2018 2:36 pm

Put your time in to get to FI then find something your passionate about (or nothing). Starting your own business without a burning desire or plan is NOT a path to wealth :-) . Most small businesses fail after a lot of money and hours from the founders.
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

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Watty
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Re: Two and a Half Years to Start Over

Post by Watty » Tue Sep 11, 2018 2:44 pm

DJP1944 wrote:
Tue Sep 11, 2018 2:03 pm
The flip side is, if I just put my head down and plow forward, I can probably walk away in 6-8 years fully financially independent.
Become financially independent then start your business.

Depending on what the business is you may be able to start it in the evenings and weekends while you are still working.

I would be extremely cautious about starting a business that takes a lot of investment since a large percentages of small businesses fail.

aristotelian
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Re: Two and a Half Years to Start Over

Post by aristotelian » Tue Sep 11, 2018 2:57 pm

I am at a similar stage in my career although not at a megacorp. Rather than fully retire, I have been thinking a lot about moving into a contract role so that I could reduce my hours and work remotely. While I might not be saving much in this scenario, I would not be tapping the portfolio either, thus reducing years until social security, and perhaps increasing my withdrawal rate with a few years of positive returns. Would that be an option for you?

DJP1944
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Re: Two and a Half Years to Start Over

Post by DJP1944 » Tue Sep 11, 2018 3:06 pm

Thanks to all for the comments so far. For the record, I have no intention of sinking significant assets into a new business. I certainly am contemplating if/how to ease into a new business over time and certainly only based on success or very high likelihood of success. While it's true that I haven't found a calling or a passion per se, I don't think that means I can't find something I'd be very interested in....like being a lumberjack! Hadn't considered that until this thread....
aristotelian wrote:
Tue Sep 11, 2018 2:57 pm
I am at a similar stage in my career although not at a megacorp. Rather than fully retire, I have been thinking a lot about moving into a contract role so that I could reduce my hours and work remotely. While I might not be saving much in this scenario, I would not be tapping the portfolio either, thus reducing years until social security, and perhaps increasing my withdrawal rate with a few years of positive returns. Would that be an option for you?
I appreciate this post because it kind of gets at what I was thinking. Not that I'd necessarily want a contract role for what I do, but if I can find a way to ease out of megacorp into something more enjoyable at 50-75% of comp initially then I would consider that a success.

FlyAF
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Re: Two and a Half Years to Start Over

Post by FlyAF » Tue Sep 11, 2018 3:10 pm

I completely started over in my late 30's. I mean quit mega-corp, went back to school, started a completely new career at the bottom, etc.......It was totally worth it for me and I'm glad that I did.

For you, stick out the 6-8 years and then worry about it.

Uniballer
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Re: Two and a Half Years to Start Over

Post by Uniballer » Tue Sep 11, 2018 3:27 pm


tesuzuki2002
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Re: Two and a Half Years to Start Over

Post by tesuzuki2002 » Tue Sep 11, 2018 4:33 pm

DJP1944 wrote:
Tue Sep 11, 2018 2:03 pm
I couldn't think of a good title for this thread but for some reason a "starting over" theme seemed right.

I am in the fortuitous position to have about 22 times annual spending in 401k, cash, and taxable. I'm 44 and have a bit of an unusual situation in that I have golden handcuffs on at my present job for 2.5 years. When this time is up I expect I'll be around 25 X expenses at 47. For simplicity, let's say that my total cash compensation at megacorp is 2 X annual expenses currently. While my job is not bad as it pays well and the people are generally ok to be around, it is a megacorp and it's growing old.

Ideally, I'd like to start my own business when my time at megacorp is up. The challenge though is deciding what to do. I have this feeling that given 2 + years to prepare how can you not figure out a way to "start over" on your own terms and do something more fulfilling. The flip side is, if I just put my head down and plow forward, I can probably walk away in 6-8 years fully financially independent.

I'm curious if folks have any advice (especially if you've been down a similar path). Or, if anyone has any good resources that can help in the decision making and/or planning process.

much appreciated.
Do you have any hobbies you love that you could spend a little bit of time coming up with a plan to generate some income doing those things?? Once you quit you can scale up and have more time to put into them...

I have 2 hobbies I love and they generate about 10% of my annual income right now... but only consume about 50% of my available free time... Once I leave the mega corp... And start having time to play in those hobbies.. I'll likely be replacing 1/2 of my annual income I have now and loving every day..

flyingaway
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Re: Two and a Half Years to Start Over

Post by flyingaway » Tue Sep 11, 2018 8:02 pm

When I retire, I don't want to start my own business. I just want to be retired and travel a lot.

FOGU
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Re: Two and a Half Years to Start Over

Post by FOGU » Tue Sep 11, 2018 10:14 pm

DJP1944 wrote:
Tue Sep 11, 2018 2:03 pm
I couldn't think of a good title for this thread but for some reason a "starting over" theme seemed right.

I am in the fortuitous position to have about 22 times annual spending in 401k, cash, and taxable. I'm 44 and have a bit of an unusual situation in that I have golden handcuffs on at my present job for 2.5 years. When this time is up I expect I'll be around 25 X expenses at 47. For simplicity, let's say that my total cash compensation at megacorp is 2 X annual expenses currently. While my job is not bad as it pays well and the people are generally ok to be around, it is a megacorp and it's growing old.

Ideally, I'd like to start my own business when my time at megacorp is up. The challenge though is deciding what to do. I have this feeling that given 2 + years to prepare how can you not figure out a way to "start over" on your own terms and do something more fulfilling. The flip side is, if I just put my head down and plow forward, I can probably walk away in 6-8 years fully financially independent.

I'm curious if folks have any advice (especially if you've been down a similar path). Or, if anyone has any good resources that can help in the decision making and/or planning process.

much appreciated.
I read your post with interest.

At age 40 I was essentially in the same position that you describe for yourself. I walked away from professional career and signed on to go to South America for two years of volunteer service. I figured that would give me some time to figure out a next move, gain some interesting cultural experience and learn a new language, and perhaps contribute some talent and effort to a worthy cause. I knew I would not have to touch my savings during those two years as all my living expenses would be paid.

As fate would have it, after two years I was contracted to stay and get paid to do what I had been doing for two years as a volunteer. It's been almost 11 years now, and in this paid position, with tax treatment of foreign income and low cost of living, I am able to save almost as much as what I was doing in my previous career. It's a different lifestyle, of course. Simpler.

I was single then with enough of a stash that gave me the freedom to just walk. So I did it. Now I'm married with two young kids and I prefer to raise them in the USA rather than South America, so I am transitioning back. We'll do that and see where it leads. Choose your door, walk through it with confidence, and see where it takes you. There are a million more doors after that to choose from. When I came down to South America I had no idea I would be at it this long or how life-changing it would be.

Since you asked for advice I'll offer the following: Don't be afraid to make a bold move toward something that is pulling at you. You have the money to take a chance and try something soul-satisfying, especially if that thing will at least cover your expenses so you can leave your assets to continue compounding. If you don't have anything calling you then spend your golden handcuff time really reflecting on that and perhaps even doing some analysis of your own personality and interests if you haven't ever done it.

Be bold and mighty forces will come to your aid. Good luck.
~ Don't just do something. Sit there. ~

DJP1944
Posts: 45
Joined: Tue Jan 02, 2018 9:12 pm

Re: Two and a Half Years to Start Over

Post by DJP1944 » Fri Sep 14, 2018 8:10 pm

FOGU wrote:
Tue Sep 11, 2018 10:14 pm
DJP1944 wrote:
Tue Sep 11, 2018 2:03 pm
I couldn't think of a good title for this thread but for some reason a "starting over" theme seemed right.

I am in the fortuitous position to have about 22 times annual spending in 401k, cash, and taxable. I'm 44 and have a bit of an unusual situation in that I have golden handcuffs on at my present job for 2.5 years. When this time is up I expect I'll be around 25 X expenses at 47. For simplicity, let's say that my total cash compensation at megacorp is 2 X annual expenses currently. While my job is not bad as it pays well and the people are generally ok to be around, it is a megacorp and it's growing old.

Ideally, I'd like to start my own business when my time at megacorp is up. The challenge though is deciding what to do. I have this feeling that given 2 + years to prepare how can you not figure out a way to "start over" on your own terms and do something more fulfilling. The flip side is, if I just put my head down and plow forward, I can probably walk away in 6-8 years fully financially independent.

I'm curious if folks have any advice (especially if you've been down a similar path). Or, if anyone has any good resources that can help in the decision making and/or planning process.

much appreciated.
I read your post with interest.

At age 40 I was essentially in the same position that you describe for yourself. I walked away from professional career and signed on to go to South America for two years of volunteer service. I figured that would give me some time to figure out a next move, gain some interesting cultural experience and learn a new language, and perhaps contribute some talent and effort to a worthy cause. I knew I would not have to touch my savings during those two years as all my living expenses would be paid.

As fate would have it, after two years I was contracted to stay and get paid to do what I had been doing for two years as a volunteer. It's been almost 11 years now, and in this paid position, with tax treatment of foreign income and low cost of living, I am able to save almost as much as what I was doing in my previous career. It's a different lifestyle, of course. Simpler.

I was single then with enough of a stash that gave me the freedom to just walk. So I did it. Now I'm married with two young kids and I prefer to raise them in the USA rather than South America, so I am transitioning back. We'll do that and see where it leads. Choose your door, walk through it with confidence, and see where it takes you. There are a million more doors after that to choose from. When I came down to South America I had no idea I would be at it this long or how life-changing it would be.

Since you asked for advice I'll offer the following: Don't be afraid to make a bold move toward something that is pulling at you. You have the money to take a chance and try something soul-satisfying, especially if that thing will at least cover your expenses so you can leave your assets to continue compounding. If you don't have anything calling you then spend your golden handcuff time really reflecting on that and perhaps even doing some analysis of your own personality and interests if you haven't ever done it.

Be bold and mighty forces will come to your aid. Good luck.
Thank you.

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