career move or rest/vest?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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iluvlucy
Posts: 8
Joined: Sat Jul 17, 2021 11:46 am

Re: career move or rest/vest?

Post by iluvlucy »

Ron Ronnerson wrote: Tue Jul 20, 2021 4:28 pm There have been many excellent comments already but just thought I’d share my story as this topic is dear to my heart. Realizing that time is more valuable than money once basic needs are met resulted in a total paradigm shift for me. I came to this conclusion in my mid-20s. I was thinking back on my life and just couldn’t believe that somewhere between a quarter to a third of it was over in what seemed like the blink of an eye. At that point, I had already gotten an MBA and was doing interesting work at a corporation in which I was steadily moving up the ladder.

I decided to return back to school to become a teacher and have been teaching 5th graders for the past couple of decades.

I have plenty of money to live comfortably while the time that I gained as a result of changing paths has been monumental. I have half the days of the year off and can enjoy time with family. I’m actually typing this while sitting on a beach while my wife and daughter build a sandcastle (I’m going to join them soon).

The other half of the days of the year, I get to help kids learn. The work is both enjoyable and meaningful. The days working are as good as the days off. If I happened to win the lottery, I’d still show up to work the next day.

To me, legacy and wealth are not primarily about money but instead how I can help make a difference during my lifetime while also having time to enjoy myself. There are many ways to do that and I’m glad that I found one of those paths a while back.

I wish you all the best on your journey. Half your life is over (I can say that since I’m the same age as you, OP). Make the most of the remaining time - however that may be for you.
This.
Oh, I am so clear about impending mortality and more than 1/2 of my life is in near view. I believe that the best of life(with health) is ~50yrs-60yrs of age. Have all the mobility, health and abilities to do all the activities, provided you stepped out of treadmill.
BTW, becoming teacher is DW's dream - but not at school or may be not as a career. Too much structure, commute, bureaucracy - perhaps need to find alternatives to school where this can be done.
Wannaretireearly
Posts: 1711
Joined: Wed Mar 31, 2010 4:39 pm

Re: career move or rest/vest?

Post by Wannaretireearly »

Ron Ronnerson wrote: Tue Jul 20, 2021 4:28 pm There have been many excellent comments already but just thought I’d share my story as this topic is dear to my heart. Realizing that time is more valuable than money once basic needs are met resulted in a total paradigm shift for me. I came to this conclusion in my mid-20s. I was thinking back on my life and just couldn’t believe that somewhere between a quarter to a third of it was over in what seemed like the blink of an eye. At that point, I had already gotten an MBA and was doing interesting work at a corporation in which I was steadily moving up the ladder.

I decided to return back to school to become a teacher and have been teaching 5th graders for the past couple of decades.

I have plenty of money to live comfortably while the time that I gained as a result of changing paths has been monumental. I have half the days of the year off and can enjoy time with family. I’m actually typing this while sitting on a beach while my wife and daughter build a sandcastle (I’m going to join them soon).

The other half of the days of the year, I get to help kids learn. The work is both enjoyable and meaningful. The days working are as good as the days off. If I happened to win the lottery, I’d still show up to work the next day.

To me, legacy and wealth are not primarily about money but instead how I can help make a difference during my lifetime while also having time to enjoy myself. There are many ways to do that and I’m glad that I found one of those paths a while back.

I wish you all the best on your journey. Half your life is over (I can say that since I’m the same age as you, OP). Make the most of the remaining time - however that may be for you.
Great post. Wonder if there is a list of the most 'helpful jobs to people' in your 50s, paid or not. Teaching may not make this list given training etc needed. What would make this list? Volunteer at soup kitchen, hospital/clinic job at front desk?
Death and taxes. Only one is under your control!
ThankYouJack
Posts: 3819
Joined: Wed Oct 08, 2014 7:27 pm

Re: career move or rest/vest?

Post by ThankYouJack »

iluvlucy wrote: Sat Jul 17, 2021 12:30 pm
Career wise, we probably have saturated in our positions and possibly not challenged or under leveled(at least one of us). Work is 9-5(manageable stress), but there is nagging concern - could we do better? Also, when we look at others(more successful, or could become successful career wise) in peer group, we kind of wonder, couldn't we stretch and try? Even though the money brings no value and may actually take away time. Yes, there is also scorekeeping in terms of money made - but no one exchanges scores, just a perception of scores being made.

We both are being approached by peer companies and are interviewing - half heartedly. Yeah, the work may be slightly better. If both of us jump ship, it may increase by $300k-$400k - of course with increase time pressure and whole new place. Is this worth it? How do people deal with internal greed, vs desire to do even better vs rest/vest and ride it to sunset. Is this a form of rat-race we are getting in to?

How to folks deal with scenarios like this and settle at a place?
I struggle with the career/success question too as some of my friends are doing extremely well and I've always veered towards a great work life balance. To me, success is more about happiness and the positive impact one can make on the world, than climbing the corporate ladder or someone's net worth.

However, assuming you're satisfied with your job, I'm not sure I'd FIRE considering your incredible compensation. I disagree that the money brings no value, I think you just need to think about possible uses for the money -- give to family and friends, charities, set up a scholarship, leave a legacy, tip wildly ...

At the end of the day what do you want to do and how do you want to be remembered?
interwebopinion
Posts: 164
Joined: Thu Aug 13, 2020 6:21 pm

Re: career move or rest/vest?

Post by interwebopinion »

iluvlucy wrote: Tue Jul 20, 2021 7:35 pm There is a moral quandary too. Suppose we are doing well, what is our responsibility to support kids(post undergrad/grad education), elders, others around us and continue to do what we do - to support what if scenario's for them. They say charity begins at home, how far does it extend to relatives too? Of-course whatever is left is for kids - doing and giving more will take away there their motivation too. People 1 degree off, say brother/sister/friends, who may not be so fortunate - what is our responsibility?
Kids (and perhaps parents) I think are different. We have raised our kids to be independent, and not to expect anything beyond college funding. Fortunately, they seem fairly motivated to do well in life, so personally I think we're ok here.

Some broader family relationships have been unchanged, even growing stronger. Other family members can get very jealous, and one person I was very close to stopped talking to me when they came to know our respective fortunes had diverged. I tried reaching out many times afterwards to no avail. Life can be messy sadly.

If a family member is not doing well, and you can help (money or otherwise), I would advocate helping. It will make you feel better about yourself. Of course, monetary help should be done with care. Giving money for positive purposes such as education or for starting a business will be greatly appreciated and remembered. Take care that you know what the money will be used for, and that you approve it, but don't expect it back. In some rare cases, the help will be accepted but resented, and the money will not be repaid, so best to be prepared for that.
2tall4economy
Posts: 671
Joined: Thu Jan 08, 2015 7:55 am
Location: Global

Re: career move or rest/vest?

Post by 2tall4economy »

FootballFan5548 wrote: Tue Jul 20, 2021 10:34 am
It's commercial insurance, somewhat of a specialty niche, i'm at one of the best specialty companies now, and i'd leave to start out my own underwriting shop. Never know who reads these things, so I can't go into too much more detail unless you have more detailed questions.


I make 510k all in. 270k salary, 120 cash bonus, 120 stock bonus that vests over 5 years.... so really 390k cash. We live in HCOL area, I have young kids 6/4, i'm only 38. I have 2M net worth, but we're still not considering retirement until i'm 50 or later.

New company would pay me 3 year contract, 400k salary, 75% bonus target, 30% equity of company I build. Could be 700k cash annually, plus the building equity we could potentially sell for multiples if we ever grow big enough.

Be super careful. I'm constantly approached by PE offers and I've worked in PE environments. In my experience, if you're lucky your annual cash comp is in line with or perhaps a bit better than a "regular" company but bonus targets are unrealistic (both your performance has to be amazing AND the economy has to outperform) the LTI is locked up indefinitely with a 1 in 10 chance (perhaps better, haven't researched lately) that you'll ever get it.

Assume the bonus targets are insanely hard to get, figure out what your LTI in your current job, put into the market for 3 years gets you, and apply a significant risk factor to the end payout and things may not look as rosy. Nothing anyone has ever approached me with has made the math work right for me (so far, but I've only looked at ~30 or so in my career -- but who knows!).

I've always said I'll move to PE when I've got my nest egg and want to roll the dice for that last hurrah. Never while still trying to build the nest egg.
You can do anything you want in life. The rub is that there are consequences.
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