I’m asking as someone with 11M NW (10M of which in index funds), a household TC of 800K from W2 incomes, and just turned 40. Plus $200K in a 529 for 2 college educations ten-twelve years away. I’m in a HCOL area, still rent, my expenses are high, but are at 4% of my NW ($300K/yr). Monte Carlo simulations suggest a 80% chance of having enough until 80. Why keep working? Or at least, why worry about a performance review rating, whether another promotion will ever come, or if laid off sooner or later? 1) Some people grind more, want that next rung on the ladder because they want more of X (responsibility, impact, “power”, “prestige”, to buy bigger status symbols, what have you). 2) Or people like what they do and are highly compensated for it, so they keep accumulating a lot. 3) Others do it because the 20% failure risk (and possibility of living until 90, 100) is paid more attention to than the 80% probability of success. My 2c is there’s too few people who are in bucket #2, and too many are in #1 (never satiated) or #3 (never secure). And it’s _extremely_ hard psychologically to transition from “I have to save a lot” to “it’s ok if expenses > earned income”. Food for thought. Ps - my personal situation shared for context of my question. I’m sure folks will comment on that, which is fine, but posting this as more of a psychology topic than a math/numbers oriented one.
How did you amass a net worth north of 10MM with a household TC of 800k which is ofcourse built up gradually
I don’t think they were making 800k all their career. They would have probably started at 100k and including spouse let’s say 200k or similar.
For one, dual FAANG income with equity that’s appreciated quite a bunch in 15 years (different companies). We didn’t spend a lot until we had kids. Kids change the game.
So did you stop the grind or not yet?
Nope. Im still in bucket #3. But I do like what I do so don’t want to stop working. Attitude / relationship with my work needs to change. Those are most important OKRs this year!
Cool. I want to reach 5 M (individually) before I hit the brakes. Should be by 40.
Gave up reading after the 1) sry
The people a tranche above yours are people who just crave “winning” and are addicted to the game. It’s not even they like what they do, they just like the reward.
You’re right. Stop working.
Nice OP 😊👏🏻 can you share quick tips how you get in there, I am 43yo and my net worth is around 350k, never get a chance to work in FAANG (BS/MS in CS), single income 🏡 150k w2.
Earn 1.5m per year. Easy!
You said you are 43 ? assuming you came to the US for masters 15 years ago atleast, and working here for 12+ years and should’ve atleast accumulated 450k networth by now considering you saved very less like 2.5k per month 30-35k/year without any investments or only with some CDs. Correct if I’m wrong
Dude please tell me how you got to 11M
Unless you have figured out what you’d want to do after job, inertia will cause you to continue on current path. Fear of boredom in retirement is real. I think FIRE journey should start with having clear idea on life you want to lead in some flavor of retirement. You shared your personal numbers but not your bucket. Impressive savings, so congrats!
Curse of knowledge that I thought my OP made clear I’m in bucket #3. In a transition into bucket #2. I don’t want to lose my job, or bad at it, but trying to shore up a 20% risk is not worth the 100% probability of losing out on being more present while my kids are still in the house.
Read “High Output Management” by Andrew Grove and skip to the part about “self-actualization”. Believe it or not, some really smart people have already asked this question and written down the answer for us.
Thanks for the tip! Will add to reading list
Tech Industry
3d
69197
Crossed a line with my boss
Tech Industry
Yesterday
1107
Last good year to visit europe
World Conflicts
6h
267
Israeli precision-guided munition likely killed group of children playing foosball in Gaza, weapons experts say
Personal Finance
Yesterday
1662
Rate my NW
India
7h
453
'Hindutva': The Radical Hindu Ideology That Seeks to 'Push Christianity Out of India’
4) work is fun and fulfilling, especially when you no longer need to do it for money.
I feel like mainly only Americans feel this way. I would love to understand why we think like this? There is way more to life than just working for someone else. Even if you are extremely comfortable, we’ve got to change this false narrative that we’ve been programmed to believe and find joy outside of a career.
Everyone career path doesn’t or shouldn’t culminate at becoming an entrepreneur. Even CXOs are working for someone else at the end of the day. Do you know about the maslow’s hierarchy of needs? Look it up and look at the top most section. That’s the answer to your questions. A career is just the means of achieving/fulfilling those needs