Author Topic: Running up the score?  (Read 1723 times)

fatlittlepig

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Running up the score?
« on: May 30, 2018, 10:44:17 PM »
Finances in Brief:
age 41
4.6 million (combination of 401K plans, Deferred comp, taxable investments (stocks+index funds)
House (1 mm paid off), no other debt
Two children (elem school age), 529 plans (150K x 2)
NW close to 6mm

Yearly expenses approx 100K
Combined yearly salary approx 500K
Yearly savings (through deferred comp, taxable savings, roths, 529's approx 250K)

I realize I am likely financially independent at this time. I enjoy my job (physician). I used to add a lot of extra shifts at work, I am beginning to stop doing this as there really is no need to do so financially, but there is a strong urge to continue to run up the score and amass more and more money.

Also I think I should loosen the pursestrings a bit also. I would like an electric bike but they are quite expensive (>1.5K), there are cheap ones for about 500 dollars but I think they are probably good for 1-2 years of use then disposable. 

Anyone find themselves in a similar situation where they are running up the score.

FirePassenger

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Re: Running up the score?
« Reply #1 on: May 30, 2018, 11:53:26 PM »
Congrats on achieving financial independence.

NW ~2.5M @ 35 yrs but yearly expenses are 1.5x yours mostly due to 870k remaining on mortgage. Similar salary. Goal is to be in your situation in the next 5 to 6 years. Not sure I would quit working once the 5M target is reached.

Primary reasons to keep working would be:

1) Boredom, in case I canít find anything else interesting. Money would be a by-product
2) Will most likely  take a shot at founding a startup with the goal of creating multi-generational wealth. Just because it would be pretty cool. Only if I find myself still enjoying it 6 months after starting.
3) Pro-bono work, potentially providing software training to low income kids.

Youíre in a noble profession and thereís a constant shortage of doctors so thereís that additional benefit.

fatlittlepig

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Re: Running up the score?
« Reply #2 on: May 31, 2018, 12:11:11 AM »
I am thinking i'll be out by age 50.

Congrats on achieving financial independence.

NW ~2.5M @ 35 yrs but yearly expenses are 1.5x yours mostly due to 870k remaining on mortgage. Similar salary. Goal is to be in your situation in the next 5 to 6 years. Not sure I would quit working once the 5M target is reached.

Primary reasons to keep working would be:

1) Boredom, in case I canít find anything else interesting. Money would be a by-product
2) Will most likely  take a shot at founding a startup with the goal of creating multi-generational wealth. Just because it would be pretty cool. Only if I find myself still enjoying it 6 months after starting.
3) Pro-bono work, potentially providing software training to low income kids.

Youíre in a noble profession and thereís a constant shortage of doctors so thereís that additional benefit.

Linda_Norway

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Re: Running up the score?
« Reply #3 on: May 31, 2018, 02:31:41 AM »
My DH is also a physician and likes maintaining/building bicycles. He rebuilt his own mountain bike to become an electric bicycle.

Cheap electric bicycles suck. At least, DH tested one that he won in a competition, and the bike didn't help at all driving up that steep hill to our house. Because you needed to generate a minimum speed to get any electrical help.

His mountain bike is electrified by his own specifications and works very well.

ysette9

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Re: Running up the score?
« Reply #4 on: May 31, 2018, 11:00:27 AM »
Congrats on getting the $ side of things figured out! You now are at step #2, which is figuring out what the meaning of life is. I don't mean to be glib or insensitive; it is a tough problem. A number of FIRE bloggers have talked about that because once the world is your oyster and the possibilities are limitless, it can be tough to decide entirely for yourself how you want to spent your time. In many ways it is easier to keep doing what society expects of us because that path is clear and easy to follow. I suspect it is even harder for us engineer/lawyer/doctor types who have had to get really good at understanding and meeting the expectations of "the system" to be where we are.

I only speak theoretically as I haven't reached FI myself yet, but I really enjoy the Living A FI blog where Dr Doom delves deeply into his own thoughts on actually pulling the trigger and quitting work once he has reached his $ number. A particularly poignant post is https://livingafi.com/2015/03/09/building-a-vision-of-life-without-work/. In it there is an exercise he recommends we all do called a "Get-A-Life-Tree" which is a brainstorming process designed to help you identify what really drives you and will bring satisfaction.

My opinion is that yes, you are a doctor and could do great good in the world, but that doesn't mean you MUST. You aren't obligated to give back. With two small children, there are two people in your life right now who would benefit from your increased presence at home. Can you scale back at work and focus on the family for a while to see how that feels? Can you do some mental exercises to see how it feels deriving meaning and self-worth from other aspects of you? You might also check out the White Coat Investor and Physician on FIRE blogs as they will be able to speak specifically to the mental aspect of getting comfortable walking away from the long investment you made in your education and career, not deriving so much self worth from being a doctor, and $-specific situations for high-income people.

waltworks

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Re: Running up the score?
« Reply #5 on: June 17, 2018, 09:31:57 PM »
Worrying about spending $1.5k on an e-bike while simultaneously making $500k/year with a $6 million net worth...

Dude, you are failing life. You have way, way more money than you will ever need. Do the work you want to do, for the amount of time you want, forget about money. And buy a damn e-bike, and ride it.

Sheesh. Is there a term for facepunching people for *not* spending money?

-W