Author Topic: Confusion about how to be "set for life"  (Read 5414 times)

rob in cal

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Confusion about how to be "set for life"
« on: July 09, 2016, 12:54:01 PM »
   I just read a history of the National Hockey League.  In it the writer mentions that when Bob Goodenow took over the NHL Players Association in the early 90's his goal was to drive up salaries so high that after their playing days were over retired players would be set for life.  There are two funny things about this.  When he said this, average salaries already were at a level (in the middle 6 figures on average, with top players already in low 7 figures) high enough so that even if one had only an average length career in the league (five years) one would be set for life (assuming living at a modest middle class life style during one's playing career and investing the rest of course). 
   The other funny thing was that this comment provoked all kinds of disbelief, with the assumption that salaries would have to skyrocket to enable players to be set for life.
    Of course now hockey salaries, like other pro sport salaries are much higher, and I'm guessing that the typical athlete is nowhere nearer to being "set for life" due to horrendous spending decisions that they make while in their short, never to be seen again, window of massive income years.

randymarsh

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Re: Confusion about how to be "set for life"
« Reply #1 on: July 09, 2016, 02:01:52 PM »
There are plenty of surveys where people say they need like 5 million to feel "rich" and 10 million or more before they say they're "set". When success to the mainstream consumer means: a huge house, 2 SUVs (replaced before 100K), numerous yearly vacations to expensive resorts, etc, those numbers probably aren't wrong.

talltexan

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Re: Confusion about how to be "set for life"
« Reply #2 on: July 11, 2016, 12:47:52 PM »
I've always thought that part of the problem with planning lifetime consumption (for example, choice of housing) was the uncertainty about lifetime earnings. High earners in their 30's probably see more variance than others, and professional athletes are certainly in this group. I also think that people around you (out of their own ignorance) expect you to "life large" when you have one of these big salaries.

MgoSam

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Re: Confusion about how to be "set for life"
« Reply #3 on: July 11, 2016, 01:00:18 PM »
Yeah, I know my FIRE number and approximately when I will reach it, but part of me still thinks I should wait until I have $5M, just to be safe.

Shor

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Re: Confusion about how to be "set for life"
« Reply #4 on: July 13, 2016, 03:34:36 PM »
Yeah, I know my FIRE number and approximately when I will reach it, but part of me still thinks I should wait until I have $5M, just to be safe.
I won't even count how many Costco chickens per day such a stash would throw off!
Okay I did, it's 110 chickens Per DAY!

PencilThinStash

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Re: Confusion about how to be "set for life"
« Reply #5 on: July 14, 2016, 01:54:59 PM »
Yeah, I know my FIRE number and approximately when I will reach it, but part of me still thinks I should wait until I have $5M, just to be safe.
I won't even count how many Costco chickens per day such a stash would throw off!
Okay I did, it's 110 chickens Per DAY!

Can we calculate everything in "Costco chickens" from now on, please?

"Why yes, I only pay 57 Costco chickens every month in rent. My buddy George sure is wasteful, though, he pays 82 Costco chickens for his apartment."
"My cousin bought a car recently, he spent 1493 whole Costco chickens on it!"

Dicey

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Re: Confusion about how to be "set for life"
« Reply #6 on: July 16, 2016, 06:39:13 AM »
Yeah, I know my FIRE number and approximately when I will reach it, but part of me still thinks I should wait until I have $5M, just to be safe.
I won't even count how many Costco chickens per day such a stash would throw off!
Okay I did, it's 110 chickens Per DAY!

Can we calculate everything in "Costco chickens" from now on, please?

"Why yes, I only pay 57 Costco chickens every month in rent. My buddy George sure is wasteful, though, he pays 82 Costco chickens for his apartment."
"My cousin bought a car recently, he spent 1493 whole Costco chickens on it!"
Oh, Dog, No! Please, don't torture me! You see, Costco is my primary grocery store. I feed four adults daily and I am a vegetarian. I would adore being able to grab a Costco chicken and run. No raw meat handling, reasonable  price, easy carrying case, multiple meals, crockpot stock, etc. DH has lost 60 lbs and watches his sodium intake, so, sadly, [pre-cooked] Costco chicken is verboten at our house. I finally broke down and bought an Instant Pot on Prime Day. I got a great deal and can now cook whole chickens with ease. Hmmm, I wonder how much it cost in Costco chickens? Noooooo, stop!

kayvent

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Re: Confusion about how to be "set for life"
« Reply #7 on: July 16, 2016, 11:24:31 AM »
Yeah, I know my FIRE number and approximately when I will reach it, but part of me still thinks I should wait until I have $5M, just to be safe.
I won't even count how many Costco chickens per day such a stash would throw off!
Okay I did, it's 110 chickens Per DAY!

Can we calculate everything in "Costco chickens" from now on, please?

"Why yes, I only pay 57 Costco chickens every month in rent. My buddy George sure is wasteful, though, he pays 82 Costco chickens for his apartment."
"My cousin bought a car recently, he spent 1493 whole Costco chickens on it!"

When I got my most recent job about a year and a half ago, I measured the monthly pay increase in Xbox Ones. Later when I got a raise, I did the same thing.

I literally have no intention to ever buy an Xbox One.

GrumpyPenguin

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Re: Confusion about how to be "set for life"
« Reply #8 on: July 16, 2016, 12:15:23 PM »
Yeah, I know my FIRE number and approximately when I will reach it, but part of me still thinks I should wait until I have $5M, just to be safe.
I won't even count how many Costco chickens per day such a stash would throw off!
Okay I did, it's 110 chickens Per DAY!

Can we calculate everything in "Costco chickens" from now on, please?

"Why yes, I only pay 57 Costco chickens every month in rent. My buddy George sure is wasteful, though, he pays 82 Costco chickens for his apartment."
"My cousin bought a car recently, he spent 1493 whole Costco chickens on it!"
Oh, Dog, No! Please, don't torture me! You see, Costco is my primary grocery store. I feed four adults daily and I am a vegetarian. I would adore being able to grab a Costco chicken and run. No raw meat handling, reasonable  price, easy carrying case, multiple meals, crockpot stock, etc. DH has lost 60 lbs and watches his sodium intake, so, sadly, [pre-cooked] Costco chicken is verboten at our house. I finally broke down and bought an Instant Pot on Prime Day. I got a great deal and can now cook whole chickens with ease. Hmmm, I wonder how much it cost in Costco chickens? Noooooo, stop!

Ha! I love this.  Costco is my primary grocery store too since it's very close to where I live (easier to walk there than any other grocery store).  Rent is almost 360 chickens a month here!  Crazyness.  I have an instantpot... I should look to instantpotting a whole chicken, to cut down on that sodium too :).

Nederstash

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Re: Confusion about how to be "set for life"
« Reply #9 on: July 16, 2016, 12:49:54 PM »
Thank God! As a European Mustachian, I feel so irritated when I have to switch between euros, dollars, other currency from other foreign forum members... I am so glad we can decide on a new, unified currency: the Costco Chicken.

MgoSam

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Re: Confusion about how to be "set for life"
« Reply #10 on: July 16, 2016, 02:04:04 PM »
Yeah, I know my FIRE number and approximately when I will reach it, but part of me still thinks I should wait until I have $5M, just to be safe.
I won't even count how many Costco chickens per day such a stash would throw off!
Okay I did, it's 110 chickens Per DAY!

Can we calculate everything in "Costco chickens" from now on, please?

"Why yes, I only pay 57 Costco chickens every month in rent. My buddy George sure is wasteful, though, he pays 82 Costco chickens for his apartment."
"My cousin bought a car recently, he spent 1493 whole Costco chickens on it!"

Freshemen year of college there was a corner store that made pizza that I found very good, it was $1/slice and two were enough to fill me up. For rest of the year I calculated everything in terms of how many slices I could get instead, so $10 became 5 "pizza dinners."

BTDretire

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Re: Confusion about how to be "set for life"
« Reply #11 on: July 18, 2016, 11:26:05 AM »


Can we calculate everything in "Costco chickens" from now on, please?



  Bird Flu could cause a whole lot of pricing confusion.

patchyfacialhair

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Re: Confusion about how to be "set for life"
« Reply #12 on: July 18, 2016, 03:24:53 PM »


Can we calculate everything in "Costco chickens" from now on, please?



  Bird Flu could cause a whole lot of pricing confusion.

All currency valuations are subject to risk factors that are difficult to plan for. I don't remember what happened the last time the chickens got sick, but...I'd think it would be a wash. Lower supply would raise the price, but...fewer people would buy them due to fear...so...

Screw it. It's Costco. They've had $1.50 hotdog/soda for decades. I'd consider it a safe currency.