Author Topic: Instant barebones FI vs toughing it out  (Read 4551 times)

pichirino

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Instant barebones FI vs toughing it out
« on: November 14, 2014, 05:57:31 AM »
Hello fellow mustachians,

Working for the government (soul stealing stressfull job) where I live there is an option as a package where
you get 3 years of pay with early leave without having to work for it.
This would make me slightly more then barebones FI.

The downsides would be that I would be on my own and if I got a job(private sector) pay would definitly be lower.
While the pay would be lower I could start immediately with the private sector job whilst gaining the public sector salary  and bonus' also.

If I continue working however I would reach barebones FI in 3 years(31 years old),comfort FI @ 5 years(33 years old) and
at the point of luxury FI @ 7 years.(35 years old) anything after would be icing on the cake.

I belong probably more to the ERE crowd so what constitutes luxury to me would be such as barebones to comfort to you.

Which option would you choose?(in my shoes)
« Last Edit: November 14, 2014, 06:06:18 AM by pichirino »

Scooter

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Re: Instant barebones FI vs toughing it out
« Reply #1 on: November 14, 2014, 06:21:35 AM »
Not a lot of facts to go on here, but if someone offered me the means to reach FI by quitting a job I hate, I would be on it in a heart beat. It sounds like the siren call of hedonic adaptation may be creeping into your life. I say go for it.

pichirino

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Re: Instant barebones FI vs toughing it out
« Reply #2 on: November 14, 2014, 07:18:27 AM »
What facts would be useful as making the deciding factor?

waltworks

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Re: Instant barebones FI vs toughing it out
« Reply #3 on: November 14, 2014, 08:11:24 AM »
Assuming you have some semblance of a life/other interests, quit. You can take whatever fun jobs you want if you want more than your bare-bones FI funds will provide. You can always go back to "serious" work, too, if you decide you want some kids or to live on a boat or whatever.

If you don't really have much going on in your life anyway, I'd say stick it out a little longer and try to figure out WTF you are going to do if you retire, but without financial particulars it's pretty hard to give much advice.

-W

FrugalSpendthrift

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Re: Instant barebones FI vs toughing it out
« Reply #4 on: November 14, 2014, 08:17:50 AM »
If they are offering you three years pay to leave a soul stealing job, then that's at least three years that you can spend trying to find a less dreadful way to earn money.

NoraLenderbee

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Re: Instant barebones FI vs toughing it out
« Reply #5 on: November 14, 2014, 12:01:57 PM »
If they are offering you three years pay to leave a soul stealing job, then that's at least three years that you can spend trying to find a less dreadful way to earn money.

+1
To get 3 years of pay, you can work at this job for 3 more years, or you can quit right now, and do something else.

Scooter

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Re: Instant barebones FI vs toughing it out
« Reply #6 on: November 14, 2014, 12:25:13 PM »
What facts would be useful as making the deciding factor?

What does it mean to be on your own and why is that a downside to you?
What does barebones mean, 4% SWR for more than 30 years?
Have you considered healthcare costs for the future?
Can I sell you some whole life insurance? Just kidding.

Best of luck to you. Maybe talking to a certified financial planner would be a useful investment for such a momentous decision. In any case, I stand by my take the money comment.

thd7t

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Re: Instant barebones FI vs toughing it out
« Reply #7 on: November 14, 2014, 01:12:37 PM »
What facts would be useful as making the deciding factor?

What does it mean to be on your own and why is that a downside to you?
What does barebones mean, 4% SWR for more than 30 years?
Have you considered healthcare costs for the future?
Can I sell you some whole life insurance? Just kidding.

Best of luck to you. Maybe talking to a certified financial planner would be a useful investment for such a momentous decision. In any case, I stand by my take the money comment.
In addition:
Would you make enough to advance toward FI in the private sector?
Would you enjoy that work more than your current work?
Would the three years pay + private sector wage advance you toward your goal faster?

Without some more information or numbers, we can't tell if your barebones is missing something.  There might be a way to make it to your idea of luxury before you reach "luxury FI" without having the terrible time working that you're currently experiencing.

pichirino

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Re: Instant barebones FI vs toughing it out
« Reply #8 on: November 14, 2014, 01:49:47 PM »
Thank you for the replies.

What facts would be useful as making the deciding factor?

What does it mean to be on your own and why is that a downside to you?
What does barebones mean, 4% SWR for more than 30 years?
Have you considered healthcare costs for the future?
Can I sell you some whole life insurance? Just kidding.

Best of luck to you. Maybe talking to a certified financial planner would be a useful investment for such a momentous decision. In any case, I stand by my take the money comment.

Barebones means 4% SWR for more then 30 years.
Where I live you pay for healthcare if you're working,if not its pretty  much free.
Well a private sector job would most likely make my earnings go down not up here thats what I mean by going on my own.



« Last Edit: November 14, 2014, 02:59:47 PM by pichirino »

pichirino

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Re: Instant barebones FI vs toughing it out
« Reply #9 on: November 14, 2014, 02:59:08 PM »
What facts would be useful as making the deciding factor?

What does it mean to be on your own and why is that a downside to you?
What does barebones mean, 4% SWR for more than 30 years?
Have you considered healthcare costs for the future?
Can I sell you some whole life insurance? Just kidding.

Best of luck to you. Maybe talking to a certified financial planner would be a useful investment for such a momentous decision. In any case, I stand by my take the money comment.
In addition:
Would you make enough to advance toward FI in the private sector?
Would you enjoy that work more than your current work?
Would the three years pay + private sector wage advance you toward your goal faster?

Without some more information or numbers, we can't tell if your barebones is missing something.  There might be a way to make it to your idea of luxury before you reach "luxury FI" without having the terrible time working that you're currently experiencing.

I would make enough to advance toward FI in the private sector yes.
Uncertain if I would enjoy the work more then the current work as the most import thing are the people I work with
instead of the job.

Three years pay with private sector wage would be about the same speed due to reach the FI levels I would really want(luxury level) because pay increases in the public sector will keep raising my savings rates if I do keep working but quitting provides the option to work at the same time(private) as getting the current salary.

Just trowing it out there.My Savingsrate is @ 80% total income,95% of salary.
Never wanted anything as much as reaching FI.

thd7t

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Re: Instant barebones FI vs toughing it out
« Reply #10 on: November 17, 2014, 07:00:54 AM »
If quitting a soul sucking job will speed you to something you want more than anything (FI), do it.
If a new, lower-paying, job will still push you toward FI, but might make the time that you're working less awful, do it.
If you get three years pay and can work for that time, your situation will be better, so go for it!

KittyFooFoo

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Re: Instant barebones FI vs toughing it out
« Reply #11 on: November 17, 2014, 08:03:19 AM »
dude.  Take the money.

dragoncar

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Re: Instant barebones FI vs toughing it out
« Reply #12 on: November 18, 2014, 12:00:34 AM »
Be honest here: is the job really soul stealing, or are you exaggerating?  Is the job proportionately more soul stealing than one you would get in the private sector for less money?

Taking your post at face value, I agree with the others -- I'd take the money and semi-RE