Author Topic: A 31-year-old who left her 9-5 with $1 million...  (Read 11249 times)

monte0930

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Re: A 31-year-old who left her 9-5 with $1 million...
« Reply #50 on: March 04, 2017, 07:39:04 PM »
Found this gem in the comments:

"The 4% rule, which allows your money to last 30 years, obviously doesn't apply to a 31-year old. 3% of $1M is $30K a year. This may pay for her living expenses (hope it is American $$!) but it won't pay for mine.

For most people, $1M would not be enough to retire on at 55, much less 31."

market timer

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Re: A 31-year-old who left her 9-5 with $1 million...
« Reply #51 on: March 04, 2017, 11:31:30 PM »
Interesting blog. I'm not sure it says anything different from the other FIRE blogs, but it seems a bit more polished and well-written.

As for the content, I'm actually starting to wonder how rare it is for people earning >$200K in their late 20s / early 30s to become millionaires after 10 years of work. Anecdotally, this was the norm for my peer group, especially if we lower the bar to $500K for single people. The hard part is getting and keeping a job that pays very well.

I agree with these two that conventional wisdom about home ownership might not be good advice today, given how expensive housing is in metros with good jobs. Also, not mentioned on their site, but a common problem for yuppies, is the high cost of professional school. Leaving a high-paying job for two years to get a $200K MBA will definitely set you back on early retirement.

It sounds like these two spent all or essentially all of their working life with a single employer. My suggestion would be not to generalize from a single crappy job. Not all jobs suck. Personally, I think a better goal than FIRE is to work reasonable hours at a fun job and earn >$200K/year with enough money in the bank to feel comfortable walking away at any time. This is especially true if kids will be in the picture. I would not want to raise a family on only $40K/year anywhere in the world.

Abe

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Re: A 31-year-old who left her 9-5 with $1 million...
« Reply #52 on: March 05, 2017, 01:25:04 PM »
Interesting blog. I'm not sure it says anything different from the other FIRE blogs, but it seems a bit more polished and well-written.

As for the content, I'm actually starting to wonder how rare it is for people earning >$200K in their late 20s / early 30s to become millionaires after 10 years of work. Anecdotally, this was the norm for my peer group, especially if we lower the bar to $500K for single people. The hard part is getting and keeping a job that pays very well.

I agree with these two that conventional wisdom about home ownership might not be good advice today, given how expensive housing is in metros with good jobs. Also, not mentioned on their site, but a common problem for yuppies, is the high cost of professional school. Leaving a high-paying job for two years to get a $200K MBA will definitely set you back on early retirement.

It sounds like these two spent all or essentially all of their working life with a single employer. My suggestion would be not to generalize from a single crappy job. Not all jobs suck. Personally, I think a better goal than FIRE is to work reasonable hours at a fun job and earn >$200K/year with enough money in the bank to feel comfortable walking away at any time. This is especially true if kids will be in the picture. I would not want to raise a family on only $40K/year anywhere in the world.
They had at least two different employeeI agree that relying on $1m seems a little risky at first glance, but they seem resourceful enough to get new jobs if needed. There are plenty of places one could raise a family on <$40k a year, depending on one's tolerance for inconveniences of not fully developed countries.

VladTheImpaler

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Re: A 31-year-old who left her 9-5 with $1 million...
« Reply #53 on: March 05, 2017, 01:32:25 PM »

People think I AM smug when I make wholesale statements like "Most people are financially illiterate".  Well...that's because they are.  Then they look at me like I'm some sort of a magician for not being broke all the time.  W T F.
I find a lot of yahoo comments (and many other places) contain a lot of trolls and hate.  MMM is one of the few places where trolls are kept to a minimum and people are actually pretty civil.

It seems to be associated with the anonymity of internet these days, and a lot of immature people who have very poor social skills.

+1
I keep coming around because of how smart and polite most people on the mmm forums are.
It is still a true bright spot on the internet.

DailyGrindFree

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Re: A 31-year-old who left her 9-5 with $1 million...
« Reply #54 on: March 05, 2017, 01:38:21 PM »

People think I AM smug when I make wholesale statements like "Most people are financially illiterate".  Well...that's because they are.  Then they look at me like I'm some sort of a magician for not being broke all the time.  W T F.
I find a lot of yahoo comments (and many other places) contain a lot of trolls and hate.  MMM is one of the few places where trolls are kept to a minimum and people are actually pretty civil.

It seems to be associated with the anonymity of internet these days, and a lot of immature people who have very poor social skills.

+1
I keep coming around because of how smart and polite most people on the mmm forums are.
It is still a true bright spot on the internet.

+2. Great community.

joonifloofeefloo

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Re: A 31-year-old who left her 9-5 with $1 million...
« Reply #55 on: March 05, 2017, 01:52:06 PM »
+3, thanks to the hard work of our few, volunteer moderators and those who support them by calling the yuckies and/or reporting issues :)