The Next Goal

[gasdoc]

How far away would the beach house be? We bought a cabin that's 2 hours from our house and it's such an easy distance, we're up here constantly. It's such a nice getaway and change of pace and we definitely spend more time together as a family, which is the big reason I wanted it. So you might think harder on the beach house depending on how far away it would be.

The thing I plan to do once we are in your shoes ( or at least have the house paid off and 529s fully funded) is to significantly increase charitable giving. So that's what I'd look in to..

But strong work on getting to where you are!

Ironically, after I posted this yesterday, I went to the wifey to discuss beach houses again. But it seems most of the areas we are interested in (2.5 hours away) don't have much for sale currently. I imagine its due to owners going to these places during the pandemic to escape. So they are holding on a little tighter. Perhaps we will reevaluate as things begin to open up.

[gasdoc]

You could hope that the stock market has a big correction and cuts your net worth in half.

Good call...would give me a nice kick in the backside to keep plugging away and the goal would be to get back to my original NW

[gasdoc]

You really have a few choices.

You could continue on the same path. You seem to be enjoying your life and career and this would be a reasonable choice. You would be kicking the can down the road for future you to figure out but you leave a lot of doors open.

You could ramp up spending or charity if you prefer.

You could cut back on work.

I would probably take option one if I were in your shoes. I would make an effort to find some hobbies or join some causes that you feel strongly for or help your community. Become a School board member, run for public office, take a class, teach a class, join a book club, coach a sport, anything. You are in the unique position to be able to make a massive life change without financial ramifications. See what tickles your fancy.

Good luck. Great problem to have. Hope I have the same trouble someday.

I love these options. Both my children are moving schools next year, so getting involved there is a great idea. I've typically shied away from these types of things as my evenings are often tied up w admin jobs and haven't wanted to overextend myself. But after the 2 year vesting period, I will likely make the move to 0.8 FTE and perhaps shed a couple of my duties, and get more involved.

[gasdoc]

I am not near your numbers yet but my wife cut down to 0.5 FTE. Happiest she has ever been. I don’t do well with idle time, having grown up poor and being an immigrant. I’ll golf a couple of days but then I feel like I need to get back grinding.

But yea, the wife like her job as much as you do?

Yep...I'm like you. Idle time for me often makes me want to get back to it. I'd love to get back into golf, but that frustration can only fill up so much time . Wife loves her job and likely wont make a move there for over 10 years.

If I looked ahead a few years, would be great for both of us to be lightened enough in our workload to be able to do a monthly rental at the beach and decide whether to buy a place. Just have to free up enough that we can use it. We could both find locums work while there, but primary gigs would be hard to leave for that long a time....so would have to be a big job change.

[Lordosis]

I love these options. Both my children are moving schools next year, so getting involved there is a great idea. I've typically shied away from these types of things as my evenings are often tied up w admin jobs and haven't wanted to overextend myself. But after the 2 year vesting period, I will likely make the move to 0.8 FTE and perhaps shed a couple of my duties, and get more involved.

You can crowd out work by filling up your personal time. That is what it would take for me to cut back. I don't just sit around well.

[FIREshrink]

We voted against the mountain ski cabin/beach house even though either would have been within 2 hours. We found most of our weekends are occupied with kids sports, birthday parties, recitals, school events, etc. It felt too confining to buy a second home. Instead we bought a trailer and glamp about every 1-2 months for a long weekend, or up to 2 week trips. It's more flexible, obviously not as posh, but way less expensive. After the kids graduate we may rethink things but to be honest, not having another home to maintain feels like a blessing.

If you aren't already donating generously of your time and money, now's the time.

[Kamban]

Hey all...

We save north of 35% between taxable and sheltered accounts. 800k house is paid off. Few house upgrades left, but not many. 2 children 529s with about 250 k apiece (ages 10 and 11).

I am in year 3 of a 5 year vesting period for my company which merged with a VC group. I have taken on admin positions in my group and am satisfied to see the platform as a whole going in the right direction. I do purely ASC work now so no call/weekend any longer which makes for much less burnout. I am about 90/10 allocated (and even have some in Crypto). Net worth a little over 5.5M (excluding house and 529)

So, I am quite content with where we stand financially, but I am pretty goal oriented. I have worked the past 15 years with singular goals (get the house paid off, get the 529 over 200k, hitting net worth goals). At this point, I am trying to find what the next task should be. I enjoy my job, and am sure lots of people would say to slow down....but I find I'm pretty slothy on my days off. Lying around, trying to kick it with my kids. I exercise daily and have hobbies, but none of this really fills up 6-8 hours of a day that work would, so lots of dawdling.

I doubt I'd use it enough to feel it was a good move. Travel is somewhat restricted at this age for kids that are beginning to get back into school as Covid situation improves. Probably can only really get away over spring break and summer breaks. Peer to peer lending? Investment RE?

Or, just keep plugging away and keep amassing funds until the first of my friends retires and I can follow suit.

It seems based on recent posts, this is not a unique feeling. We strive so hard to make enough to be financially independent, but retirement doesn't really seem the answer. For goal-oriented peeps, it can be a bit disconcerting. Thanks for reading!

The reality is you may not even need to add another cent any more to your investments and if the dividends / profits are reinvested, you will hit $10M within the next 5-10 years. Unless there is a major market crash. Even then, twenty years later you will have $15-20M.

The problem is that you are contented with your work, admin, family, kid's activities and so on. Soon the work will be routine / boring. The kids will be involved with their friends and fly off to college. You and your wife will be empty nesters. And if she is working and you are not happy with the job, you will have all the money and no joy.

So develop a plan now. A hobby. Learn an instrument or language. Maybe woodworking. Maybe some teaching. When COVID abates, try and take some time off for medical missions. Travel a bit. Some philanthropy.

I am not into having another place where you are forced to go back again and again. You can easily afford good hotels or AirBnB and see different places. Do those tough hikes / treks before those knees give out and the hips hurt.

[gasdoc]

Thanks a ton, all, for your responses. They are aligned with what I was kind of expecting.... The adage of "retire to something rather than something" continually resonates in my mind as I think of how I would spend even the .2 part of a .8 FTE position. I do play an instrument, so could always join a band which would be great eventually. Played some golf for a bit, so can always turn to that... Philanthropy seems to be a common thread and I believe this is likely the route I will go, but I feel the need to wait a little to dive in as I don't really revel in more committees/evening meetings that I already get to do

As always your collective knowledge and advice in quite helpful. Thanks!

[DocFi]

Congratulations on your success and thanks for sharing. Lots of great advice already in terms of scaling down, pursuing more creative outlets and philanthropy. I would consider adjusting your portfolio towards being more conservative so you don't lose sleep or feel compelled to get back to working full-time in the next downtown.

[Eye3md]

gasdoc, I cannot recall if you mentioned this or not, so forgive me for repeating if you have already addressed it. With you being part of VC, did they give you a "lump sum" cash amount when you all were purchased? Is that part of your current $5.5M? I ask because we have been talking with a few PE groups, and the thought of putting a large chunk of money into my retirement account (especially at my age) is very enticing. Thanks.

[gasdoc]

gasdoc, I cannot recall if you mentioned this or not, so forgive me for repeating if you have already addressed it. With you being part of VC, did they give you a "lump sum" cash amount when you all were purchased? Is that part of your current $5.5M? I ask because we have been talking with a few PE groups, and the thought of putting a large chunk of money into my retirement account (especially at my age) is very enticing. Thanks.

Hey...

Yes, there was a BO, but I wasn't a major player in this as I was pretty fresh on the scene. Got a little, but nothing that moves the needle much. Had I been a few years earlier, the amount would elevate me 500k or so. Truthfully, the VC merger has been a rough move, as I'm sure many will attest to. Changed things substantially and that is what is taking up a good deal of my admin time....getting the ship on smoother seas. We are getting out of the storm, but it was a bumpy ride.

[gasdoc]

Congratulations on your success and thanks for sharing. Lots of great advice already in terms of scaling down, pursuing more creative outlets and philanthropy. I would consider adjusting your portfolio towards being more conservative so you don't lose sleep or feel compelled to get back to working full-time in the next downtown.

Great call... as I begin to ratchet down, I will likely go 80/20 then eventually down to a final of 60/40 where I feel I will be content to remain.