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After 3.6 years is 16lpa a good salary?
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Rising Star
Rising Star
Work sucks and I just wanna cuddle 🥺
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Congratulations. I think you can just continue as is and even without taking big risks have a portfolio of $4-6M when 50 which should be a good basis to retire, depending on your lifestyle. Just curious why you waited to pay „tons of student loans“ just now if you have a net worth of $1M? Paying back debt is a risk-free return, unless you can do interest rate arbitrage, it seems like a risky move to me. Anyway, it’s done, enjoy your life!
If you like the bay, why not stay? You seem on track to meet your financial goals as is
You could comfortably retire at 40 if you saved and invested 200k of your income each year - you'd just have to move to a MCOL city.
Otherwise if you're set on staying in sf and committed to 50, you need to figure out your yearly expenses and make sure your NW is 25x that amount. Then you're set.
Invest 200k+ a year, live off of ~100k. Pay the tax man
If you’re married, the first $80k of growth is tax free on top of your base investment, so paying the tax man may not be required with FIFO withdrawls on investments. My effective tax rate in early retirement will be 8%, for example.
One wrinkle is that I live in Bay Area and my rent is 5000/month. I can move to any US state but might make 5-15% less. What’s worth moving to?
Subject Expert
What kind of lifestyle do you want? LA doesn’t really have anything like Dolores Park or the Presidio, which is a big downside in my book — plus it’s way easier to get around SF with BART and Muni and even just walking. Chicago and Boston will have you holed up in front of the fireplace for a third of the year — not necessarily a bad thing, but a big change from CA.
Or maybe you don’t really care and your primary focus is literally just the numbers in your accounts. But I think it’s a question worth asking.
And thanks for everyone being nice. I got ripped in the consulting group
Porsche GT cars
Not into cars
How much was the loan btw
Started as 200k and ballooned to 275k
Coach
How much of that net worth is liquid or liquidable with minimal tax implications?
I like real estate for the appreciation, near tax free income due to depreciation, and predictability. If you already have a lot of stock, it might be a nice diversification.
That being said, what you’re doing is clearly working. I don’t know how much of your NW is in retirement accounts which have some strict rules around when you can access it, vs how much is in brokerage or other accounts without the same rules. Moving forward, I would lean towards heavying up on the non retirement accounts if you want to be able to use that money earlier without the penalties.
Mentor
OP isn’t paying 13% California tax - more like a top rate of 11% and weighted average in the 9%ish range.
That said basically anywhere will get a 3-5% rate reduction as long as OP stays out of the tri-state area in on the east coast.
Thats probably the easiest way even MCOL or the lower tier of HCOL areas are 15-20k a year in state income taxes and 20k-35k a year in rent.
Congrats! 🍾 Join FIRE communities if you haven’t already. Invest in low risk and low cost ETFs and try to live off interest
How did you do it btw? Also, are you a lawyer?
Your total comp is amazing for what I hope is better WLB than big law? Also glad to see litigators getting primo in-house positions.
Pay for longevity related stuff. Get a bank account in another country if possible. Get a lawyer to handle maybe setting up a grant annuity trust just in case to shield your descendants from taxes
Mentor
GRATs (if that is what you are referring to) are great in low inflation environments, but not so much if rates continue to move up.
It’s also not at all clear that OP will need any significant planning. Definitely should be wary about dragging liquidity for such planning if net worth is only $1m.
Well there is a cost benefit analysis would you save more than 5 to 15% then it’s a win plus you could probably buy a house in may areas for what you pay for condo so save on the parking too. As for the working remotely it may mean you don’t have to take the pay cut. I’m not you looking for a another job with skill set so I don’t know how much it will really affect but if paid in hundreds of thousands it would be worth it to talk to headhunter and see how much they would want to find you another job at your level and bring up to them any risks working remotely or what the salary they could get for you in the city you decide to live
REI or stocks.
Oh well
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