After doing a deep dive on the different ways to pay for college and how to get good financial aid, I realized the best thing for my family is for me to go back to work. Coming up with $1,500,000 for two kids' college experience in 12-15 years is daunting.
Going back to work feels like giving up since I helped kickstart the modern-day FIRE movement in 2009. But the reality is, times are always changing. And we must adapt with the times.
Sitting idly on my hands, hoping my investments will miraculously cover such an expensive nut in the future feels uncomfortable. Given I have young children, I face expenses that are inflating at the fastest rates (tuition and unsubsidized healthcare at $2500/month). As a result, I want to take action while I'm still healthy and full of energy!
When I retired in 2012, my wife and I had planned to live a simple life on Oahu with less than $100,000 a year. I was 34 and she was 31. We would help take care of my grandfather's fruit farm, sell some mangos and papayas to the local supermarkets, and feed ourselves with what was left over.
After trying for so long, we thought kids would not be in our destiny. But our son was finally born in 2017 and then our daughter in 2019. Suddenly, our whole world had changed and so had our expenses.
Going Back To Work Isn't A Total Failure
In 2017, I made a promise that I would be a stay-at-home-dad for five years. After five years, my son would be able to go to kindergarten full-time. I fulfilled my promise plus an additional year because of the birth of our daughter. I wanted to give her the same amount of time as I had given my son.
However, a ~20% decline in the S&P 500 hit our net worth by ~7% in 2022. Both my kids' 529 plans also got hit almost equally as bad because bonds performed terribly in 2022 as well. The funds are in index target date funds.
My investments in private real estate across the heartland have also performed well during the pandemic, especially in 2021. However, after 11 rate hikes since 2022, the real estate market is now on shaky ground.
Going back to work will replenish the bank account and provide a buffer for a potential decline in passive income. To be truly financially independent, one needs to have enough passive income to cover one's desired living expenses.
If a recession returns in the next couple of years, then everything from dividend payout ratios to rental occupancy rates will be at risk. Here's a recession preparation checklist to follow. I think the likelihood of a recession is 70% by 2025.
Going Back To Work Is A Compromise
I do feel guilty about not spending as much time with my daughter as I did with my son. However, she still received a lot of love for the four years before she started preschool part-time.
With my wife always at home, I am clearly my daughter's second love. I've experienced many hurtful rejections that have made me question the point of being a stay-at-home father for so long. But as she gets older, things are getting better.
In a sad way, going back to work protects my heart, while also optimizing my purpose. I've spoken to many dads on paternity leave who can't help but feel restless after the third month. If they were the breadwinners before, they felt an immense draw to go back to work to earn.
Having two stay-at-home parents is great for the first of a child's life. There's so much that needs to be done to take proper care of a baby. The second year of life is pretty wonderful given most toddlers will begin walking and playing by then.
However, after the second year, I think it's more efficient for one parent to go back to work. It's better for financial security, peace of mind, and work/life balance. Usually, that one parent is the father because the child needs and connects with the mother more.
House Is Getting Small Again
No matter how much you love someone, it can sometimes be hard to be around them 24/7. You might scare the bejeezus out of them when you silently get something in the kitchen. Or maybe you might get annoyed by the mess they leave behind in the living room.
Whatever the case may be, having some separation is healthy for any relationship. There's a reason why best friends sometimes no longer are best friends after a long roadtrip.
I've done my best to get out of the house every day by playing sports. However, my body can no longer play for longer than two hours before my back, heels, hips and right shoulder start hurting! As a result, my outings don't last as long as they have in the past. Further, I usually rest the entire next day, which means staying at home.
My wife enjoys being at home more than I do. She definitely doesn't want to go back to work, no matter how much I've encouraged her. As a result, it is up to me to adapt. I don't mind because I enjoy meeting new people. Luckily, life is back to normal.
Can't Buy A Mansion For Relief
Buying a larger house in 2020 gave us three years of extra comfort so far. However, as our kids grow bigger and accumulate more stuff, our house seemed to grow smaller.
I strongly considered buying an even larger house. However, my wife doesn't want to move. Further, I'm hesitant to concentrate even more of our wealth on San Francisco real estate. Our total annual property tax bill is already too high for comfort.
Instead, I want to continue diversifying more into heartland real estate. Working from home and the spreading out of America to lower-cost areas are here to stay. Check out Fundrise if you're interested in investing in this long-term trend as well. Dollar-cost averaging in this weak market is attractive as I think real estate prices will eventually rebound and catch up to stock prices.
Going back to work now that both our children are in school gives us more space, which is healthy for our relationship.
Work Seems Easier Today
Early retirement is becoming obsolete thanks to the pandemic. The amount of flexibility people have at work today is incredible compared to the past.
If I had the freedom some workers have today, I would have worked for at least five more years. Back then, I had to sneak away to take a 15-minute nap in my car! Today, you can play pickleball for 1.5 hours during the weekday and then take a half-an-hour nap after if you want.
As an efficient person, I'm sure I can get eight hours of work done in four hours or less. So long as I'm not encumbered with meetings, I have no doubt work will be more manageable.
I'm also pleased that companies seem to be less focused on face time and more focused on production. So long as you get your work done, that's mostly what matters. With so much more work flexibility, going back to work is more digestible.
Hard To Pay The Bills As A Writer
They say “follow your passion and the money will come.” Good luck with that occupation strategy! Instead, it's better to do something that pays and then pursue your passion on the side.
Despite writing Buy This, Not That, a WSJ bestseller, I still have not earned enough from the book to support my family. To do so, I need to be raising my national profile regularly. But I'm disinterested in the spotlight.
Despite having a 60,000-subscriber newsletter, I feel bad moving to a subscription model where I could probably make at least $150,000 a year. The goal of my newsletter is to help anyone and everyone interested in building more wealth while also staying on top of the most important financial topics.
Given the difficulty of being a professional writer, the logical solution is for me to get a day job or consult again. I'll still write, just not as often. Or maybe I’ll leverage AI to write my content for me.
For all you creatives out there, don’t lose hope! I had a really good run for 12 years, but all good things must come to an end. It’s still better to try than never try at all.
More Active Income And Good Benefits
The ideal income composition doesn't consist of 100% passive income. Instead, it's better to have at least 10% of your total income coming from active day job income. This way, you feel like you're doing something productive in society.
One of the biggest negatives of early retirement is feeling lost. Without a day job bringing you purpose, it's easy to fall into despair as you question what is the point of life. The longer you work, the more you will have your identity wrapped up in work.
Having a day job, no matter how mundane, helps provide structure and purpose in our lives. With school teachers now taking care of educating our children, a large part of my purpose as a stay-at-home dad is gone.
I'll certainly continue to provide supplemental education after school and during the weekends. Being the family driver will always be my duty. But I'm now left with a void that needs to be filled.
It'll be nice to earn a steady paycheck and receive subsidized healthcare benefits again. I'm also looking forward to getting a 401(k) match or profit sharing once more.
Even though I’m going back to work, at least I won't have any regrets trying to make it as a professional writer. I don't have regrets leaving banking before making Managing Director because I at least tried for one year.
Trapped By The School Schedule
So long as your children are attending grade school in person, parents are trapped by the school schedule. Therefore, parents might as well spend some of the school time to make some money as we wait for spring, summer, and winter breaks.
Homeschooling is in the cards given that's what we did from March 2020 to August 2021. Kids learn so much quicker than regular schooling. However, given our children are still young, they won't appreciate their travels just yet.
Going back to work helps utilize the downtime when kids are in school. If my family wants to slow travel or live abroad, it's also best to go back to work and make some money while I can before we do.
Having a goal of saving up for years of world travel makes going back to work more meaningful.
My New Job Thanks To A Return To Normalcy
So what will I be doing?
Well, I love basketball so I've decided to apply for a job as the video coordinator for the Golden State Warriors. Although the job only pays $40,000 a year, I get to be around the coaching staff and the players.
I feel like I've got good analytical insights to share with the team. Matchups intrigue me and so does the ability to build winning teams. Besides, the NBA needs more Asian diversity!
When I coached high school tennis, we won back-to-back Northern California Sectional championships partially due to lineup strategies. Before then, the school had never won an NCS championship.
There you have it. Starting this October 2023, I hope to be busy working through April or May 2024. The season will be hectic and I may have to do some traveling.
But it'll be fun! Barista FIRE for the win. And at least I'll still get five or six months off a year, depending if we get to the playoffs.
In A Different Life, Perhaps
OK, I was joking about landing a job with the Warriors. But everything I've written in this post is true.
I need to find a way to get out of the house more often, make active income, have more purpose. and fill my days once both kids are in school full-time in fall 2024. For seven years, so much of my life has evolved around raising young kids. With college tuition and a rapid rise in costs for everything, it’s prudent to do some consulting or go back to work again after 12 years of retirement.
Last year, I was invited to a players and coaches event with the Warriors and it was exhilarating. It felt wonderful to be a part of a team, especially one that has won for so long. I miss the camaraderie.
If you love basketball, the NBA, or the Golden State Warriors, I talk to my friend, Shaun Livingston, who won four NBA championships with the Warriors. Have a listen. You can also go the podcast on Apple, Spotify or wherever you listen to podcasts.
In the meantime, I've got some other ideas on how to fill the void:
- Host a book signing event for up to 100 attendees in San Francisco at the Sports Basement at Stonestown Mall. Anybody want to come?
- Become a pickleball product ambassador or affiliate partner. I met a guy who is one for a pickleball energy drink. Maybe I can use my platform to meet new people, attend events, and play in tournaments.
- Join an author group and write my next personal finance book with Portfolio Penguin.
- Become a school teacher in Hawaii where I’d like my kids to go. One of the benefits will be a discounted tuition and easier entrance. I’ll also get to see them more often during the day.
- Find a job in Artificial Intelligence since it is a booming industry and so many AI companies are based in San Francisco, where I am. I've applied to several companies so far with no luck. The difficulty of find a good job after retiring for so many years is hard!
- Forsake tech work and get a doctorate degree in real estate.
So Old And Tired To Work As Hard As Before
Despite some serious upcoming expenses in the future, it's difficult for me to get a regular day job again. I'm too old to grind as I once did. There needs to be a job that provides better balance and more fun. As a result, I'm leaning more toward consulting part time like I did for Empower (Personal Capital) back in 2013-2015.
Doing part-time consulting for 15-25 hours a week will help fill the void once both kids start school full-time in September 2024. We are purposefully only sending our daughter to school three days a week because she will be our last child. As a result, we want to spend as much time with her as possible.
In addition, I realized if I send my kids to community college, I won't have to come up with $1.5 million to pay for two private college tuitions in the future. Hence, there pressure to make a lot of money at work won't be as high.
If you are under 45, please don't waste your energy! Not having kids is your FIRE super power! Your energy will eventually fade. When it does, you had better have a pile of money saved or invested. Otherwise, you may feel trapped in an increasing state of misery.
I hope this post has provided some insights into some of the complexities of life. The more you have (time, children, money, etc), the more decisions you will need to make.
Don't think that just because you reached your target net worth, got that promotion, or finally gave birth to a girl after two boys, you'll be forever happy. You'll be elated for a bit, and then it's back to your steady state of being.
Life takes work! Maybe that's the job we should really be focusing on all along.
Went Back To Work And Couldn't Last
Well folks, I gave going back to work a try from November 25, 2023 through March 2024, and couldn't last for more than four months. I recap my experiencing about returning to work after FIRE to help you realize how difficult it might be. It's a tricky situation if you've tasted years of freedom and the fit isn't perfect.
But I am appreciative for giving work a try again. It made me realize my weaknesses. I got a better sense of what type of work I want to do. Finally, I'm more appreciative of the time I have.
Feeling Better Financially Due To A Rebound In The Stock Market
Thankfully, 2023 and 2024 turned out to be fantastic years for the stock market, pushing my stock investments to all-time highs. As a result, I do feel better about my financial situation.
However, I made a self-inflicted financial wound in the second half of 2023 by selling stocks (and bonds) to buy another forever home. The property was discounted 14% from its 2022 asking price and featured rare Golden Gate Bridge views on a massive, usable lot—an opportunity too good to pass up.
The purchase, however, came at a cost. It reduced my passive income by approximately $150,000 a year, bringing it down to $230,000. Over the past year, I’ve clawed back my passive income to around $300,000 by renting out my old house and saving and investing aggressively. Despite this progress, I’m still about $80,000 short of having my investment income fully cover our living expenses.
As a result, it’s back to work for me, with a clear goal: to achieve $380,000 in passive income by December 31, 2027, or build an additional $2 million in net worth. The $2 million comes from using a 4% withdrawal rate.
Reader Questions And Suggestions
Readers, what are some fun jobs you'd love to take if you had the opportunity? How has your life changed after retirement?
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The only question I’ve had is why the stated dichotomy of community college vs $1.5 million? There are many great public universities and your family lives in California, yes? Some of the best higher education institutions in the world are your public schools. Community college (which I attended for a brief time just days after high school) is a far cry from a good public four-year research institution. I went to a good one (Austin CC) before attending UT Austin (a great public institution); there was simply no comparison in the rigor. I think for trades they offer great opportunities and would go. But for general education, my experience is that it does not compare.
Personally put every excess $ in FANGMAG for the last 10 years and 5Xed (500%) total investments returns. Sold puts in the Mag 07 when market tanked to generate massive Alpha returns.
Never believed in forgoing SBUX lattes, Swiss Watches, German cars or whatever pleasures life gave me and family.
The secret formula for happiness in life:
Happiness = (Lifespan) X (Savings) X (5X Physical Health) i.e., Physical Health vastly affects Happiness and usually depreciates rapidly post the age of 50-55.
So enjoy everything in your youth and middle years since driving a 911 isnt as fun with diabetes, hypertension or a pacemaker in your 60s :)
I happen to be a dad too but I don’t have the same point of view as you when it comes to paying for school. I have one young son and technically speaking, he can live off the assets I will give him. However, he doesn’t know that. I know and appreciate the value of menial jobs and poverty. My son knows we are wealthy but has no idea to what extent and I tell him that nothing is guaranteed for him. I tell him he will have to work hard to earn his way because I will only give him anything when he earns it. I tell my kid that he should never believe he is inherently special or better than anyone else. So in an ideal world, I would like to see him flipping burgers at Mcdonald’s or cleaning carpets to earn money while he goes to school. I will also encourage him to take on student loans so he learns how to plan his finances in the long term. My goal is obviously to prepare him for the future so he can be a happy person and I believe the easier kids have it, the less they appreciate what they have and the higher the chance of them becoming lazy and unhappy. I am ethnic Chinese and I’ve seen people in my generation waste their parent’s wealth because they never had to struggle. So while I think it’s great to give kids security in their future, I would not let them know.
Can you share how your viewpoint is different from mine? Is it because you continue to work versus me retiring early to spend more time with my kids? I think either is fine I’d love to know more about your background.
I believe everything is earned, nothing is given. At the same time, I believe in having an insurance policy if my kids are not smart enough to get scholarships or disciplined enough to choose a more affordable school.
Please read:
Spoiled or Clueless?
Getting my son’s hands dirty with a landscaping job
Why even have a child with this mentality as a parent?! Your son didn’t ask to be born.
Hey Sam, I loved this post. I’ve been fake retired since 2018. Around that time I started a passion business, which has given me plenty of opportunities to connect with new people and travel. I also went back to work full time for 1 of the 5 years, to make extra income and provide stability while weathering a divorce. I like the 2 prong approach of investing in my business when I’m not employed, and occasionally working for someone else for extra income. I usually find that my motivation for my business grows during my employed durations, and I return excited to get back to it.
I agree that community college is a good option. I also think kids paying their own student loans is a good life lesson.
Consulting does seem like an easy option, but I thought you might consider becoming a speaker at events and conferences. You would get to meet more people, get out of your house and travel for free, and get paid to talk about what you love.
Hello Sam:
I believe you would make a wonderful financial advisor at one of the the private banks. A number of financial institutions are continuoulsy staffing up their financial advisory team, especially for High Networth individuals. This may suit you from the perspective of meeting new people, having some structure and resources of a large organization, parlaying your knowledge and skills into a profession that you will enjoy, and getting paid while building your own client base.
Hi, I’m curious what your current net worth is today versus when you originally fake retired with I believe $3M.
Reason I ask is because I have to believe your net worth has grown over time and if that’s true what is your new net worth goal that would allow you to fully or fake retire again? Thanks.
Hi Ed, thanks for your curiosity. My net worth has grown with my investments since 2012.
I think a good net worth goal is one that beat inflation by one or 2% every year and can generate $360,000 a year in gross passive income to provide for a family of 4 in San Francisco.
How about you? Where are you on your financial aid journey, what is your net worth, and what do you think you need?
I’m a casual observer here. Just a guess from the numbers dropped across multiple blogs, I’d say he’s at ~9.5 mil including net real estate. Not including 401k. Just pulled numbers outta my bum ;p
I did a rough calc for a retirement plan in LA where Im at. To live a similar lifestyle of a 5 mil house paid off and retired with 4% swr will require another 5 mil in taxable portfolio to live. This is however not including raising two kids which is a killer. I ‘fortunately’ don’t have kids and unmarried. Would need additional 1.5 mil if private school and college fund accumulation. Comes to 11.5 mil networth. (The real problem here is home insurance dropped most expensive houses due to annual fires and banks can’t close escrow without home owners insurance… Nor do you want to risk millions of equity. So dreaming of big house is probably foolish here anyways)
Anywho. Id say the samurai will get there by his plan of 2027 np, including the Trump downturn of 2025.. 2026… I’m a bit younger myself but closing in on the 8 figures. I really hope Trump doesn’t screw us as I’m mostly VOO. Fingers crossed!!!
It seems that the educational costs for your children is driving many of your overall life decisions. Is it not possible to send them on a less-expensive (but still excellent) education track (community college followed by state schools)? Being financially limited, this is the choice we made and we have not regretted it. If you want to work, great! But it appears by now you have the financial means for your children’s education for it not to be the primary driver.
True. The desire to take care of my children and cover their education costs is a driver of going back to work. So is filling up two more days of free time once my daughter goes to school in fall 2024 and experiencing more purpose and camaraderie after the pandemic.
I’m totally for community colleges! Being OK with them going to community college has given me tremendous mental relief.
In my experience your kids will remember you being around more between ages 6-12 than 6 an under.
Honestly just charge for the newsletter – i personally would have no issues paying knowing for years the amount of wonderful knowledge you have given away for free for years.
I agree. Memories don’t really form that well under 5. But I’ll have a 5-day void to fill when they are both in school Hence, I might as well find some interesting work that pays to provide for my family.
I will do my best to be present with them until they leave the house.
If you’d like to support my work, pick up a copy of Buy This Not That or How To Engineer Your Layoff and leave a review on Amazon. You can also subscribe and review my podcast on Apple or Spotify. I’m having a lot of fun with it!
Thanks for reading and listening! Fight on.
Hey Sam. Long time lurker here. Thought I’d chip in with some thoughts. I early retired at 44 (now 49) from a corporate marketing career in Japan and Hong Kong. I moved to a low CoL location in Asia for 4 years, loved it, and have been back in Australia for a year. I have an almost 6 year old, completing her first school year this year. Like you, feeling a bit of a void coming on after being a stay at home Dad, and haven’t quite shaken the type A personality. I organise every day with action lists for example and still check my email more times than I should. I bought around 15 properties during my corporate years, and have been developing some of them into new homes or townhouses. I enjoy the process and having a side hustle that is engaging and makes money, however I do miss some of the team camaraderie that being in an office entails… minus the office politics, human resources teams, and crazy working hours. Will keep giving it some thought.
Thanks for sharing your journey. With 15 properties, I’m sure you are plenty of busy hanging those!
You’ll enjoy this follow up post: The Difficulty Of Finding A Job After Years Of Retiring Early
Hey Sam! Great post and good luck with the job hunt.
Question, what do you think about real estate for indoor pickle ball? I represent a family office in the Bay Area and when we played pickle ball one time in the Presidios, it was cold and super windy. Hence an indoor pickle ball idea. I manage a portfolio of real estate across the country but we don’t own anything in the Bay Area right now. Perhaps some old offices or warehouse in SF? Let me know your thoughts.
Perhaps move to Hawai’i. We leave this week for Big Island Waikoloa to scuba 2 months. Retired Fall 2015 enjoying life. During our travels we have talked with parents of school aged children. Fun in the Cayman Islands, I spoke with a merchant marine officer serving on oil tankers. The family travels during one month leaves a couple times each year. Homeschool two hours a day during travel keeps the studies on track.
I wish you nothing but the best in this decision and this new chapter, Sam. I hope you are able to reach a point where you can let go and take comfort in knowing everything will work out as it’s meant to, rather than trying to account for every worst case financial scenario. You are a good man. You have set your family and your kids up for a very successful start to their own journeys. Having read your blog for as long as I can remember, I’ve watched you grow in innumerable ways.
Obviously we each have our own individual journey and perspective. And you are absolutely entitled to yours and at the end of the day, you must make the decisions you feel are best for yourself.
My only offering here is to make sure you‘re also letting your family, your kids, and even yourself learn that there are times when “enough” is enough. There will always be a perceived need for more and more money. There will always be another worst case scenario that is worse than the last one. Millions of children never even live to see college age.
I’m not saying going back to work is the wrong decision for you. Only you can know that. Just be careful of what you may be inadvertently conveying to your children along the way.
I appreciate it Mike! Hopefully, my kids will appreciate the 4-5 years I spent staying at home with them before going off to Pre-K 4 and kindergarten.
What was it like with your kids? Did you also retire early as well and spend the first 4-5 years of their lives as a stay-at-home dad? It’s always good to meet other stay-at-home dads and hear from their perspectives. Hopefully, the worst case scenario you mention didn’t happen.
Yes, homeschool your children. You can meet the state requirements the way you think best. You know them better than any teacher will and can adjust to their learning style. You are in charge of their socialization. My wife homeschooled our three — two are college professors and one is an attorney and all are debt free except for their houses. She/we have no regrets and neither do they.
Why not write articles for fortune as your next gig? You can publish articles without talking to the subject or even reading through their full post. Seems like you’ve gotten a ton of attention, so can’t wait to hear what’s in store for next year
It’s a possibility, but another solitary job. I’d rather be in the mix and interacting with people in real life.
I’d rather get a job that is totally different from my writing in the comfort of my own home. Getting out of the house is the goal.
“Coming up with $1,500,000 for two kids’ college experience in 12-15 years is daunting.”
One thing I’ll never understand is the feeling that you need to pay for you kids’ college in the US; why would anyone put this kind of pressure on themselves is truly mind boggling.
I grew up in a lower middle-class family in the UK and moved to the US in 98. I immediately saw that college was expensive and inferior in quality of education. So, I moved back to the UK alone, separated from my family and took out student loans to pay for my entire college degree and living expenses. During college I worked a part time job to help with expenses, lived frugally and made sacrifices when I graduated to pay down my loans quickly and move on with my life.
As other comments have highlighted in this thread, paying for your kids’ college does not help them, they become entitled, don’t learn the value of money and screw around instead of focusing. This sounds more like an issue with your need for purpose and “feeling useful” than anything else.
To be honest I’m a bit confused with your overall messaging on this blog and through the book. One minute you’re preaching financial freedom and the next going back to a job just to pay for lifestyle inflation/college tuition :/
Do you think the low cost of college in the UK when you went compared to the high cost of college today and 15 years in the future has something to do with the differing views? It’s a 35-40-year spread.
I hope my kids will be smart enough to get scholarships and work minimum wage jobs like I did. If they do, I’ll have $750,000 leftover for each 15 years from now to spend at will. But if they are not smart or financially savvy enough, there is a backup. I’m not going to work a miserable job. I plan to do something fun and new.
What did you do after college and how are you doing in your career and financially now? Getting this back on would be helpful. Also, how do you plan to pay for college for your children? Thx
Hubby and I are both tenured professors, which is theoretically one of the most secure professional situations one can have. However in reality nothing is 100% secure, because right-wing politicians are doing their best to dismantle public universities. So our goal is to secure our “financial freedom” so that we can continue working without spending even one millisecond worrying about what nefarious plan our Republican state legislature is going to cook up next. For us our target number is US$2 million, which we are hoping to reach by Jan 1, 2026.
We make around $250K a year and save 60% of it. Once we have that $2M in secure, guaranteed investments (I’m loving the current high interest environment for that reason!) we can rest easy knowing we will likely be OK. The plan is for hubby to retire in 2028 at age 60 (since his role is way more physically demanding than mine), following which he can be on my insurance plan until he reaches Medicare eligibility.
I want to work till I turn 62 in 2035, when he will be 69. We then want to move to a small historic town Portugal (hubby is an EU citizen so we can move there legally) where the cost of living is 1/7th that of the US. We both plan to claim SS at 62, so we can get back some of the money the government took from us while there are still some pennies in the SS pot.
Congrats! You’ll enjoy this post: Being A Professor Is The Ideal Occupation For Riches And Prestige
Hope you’re able to move to Portugal even sooner than 2035, William! We’ll be glad to be rid of you here in the US!
“However in reality nothing is 100% secure, because right-wing politicians are doing their best to dismantle public universities.”
and
“We both plan to claim SS at 62, so we can get back some of the money the government took from us while there are still some pennies in the SS pot.”
Lol funny. You like it when the government taxes other people to fund your nice secure public uni jobs. You don’t like it when the government taxes you for your own retirement.
The government is not funding cushy professor jobs. The government uses tax dollars to educate the students who attend the university. LOL.
Why not just sell your blog and/or move to a cheaper location? As a father of 4 teenagers, life will only get busier.
Hard to sell your baby. I’d like to use this site as a way to teach my kids about writing, speaking, storytelling, interacting, marketing, and business. Practical knowledge on how to make money in the real world is valuable.
We may relocate to Honolulu, which is about 20% cheaper due to lower cost of housing.
I am a long time follower of your blog and on my own journey – half way to FIRE!
I don’t fully understand the reasoning to return to work. My understanding is that you forecast passive income already of $380k for 2023. Why give up all that time and go back to work for $40k per year.
Surely you can find a way to boost your passive income by $40k per year? Is relocating also not a better option – I know you have been considering this long term anyhow.
Nice to hear from you Michael. Money is only one component of going back to work, but a big one, especially if I can get subsidized, Healthcare and Retirement matching.
After three years of the pandemic, and six years of being a stay at home dad, I long for the purpose, excitement, and camaraderie of work.
And if I can work in a new industry that I love, such as the NBA, I think it would provide, for a lot of fulfilling challenges and new experiences.
What would your dream job be if a big focus wasn’t on the money?
Another thing to understand is that the more you have, the more you lose during a bear market. And with interest rates coming down, passive income could come down as well.
Thanks so much for replying Sam. Actually been thinking a lot about this since I read it – you have had me thinking!
I actually thought since posting my comment that perhaps this was a late April Fool’s article, I just wasn’t certain.
If work is what you crave, then go and do it for sure. I have been working hard over the last 18 months growing our FIRE nest-egg, but after buying two investment properties in 2022, we have now made the decision for me to start working towards semi-retirement – working part time on work I enjoy.
You have mentioned in the past that Barista FIRE is likely the best version – and certainly anything around the “Semi FI” movement seems to be a great balance. Your story certainly highlights this.
I personally think you will struggle returning to work. Being told what to do is never fun! I struggle with this myself on a daily basis. Could remaining self-employed be better than taking a job? Could you get the camaraderie from volunteering your time? I have done some neat stuff with volunteering, such as setting up sports club, coaching kids in sport, setting up native tree planting organisations etc. These tasks give fulfillment without being stuck to the 9-5.
I think there are other ways for you to save for your kids education without needing to return to work. Even living in Europe / other parts of the US for a year where you would likely need way less than $100k to live for the year would do it – while your passive income can be invested in the background. Keep in mind, your numbers are HUGE living in San Fran – even in an expensive city like Dublin, you would find your expenses be reducing dramatically. We spent around $50k USD last year living in Ireland as a family of 5.
I also challenge the notion of $1.5 million for your kids education. They may decide not to go to college. The rest of the world is able to educate themselves for far less than this amount and no doubt other families in the US are able to get college degrees for a lot less. Is you going back to work for the next decade or so to help pay for this the best thing? Your kids are still young, mine are a bit older, but I have realised that that time from 3pm – 6pm is the most important every day after school. Try be there for that time, as its the most stressful part of the day, but also the best opportunity to spend time with your kids. The time goes fast!
That’s the great thing in life. It’s full of mysteries!
I’m not sure folks are doing the math regarding college expenses in the future. It sounds nuts, but that’s what they will likely be in 15 years or so for all four years. If my kids go the cheaper route, then we’ll have money left over to start life.
Finding that fulfilling job will be the challenge. But challenges are what make life fun! If 3pm – 6pm is all one needs to spend time with their kids, that’s pretty easy to do. I’ve been spending 8 am – 8 pm with them, with breaks in-between, for the past six years.
Hi Sam,
It gets worse once you are past 55. The kids are grown and no one wants to hire you for anything. All the while your peers who remained employed are still enjoying the accolades and accomplishments of a career. FIRE gets old.
I estimate that I started reading the financial samurai blog about 7 years ago and although don’t read it constantly, do enoy keeping up with you from time to time. Imagine my surprise when I read (in Yahoo finance of all places) that you were going back to work. I’m sure some people will offer some advice like a cheaper college, lower cost area, etc. but I think it’s good that you found something that you want to do and will earn a little bit of money. One thing that I don’t understand is $40K in exchange for your time and energy (~$32K after tax)? Don’t sell yourself short Sam.
Do you really think energy levels drop off that much at 45? Could it be that you have young children that consume a lot of energy?
Could be. Have you maintained or grown your energy after 45? If so, any tips on how? Thx
46 year old checking in here Sam. Energy does seem to start dropping a bit in the 40’s. I’ve always felt like the 30’s surprised me as still feeling young and 40’s surprised me starting to feel old. Best is advice is the standard eat healthy, get good sleep and work out.
Sam,
With respect my brother if you are going back to work it is simply and only because you want to.
Very interesting post emphasizing that you need to keep your mind engaged . That said. It seems that 10-11 years each of two careers is your standard for depth of interest in a career. The video gig seems more like a vanity project.
Having read your blog & some contributions to others I really think this title of going back to work for the money is disingenuous. Given your holdings I think maybe you are missing your true net worth — you can easily afford education for your children. The main driver him your blog has always been continued hyperaccumulation, so that should be acknowledged.
College should not cost 1.5 million.
Agree. But there doesn’t seem to be anything we can do about it unless we skip college, go to CC, or figure out the financial aid system.
Why wouldn’t you consider that? Why is an expensive college the way to go and is that what you want to teach your kids? I don’t say that with judgement, but because it is something we are reflecting on. I went to Jr. College and then a Cal State college (aka, lower price). I had to fund my own college as my parents weren’t in the picture and then still went on to have an envious career. Right now I’m in my own “mini-retirement” at 43 and charting my next chapter.
Education is changing and by the time they even get to college YouTube and other forms of self-education, on top of AI tools may change the paradigm of college anyhow. The ROI on college is often questionable and most skills are actually picked up on the job. There are some exceptions, like if they want to get into to medical, but why not remake education as part of the Fire movement?
I recently read a story about a dad who goes on a 3 week trip with his kid when they turn 16 to teach them about the world, and then when they return they start a business for two years and then sell it and go on a mission. Then they return with all of those skills and confidence. I love that. That’s an amazing eduction! Something their dad can do as an owner of multiple businesses.
Heck, if you are going to work and earn 1.5 million…imagine instead setting your kids up with real estate, house hacks and other ways that have them earning 100k a year from that money by the time they are 25!
First time write but it struck a cord to think that someone doing as well as you and who has been about financial freedom might be modeling a different approach vs. what I think might actually better set you, your kids and followers up for success!
Of course, nobody really knows. Good luck!
Definitely an option, as I went to public school and public college and felt the experience was great.
I’m just planning for a worst-case cost scenario. If my kids decide to go with a cheaper route, then there will be money left over for the next generation, or help them launch.
To me, the $1.5 million is an exciting challenge to amass over the next 15 years.
I love the idea of the kids starting their own businesses.
Related posts:
https://www.financialsamurai.com/different-ways-to-pay-for-college/
https://www.financialsamurai.com/career-insurance/
https://www.financialsamurai.com/accept-1000000-to-attend-public-school-over-private-school/
Both of us went to community college and earn 6 figures before we both retired in our 60’s. All our children went to community college and transferred to state universities total college costs for 5 children $180,000 no grants no scholarships nothing. They paid their own way. They all earn over 6 figures and one son and his wife earn 7 figures. Relocate and live responsibly instead of high rolling nonsense. Texas and Oklahoma have low property taxes. We only pay $1500 a year in Oklahoma in our retirement home. In Texas we paid $6500 on a home we didn’t need after the kids had their own families. So what if your kids have Debt it will motivate them to work smarter not harder. 2 of the 5 children had their debt paid off in 2 years $46,000. The other 3 took 4 years. It takes not buying the newest cell phone or taking naps. They didn’t buy new cars until they could pay in cash. I realize your post was for April Fools but mine is not.
Wonderful! I will strive to send my kids to community college as well then. Let’s see what they say when the time comes.
And when they graduate, they will have ~$1.5 million each to launch their lives given I still plan to save and invest for their future.
Sounds like most kids who graduate from community college make six figures from your example, so you may be onto something. It’s worth spreading the message!
Best
The great thing about FIRE really is the ability to do cool work you enjoy with money not as the primary purpose.
So much of what you have written is true, regarding camaraderie, having a purpose, and filling the void once your kids are in school.
I did a lot of part-time work with the parks and recreation department once my kids went back to school. Keeping busy and involved in society provides life more meaning.
Hope you get the Warriors job!