4 ms·
This is the clashing of two different life paths ideologies' e.g. the union/public service employee. Of course people will have opinions on this, because they
by ixacto 5y ago
This is the clashing of two different life paths ideologies' e.g. the union/public service employee. Of course people will have opinions on this, because they will be somewhat resentful of those on the other side.
The elephant in the room is that say you have $2MM in the bank and are living off that interest, or are a retired union/public service worker and then you look at how long it took at how long it took to achieve your financial success.
If you save 1/2 of salary in VTI (say 100k-150k range) coming out of a bachelors degree and work for 10-15 years at one of the large tech companies you will have 1.5-2MM USD, which is easily enough to retire on. And you'll be like 32-37years old and still be able to climb Mt. Everest, hike the PCT or AT and probably still have your health.
However if you are a teacher starting out in California, that would be a 44-50k year range https://www.cde.ca.gov/fg/fr/sa/cefavgsalaries.asp https://www.cde.ca.gov/fg/fr/sa/cefavgsalaries.asp which yes is really low. Then you work for 40 years and hopefully are able to make enough pension contributions to be able to retire at age 62 and have a decent pension of that 5-6k/mo. By this time lots of people are starting to have health issues and will not be able to go on the adventures that a 32-37y/o would be able to. Also you kinda have to work an extra 30 years.
TL;DR: Incentive structure for being a teacher is not really there, also benefits are not really there. Maybe Scandinavian countries have a better compensation and work life balance?
Incentive to work in tech industry or similar high-paying jobs is there, as financial independence is readily obtainable within 10-15 years.
- nly 5y agoIt still quite hard to achieve FI early, even on a tech salary. I can't speak for San Fran, but I'm on a pretty good (by UK standards) tech salary in London. The cost of living (rents mostly) still make putting a high % of salary away every month a challenge. If you have kids as well, it's almost a non-starter. The marginal tax rate means the only mechanism to do this efficiently are via pension contributions (similar to a US 401k), and these are locked until age 55 (60 by the time i get there). Financial independence in your 30s is an enormous privilege.
- brianwawok 5y agoUS vs UK tech pay is an entirely different game though. I’m pretty sure there is a reason most of the FI early retire guys live in the US (heck mr money mustache moved here from Canada)
- deleted 5y ago[deleted]
- ixacto 5y agoIt’s [fire in 30s] doable in the United States in any major city if you follow relatively restrictive schedule and don’t have any kids, not exactly privilege just takes a good amount of discipline. Also salary’s are much higher and taxes are a bit lower than uk/eu. Housing is not too expensive if you rent a room for a couple years, but this is different between a 22/yo and 35/yo.