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I wonder why the nytimes would focus on a story like this--the guy should have had at least a quarter million saved up not including retirement funds, and with

I wonder why the nytimes would focus on a story like this--the guy should have had at least a quarter million saved up not including retirement funds, and with his severance, he could just coast into retirement. Sure, some people hate to not work, but that still wouldn't make him a tragic figure.

michaelochurch 13y ago
Let's assume he had (to use your number) $250,000 in net worth. How, pray tell, is he going to retire on $438,000? On top of inflation, you're doing quite well if your portfolio gets 4 to 5%. That means one can safely draw about $20,000 annually from that. The sad truth of a contracting economy is that most people can afford to retire by the age at which society seems to expect it.
- il 13y ago
  Retiring on a half a million dollars doesn't seem impossible. Presumably he is drawing down the principal as well as collecting interest. His house is likely paid off, and he has no young dependents to pay for. He will also be receiving Social Security payments for the rest of his life. He may have to make some lifestyle compromises, but it's certainly possible to live a decent retirement on that much money.
- ecopoesis 13y ago
  The OP said 250k in savings in addition to retirement funds. At that age, you shouldn't have a mortgage either. It seems simple two stretch 438k for a decade or so when you have no mortgage or rent. Then you hit 65 and start using retirement funds.
- peterjancelis 13y ago
  1) $250K is only 1,33 times his last gross salary of $188K so that would make him a dramatic undersaver at this age. 2) Assuming he owned his apartment you can go Mr. Money Mustache on $20K dividends a year. If he owned a house he could downgrade as well. 3) There are people sailing around the world on a budget of $2000 per month. Just dividends from his severance and renting out his house (assuming he owned only that) would get him there. I can totally understand the shock of seeing reality turn out drastically different than his expectations but once you get near the ~500K net worth figure, it becomes possible to cover necessities indefinitely.
  - stevewilhelm 13y ago
    "There are people sailing around the world on a budget of $2000 per month" Those people probably don't have reasonable health insurance.
    - peterjancelis 13y ago
      Private health insurance with global ex-US coverage is quite affordable. $2000 per month puts you well into the upper class in the majority of countries. Those people have good health care, why shouldn't an American who goes to those same places.
sudoshu 13y ago
I agree. It's pretty hard to feel sorry for a person who has experienced extraordinary success until his 60s. With his severance package alone, I could live for four years with my current lifestyle.
rdouble 13y ago
They focused on him because he actually found a job. Most 58 year olds facing involuntary retirement do not. "Man can't find job, has $20K/yr to live on until he's dead" does not make for a very inspiring story.

michaelochurch 13y ago

Let's assume he had (to use your number) $250,000 in net worth. How, pray tell, is he going to retire on $438,000? On top of inflation, you're doing quite well if your portfolio gets 4 to 5%. That means one can safely draw about $20,000 annually from that. The sad truth of a contracting economy is that most people can afford to retire by the age at which society seems to expect it.

il 13y ago
Retiring on a half a million dollars doesn't seem impossible. Presumably he is drawing down the principal as well as collecting interest. His house is likely paid off, and he has no young dependents to pay for. He will also be receiving Social Security payments for the rest of his life. He may have to make some lifestyle compromises, but it's certainly possible to live a decent retirement on that much money.
ecopoesis 13y ago
The OP said 250k in savings in addition to retirement funds. At that age, you shouldn't have a mortgage either. It seems simple two stretch 438k for a decade or so when you have no mortgage or rent. Then you hit 65 and start using retirement funds.
peterjancelis 13y ago
1) $250K is only 1,33 times his last gross salary of $188K so that would make him a dramatic undersaver at this age. 2) Assuming he owned his apartment you can go Mr. Money Mustache on $20K dividends a year. If he owned a house he could downgrade as well. 3) There are people sailing around the world on a budget of $2000 per month. Just dividends from his severance and renting out his house (assuming he owned only that) would get him there. I can totally understand the shock of seeing reality turn out drastically different than his expectations but once you get near the ~500K net worth figure, it becomes possible to cover necessities indefinitely.
- stevewilhelm 13y ago
  "There are people sailing around the world on a budget of $2000 per month" Those people probably don't have reasonable health insurance.
  - peterjancelis 13y ago
    Private health insurance with global ex-US coverage is quite affordable. $2000 per month puts you well into the upper class in the majority of countries. Those people have good health care, why shouldn't an American who goes to those same places.

sudoshu 13y ago

I agree. It's pretty hard to feel sorry for a person who has experienced extraordinary success until his 60s. With his severance package alone, I could live for four years with my current lifestyle.

rdouble 13y ago

They focused on him because he actually found a job. Most 58 year olds facing involuntary retirement do not. "Man can't find job, has $20K/yr to live on until he's dead" does not make for a very inspiring story.