Can we retire yet?

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Late 30s for us
1.2 in 401k’s (each do 30+/year w match)
Fully own 850-900k home
200k in cash
80k for two young kids 529s

Industry has been great (I’m in it obviously) and it’s not going anywhere. It’ll just look different down the line. I’ll do this another 10-12, hopefully, and say “see ya” then scale back to do something that’s fun and more fulfilling.

We are very lucky, have gotten lucky but have been smart. I laugh at the folks who make good cash but don’t figure it out until they are in debt (70% of US) and have nothing put away. It’s sad that many of the people at our meetings are in that boat but likely have household incomes 4x national average.
 












Everyone can do it. It just takes an early start and consistency. Everyone in our industry can pull that off, if, you have two household incomes. Anyone in med sales, device and pharma have a great advantage over most. Live 20% below your means and “money life” will consistently be good.

Just like losing weight: calories in calories out. Money in money out.
 






You can do that (on various scales) if you’re consistent and start early. If stay in industry long enough, the money will always be there especially if there is a second income in home. Living below your means is important too. The “finer things in life” are awesome and should be purchased as long as it doesn’t financially hurt even a little bit. It’s this simple and is like dieting: calories in calories out. Money in money out.
 


















anonymous said:
Late 30s for us
1.2 in 401k’s (each do 30+/year w match)
Fully own 850-900k home
200k in cash
80k for two young kids 529s

Industry has been great (I’m in it obviously) and it’s not going anywhere. It’ll just look different down the line. I’ll do this another 10-12, hopefully, and say “see ya” then scale back to do something that’s fun and more fulfilling.

We are very lucky, have gotten lucky but have been smart. I laugh at the folks who make good cash but don’t figure it out until they are in debt (70% of US) and have nothing put away. It’s sad that many of the people at our meetings are in that boat but likely have household incomes 4x national average.
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anonymous said:
Late 30s for us
1.2 in 401k’s (each do 30+/year w match)
Fully own 850-900k home
200k in cash
80k for two young kids 529s

Industry has been great (I’m in it obviously) and it’s not going anywhere. It’ll just look different down the line. I’ll do this another 10-12, hopefully, and say “see ya” then scale back to do something that’s fun and more fulfilling.

We are very lucky, have gotten lucky but have been smart. I laugh at the folks who make good cash but don’t figure it out until they are in debt (70% of US) and have nothing put away. It’s sad that many of the people at our meetings are in that boat but likely have household incomes 4x national average.
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You live in a fantasy world if you think anyone believes this story! The numbers dont add up for your age. Sorry.
 






























anonymous said:
Not ignorant at all. If you know how to calculate, I would agree that on the salary of pharma at age 30s there is no way that post is factual. Even if they live in Mommy & Daddy's basement.
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True. In pharma at age 30 theres no way to amass 3.5 million unless you have other income or your rich Uncle Lester died and left you a huge chunk.
 






Interesting thread. I don’t think the person meant “1.2” in each retirement but in total between both.

But that’s not hard to amass at all if started in mid-tweneties for both and maxed out every year and had company match. Pretty easy actually. The house that was referenced would need a great housing market but is possible given where things were in 2009-2012 compared to today...but very doable. Let’s remember, we had the worse financial crisis in 80 years that hit stocks and housing hard. If you played it smart, we’re lucky, then you’re sitting pretty tight about now

Dont hate the player, hate the game. Congrats and well done.
 






don't hate the player, hate the game. I LOVE THIS!

poster didn't say 3.5 in 30s.

we have that in our 50s, but it's together and no kids. yes we chose not to have kids. not helping Mother Earth having children on this poor planet, but we take in rescue cats and dogs
 






anonymous said:
Interesting thread. I don’t think the person meant “1.2” in each retirement but in total between both.

But that’s not hard to amass at all if started in mid-tweneties for both and maxed out every year and had company match. Pretty easy actually. The house that was referenced would need a great housing market but is possible given where things were in 2009-2012 compared to today...but very doable. Let’s remember, we had the worse financial crisis in 80 years that hit stocks and housing hard. If you played it smart, we’re lucky, then you’re sitting pretty tight about now

Dont hate the player, hate the game. Congrats and well done.
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Yeah it looks like they have 1.2 in 401k and a million in cash and house.

Someone mention rule of 72.

Let’s assume they are college grads, starting out at age 22. Most likely they didn’t start in pharma straight from college, but let’s just say they did.

Then, we know they didn’t make $100k in pharma at age 22- remember one works at Shire/Takeada! But for giggles, we will say they did.

The max they can put in a 401k is $18,000 each. Poster claims $30k each with match. That would mean their companies are matching 50%. Only 10% of US corporations provide up to 6% matching, so that does really add up?? not even close. But, for kicks, let’s just say they are putting in 30k each a year.
That is $300k plus compounding over 10 years.

You think that adds up to $1.2 million? No it does not.

Then there is the 1 million in house and cash over 10 years. That would take nearly their entire income to fund.

If you talk about the Rule of 72. That’s how much time it takes for your money to double.
At an average investment of 10% annual compounding, it would take over 7 years to double an investment. So at age 23 you invest $250k at age 30 you now have $500k at age 37 or 38 you will have $500k

None of these figures add up to over 2 million dollars on a pharma income by age 30s.

And that was supposing they were at a starting salary of $100k at age 23.

Swamp land anyone?

Just cause someone posted it on CP does not make it true.
 












Good thread going. Actually something interesting

To the original poster of the recent replies, good job. Early planning means good results later. To the person who recently replied, with what was meant to be a total “impossible” set of data points provided nothing but proof that its true.

Pharma provides good salary, plus bonus plus other benefits (car, 401k match, etc). So someone starting in Pharma at age 25 over 13-14 years could easily amass that savings. Poster never said 10 years, they said “late 39s). Let’s just say the average yearly contribution plus match was 25k over 14 years and with average S&P returns of 8.8% over that 14 year period (S&P 500 Website). A person with no previous savings would have just under $700,000 from April 2005 to April 2019 (not adjusted for inflation). That’s actually just hitting averages of a 100% stock portfolio for 14 consecutive years. Throw bonds in there and your looking right at what the poster said. So “Smart Guy” above, you are incorrect. You left out the nuts and bolts calculation while only referencing it...COMPOUNDING. Hello?? McFly!

Now to the house. As someone mentioned above (and original poster mentioned), this would require some luck but not impossible by any stretch. If someone bought a house in an amazing market in 2011-13 they are sitting pretty today. There are housing markets that are nearly 100% increase since 2012. If this person has been smart since age 20-25 with their retirement/investment strategy, who’s to say they haven’t been with their real estate too?

Everyone’s Pharma experience is different. Hit a couple of start ups with stock options and selling easily yields people 100s of thousands in stock. Not to mention, we don’t know what the other person in home does for employment.

I’m in industry worked for Shire...now Takeda. I also teach a Personal Finance course at a Community College to have fun and help people get their act together early or even much later. This scenario that has gotten a lot of discussion is not

Impossible
Unlikely
Or a lie

It’s someone who’s been smart, started early, a little lucky and done very well in industry (along with spouse). I commend them for their efforts and will actually use this scenario and discussion in my upcoming class next semester. Keep responses coming, I also incorporate “hater” logic to my case studies as well.
 






anonymous said:
Good thread going. Actually something interesting

To the original poster of the recent replies, good job. Early planning means good results later. To the person who recently replied, with what was meant to be a total “impossible” set of data points provided nothing but proof that its true.

Pharma provides good salary, plus bonus plus other benefits (car, 401k match, etc). So someone starting in Pharma at age 25 over 13-14 years could easily amass that savings. Poster never said 10 years, they said “late 39s). Let’s just say the average yearly contribution plus match was 25k over 14 years and with average S&P returns of 8.8% over that 14 year period (S&P 500 Website). A person with no previous savings would have just under $700,000 from April 2005 to April 2019 (not adjusted for inflation). That’s actually just hitting averages of a 100% stock portfolio for 14 consecutive years. Throw bonds in there and your looking right at what the poster said. So “Smart Guy” above, you are incorrect. You left out the nuts and bolts calculation while only referencing it...COMPOUNDING. Hello?? McFly!

Now to the house. As someone mentioned above (and original poster mentioned), this would require some luck but not impossible by any stretch. If someone bought a house in an amazing market in 2011-13 they are sitting pretty today. There are housing markets that are nearly 100% increase since 2012. If this person has been smart since age 20-25 with their retirement/investment strategy, who’s to say they haven’t been with their real estate too?

Everyone’s Pharma experience is different. Hit a couple of start ups with stock options and selling easily yields people 100s of thousands in stock. Not to mention, we don’t know what the other person in home does for employment.

I’m in industry worked for Shire...now Takeda. I also teach a Personal Finance course at a Community College to have fun and help people get their act together early or even much later. This scenario that has gotten a lot of discussion is not

Impossible
Unlikely
Or a lie

It’s someone who’s been smart, started early, a little lucky and done very well in industry (along with spouse). I commend them for their efforts and will actually use this scenario and discussion in my upcoming class next semester. Keep responses coming, I also incorporate “hater” logic to my case studies as well.
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