Calling it quits!

If you are in your fifties and has accumulated $4m in net worth combined with your spouse and no more responsibilities, then your should retire. There are more and more people who died young.

Originally Posted by Unregistered

10 years ago, when me and the missus did our sums, our number was 3m.

in 2010, number was revised to 5m.

now it's 8.

numbers based on including primary residence with no upgrades to lifestyle.

australia is expensive. might as well stay here, costs more or less level out once primary residence and cars are paid for. key diff is what your primary residence and cars will look like.

IMHO, if you can afford to retire comfortably in sg, you can afford retire in most places.

that sounds like reasonable advice.

[whizzard]

Its the new year and its always a time of reflection for many. I rummaged for a portable hard drive to download the GoPro videos I have taken of my recent year-end holiday which has maxed out the memory space in my laptop. I re-discovered one of my old portable hard drives and scrolled through to find out what was inside and chanced upon this note. I read it and was glad I took the time to pen my painful experience years ago. Here's it:-

My journey through retrenchment - Part 1

I remember that date vividly, 13th Nov 2008. We were in the midst of the global financial crisis. I was taking some certification license examination when I received a call on my handphone early in the morning saying that my boss needed to meet with me. No specific agenda was mentioned for the meeting. I had a strange premonition that it might be to receive my pinkslip. As I stepped out of the elevator into his office, I noticed a crowd of staff on the same floor. That confirmed my fears. I strode into his room to receive my letter. Seated beside my boss was a VP from HR and we exchanged polite but cold greetings. My boss handled it in a very business-like manner, displaying no emotions at all and I reciprocated likewise, donning my utmost professional demeanor. It was all over in less than half an hour. True to his character, he had sacrificed me in his selfish climb up the corporate ladder.

As I strode out with my fateful letter stating the loss of my office, I placed a call to my wife to deliver the bad news that we were now a family with no on-going employment income. After more than 10 years of loyal service to the bank, working from 9am to 9pm regularly and dedicating all the energies of my youthful years to building up a successful franchise for the bank, I was disappointed that they took the cowardly approach of chopping staff as a means to reduce costs. In my years with the bank, I witnessed many occasions where there was sheer wastage and I would venture to say abuse of expenses. Surely a lot more could be done to identify, clamp down on and inject some much needed discipline into those abuses, but no, a strong and direct message needed to be sent to the market that the bank is doing its best to cut costs including taking the “painful” measure of retrenchments.

Throughout my two decades in the banking industry, I have never experienced any retrenchment, sidelining or sacking before. I was graded band 1 for a number of years and was amongst the youngest homegrown officer ever to be promoted to MD from within the organization. It can’t be that the performance appraisal process is that flawed or that my performance deteriorated so dramatically from my promotion less than 5 years ago or my annual appraisal be that inaccurate. Contrary to most management consultants, retrenchments are not always about culling staff with low performance but rather it is about who your power base is and whether you have someone taking care of you within the organization. Sorry to disappoint the altruists out there, it is true, organizations (especially the more professional ones where the owners are “faceless’) are run by self interested individuals keen to protect and enlarge their turf of influence against any threat, perceived or real. Hence, the adage is that you work for your boss, not the organization. I always believed that we should live, breathe and behave the values and ethos of the organization. It all dawned upon me that I was just being too altruistic and naïve all along. I am just disappointed that I chose to remain when I was headhunted and offered a senior position at a foreign institution a number of years ago, with a naïve sense of loyalty and a deep-seated commitment on my part to contribute to the growth of the organization. I had bought all the corporate talk hook-line-and-sinker all these years, not realizing that the firm has moved away from its ethos as more and more “outside talents” were imported into the firm. I was also disappointed that I didn’t exercise my stock options, believing that the rest of the firm was just as devoted towards building up value for the bank.

I went back to my office and packed up my personal belongings into boxes and scribbled my home address on them. I deleted personal files in my laptop and walked out of the office, handing over my various passes, keys, carpark tag, etc to my secretary. It was late morning and strangely, I didn’t feel angry, disgusted or resentful but just disappointed. I told myself that I needed to remain calm and collected as I would have to strategise my own future now, without the benefit and support of a large organization where I devoted the greater part of my youthful years in building up the business. That was to be the last time I ever set foot in the office where I spent countless hours poring over proposals, meetings and rallying the troops.

I drove straight home and discussed the situation with my wife. Fortunately, I had managed my finances in a very conservative and prudent manner. There is adequate savings to maintain the family’s expenses and last through a number of years even without the retrenchment package. My home was fully paid for and my properties and market investments were all un-leveraged. I was fortunate not to have been taken in by greed, especially in my properties portfolio, else I would have several unpaid bank loans literally hanging over my head to complicate my financial affairs. My wife was very supportive, accepted the event and said that we will need to minimize the disruption it would cause as I start to plan the next steps of my now defunct career. Meanwhile, she would break the news to the extended family, relieving me of the task of having to do so. I told her that I would personally break the news to my young children, worried that in their impressionable years, it could cause irreversible damage to their psyche. I would break the news to my friends and business associates as time went on.

It was evening when I had time to reflect where I was and where I am now. From having a chauffeured driven car, secretary, a team of staff and a namecard with a prestigious title, I am now reduced to merely XYZ, an individual with no employment affiliation or as the Japanese would call it, a Ronin. As I reflected upon the implications of my retrenchment, I realized that opportunities within the financial sector at my level of seniority would be scarce, if at all. It would be lucky for any banks not to retrench, let alone hire for replacements or for expansion as we are only at the start of an unprecedented global financial meltdown, with no consensus amongst the various experts on how long this would drag on. I guessed that I would be extremely lucky to land something interesting within 3 months and that it would be even hopeful to secure something within 6 months. It would probably take up to a year before banks are able and willing to re-hire. In the meantime, I would be getting out of touch with the market and would need to meaningfully fill my time. Sometimes, during quiet moments, thoughts of the utilitarian nature of the relationships that I had with some of my colleagues and incidences of back-stabbing crept in, ever ready to provoke emotional outbursts from me. I dismissed such thoughts as quickly and as best as I could as they would not be constructive at all.

My work was my passion and hobby and I devoted both official and family time in the pursuit of this passion. Besides the technical aspects of my job, I read widely on management matters. I remembered several “tips” that I needed to adhere to in such times, namely:-
(1) maintain my networking;
(2) get my finances in order;
(3) continue to socialize and engage friends, associates and business partners;
(4) stay healthy and remain positive;
(5) take time off privately to reflect, take-stock and explore ideas;
(6) not develop any “bad” habits to cope with the stress;
(7) identify and engage targeted headhunters

After meeting my outplacement agent and sizing him up, I decided that there wasn’t much he could do to help me. I spoke to a close friend of mine who is a HR professional and asked her to recommend me a good headhunter. Meanwhile, I contacted my previous headhunter who was disappointed that I didn’t take up the opportunity in the past but knew I was “bankable”. We worked on updating my CV and that took a few days to finalise. Managing my expectations and being realistic, they both cautioned me that the banking market is dry and whether I would consider opportunities outside the banking industry. I told them that I was prepared to look at any options, as long as I am qualified for and interested in them. I was never to hear from one of them again.

I then left for my year-end family vacation which was planned earlier. We had a great time as a family and for once, my vacation was not interrupted by any calls on my handphone, urgent conference calls or incessant emails on my blackberry. It was an uninterrupted vacation albeit with a dark cloud of uncertainty, not unlike the sword of Damocles hanging over my head as to my future. I could choose the easy way out and retire prematurely with very careful and watchful spending but I am still far too young for that and needed to find something to keep my mind active and to re-ignite my passion. By the time we returned from our vacation, it was well past mid-December. To fill up my weekdays, I settled into a sedentary lifestyle of sports, my passion whilst I was in university many years back. My golf handicap improved and I played golf at a level of consistency that I have never experienced ever before in my more than decade of playing the game. I took up photography and became a full time soccer father. For the first time in my life, I even attended the training sessions in school and got to know my children’s teachers and coaches. I became my children’s fitness coach and partnered them in X-box games. During the weekends, we would make short drives up to Malaysia. In the evenings, I would socialize with my friends and for those unlucky enough to be in the same boat as me, we would meet for the occasional lunches during the weekdays. This routine took up the month of January. I managed to scout for an interesting position at a foreign bank and sent in my CV but I was never to hear from them at all.

[whizzard]

My journey through retrenchment - Part 2

Besides my family, my close friends were a great source of emotional support. They made sure that I was included in social events. They were sensitive and allowed me to pick up the tab on rare occasions whilst they racked up excuses to pick up more than their fair share of the tab. They would discuss ideas and options with me but never to press them upon me. Those who were too busy found time to send me email and some alerted me to opportunities that came their way. Inevitably, there were the few who faded away. Times of crisis can be very telling. You know who your true friends are.

As I entered February after the Chinese New Year festivities, the headhunter whom I had worked with in the past called me with an opportunity at a foreign financial institution. It was for a less senior position but I told her I was game to find out more. She arranged for an interview the next day and I went in with no expectations other than to find out more about the opportunity. I dropped my interviewers an email to thank them for the meeting. Within a week, my headhunter called me to say that the bank had seen 8 other candidates and I was the only candidate shortlisted for the final interview. I had to meet with their Asia Pacific boss after which they would decide. I was excited and told her that I would be happy to do so. She asked me to send over my previous pay details so that she could do the necessary administrative work in the event I was accepted. I met up with the senior executive the same evening and dropped him an email thanking him for spending his valuable time to meet with me. The next day, she called me with the good news that they were offering me the position and that I would be starting work in April. We went through the perfunctory discussion to finalise the pay and benefits.

I quickly realized that I would have to accelerate all the things that I earlier thought I had plenty of time to pursue. However, what came to my mind upper most was to summarise this anecdotal journey that I had experienced into a note hopefully to serve as an encouragement and source of hope for all those out there who are still engaged in a somewhat similar journey. Take heart, stay positive, live life, persevere and don’t put undue pressure on yourself. The night is always darkest the hour just before dawn - but not everyone makes it through the night. Stay positive and draw support from your family, friends and from your religion. Persevere but keep positive and you will find your light at the end of the tunnel. During the journey, it is difficult to see the light sometimes but I always like to believe that there’s always a happy ending in any story and I would like to wish everyone the best of luck and that I am sure each of us will find their own happy endings.

Thanks for the inspiring note my Friend

Hi,

I'm in my late forties and a multi millionaire. I was a high flyer, made my fortune and quit the rat race three years ago. I'm happily retired and I've achieved financial independence. Now I spend my time doing charity work, travelling and making up the lost time with my family members. I've never been happier.

Originally Posted by whizzard

When I first started my career, I wanted to make my first million by the time I hit 30.

During my 30s, whilst I focused on climbing the corporate ladder, I wanted to achieve financial independence. However, the goal post kept shifting higher and higher as Singapore entered a strong period of inflation.

I remembered my ex-boss who has since retired, telling me to ensure that I have enough "FO capital" so that when the time comes, I will not be beholden to my job. Unbeknownst to him, I have been busily planning and executing my own plans towards financial independence, but it was good advice nevertheless.

Decision to call it quits is a complicated one. My major concerns in this respect are:-
(1) What do you do after quitting? How do you meaningfully occupy yourself?
(2) When do you know whether you have enough financial resources to give up your career?
(3) Am I prepared to give up on my wealth accumulation by quitting?

The first question is not that easy to answer. However, I know what activities I would like to pursue (dependent upon my health and income) when I don't have to work:-
(1) travel
(2) sports - cycling, gym, golf, scuba diving
(3) study and learn something new that is unrelated to my professional career
(4) cook
(5) write
(6) manage my investments

My thinking around the second question is focused on a cashflow perspective. As long as the cashflow from my investment portfolio is able to generate more than what my family needs (with some leftover) with a strong degree of sustainability and recurrence, I would deem it sufficient.

However, the second question is also related to the third question, am I prepared to give up on my wealth accumulation? The current growth of my investment portfolio is facilitated by recycling 100% of my investment income and the leftover from my employment income.

Haiz ..... it's pretty darn difficult to give up on my employment income by calling it quits even if my investment income is sufficient to finance my family's lifestyle.

What are your concerns when you plan for your retirement?

How much did you make and what's your networth now? Is your wife the sole breadwinner now?

Originally Posted by Unregistered

Hi,

I'm in my late forties and a multi millionaire. I was a high flyer, made my fortune and quit the rat race three years ago. I'm happily retired and I've achieved financial independence. Now I spend my time doing charity work, travelling and making up the lost time with my family members. I've never been happier.

Originally Posted by Unregistered

How much did you make and what's your networth now? Is your wife the sole breadwinner now?

Both retired. Living in a luxury condo and driving a simple car. Debt free. Making more than enough to cover our household expenses. We save money by not owning a big, expensive car which depreciates in value every second.

So what's your networth?

Originally Posted by Unregistered

Both retired. Living in a luxury condo and driving a simple car. Debt free. Making more than enough to cover our household expenses. We save money by not owning a big, expensive car which depreciates in value every second.

So have you achieved your goal of financial independence? And what is your networth?

Originally Posted by whizzard

My journey through retrenchment - Part 2

Besides my family, my close friends were a great source of emotional support. They made sure that I was included in social events. They were sensitive and allowed me to pick up the tab on rare occasions whilst they racked up excuses to pick up more than their fair share of the tab. They would discuss ideas and options with me but never to press them upon me. Those who were too busy found time to send me email and some alerted me to opportunities that came their way. Inevitably, there were the few who faded away. Times of crisis can be very telling. You know who your true friends are.

As I entered February after the Chinese New Year festivities, the headhunter whom I had worked with in the past called me with an opportunity at a foreign financial institution. It was for a less senior position but I told her I was game to find out more. She arranged for an interview the next day and I went in with no expectations other than to find out more about the opportunity. I dropped my interviewers an email to thank them for the meeting. Within a week, my headhunter called me to say that the bank had seen 8 other candidates and I was the only candidate shortlisted for the final interview. I had to meet with their Asia Pacific boss after which they would decide. I was excited and told her that I would be happy to do so. She asked me to send over my previous pay details so that she could do the necessary administrative work in the event I was accepted. I met up with the senior executive the same evening and dropped him an email thanking him for spending his valuable time to meet with me. The next day, she called me with the good news that they were offering me the position and that I would be starting work in April. We went through the perfunctory discussion to finalise the pay and benefits.

I quickly realized that I would have to accelerate all the things that I earlier thought I had plenty of time to pursue. However, what came to my mind upper most was to summarise this anecdotal journey that I had experienced into a note hopefully to serve as an encouragement and source of hope for all those out there who are still engaged in a somewhat similar journey. Take heart, stay positive, live life, persevere and don’t put undue pressure on yourself. The night is always darkest the hour just before dawn - but not everyone makes it through the night. Stay positive and draw support from your family, friends and from your religion. Persevere but keep positive and you will find your light at the end of the tunnel. During the journey, it is difficult to see the light sometimes but I always like to believe that there’s always a happy ending in any story and I would like to wish everyone the best of luck and that I am sure each of us will find their own happy endings.