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$10M gets deposited in your bank account– do you quit your job?

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  • Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 2841
    Joined: 01/21/2016

    This is an offshoot of another thread, but I thought it would be interesting to explore separately. It was my hypothesis that if you model what you would do if you (magically) had $10M deposited into your brokerage account, you can assess whether you really like your job (in anything professional, not just medicine) vs. are you doing it for the money.

    I think that $10M is a good number to work with because using the 4% rule, you could earn $400k per year, without income tax, and replace the post-tax salary of many, if not most, practicing physicians. Yes, you might quibble that $10M is different for a 35 yo orthopod with $500k of debt (and negative net worth) than it is for a 55 yo cardiologist with $5M banked and kids out of the paid off house.

     

    Nonetheless, if the WCI adds $10M to your current account, as your finances are today, do you keep your job, leave your job for another medical job, or quit medicine entirely? I arrive at work the very next day, notice letter in hand. I would then try to negotiate a position with no nights or weekends, working three days per week, every other week, and only doing the exams and procedures that I enjoy. I expect that this does not go well, and I end up on the street.

    "Wealth is the slave of the wise man and the master of the fool.” -Seneca the Younger

    #53048 Reply
    Liked by ENT Doc
    PhysicianOnFIRE PhysicianOnFIRE 
    Moderator
    Status: Physician
    Posts: 1470
    Joined: 01/08/2016

    I’ve already lined up the part-time transition, so I would follow through with that (starting 10/1 — same day as Vagabond MD). I would stick around until a replacement has been identified, hired, and learned the ropes here. I’ve been inquiring about a medical mission trip, which might not happen until next winter or spring, so I would want to keep my skills fresh until then, anyway. But after that, I’d be comfortable letting my skills and anesthesia career go.

    I think I’d continue the blogging and interacting here on the forum and in other places, but I might do it on a less regimented schedule.

    I would also treat the entire Dahle family to a wonderful vacation in the location and accomodation of their choice and profusely thank them for the ten million dollars.

    Cheers!
    -PoF

    40-something anesthesiologist and personal finance blogger @ https://physicianonfire.com [Part of the WCI Network] Find me on Twitter: @physicianonfire

    FIRE. Financial Independence. Retire Early.

    #53050 Reply
    Liked by Vagabond MD
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 4926
    Joined: 01/12/2016

    Turn in resignation letter immediately. Take sabbatical planning next phase of life.

    #53056 Reply
     jhwkr542 
    Participant
    Status: Physician
    Posts: 851
    Joined: 02/15/2016

    Make partner, but then scale back work (at least 1 week vacation per month, maybe 80-90% current).  Wife (peds) texts her work to tell her she’s never coming in again.  She won’t even give the courtesy of written notice.

    #53060 Reply
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 1687
    Joined: 09/16/2016

    Keep working until I’m sure and satisfied that the money is mine and the taxes are paid, which might be well over a year.

    But yeah, I quit my job.

    But the new job is managing money and being a landlord and real estate developer.

    LEVEL 1 WCI FORUM MEMBER.

    #53062 Reply
    Liked by Zaphod
     hightower 
    Participant
    Status: Physician
    Posts: 1227
    Joined: 12/07/2016

    Absolutely say goodbye to my employment immediately.  No question about it.  I would also sell my primary home and downsize to the small farm house we’ve always talked about.  Then, I would probably only need to withdraw 1-2% a year and use the money mostly to travel the world and spend time with friends/family.  Spend the summers working on the farm, the winters traveling (Hawaii is so nice in January!).  Any down time/boredom would be filled with living a healthy lifestyle and hobbies of which I have no shortage.

    #53067 Reply
    Liked by kingsnake
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 1197
    Joined: 01/03/2017
    WCICon18

    I would cut back to the minimum and my efforts towards “patient experience” for those that don’t need to be anywhere near an ED would greatly diminish.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #53070 Reply
     janettebournes 
    Participant
    Status: Physician
    Posts: 191
    Joined: 03/05/2017

    I think I really do like my job

    Not enough to continue full time of course

    With $10 million in the bank account, I’d drop down to part time at my current job

    I’d also give serious consideration to taking a part time job back in our HCOL hometowns in either California or New York

    This btw is the dream scenario we hope to encounter when my husband and I hit 50 (through our own earnings and investments). Although if WCI wants to expedite the experience with a generous donation, who are we to say no? ????

    #53073 Reply
    Liked by Vagabond MD
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 4926
    Joined: 01/12/2016

    Its too much money to continue the risk of practice, unless you’re in a really good field for malpractice etc…new job definitely money manager of your estate.

    #53081 Reply
    Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 2841
    Joined: 01/21/2016

    I think I really do like my job

    Not enough to continue full time of course

    With $10 million in the bank account, I’d drop down to part time at my current job

    I’d also give serious consideration to taking a part time job back in our HCOL hometowns in either California or New York

    This btw is the dream scenario we hope to encounter when my husband and I hit 50 (through our own earnings and investments). Although if WCI wants to expedite the experience with a generous donation, who are we to say no? ????

    Click to expand…

    Maybe WCI will supplant the med student scholarship with a lottery for his loyal followers.  😉

    "Wealth is the slave of the wise man and the master of the fool.” -Seneca the Younger

    #53083 Reply
    Vagabond MD Vagabond MD 
    Participant
    Status: Physician
    Posts: 2841
    Joined: 01/21/2016

    Its too much money to continue the risk of practice, unless you’re in a really good field for malpractice etc…new job definitely money manager of your estate.

    Click to expand…

    I agree, and I was thinking about placing a condition such that this was not a concern. In the real world, it is, but in our fantasy, we can change the conditions. Would this change your mind?

    And, more realistically, how much money is too much to continue the risk of practice? Is a single OB with a $5M nest egg taking too much risk? (might be a good topic for another spinoff…)

    "Wealth is the slave of the wise man and the master of the fool.” -Seneca the Younger

    #53084 Reply
    Liked by hatton1, Zaphod
     amphora 
    Participant
    Status: Student
    Posts: 60
    Joined: 04/20/2016

    Its too much money to continue the risk of practice, unless you’re in a really good field for malpractice etc…new job definitely money manager of your estate.

    Click to expand…

    Think this might be a bit extreme. Certainly you would need a solid asset protection plan but I don’t think the risk of malpractice means you need to stop practicing.

    #53087 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 4926
    Joined: 01/12/2016

    Its too much money to continue the risk of practice, unless you’re in a really good field for malpractice etc…new job definitely money manager of your estate.

    Click to expand…

    Think this might be a bit extreme. Certainly you would need a solid asset protection plan but I don’t think the risk of malpractice means you need to stop practicing.

    Click to expand…

    Not that you need to, just that you need to consider what youre actually risking and then decide for yourself if it is then still worth it. Would not be for me, I dont love it enough for that. I would quit for anything in the 2.5-5 million range though. On the lower end I would just start a simple and sleek practice doing only low risk easy stuff, higher end I would quit and let the market do the work.

    #53088 Reply
    The White Coat Investor The White Coat Investor 
    Keymaster
    Status: Physician
    Posts: 3804
    Joined: 05/13/2011

    This is an offshoot of another thread, but I thought it would be interesting to explore separately. It was my hypothesis that if you model what you would do if you (magically) had $10M deposited into your brokerage account, you can assess whether you really like your job (in anything professional, not just medicine) vs. are you doing it for the money.

    I think that $10M is a good number to work with because using the 4% rule, you could earn $400k per year, without income tax, and replace the post-tax salary of many, if not most, practicing physicians. Yes, you might quibble that $10M is different for a 35 yo orthopod with $500k of debt (and negative net worth) than it is for a 55 yo cardiologist with $5M banked and kids out of the paid off house.

     

    Nonetheless, if the WCI adds $10M to your current account, as your finances are today, do you keep your job, leave your job for another medical job, or quit medicine entirely? I arrive at work the very next day, notice letter in hand. I would then try to negotiate a position with no nights or weekends, working three days per week, every other week, and only doing the exams and procedures that I enjoy. I expect that this does not go well, and I end up on the street.

    Click to expand…

    I ask this question all the time at my live presentations. I can tell you how people answer when they are in a room with many others. Most of them would NOT quit working, but would cut back, drop call etc.

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #53090 Reply
     hightower 
    Participant
    Status: Physician
    Posts: 1227
    Joined: 12/07/2016

    Assuming that WCI is correct and that most docs would not quit working in this scenario, what are some possible reasons for this?  Is it because people actually do love their jobs that much or is it because they just simply don’t know what else they would do?  Or some combination of the two?

    It would also be interesting to know how docs from different specialties would respond to this same 10 million dollar question.

    #53098 Reply

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