[Farm93]

Curious little thread.

Gerhart almost certainly will not just sit and do nothing.  Speaking tours, coaching or any number of actual careers would be available.  Doing nothing for 50 or 60 years would just be too much. 

As the median household income, even in the Bay Area, is well below $200k per year, it seems very reasonable to project that one could retire on a nest egg that would provide more than that annually while preserving purchasing power.  One could do that.  I certainly plan on doing that using numbers remarkably similar to those noted by Stupac.  I am confident others would need more.  But by definition more than 50% of the people in the Bay Area could make Stupac financial math work, with or without, kids.  And why would he need to retire in one of the more expensive places in the USA?  A retirement plan in SoCal, Nevada or his current home state of Florida would make it laughably easy, for those with any financial discipline, to retire on $4 or $5 million.

That said, the real flaw in the calculation is not the idea that someone could not live on $~200,000 in the Bay Area per year.  The real flaw is the idea that Toby still has $6 million from his $11 million of salary.  An NFL player will have a number of expenses that would eat into that career earnings tally even if they are pretty frugal (Lawyers, trainers, advisors, nutritionists, etc.). 

As a 29 year old he can easily get a pretty nice job where the former NFL player tag would help a lot.  Many of those careers probably would only pay $80,000 to $150,000 per year.  Though as I have read in this thread, those above average salaries would be equivalent to... living in a van, down by the river.

https://www.youtube.com/watch?v=3nhgfjrKi0o

[Farm93]

Curious little thread.

Gerhart almost certainly will not just sit and do nothing.  Speaking tours, coaching or any number of actual careers would be available.  Doing nothing for 50 or 60 years would just be too much. 

As the median household income, even in the Bay Area, is well below $200k per year, it seems very reasonable to project that one could retire on a nest egg that would provide more than that annually while preserving purchasing power.  One could do that.  I certainly plan on doing that using numbers remarkably similar to those noted by Stupac.  I am confident others would need more.  But by definition more than 50% of the people in the Bay Area could make Stupac financial math work, with or without, kids.  And why would he need to retire in one of the more expensive places in the USA?  A retirement plan in SoCal, Nevada or his current home state of Florida would make it laughably easy, for those with any financial discipline, to retire on $4 or $5 million.

That said, the real flaw in the calculation is not the idea that someone could not live on $~200,000 in the Bay Area per year.  The real flaw is the idea that Toby still has $6 million from his $11 million of salary.  An NFL player will have a number of expenses that would eat into that career earnings tally even if they are pretty frugal (Lawyers, trainers, advisors, nutritionists, etc.). 

As a 29 year old he can easily get a pretty nice job where the former NFL player tag would help a lot.  Many of those careers probably would only pay $80,000 to $150,000 per year.  Though as I have read in this thread, those above average salaries would be equivalent to... living in a van, down by the river.

https://www.youtube.com/watch?v=3nhgfjrKi0o

[fullmetal]

Physics majors can come work in semiconductor manufacturing.  My place is hiring, but it ain't SF.

[fullmetal]

Physics majors can come work in semiconductor manufacturing.  My place is hiring, but it ain't SF.

[fullmetal]

Physics majors can come work in semiconductor manufacturing.  My place is hiring, but it ain't SF.

[fullmetal]

Physics majors can come work in semiconductor manufacturing.  My place is hiring, but it ain't SF.

[stupac2]

Physics majors can come work in semiconductor manufacturing.  My place is hiring, but it ain't SF.

I have a friend who was in the industry, and my understanding is that they generally want graduate degrees. He also bailed hard because the signs are that it's not a growth industry, and based on what little I see of it in my tangentially related field he's mostly right, the jobs seem to be fleeing to Asia. Of course, TI will probably be around forever so maybe in Austin it's great, I dunno.

[stupac2]

Physics majors can come work in semiconductor manufacturing.  My place is hiring, but it ain't SF.

I have a friend who was in the industry, and my understanding is that they generally want graduate degrees. He also bailed hard because the signs are that it's not a growth industry, and based on what little I see of it in my tangentially related field he's mostly right, the jobs seem to be fleeing to Asia. Of course, TI will probably be around forever so maybe in Austin it's great, I dunno.

[stupac2]

Physics majors can come work in semiconductor manufacturing.  My place is hiring, but it ain't SF.

I have a friend who was in the industry, and my understanding is that they generally want graduate degrees. He also bailed hard because the signs are that it's not a growth industry, and based on what little I see of it in my tangentially related field he's mostly right, the jobs seem to be fleeing to Asia. Of course, TI will probably be around forever so maybe in Austin it's great, I dunno.

[stupac2]

Physics majors can come work in semiconductor manufacturing.  My place is hiring, but it ain't SF.

I have a friend who was in the industry, and my understanding is that they generally want graduate degrees. He also bailed hard because the signs are that it's not a growth industry, and based on what little I see of it in my tangentially related field he's mostly right, the jobs seem to be fleeing to Asia. Of course, TI will probably be around forever so maybe in Austin it's great, I dunno.

[BostonCard]

That said, the real flaw in the calculation is not the idea that someone could not live on $~200,000 in the Bay Area per year.  The real flaw is the idea that Toby still has $6 million from his $11 million of salary.  An NFL player will have a number of expenses that would eat into that career earnings tally even if they are pretty frugal (Lawyers, trainers, advisors, nutritionists, etc.). 

Note Marshall Lynch managed to keep the entirety of his football earnings.

http://www.businessinsider.com/marshawn-...nts-2016-2

Of course, he lived off his endorsements, which were substantial.  As a mostly back-up running back, Toby's endorsement opportunities probably paled in comparison to Lynch's, but surely Toby was able to record some radio ads for the local auto dealer, sign his autograph for memorabilia stores, and speak at your odd corporate event.  A google search for "Toby Gerhart endorsements" shows that he certainly was bookable.

BC

[BostonCard]

That said, the real flaw in the calculation is not the idea that someone could not live on $~200,000 in the Bay Area per year.  The real flaw is the idea that Toby still has $6 million from his $11 million of salary.  An NFL player will have a number of expenses that would eat into that career earnings tally even if they are pretty frugal (Lawyers, trainers, advisors, nutritionists, etc.). 

Note Marshall Lynch managed to keep the entirety of his football earnings.

http://www.businessinsider.com/marshawn-...nts-2016-2

Of course, he lived off his endorsements, which were substantial.  As a mostly back-up running back, Toby's endorsement opportunities probably paled in comparison to Lynch's, but surely Toby was able to record some radio ads for the local auto dealer, sign his autograph for memorabilia stores, and speak at your odd corporate event.  A google search for "Toby Gerhart endorsements" shows that he certainly was bookable.

BC

[BostonCard]

That said, the real flaw in the calculation is not the idea that someone could not live on $~200,000 in the Bay Area per year.  The real flaw is the idea that Toby still has $6 million from his $11 million of salary.  An NFL player will have a number of expenses that would eat into that career earnings tally even if they are pretty frugal (Lawyers, trainers, advisors, nutritionists, etc.). 

Note Marshall Lynch managed to keep the entirety of his football earnings.

http://www.businessinsider.com/marshawn-...nts-2016-2

Of course, he lived off his endorsements, which were substantial.  As a mostly back-up running back, Toby's endorsement opportunities probably paled in comparison to Lynch's, but surely Toby was able to record some radio ads for the local auto dealer, sign his autograph for memorabilia stores, and speak at your odd corporate event.  A google search for "Toby Gerhart endorsements" shows that he certainly was bookable.

BC

[BostonCard]

That said, the real flaw in the calculation is not the idea that someone could not live on $~200,000 in the Bay Area per year.  The real flaw is the idea that Toby still has $6 million from his $11 million of salary.  An NFL player will have a number of expenses that would eat into that career earnings tally even if they are pretty frugal (Lawyers, trainers, advisors, nutritionists, etc.). 

Note Marshall Lynch managed to keep the entirety of his football earnings.

http://www.businessinsider.com/marshawn-...nts-2016-2

Of course, he lived off his endorsements, which were substantial.  As a mostly back-up running back, Toby's endorsement opportunities probably paled in comparison to Lynch's, but surely Toby was able to record some radio ads for the local auto dealer, sign his autograph for memorabilia stores, and speak at your odd corporate event.  A google search for "Toby Gerhart endorsements" shows that he certainly was bookable.

BC

[BostonCard]

Acrimony aside, it has been an interesting debate, which I think ultimately revolves around defining what would be considered "comfortable" versus "stupidly extravagant" in the area.  As others have alluded to, it is clearly possible to live in the area with an annual consisting of earnings generated from $6 to $10 million in wealth, which, at a conservative 3%/yr above inflation would be at least $180k, which is far above the median income of the region.  While lots of factors can quickly eat that money up, not all of them are absolute needs.  Having been in a position where I had some unexpected expenses and faced liquidity issues for about 6 months, I can say that it was pretty amazing how much fat I could cut out of my budget, when I absolutely had to.

BC

[BostonCard]

Acrimony aside, it has been an interesting debate, which I think ultimately revolves around defining what would be considered "comfortable" versus "stupidly extravagant" in the area.  As others have alluded to, it is clearly possible to live in the area with an annual consisting of earnings generated from $6 to $10 million in wealth, which, at a conservative 3%/yr above inflation would be at least $180k, which is far above the median income of the region.  While lots of factors can quickly eat that money up, not all of them are absolute needs.  Having been in a position where I had some unexpected expenses and faced liquidity issues for about 6 months, I can say that it was pretty amazing how much fat I could cut out of my budget, when I absolutely had to.

BC

[BostonCard]

Acrimony aside, it has been an interesting debate, which I think ultimately revolves around defining what would be considered "comfortable" versus "stupidly extravagant" in the area.  As others have alluded to, it is clearly possible to live in the area with an annual consisting of earnings generated from $6 to $10 million in wealth, which, at a conservative 3%/yr above inflation would be at least $180k, which is far above the median income of the region.  While lots of factors can quickly eat that money up, not all of them are absolute needs.  Having been in a position where I had some unexpected expenses and faced liquidity issues for about 6 months, I can say that it was pretty amazing how much fat I could cut out of my budget, when I absolutely had to.

BC

[BostonCard]

Acrimony aside, it has been an interesting debate, which I think ultimately revolves around defining what would be considered "comfortable" versus "stupidly extravagant" in the area.  As others have alluded to, it is clearly possible to live in the area with an annual consisting of earnings generated from $6 to $10 million in wealth, which, at a conservative 3%/yr above inflation would be at least $180k, which is far above the median income of the region.  While lots of factors can quickly eat that money up, not all of them are absolute needs.  Having been in a position where I had some unexpected expenses and faced liquidity issues for about 6 months, I can say that it was pretty amazing how much fat I could cut out of my budget, when I absolutely had to.

BC

[BurgXXIII]

Ok, I see how this works for Toby. But what about Johnny Football? Has he earned enough already to allow him to party in Las Vegas for the rest of his life?

[BurgXXIII]

Ok, I see how this works for Toby. But what about Johnny Football? Has he earned enough already to allow him to party in Las Vegas for the rest of his life?

[BurgXXIII]

Ok, I see how this works for Toby. But what about Johnny Football? Has he earned enough already to allow him to party in Las Vegas for the rest of his life?

[BurgXXIII]

Ok, I see how this works for Toby. But what about Johnny Football? Has he earned enough already to allow him to party in Las Vegas for the rest of his life?

[CompSci87]

Ok, I see how this works for Toby. But what about Johnny Football? Has he earned enough already to allow him to party in Las Vegas for the rest of his life?

He's probably in debt already. Sadly.

[CompSci87]

Ok, I see how this works for Toby. But what about Johnny Football? Has he earned enough already to allow him to party in Las Vegas for the rest of his life?

He's probably in debt already. Sadly.

[CompSci87]

Ok, I see how this works for Toby. But what about Johnny Football? Has he earned enough already to allow him to party in Las Vegas for the rest of his life?

He's probably in debt already. Sadly.

[CompSci87]

Ok, I see how this works for Toby. But what about Johnny Football? Has he earned enough already to allow him to party in Las Vegas for the rest of his life?

He's probably in debt already. Sadly.

[stupac2]

JFF comes from money.

[stupac2]

JFF comes from money.

[stupac2]

JFF comes from money.

[stupac2]

JFF comes from money.

[Langdude]

On the other hand, it is very clear to me that a new priviledged class is breaking away from the pack that now has access to "priviledges" like private education, which used to be accessible to upper middle and even middle classes.

I am curious about this. Like many here, I went to a public school growing up. My four kids are (or will be) in public schools as well, though we are lucky enough to live in an area with very good public schools. I am a professor at a smaller private liberal arts college, and many of my students went to private schools; I don't know the percentage that has, but it seems like a greater percentage than what I recall about my cohort at Stanford. It seemed that many of my friends at Stanford that went to prep schools were pretty wealthy. As far as my current students that are at private schools, I am not sure. However, despite my own experience, I accept the observation above that private primary or secondary education is less accessible.

Maybe those of you that know better than I about recent history of education or economics related to this issue can enlighten me. Is there an increasing gap (like there is in other parts of our society) between the rich and poor and private schools? Why? Has the tuition gone up a lot to make it more difficult for lower middle class families (like mine growing up) or middle class families (like mine now) to attend? If so, why? Is there less support for subsidizing tuition?

-m.

[Langdude]

On the other hand, it is very clear to me that a new priviledged class is breaking away from the pack that now has access to "priviledges" like private education, which used to be accessible to upper middle and even middle classes.

I am curious about this. Like many here, I went to a public school growing up. My four kids are (or will be) in public schools as well, though we are lucky enough to live in an area with very good public schools. I am a professor at a smaller private liberal arts college, and many of my students went to private schools; I don't know the percentage that has, but it seems like a greater percentage than what I recall about my cohort at Stanford. It seemed that many of my friends at Stanford that went to prep schools were pretty wealthy. As far as my current students that are at private schools, I am not sure. However, despite my own experience, I accept the observation above that private primary or secondary education is less accessible.

Maybe those of you that know better than I about recent history of education or economics related to this issue can enlighten me. Is there an increasing gap (like there is in other parts of our society) between the rich and poor and private schools? Why? Has the tuition gone up a lot to make it more difficult for lower middle class families (like mine growing up) or middle class families (like mine now) to attend? If so, why? Is there less support for subsidizing tuition?

-m.

[Langdude]

On the other hand, it is very clear to me that a new priviledged class is breaking away from the pack that now has access to "priviledges" like private education, which used to be accessible to upper middle and even middle classes.

I am curious about this. Like many here, I went to a public school growing up. My four kids are (or will be) in public schools as well, though we are lucky enough to live in an area with very good public schools. I am a professor at a smaller private liberal arts college, and many of my students went to private schools; I don't know the percentage that has, but it seems like a greater percentage than what I recall about my cohort at Stanford. It seemed that many of my friends at Stanford that went to prep schools were pretty wealthy. As far as my current students that are at private schools, I am not sure. However, despite my own experience, I accept the observation above that private primary or secondary education is less accessible.

Maybe those of you that know better than I about recent history of education or economics related to this issue can enlighten me. Is there an increasing gap (like there is in other parts of our society) between the rich and poor and private schools? Why? Has the tuition gone up a lot to make it more difficult for lower middle class families (like mine growing up) or middle class families (like mine now) to attend? If so, why? Is there less support for subsidizing tuition?

-m.

[Langdude]

On the other hand, it is very clear to me that a new priviledged class is breaking away from the pack that now has access to "priviledges" like private education, which used to be accessible to upper middle and even middle classes.

I am curious about this. Like many here, I went to a public school growing up. My four kids are (or will be) in public schools as well, though we are lucky enough to live in an area with very good public schools. I am a professor at a smaller private liberal arts college, and many of my students went to private schools; I don't know the percentage that has, but it seems like a greater percentage than what I recall about my cohort at Stanford. It seemed that many of my friends at Stanford that went to prep schools were pretty wealthy. As far as my current students that are at private schools, I am not sure. However, despite my own experience, I accept the observation above that private primary or secondary education is less accessible.

Maybe those of you that know better than I about recent history of education or economics related to this issue can enlighten me. Is there an increasing gap (like there is in other parts of our society) between the rich and poor and private schools? Why? Has the tuition gone up a lot to make it more difficult for lower middle class families (like mine growing up) or middle class families (like mine now) to attend? If so, why? Is there less support for subsidizing tuition?

-m.

[Rally]

I don't know about that. But I can tell you that learning from this thread of the inadequacy of $11 million has made me seriously doubt my model for retirement, which was to hit the lottery.

There are obviously some very wealthy people on this board.  Why, $11,000,000 won't even buy a decent yacht, let alone an 8 passenger Lear.  Hell, after paying for Dawkins' buyout you'd be hard pressed to keep a decent roof over your head.  On the other hand, you would guarantee yourself a (small) place in the next edition of The Color of Life Is Red, so there's that.  But, with the one or two concussions suffered each quarter you played football for Stanford, your life will be short, so figure a 10% annual draw down on your remaining nest egg, pitiful as it may be.  And, if things go against the odds medically, there's always GoFundMe as the Stanford season rushing record holder.  Oh, wait. . . .

[Rally]

I don't know about that. But I can tell you that learning from this thread of the inadequacy of $11 million has made me seriously doubt my model for retirement, which was to hit the lottery.

There are obviously some very wealthy people on this board.  Why, $11,000,000 won't even buy a decent yacht, let alone an 8 passenger Lear.  Hell, after paying for Dawkins' buyout you'd be hard pressed to keep a decent roof over your head.  On the other hand, you would guarantee yourself a (small) place in the next edition of The Color of Life Is Red, so there's that.  But, with the one or two concussions suffered each quarter you played football for Stanford, your life will be short, so figure a 10% annual draw down on your remaining nest egg, pitiful as it may be.  And, if things go against the odds medically, there's always GoFundMe as the Stanford season rushing record holder.  Oh, wait. . . .

[Rally]

I don't know about that. But I can tell you that learning from this thread of the inadequacy of $11 million has made me seriously doubt my model for retirement, which was to hit the lottery.

There are obviously some very wealthy people on this board.  Why, $11,000,000 won't even buy a decent yacht, let alone an 8 passenger Lear.  Hell, after paying for Dawkins' buyout you'd be hard pressed to keep a decent roof over your head.  On the other hand, you would guarantee yourself a (small) place in the next edition of The Color of Life Is Red, so there's that.  But, with the one or two concussions suffered each quarter you played football for Stanford, your life will be short, so figure a 10% annual draw down on your remaining nest egg, pitiful as it may be.  And, if things go against the odds medically, there's always GoFundMe as the Stanford season rushing record holder.  Oh, wait. . . .

[Rally]

I don't know about that. But I can tell you that learning from this thread of the inadequacy of $11 million has made me seriously doubt my model for retirement, which was to hit the lottery.

There are obviously some very wealthy people on this board.  Why, $11,000,000 won't even buy a decent yacht, let alone an 8 passenger Lear.  Hell, after paying for Dawkins' buyout you'd be hard pressed to keep a decent roof over your head.  On the other hand, you would guarantee yourself a (small) place in the next edition of The Color of Life Is Red, so there's that.  But, with the one or two concussions suffered each quarter you played football for Stanford, your life will be short, so figure a 10% annual draw down on your remaining nest egg, pitiful as it may be.  And, if things go against the odds medically, there's always GoFundMe as the Stanford season rushing record holder.  Oh, wait. . . .

[FrankO]

great location, good employment opportunities to put his degree to work,  and a less costly place to live, and still live very comfortably...

and he could then send his kids to Valor Christian...

yeah, Austin ok... but beastly hot from June-October

[FrankO]

great location, good employment opportunities to put his degree to work,  and a less costly place to live, and still live very comfortably...

and he could then send his kids to Valor Christian...

yeah, Austin ok... but beastly hot from June-October