Just quit job, have $1M - what to do?
Just quit my PE job I hated with nothing lined up, after hitting $1M in my brokerage. What should I do next and should I do anything with the money? It’s all in index funds now.
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Additional notes: single, 31M, don’t own a home.
Time to get a wife
I'm assuming OP's trying to keep his $1M, not have $500K in index funds...
move downstream to a smaller PE fund and make more $$$
world is your oyster
I don’t think more PE is the answer. Kind of lost faith in the industry
Can you tell us why you lost faith? Wondering if it was team/firm specific or broader industry as a whole because it seems like you were on a great path (assumption from brokerage account)
Brokerage account is just a reflection of saving (and investing) aggressively for 8 years. Nothing special. Pretty sure most people can do this if you keep your burn low (I still live with roommates). I’m a VP now.
Re your second question, I just didn’t think I was doing things of much value to society and don’t think I’d be fulfilled (or even capable of) spending my whole life doing so. There is no shortage of funds in this industry and if our fund (or any one fund, for that matter) didn’t exist I think the world would go on just fine.
If I just wanted to make money to support a family I think it’s a fine job, but maybe selfishly I want more purpose out of my work. And I don’t mean non-profit. Maybe a more innovative company might be more fulfilling. Idk though. Just random thoughts.
It seems you're someone who wants to have an impactful, or least stimulating in a meaningful way, career. I've got limited life experience so my suggestions can only go so far but I'd recommend (after you take a bit of time off to enjoy yourself and rest to hit a new job fresh, focused) that you look into jobs with international institutions such as UN development or investment roles. These can offer a pretty interesting lifestyle for someone looking for a change and new things in their life, postings abroad in interesting regions, impactful work (though many will criticise the bureaucracy of the job and the many times nothing came of it, there is clearly room to have a more positive effect on the world, or at least actively try and engage with what can be much more diverse and interesting elements than in strictly PE).
You've already saved a good bit, if you want to really up that, these jobs won't deliver on it. But if you feel you want to take a new direction, maybe this could work for you. Also obviously, beyond this, there are a thousand other jobs that can prove incredibly engaging. Depending on your sector interests that could be working in a start-up, a think-tank (personally feel less hot on that one) or even more flexible arrangements (ex: working as a freelancer consultant, journalism if inclined etc.)
Point I'm trying to make is that:
1) you seem to have done really well so far, you've got skills and apparently want to do smth with them, so a job in an intellectually engaging and more positive impact environment doesn't seem a bad idea
2) Take a break. Shit can get intense, it's not always you'll have the chance to properly pause and order your thoughts. Some have mentioned traveling in SEA, don't think that's a bad idea at all. I've spent a bit of time in the region and there are many moments when I felt that (yes we can laugh at the cliches) it truly can be a good place to just disappear a month or two and take your time, wandering countryside by yourself and living at a pace that lets you think. It's very possible new ideas will emerge there. Note that I'm not recommending doing nothing there, I'd really encourage taking some books and making it an intellectually stimulating trip.
That's all, two cents from student.
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I would reserve like 30-50k to travel the world for a while and enjoy yourself.
Take risks brother. Found a company, raise a small (and scalable) fund, run for public office, etc. You are where I want to be in my early 30s.
Go invest that money, live off the fruit of your labor my friend. You earned it! I mean literally you earned that money. lol
Guys trip to Medellin.
What is your total NW?
~1.25 including 401k
Only financial recommendation is to sell assets if you need cash on or after January 1st to avoid capital gains tax assuming you will have little to no income next year. Does your broker provide a securities based line of credit?
Personally would try to minimize expenses as you could live in an LCOL or ULCOL area (SE asia) for years on basically nothing if you really don’t want to work. Could also do ad hoc consulting projects for supplemental income. My number is $2-3M liquid for when I’d try to semi retire.
I’d take the 250k out, leave 1M in the brokerage to grow.
Then close shop and go live in Thailand/Nepal for a while.
Maybe learn Muay Thai and chill in the beaches (Thailand), or hike in the Himalayas (Nepal) living like a nomad.
Both are extremely low cost of living (assuming you don’t want to summit Everest). You could leave 200k on like a fixed deposit and live off the interest as you travel and enjoy/explore yourself and nature for a while.
Then if you feel like coming back to industry (not just PE), do so with an MBA if networking alone doesn’t work.
Not trying to be a Reddit guy on WSO here, but I would look up CoastFIRE in your shoes.
Essentially, you would have the 1.25mm fully invested in market index funds and in 35 years it would inflate to 13.3mm - at retirement age and this is real returns (7% annualized). Comfortably the middle of upper class I would say
The interesting part is that all your next job has to do is cover your expenses on an annual basis - you don’t have a need to save / invest another dollar. The nest egg that you have left aside will grow.
Now, of course, you can tweak this, maybe you want to retire early / don’t need that much of a nest egg - that’s definitely possible in your situation. But, if you’re a Type A PE grinder that still wants to be working for the next few decades - then probably find a job that gives you fulfillment and covers your annual expenses and comfortably “coast” into upper class. That’s the reward for grinding these last 9 years in a really good stock market - congratulations and best wishes ahead!
Searcher / Independent Sponsor / acquire SME
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