Congratulations @1214mom. ShawD is back from 3 months backpacking in SE Asia and then 2 weeks doing disaster relief with the Red Cross in rural North Carolina and is now looking for a job as a nurse practitioner. First interview next week, but she really needs to decide what part of the country she’d like to live in. ShawSon is starting to focus on startups and a couple of interviews, but he’d really like to defer the interviews until after he knows whether one of his startups is a real contender. He wonders whether it will handicap him if he doesn’t do a lot of interviews when companies are coming to his business school (he will have a MS in Computational and Mathematical Engineering and an MBA from one of the best schools in the country). I can’t really say, though I expect companies would try to find a spot for someone with his skill set and talents.
“ShawSon is starting to focus on startups and a couple of interviews, but he’d really like to defer the interviews until after he knows whether one of his startups is a real contender. He wonders whether it will handicap him if he doesn’t do a lot of interviews when companies are coming to his business school (he will have a MS in Computational and Mathematical Engineering and an MBA from one of the best schools in the country). I can’t really say, though I expect companies would try to find a spot for someone with his skill set and talents.”
Unless he has a strong connection with a company already, yes, he may regret not taking advantage of companies coming to interview. Practicing interview skills is of value, and he may be interested in some of the companies that are showing up to recruit people just like him. It is unlikely that many companies will automatically realize his worth and create a position just for him, unless he is reaching down. He can always turn down offers, but at least he isn’t blowing an opportunity to learn. No matter how qualified you may appear, you still have to do the work.
@shawbridge - It sounds like your son has some great qualifications. Busdriver has some good points, and it might take a long time for the startups to gear up enough to evaluate. Also they can be low on pay / benefits.
@colorado_mom and @busdriver11, my advice had been to get the right kind of job at a big company for a couple of years just to add to his experience base. His skill set is in very high demand at the moment – big data/machine learning – combined with managerial interest and strategy/negotiation skills. I think kids from his quant program could get hired almost sight unseen but his interests might take a little while to find.
Shawbridge, I think I agree with your advice. It certainly can’t hurt to have that kind of experience behind your belt. Plus, who knows what will happen in the very near future (like tomorrow). Markets crash, massive recession, financial institutions going under. Not to be overly paranoid, but it has happened recently. Quants could be in zero demand, and a good job in hand while you’re waiting for the perfect one is certainly worth something.
I guess I have a bad feeling about the future!
Short answer is I think it would take about $2million in net worth if one were to begin retirement in 15 or so years. I think many of us are around the 50ish mark. Inflation is the killer as we all know. Just think back to the price of your first house, first car, etc. Also think of your parents first house and car which is more accurate. Did your parents really expect that the average price of a car in retirement would be more than the price of their first home? Now look at the price of your first home and that is what your car will cost when your in your 70’s. It is going to take lots of cash people. So do not raid your retirement for college costs!
The price of food is the biggest unknown. I doubt 30 years ago people would have thought we would be converting our food to make fuel for our cars. This with the increasing cost of water is going to push food to unpredictable heights. We have some major economic headwinds coming. We all know it. The only question is “when” and can we kick the can down the road onto our children’s shoulders like our parents did.
If a healthy, active couple in their mid-50s had $2 million now and a modest lifestyle with no mortgage, maybe they could afford to retire in 5 years and make the money last 35 years.
@shawbridge, your advice is very sound. My friend’s son who received a BS, MS and PH.D from MIT received many offers upon graduation from Silicon Valley companies. He went to work for Google. After 2 years, one smaller startup which did not make him an offer initially, contacted him and offered him a position precisely because he had a couple years of experience at Google. He went to work at the startup with stock options. Two years later, startup was acquired and he received several million dollars for his stock.
He is just one of many many lucky ones who struck gold in Silicon Valley.
I am sure your son will find his luck, but tell him to be patient.
It’s really hard to know how long folks will live–planning to have your money last until you and/or spouse are 100 is NOT unreasonable, especially if longevity runs in either or both families and you are (both) relatively healthy now. Having a stream of income can be very important–rental properties (with a property manager you trust), social security, pensions, annuities, and similar instruments can be helpful for being sure to have a stream of income that can meet or exceed your financial needs.
Wondering if people have thoughts on choosing a realtor? Do you choose someone who is local to your town with a good sales record? There’s a local agent who has been selling in my town for 40 years and lists lots of homes–I know her from volunteer stuff in town (small town–only 5K pop) and I’m not impressed. I’m perfectly fine going with someone local who knows the local market and has a track record (not the person I mentioned earlier). Given that our home is on the high end of the market in town, H thinks going with someone who handles high-end homes in the larger metro area would be more likey to bring in sellers. Thoughts?
I’d interview several and try to find one that both you and your H are happy with. If you know owners of higher end homes (similar to yours) who have recently sold, ask them what they thought of their realtors. We originally tried using my sister’s BIL. It was a mess and we were happy to stop using him. We found a broker we actually liked fairly well at an open house he was sitting. He did a decent job for us and made a nice commission from us. Referrals are always nice though.
Visit a bunch of open houses and chat with those agents. Go with a person you find likeable and who knows the specific kind of properties, can be reached quickly, is patient, knows how to dig public records, and has a network of referrals to services (contractors, mortgage brokers, etc.)
Also, have a realtor who will do an in depth analysis of comparables and make suggestions of what changes are worth doing before listing your property, the approximate cost vs benefit in increased sales price. Some agents even have names & contact info for contractors/handymen that can do the work for reasonable prices.
The internet has revolutionized how people shop for homes, no matter what the price range. Information wants to be free, and agents do not really have a firm grip on either buyers’ or sellers’ loyalties any more. Anybody can set up something to get notified of every property that comes on the market that they might be interested in. Agents aren’t the gateway to this information any more. DW has worked with buyers of everything from sub-$100K condos to $1mil+ properties, they all find things from Zillow or whatever without going through her.
Unless you are at the very top end of the market (multi-million dollar estate-level properties), agents just don’t have a “pool” of buyers they are sitting on that they can direct towards your property.
And agents have a snob factor as well. DW works for a broker that has multiple offices, and the brokers who are based in the town where houses typically sell in the $800K-1000K+ range (which is not my wife’s office) are not really interested in taking listings for a house in a town where houses sell for $200-400K, or working with buyers who are looking in that price range.
And you are in MA, correct? Then you know how crazy our “town” system is on RE, where the same house moved a mile away can triple or third the value. An agent who has actually done deals in your town is highly preferable, IMO.
I’d be wary of the agent who has been selling for 40 years… I know this is painting with a broad brush, but many of these people are extremely technically challenged. They can barely work a flip phone, forget about smart phones and the internet. DW had to work with an agent who didn’t have a cell phone, the only way to get in touch was leave a message at her office and wait until she picked up her messages and called back. She has come across agents who didn’t have email. You can imagine what a PITA it is to work with these people. For example, virtually all document signing is handled digitally these days using dotloop or similar. No email means no digital signing, and you are back to sending packs of paper back and forth.
Make sure you evaluate your prospective agent’s familiarity with tech. My wife, for example, set up a web site to show her listings, and through it buyers can set up automated emails to send them everything that shows up in MLS that they might be interested in. Some of these agents can’t find the power button on their computers. 
Thanks for the good wishes/positive comments related to my son.
Getting him off our payroll will help our retirement.
I took this year’s college expenses out of the 529 today (only one of three still in college), because who knows what will happen after tomorrow.
^^Smart move.
Anyone feeling the market jitters? Glad that by pure chance we are all in cash and have no major debts like a mortgage. Plus, one last tuition payment is left.
I will be shocked if the market doesn’t plummet tomorrow. Lucky you are all in cash, maybe there are some bargains to be had. But the question is, to invest soon, or will it be a long term market crash?
And what to invest in?Comfort foods? Alcohol? Wall building supplies? 
Wall building supplies is not a bad investment idea… 
Booze, too. Altria? They own Ste. Michelle…
Would consider buying stock today with the crash, but who knows how much further it will drop?? Ugh.