[sokoloff]

I could have $20M in the bank and there's a very high chance that I'd go apply for a SWE-3 level position somewhere in retirement.

In this context "kind of high" might be only a couple of million in profits. Enough to not want people to know, but not enough to retire on.

[MichaelBaer]

Exactly. Guess it doesn't matter how much money you have in the bank account. SWE-3 level position can be fun, so why not.

[flashback2199]

Couple million is enough to retire. I don't know why people on the internet always think you need so much money to retire.

[DamonHD]

I have semi-retired without needing anything like that! It helps not to have expensive hobbies nor own a flash car...

[sokoloff]

A couple million of profits from trading doesn't translate to a couple of million in your retirement account, with all taxes paid.

After taxes and after paying for living expenses for MB and family for the last 3 years, $2M could easily be around half-a-million. Depending on where they live, that might be more like a downpayment on a house rather than a funded retirement.

[flashback2199]

First of all, taxes will be what, a quarter or a third of it. So ok, north of 1M, still enough to retire. Second of all, if you bring in more than a million and spend most of it, down to 500k, in 3 years, then that's on you..

[sokoloff]

If most of those hit in one year and as short term gains (which algo trading will be), taxes in my state would be around 12% and federally would be around 35%. You're down to just over a million. Paying yourself a salary means 15.3% on whatever your salary is for FICA/Medicare. For a $130K salary for each of 3 years, that's another $60K, taking you to right at a million before you've spent a dime on anything except taxes. Your first box of ramen makes you not a millionaire.

[flashback2199]

> $130K salary for each of 3 years

We have totally different ideas about this, lol..

[sokoloff]

You're going to have to comply with the "reasonable and appropriate" standard. What's "reasonable and appropriate" for an engineer/trader who, through his sole efforts, built a system which produced $2M in profits? It's going to be hard to argue that it's much less than the figure I proposed, but feel free to.