Financial Independence Daily FI discussion thread - December 03, 2017 |
- Daily FI discussion thread - December 03, 2017
- Built a sankey diagram to represent my 2017 FI budget
- Best tips in hindsight?
- Senate bill does not appear to include 401(k)/403(b) + 457(b) combined limit
- Does anyone know how the Republican tax plan interacts with the 0% capital gains bracket?
- Visualized Annual Household Budget
- Who regrets saying yes to life style creep?
- How bad is your job? How much do you dislike working? Have you ever thought it would be better to be work-free, even without hitting financial independence, than deal with all the work related stress?
- I need help formulating an investment plan
- Stop 401(k) Contributions?
- Media? Social media? Consumption?
- What tools do you use to track your portfolio?
- Value List - Better Names or Arocnyms
- Does the 4% Safe Withdrawl Rate take taxes into account? Seems like it doesn't
- Matt Lauer makes me wonder - What would you do if you lost your job before you reached your FIRE goal?
- Salary over interest
- Any of you guys buying at least 1 Bitcoin and holding it?
- Do you guys consider capital gains and dividend taxes when making important FI/RE decisions such as the withdrawal rate and where to retire?
| Daily FI discussion thread - December 03, 2017 Posted: 03 Dec 2017 03:08 AM PST Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! Have a look at the FAQ for this subreddit before posting to see if your question is frequently asked. Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. [link] [comments]  |
| Built a sankey diagram to represent my 2017 FI budget Posted: 03 Dec 2017 01:01 PM PST After seeing the Sankey diagram and associated tool for producing said diagram, over on r/dataisbeautiful, I decided to manipulate my spreadsheet planning system to produce a visual representation of my personal financial activities for the year 2017. I'm 34 years old, and 12 years into my FI plan, so you can see how the passive income stream is really starting to mature. All figures are monthly. Here's the result: https://i.imgur.com/jwneDUc.png Second attempt came out a little cleaner: https://i.imgur.com/wVw9jks.png The original post: https://www.reddit.com/r/dataisbeautiful/comments/7h99vj/where_my_monthly_paycheck_goes_japan_countryside/ The Sankey diagram tool: http://sankeymatic.com/build/ [link] [comments]  |
| Posted: 03 Dec 2017 01:13 PM PST Hey everyone, I just finished my master in an engineering field and started to work as a PhD with a rather good salary (70-80k with about 56-64k net). This is the first time in my life that I really have the financial freedom to spent money on things that I enjoy and want to buy (mostly tech stuff and travelling), however, I also want to plan ahead and start saving/investing money for the future. Consequently I would be very glad to hear suggestions from more experienced people on things which they think cost them a lot of money because they didn't know any better when they were younger. So to say, what would you tell your past self in your mid 20s in order to gain financial independence as soon as possible. (Lottery numbers are out of the question ;) ) It would also be very helpful to hear things like what percentage of your salary would be wise to invest or what kind of investment could be recommended in general (stocks, cryptos, property etc) I know this is a very broad question and I will have to spent a lot of time reading into it but since there is no general FAQ I am interested in how I should start and what to definitely avoid. [link] [comments]  |
| Senate bill does not appear to include 401(k)/403(b) + 457(b) combined limit Posted: 03 Dec 2017 03:39 PM PST Found on MMM forums someone tracked down a draft of the Senate tax bill which included the proposed 457(b) contribution limit and catch up contributions changes. The draft is here with the relevant verbiage starting on page 296, containing quite clear intent. These sections are definitely not present in the Senate bill which passed. While it's possible this could somehow work its way into whatever joint bill comes out of conference, it at least seems less likely. [link] [comments]  |
| Does anyone know how the Republican tax plan interacts with the 0% capital gains bracket? Posted: 02 Dec 2017 07:49 PM PST Do we know if it will still be available? I think many of us will be a lot worse off if it is not, as I'm counting on that 0% range to keep my taxes low in retirement. [link] [comments]  |
| Visualized Annual Household Budget Posted: 02 Dec 2017 05:11 PM PST Inspired by a recent post in r/dataisbeautiful, I decided to recreate our household budget in the same style. https://i.imgur.com/NMHQ3i9.png Software used for creating the graphic: http://sankeymatic.com/build/ [link] [comments]  |
| Who regrets saying yes to life style creep? Posted: 03 Dec 2017 07:03 AM PST EDIT: Corrected formatting Hey everyone. My wife and I are looking for a new house, with our choices being either a moderate or significant lifestyle jump (not a small creep in either case). I cruised the Bogleheads forums for this topic as well and basically found there's a diversity of opinions. I wanted opinions on from FI/RE minded people here who've been in the situation before to understand how it worked out, or how many regret the choice they made. Background: Wife and I are both approaching 30 with an <1yr old. We just moved from a metropolitan area in the mid-west to my hometown in the southeast US for a job opportunity and to be closer to family while the kiddo is really young. My wife had to quit her job so it's a significant reduction in household income ($150K+ total to ~$110K). She has a new job lined up in the new town, but still waiting to find out details like pay. Overall we try to follow FI principles, albeit to different degrees, but both have a mantra of not spending on things frivolously. Until the job change, we had [recently] started maxing both 401Ks and contributed to Roth IRAs and a 529 plan. We really loved where we moved from and our plan is to try to move back before the kiddo starts school (4-5 years). Admittedly, planning so far out mean it may not work out, but a goal nonetheless. We set up a budget for our new location based on only my income and can comfortably afford to continue maxing out my 401K, contributing to Roth & 529, and a vacation or two. Our focus right now is to get into a house asap because we're staying with family, which is maritally...disharmonious. When we started, our priorities for this house were:
*Be re-sellable in ~4-5 years from now - I know we'll lose a significant amount to transaction costs in such a short time frame, but we can't see ourselves staying here long term and are okay with it. I'm avoiding unique home styles, older homes (>30 years old), and houses with structural issues under the assumption that a future buyer would have the same pauses I have now. After seeing a dozen or more older houses, I'm finding that our initial budget was unrealistic for properties that meet the above needs. We upped our budget on the max price and looked in a wider area and found 2-3 houses we like. One is 3400sq ft. and at the upper end of our revised budget, the others are closer to 2500sq. ft. but close by to the first house. The larger house checks more boxes and requires less compromise on things that are important for us as the family gets bigger (mud room, dedicated laundry room). Given the differential in cost of living here than where we're coming from, we can afford all the candidates. The trade-off is that with the bigger house, less goes towards additional savings (Roth IRA, 529, etc.). We're both okay with spending more to get more of what's important to us, but still hesitant because of two conflicting priorities:
This probably fits within the general lifestyle creep dilemma that people face everyday, so I'm wondering how FI/RE minded folks have handled this type of situation in the past. How have individuals that planned to have kids or young families prioritize FI vs. future lifestyle with respect to their home size? Did you end up feeling like you bought too much or too little, or did you make it work somehow? Are there aspects we're not considering in how to make the decision between larger or smaller homes? [link] [comments]  |
| Posted: 03 Dec 2017 07:06 AM PST I am basically looking for good careers that are more FIRE-sane (for example, yes you could work long hours and save lots doing investment banking, but the stress might kill me very quickly without a sure recovery option). Though somedays I think it would be better to be homeless than to work in America. [link] [comments]  |
| I need help formulating an investment plan Posted: 03 Dec 2017 01:09 PM PST Hello, I need help formulating an investment plan. I'm not looking for a perfectly optimized investment portfolio just something low-maintenance and simple. I'm 25 years old and work as an independent contractor. My current contract is for 3+ months and pays $45/hr. I work 40 hours a week so ~$7200 a month before taxes.
I'm not looking to retire early, rather I want to only work ~6 months every year until normal retirement age.
Where my money is: $25,600 checking account $6,150 fidelity simple IRA, 100% in Fidelity Advisor Freedom 2050 Fund - Class A (1605) $500 in Ether $4000 in Litecoin $12,650 Roth IRA vanguard, 100% in Vanguard Target Retirement 2060 Fund Investor Shares $10,950 brokerage vanguard, 100% in Vanguard Total Stock Market Index Fund Admiral Shares $107,200 brokerage Wells Fargo (inherited), 47% cash, 30% mutual funds, 23% ETF's
Expenses: $1000/month - rent/utilities $200/month - food $104/month - phone bill / auto insurance I'm on my parent's health insurance.
Where should I invest the excess money in my checking account, the required minimum distributions from my inherited Wells Fargo account and the money from my job? Is 47% cash too high for my inherited account? If so where should I invest it?
Thanks [link] [comments]  |
| Posted: 03 Dec 2017 01:09 PM PST Hello-- I'm thankful for any input on if/when I should reduce my 401K contributions. Currently, I'm 33 years old and have accrued a balance of ~265k. ROTH IRA is currently at a balance of 100k. Is there a "tipping point" that you think of when considering this decision? My hopes in making this decision are to seek other investment options/alternatives that allow me alternative income streams to my job. Again thoughts are greatly appreciated! [link] [comments]  |
| Media? Social media? Consumption? Posted: 03 Dec 2017 01:07 PM PST Social media = advertisement. Do you limit yourself of social media? How much TV do you watch? When you watch more advertisements do you find yourself wanting to buy more? How does this affect your happiness? Does this affect your path to FI? [link] [comments]  |
| What tools do you use to track your portfolio? Posted: 03 Dec 2017 01:32 AM PST Looking at various tools that allow you to track a portfolio but can't find ones that are able to do backtesting as well as tracking on US (stocks/bonds) and EU (stocks/bonds). Also adding cash or real estate would make it more complete. Excel seems to be my best friend ... but it takes a lot of finetunning until i get everything ready there. In order to best track long term I need something that allows me to do it easily in kne place not looking at 3 or more sites/tools. Best to have it centralized and easy to read . What do you use? [link] [comments]  |
| Value List - Better Names or Arocnyms Posted: 03 Dec 2017 10:36 AM PST I have been carrying around these values to live by for the last couple of years. The are kind of wordy and hard to remember. I don't have a sucienct way of sharing them with friends and family. I want to rename a couple and/or come up with a good acronym and think the community here would have some good suggestions?
[link] [comments]  |
| Does the 4% Safe Withdrawl Rate take taxes into account? Seems like it doesn't Posted: 03 Dec 2017 12:32 PM PST I've been researching FI/RE for the last couple months. This subreddit has been super great!
I've been calculating the amount of capital I need to retire.
Assumptions:
Using just the 4% rule I'd need to save up $2,000,000
But in this case, I would think I'm going to be taxed on the $80,000 I just turned from invested stocks into cash.
Really to have $80,000 for the year, I'd need to have $2,666,666 in investments.
Am I missing something? I feel like when I read about the 4% rule I don't see anything about taxes. Is it just so obvious that you need to account for taxes that it's not mentioned?
thanks for the help! [link] [comments]  |
| Posted: 03 Dec 2017 01:09 PM PST Assume you reached only 20% or 25% or 30% of your FIRE goal. Then WHAM you lost your job and it is impossible for you to find another job - assume some Matt Lauer like situation of sexual harassment or assume some financial scandal that does not let you practice your trade any further or assume some medical malpractice settlement that makes you lose your medical license. You are still 70% or 75% or 80% short of your FIRE goal and can't find another job. What would you do? [link] [comments]  |
| Posted: 03 Dec 2017 09:21 AM PST Hey guys, I had an observation statement and two questions. I noticed that people from all sorts of backgrounds, specifically varying incomes, are focused on fire. A good chunk of salaries seem to be relatively higher than the avergae income (or so it seems, please correct me if i'm wrong). With that being said, does it make sense to do something you might not necessarily enjoy in order to hit your FI/RE goals? I am at a crossroad and i just needed to know how people feel about that and how that sort of journey has been for people who, walked thay path. There are a lot of variables for me, but this is the essence of what I would like to know for now and attempting to keep this simple. Thanks in advance! [link] [comments]  |
| Any of you guys buying at least 1 Bitcoin and holding it? Posted: 03 Dec 2017 02:55 PM PST Was thinking about pulling the trigger just to buy 1 bitcoin at 11k and riding it out, and if it doesn't work out just sell if it dips below 10k [link] [comments]  |
| Posted: 03 Dec 2017 05:10 AM PST I just realized that Hong Kong (where my wife and I are currently working and residing) has zero capital gains and dividend tax, on top of a ~15% income tax rate. This makes it significantly more attractive for us to retire here than in our country of origin. It seems that these factors can greatly influence FI/RE decisions, but I don't see to much discussion about them in this sub. [link] [comments]  |
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