Financial Independence Financial Goals For 2018 |
- Financial Goals For 2018
- 2017 was a good year
- I have to breathe a sigh of relief (anonymously)
- Daily FI discussion thread - December 31, 2017
- Update/2017 thoughts: 2 teachers in HCOL area, just passed $700k
- Municipal Bond Investing vs Paying Off Mortgage???
- 2017 in Review
- What is your rational for giving a lot of money to your kids?
- Happy New Year FI-RE'ers!!
- Graduating college in the spring, big pay increase. Advice?
- What activity do you budget a lot of money on per month that most other people probably don't?
- Just found out that I had saved 43% of my total income this year. Unsure if that is good or if I should be doing more.
- Investing advice
- Semi-FIRE, paying only some expenses from savings
- Thoughts on FIRE with foreseeable elderly care (parents)
- Personal Development and training for your hobbies
- I'm a recent graduate 3 months into his career. Advice?
- Please critique
| Posted: 31 Dec 2017 06:12 AM PST I'm a firm believer in writing down goals and communicating them to people to hold yourself accountable. Maybe you are too, what are your financial goals for 2018? Mine: Net worth of 100k by EOY [link] [comments]  |
| Posted: 31 Dec 2017 09:53 AM PST Since I can't share this with anyone in real life, I thought I would post it here. Summary As of today (December 31, 2017), my net worth is just over $90k, which is more than double my net worth at this time last year. During 2017, I saved $49,000, or 79% of my base salary. This is attributable to the combined effect of (a) setting FIRE as a goal and getting serious about it and (b) strong market performance throughout the year. Background I started tracking my net worth in December 2013, just prior to starting my first job out of college. My initial net worth was $39 dollars. At my first job, I started at $16k working part time. Within three months I was moved to full time and my salary doubled. I continued working at that job until the middle of 2016, when I found a new job that paid $60k. When I left my first job, my salary was around $39k. Right now, my total comp including HSA contributions and bonus is around $70k. I have a side hustle which makes me around $10k a year, which puts my total comp at around $80k. I live in a low COL area, which allows me to live quite comfortably on $20-30k a year. I'm quite happy with how 2017 has turned out. I'm still a long way from FI, but it is starting to seem like an attainable goal and not just a dream. I'm looking forward to continuing the journey in 2018. Best of luck to you all in the new year! [link] [comments]  |
| I have to breathe a sigh of relief (anonymously) Posted: 31 Dec 2017 10:56 AM PST Throwaway account. I've had a very hard time recently at work -- I can't give specifics, but suffice to say, many things outside of my control, with no realistic chance of major change (trust me), have been putting me through the wringer. Like, trouble sleeping at night bad, bad upset stomach bad. Well, for the first time in a while, I'm breathing a sigh of relief. I have recently been the beneficiary of some family money -- I knew it was coming, but it finally hit. So, I just ran the family net worth #s. Using a reasonable estimate for home net worth as one of the inputs...ballpark of $2.9M, with about $2M of cash/taxable/retirement/kids' 529 accounts (yes, I count them in net worth). I've always been a saver and investor, and would have been fine long term without it (maybe not RE), but this family $$ put us over the top and has given me, my wife and kids a solid financial foundation and flexibility/options -- including likely RE at some point. I live in a very, very HCOL area and my kids are young, so I'm not going to be RE soon. However, with the family money, coupled with some more down the road as well, I am finally allowing myself to not worry so much, and -- dare I say it -- am FI (or at least Barista FI), and will keep working/saving but with a new, hopefully far less worried mindset. I am a professional and can't just phone it in a work, but I can also learn to shrug a bit when shit goes sideways, which given the nature of what I do, happens all the time. No more tossing and turning at night. At least that's the goal. As it happens, I'm also very, very close to vesting in an amazing retiree health benefit at work -- I don't want to give specifics, but suffice to say, it will solve the pre-medicare health care problem for a number of years, and given the nature of my employer, it will be around/paid (trust me). This one-two (positive) punch of the family money and being on the cusp of an incredible retirement benefit, has made me feel relieved and optimistic financially/professionally for the first time in a while. Like, I can make big changes, take some chances, etc., if I need to -- or want to. Figuring out what is next (and some health-related changes) is my New Year's Resolution. Feels good. Thanks for reading. [link] [comments]  |
| Daily FI discussion thread - December 31, 2017 Posted: 31 Dec 2017 03:07 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]  |
| Update/2017 thoughts: 2 teachers in HCOL area, just passed $700k Posted: 31 Dec 2017 03:34 PM PST Hi again. You may remember my post from last year that summed up the FI journey that my husband and I have been on as two teachers in a HCOL area. Like many, we've had a bang-up year and I wanted to take the time to reflect and also offer some strategies we've employed this in 2017. But first, let's do the numbers: Household Income for 2017: $154k ($87k me, $67k husband) Household Expenses: $49k NW on 12/31/2016: $463k NW on 12/31/2017: $702k (...holy crap.) Now right off the bat, $67k of that came from the cashout that we did of my husband's pension. More on that below. $73k came from contributions to retirement and taxable accounts ($18k my 403(b), $18k husband's 403(b), $18k husband's 457, $11k to IRAs, $4k from my employer 403(b) contributions, and another $4k extra into our taxable account). The remaining ~$99k is all in gains. We're largely invested in VTSAX or similar funds. Several major events/decisions happened that altered the course of 2017 for us:
Additional thoughts... Many people in last year's post were flabbergasted at the salaries that my husband and I pull in as teachers. To paraphrase many of the points that I made in the comments: YES, I realize that these are not "normal" teacher salaries. However, this is not on accident, and we worked diligently to find positions over the last 12 years of our careers that paid well and have given us good job satisfaction. It's an incredibly hard balance to strike, and I'm happy to discuss more if other teachers have questions. Between the two of us, we've taught in 12 districts/schools in four states (public, parochial, and independent schools), ranging from ages K-college. For both of us, leveraging graduate and post-graduate education has been huge (there are cheap ways to do this!). My first year out of college, I was paid $40k, the following year in a Catholic school, it was $26k. There's no way that we could have made the FI strides that we have without increasing our incomes, so that's what we did. One fun juxtaposition from this year, from two of my husband's friends. Friend #1 lives far away, and from what my husband has shared with him about FI, he is convinced that we're "depriving" ourselves. This friend pays for 2-3 artisan coffees each day and carries a ton of CC and student debt. Friend #2 also knows about FI (but not our NW), lives locally and told us that he refers to us as his "rich friends" because of the city we live in, how we travel, and the fact that we have season tickets to the Celtics and Red Sox. Funny how different people pick and choose what to "see" in the FI lifestyle :) TL;DR: holy crap 2017 markets/teaching is hard/don't put off "living" for when you're FI/find your FI community/I got knocked up/looking forward to 2018! [link] [comments]  |
| Municipal Bond Investing vs Paying Off Mortgage??? Posted: 31 Dec 2017 01:50 PM PST My wife and I have sat down to discuss paying off our home early. However, we recently discovered municipal bonds and figured investing in them would be much more beneficial. Here are our stats... Current Mortgage: $400,000 Mortgage Payment: $1,945 Taxes & Insurance: $600 We planned to contribute all of our extra money towards the principal of our mortgage but also calculated we could contribute $75,000 a year towards this municipal bond ladder we have created. It should be fully funded in approximately 6 years. Here is where things get tricky. If we plow all of our money into our home it is now a SUNK COST which generates no monthly income unless we choose to move and rent it out. Additionally we still have to pay $7,200 annually in taxes & insurance Conversely with the municipal bond fund ladder we have created it would generate TAX FREE monthly income for our lifetime. Here is our planned Municipal Bond Ladder... IIM - $100,000 @ 4.99% = $4,990 NVG - $100,000 @ 5.63% = $5,630 NEA - $100,000 @ 5.06% = $5,060 VGM - $100,000 @ 5.79% = $5,790 Annual Tax Free Income = $21,470 Can you please try to sharp shoot our plan and point out any factors we might not be considering? We really appreciate it and hope you have a Happy New Year! [link] [comments]  |
| Posted: 31 Dec 2017 02:57 PM PST Since my last post, lots of life developments. Summary Here are the results from 2017. All numbers converted into USD (badly). I'm working across four currencies and I changed from hardcoded FX rates to data pulls halfway through the year. My financial statements are a bit messed up, but make sense to me - I tried to merge cashflow with income statements, so some things that are listed as expenses in green, actual accumulate to my networth, while expenses in red are actual expenses. I seem to have lost 15k+ somewhere in the year (my projected capital increase is less than my actual change in net worth. I suspect that some of that is travel, and some of that is me being stupid. I'll do a better job next year) Life Changes:
Goals for 2018:
FI Milestones: [x]: Positive Net Worth [x]: Positive Net Worth (Minus Mortgage + Property) [x]: Zero Consumer Debt (Non Mortgage/Investment Debt) [x]: 1 annual expenses saved (approx 35k) [x]: 2 annual expenses saved (approx 70k) [x]: 3 annual expenses saved (approx 105k) [x]: 5 annual expenses saved (approx 175k) []: 1/8 desired annual income saved (approx 250k) []: 8 annual expenses saved (approx 280k) []: 13 annual expenses saved (approx 455k) []: 1/4 desired annual income saved (approx 500k) []: 21 annual expenses saved (approx 755k) []: 1/2 desired annual income saved (approx 1000k) []: 30 annual expenses saved (approx 1050k) []: 3/4 desired annual income saved (approx 1500k) []: 1 desired annual income saved (approx 2000k) [link] [comments]  |
| What is your rational for giving a lot of money to your kids? Posted: 31 Dec 2017 01:20 PM PST I have two young kids and I'm debating about giving a lot of money to them when I pass on. A lot of the advice I've heard is mildly against the idea of passing on a lot of wealth to kids but I want to hear the counter-perspective on this. The most common advice says to be careful giving a lot of money to heirs because it can become a huge burden especially if they are unprepared for it. Additionally, there is Buffett's advise of giving enough so they can do anything but not enough so they can do nothing. That said, does anyone here have any unique or radically different perspective that is pro intergenerational wealth transfer? [link] [comments]  |
| Posted: 31 Dec 2017 12:17 PM PST Wishing everyone a glorious evening before the fresh new start on Jan 1. May the New Year bring us happiness, good health, excellent returns and the strength to enjoy them wisely ;-). I'm grateful for the good ideas we share here and hope the path to FI continues for us all... [link] [comments]  |
| Graduating college in the spring, big pay increase. Advice? Posted: 31 Dec 2017 03:32 PM PST I will be graduating in Maryland as a teacher in the spring, and going from less than 10K a year to about 48K+ a year. I want to move up in life as a principle as so on down the road, but how do I go from living paycheck to paycheck to this? I will be getting heath insurance through my work, but don't know my 401k benefits or college tuition payoff options until I sign a contract come may. I espically want to invest and have money that is accumulating year after year (Roth ira?) But have only been skimming this sub for a few years. I would love to retire early and work as an independent researcher in the world of education, but not have to sign my life away to someone in pursuit of money, simply research how I want. [link] [comments]  |
| What activity do you budget a lot of money on per month that most other people probably don't? Posted: 30 Dec 2017 07:59 PM PST I'm considering spending upwards of $300/month on a gym membership here in NYC (cleaner, has pool/basketball courts, etc) because I go 5-6 times a week to the gym. The frugal part of me can't justify it (paying less for a gym would certainly be better for FI goals), though it certainly fits within my entire "budget". Just curious about other people! [link] [comments]  |
| Posted: 31 Dec 2017 11:36 AM PST Chart for my income vs. outcome during 2017. I update this chart every single month since January. It is where I track all (well, at least 95%) of my spendings, categorized by type, sorted by date, and further information related to spendings. Today I closed the 2017 chart, and it's official: I was able to save 43% of my total income, and found out my spendings are pretty much going all to the same places: food, education (I'm paying for college), rent, and other housing costs. Only a small percentage is leisure, travel and stuff I eventually buy for myself. But I cannot shake the feel that I should (our at least could) be doing more. Am I demanding too much of myself? Is that good savings? Should I allow myself to spend a little bit more? If it matters, I am a 26yo Male, employed and living by myself. Edit: The previous chart was missing December. tl;dr: Saved 43% of my total income this year. Unsure if that is a good result or not. [link] [comments]  |
| Posted: 31 Dec 2017 02:45 PM PST Background: 150k annual income 150k in savings and 50k in 401k All debt paid off Employer 50% 401k matching Rent, car and other expenses come out to about 2000 a month I am currently maxing out the 401k match and I'm wondering what the best approach is to start investing my savings. Many have suggested to me to just invest in total market ETFs which I have started doing. I created a Robinhood account and invested 5k in VTI and SCHB. My question, should I just keep doing this for the rest of my savings ( aside from an emergency fund of course ) or is there a better approach when investing a larger amount? [link] [comments]  |
| Semi-FIRE, paying only some expenses from savings Posted: 31 Dec 2017 08:48 AM PST I make enough to pay for my expenses from my rental income, but I'd like to pay some regular expenses from my savings. I'm trying to determine the best candidates for payments from my portfolio of stocks and bonds. I'd like to pay recurring expenses that are business expenses or tax deductible from my savings, i.e. property taxes, HOA fees for rentals, rental insurance. Does this seem stupid or prudent? If you're making some income in FIRE, do you pay certain expenses from savings? If so what strategies have you developed? [link] [comments]  |
| Thoughts on FIRE with foreseeable elderly care (parents) Posted: 30 Dec 2017 10:34 PM PST DINK here. My parents are cared for by my sister and brother (bless them). My wife's mom is healthy but her dad has suffered multiple heart attacks. His heart is really weak as a result. We're on the journey to FIRE but this is something we need to account for - the possibility of having to care for our loved ones. I'm not sure if anyone is in the same boat. If so, how are you doing it? If not, what would you recommend? Would you just add more spending into the calculator? Any thoughts would be appreciated. Thanks. [link] [comments]  |
| Personal Development and training for your hobbies Posted: 30 Dec 2017 05:34 PM PST Hi All, Wondering whether any of you RE folk set aside some money specifically to learn new hobbies and skills after retiring. I'm really interested in knife making and woodworking and think it would be super beneficial to do some courses or actually gain a trade in them and just work for myself. Do many folks do the slog at high paying jobs and becoming fi to change careers and pursue lesser paying passions? I'm mostly interested from a non commercial stand point so just asking for interest. Thanks! :) [link] [comments]  |
| I'm a recent graduate 3 months into his career. Advice? Posted: 31 Dec 2017 11:26 AM PST 23M Unmarried No kids or roommates Rent an apartment in NY close to CT 67.5K Gross Annual Income $1000 to my name right now (just paid rent, utilities, and student loans) 20K student loan debt. 22K original (3-4% interest on 18K. 6.8% on 2K). I've been paying down an extra $500/month on the 6.8% loan for 2 months. About $220/month minimum. Rent, Utilities, Internet: ~$1500/month Food: I mainly eat Soylent, which is about $390/month. Total $430/month Transport: Bike to work which is about 3/4 mile away. Recreation/Entertainment: BJJ and Muay Thai ($75/month). Misc: $150/month Employer matches 75% of first 6% of 401K. I did the full match. Also has option to buy company stock at (I believe) 5% discount. Comes with full health/dental/vision/disability insurance. Ordered first credit card 2 months ago. Getting a second in 2018. Both Chase. What advice do you have for starting towards FI? Where do I invest? [link] [comments]  |
| Posted: 30 Dec 2017 06:47 PM PST 35m. Married w/6kids. Wife is stay at home mom/homeschools kids. See budget below... Gross wages. 4570 Gross rents. 1600 Va 10% pension. 133 Occasional overtime Credit card cash back(have never paid cc interest) Mortgage 2272.95 (owner occupied 2 family) P&i 1537.48 taxes 735.47 Electric 120 Electric (common areas) 12 Gas heat 75 Water (home)45 Water (tenant)45 Sewer 45 Trash 45 Comcast 50 Netflix 10 Amazon prime 9 Mobile phone 35 Groceries 365 Toiletries/cleaning products Auto gas 300 Auto insurance 33 Aaa 7 Registry fees 15 Auto inspection 6 Excise tax 14 Maintenance/repair (vehicles) 50 Life insurance 38 Savings 50 Savings/investments: Federal employee with potential for small pension at 57 Tsp(aka401k) 10% w/5% match,allocation 100% c fund (comparable to s&p index) Roth IRA (vanguard vtsax) maxed/yr 2nd Roth IRA (vanguard vtsax) 4100/yr Emergency fund (ibonds) 20k Rental property cash reserve (ibonds) 25k Home equity. 85,678 Only debt is mortgage. Want to retire early. [link] [comments]  |
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