Financial Independence List of Companies offering Mega Backdoor Roth |
- List of Companies offering Mega Backdoor Roth
- To Those Who Live in Areas with Seemingly Endless Food Options: How do You Balance Eating Out with Home Cooking?
- Beginning of a new financial era. Really thankful to everyone here
- How to buy a rental and still be diversified?
- Coping with Colossal CAPE Concerns
- Do any of you feel extreme guilt for being FI and hating your job?
- Daily FI discussion thread - December 07, 2017
- Happy Living FIRE Amount, for people who don’t live the FIRE life.
- Rollover Mechanics
- Keep renting out condo or sell it
- TIL: In-service Mega Backdoor Roth Distributions possible penalty-free as frequently as desired
- Absolute Minimal for FIRE
- I would love to hear from those holding bitcoin as it relates to their FIRE plans. Are you diversifying right now? If not, why? If so, how much?
- Balancing retirement saving and saving for a business.
- What are your favorite apps/programs etc. for keeping track of your financial life?
- 457b with higher expense ratios still worth it?
- Taking out enough money from 401k to pay off mortgage. Smart or stupid?
| List of Companies offering Mega Backdoor Roth Posted: 07 Dec 2017 10:50 AM PST Has anyone compiled a list of companies that offer the Mega Backdoor Roth? If so can you share? [link] [comments]  |
| Posted: 07 Dec 2017 10:46 AM PST I'm currently trying to cut down on my eating out budget, but find myself having cravings for things that are difficult to make or I have not had exposure to cooking growing up. Think along the lines of Chinese soup dumplings, Vietnamese banh mi, Indian and Japanese curry, traditional Korean dishes etc. My girlfriend and I have even tried going to local Asian supermarkets and trying to cook some of the food ourselves but it never tastes the same. We try to cook most of our meals and when we do go out it is usually to more reasonably priced options but when cravings hit it's hard to substitute them with anything. [link] [comments]  |
| Beginning of a new financial era. Really thankful to everyone here Posted: 07 Dec 2017 11:47 AM PST Last month, I decided to pull most of my cash (except emergency funds) and sell off most single company stocks to pay off the last $25k left in my house mortgage. I didn't feel it immediately when it was done, but its coming gradually. After a long time of discerning whether I should invest the money or use it to own my house outright. The latter logically made more sense given the economy's bubble and fact that anything outside of Bonds in not guaranteed to maintain my money if I need it sometime next year. This month, I had no mortgage payment, no rent, all taxes paid for the year. I will tell you, its nice! I'm still employed and make decent money so not very concerned about having low amount of cash in the bank. This community has been greatly effective at preparing me for the FIRE Journey. I'm single in my early 30s, and able to save 68% of my salary. Quick calculations tell me I've got at least a decade to reach my FIRE goal but that's ok. Its true that a decade is a long time, but no one is able to predict how/where life/carrier will take me and I can't wait to experience it. Jan 1st 2018 will be my first paycheck going fully toward FIRE. Thank you all for the encouragement and hope you provided indirectly to help me start! Have a fantastic afternoon! [link] [comments]  |
| How to buy a rental and still be diversified? Posted: 07 Dec 2017 10:53 AM PST Hi all! At some point, I think I'd like to get into rental real estate. I do almost all the maintenance and improvement work on my own house myself, and enjoy it so I think I could keep expenses low on a rental. If I get a rental property, I'd like to have it be in my own neighborhood, since that would allow me keep a close eye on tenants, bike to the property, etc. I'm in Charlotte, NC and properties in my area are $175-$250k. However, I'm aiming to FIRE on about 1.5 million plus my own home, and having a rental and my house in one neighborhood, or even in the same city, feels like a lot of my portfolio to concentrate in one area. What if there's a nuclear reactor meltdown? Harvey level flooding? Flint style drinking water problems? I'd lose 30% of my NW like that. Am I worrying too much? How do you think about real estate risk like this? [link] [comments]  |
| Coping with Colossal CAPE Concerns Posted: 07 Dec 2017 05:09 AM PST Despite all of our knowledge that buy and hold is the best thing to do, there's that little nagging, undermining voice in the back of our heads telling us to reduce equity holdings when valuations seem high like they do now. For those worried about the CAPE (cyclically-adjusted price to earnings) ratio going above 30, this article does a nice job of talking us off the ledge: https://earlyretirementnow.com/2017/12/06/sky-high-stock-prices-how-to-cope-with-cape-fear/ The article is not that long, but here's the TL;DR anyway: 1: The Shiller CAPE is notoriously unreliable for timing the equity market exit 2: When would I move back into stocks again? (buying back in at a trough is at least as hard as selling at a peak) 3: Depending on the measure we use to value the S&P, stocks aren't even that expensive (bonds are also expensive right now so where do you move your money?) 4: Corporate Earnings Growth looks very solid (and we'll be phasing out dismal earnings from the recession from the 10-year cycle over the next two years) 5: Corporate tax cuts (whatever your personal thoughts on the tax bill, this will likely raise corporate earnings, half of the CAPE ratio) [link] [comments]  |
| Do any of you feel extreme guilt for being FI and hating your job? Posted: 06 Dec 2017 04:31 PM PST Edit to add: thanks for taking the time to reply. I've been reading every post and it's given me a lot to think about. Hi, some quick facts about me. I'm 32 and I would consider myself FI at this point. I have $500k split between 401k and an Etrade account. I own my modest house and car, no debts. Let's just say I never worry about money. Right now, my plan is to keep working until I amass $800k then quit, and do something PART-time like Uber or work at the library to cover my modest expenses so I never have to touch my $800k until I eventually stop working completely...probably in my mid 40s. I work as a financial analyst and I make $85k a year. All I do at work is sit in a cubicle and churn out analysis and reports. Yet I wake up everyday and dread going because it feels like I'm wasting time that could be spent living life, instead of sitting in a cubicle. I get about $250 a day after tax. I feel soooooo incredibly guilty for feeling like this. I feel guilty for my FIRE plans too. My parents just retired this year at 70. My parents are immigrants from Bosnia (came here 30 years ago, I was 2 yrs old) and neither one has EVER made more than $17k a year. My mom did custodial work in a hospital and had to handle people's shit, piss, puke, blood for $50 a day. My dad did custodial work at office buildings and also put up with a lot of disgusting manual labor for less than $50 a day. For 30 fucking years. No matter how cold it was, no matter what kind of mood they were in, no matter if their parents died in Bosnia and they were grieving hard, they went to work every day. I never heard them complain. I guess the thing that gets me out of bed in the morning is just realizing how much of an entitled piece of shit I'm being by "hating" my job when my parents went through all that. I feel even worse wanting to quit this $85k job in a few years. I'm afraid to mention a single word of my plans to my parents because I am so ashamed and guilty. [link] [comments]  |
| Daily FI discussion thread - December 07, 2017 Posted: 07 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]  |
| Happy Living FIRE Amount, for people who don’t live the FIRE life. Posted: 07 Dec 2017 02:57 PM PST Long story short, I live in Toronto and am also part of an Entrepreneurship/Professional Networking Group. Recently we were polled on how much personal net worth would be required to live life without ever working for money again, and to my surprise the overwhelming majority claim to require a range from $20 million to $50 million to live their lives comfortably. Now to me this is inconceivable. Most claim that Toronto is an expensive city to live in and thus it is impossible to live without these large sums of money, however in my opinion people could easily live a happy life with 1.5-2million. Now granted I do live a slightly unusual life for a 23yr old (I don't like bars, my ideal day is a bike ride with friends, take a few photos, then go out for a $15 meal), but even if one loved the lavish city nightlife, I can't imagine a scenario where one feels they NEED 20-50 million. I apologize for the slightly ranty nature of this post, but I would really like to understand the thought process of these people. Thoughts FIRE reddit? TLDR: A poll conducted in my city revealed that most people would only feel comfortable no longer working for money at $20-50million dollars. I do not understand why people feel they NEED this kind of money to live. Would like your thoughts. [link] [comments]  |
| Posted: 07 Dec 2017 08:47 AM PST I rolled over all of my after tax 401(k) to my roth IRA last week and I noticed a discrepancy of a few hundred dollars between the amount outbound of my 401k and received by my IRA. I assume there were some taxes due on the capitol gains? I thought the whole amount would roll over and I'd pay the capitol gains when I did my end of year taxes. Anyone have any experience or incite into such rollovers? Thank you! [link] [comments]  |
| Keep renting out condo or sell it Posted: 07 Dec 2017 02:57 PM PST I have a condo in Seattle (very fast growing market). I bought the condo for 325K and the mortgage balance is 290K. The condo is now worth 450K and I charge 2700 in rent a month (my mortgage plus HOA is 2000). Would you sell or keep making $700 net profit a month? [link] [comments]  |
| TIL: In-service Mega Backdoor Roth Distributions possible penalty-free as frequently as desired Posted: 06 Dec 2017 07:23 PM PST Hello, everyone! I found out recently about Mega Backdoor Roth in-service distributions. I figured I'd share as Mega Backdoor Roth is a significant part of my plan for FI, and I felt I'd known a bit about these things (classic Dunning-Kruger) and... well, I didn't know. So in the hopes of helping others' path towards FI... My employer allows after-tax contributions to my 401(k)- up to 15% of our gross income. Since I began working here almost two years ago I have been maxing both the 18k pre-tax portion (with intention to convert at a later time, maybe when I take a year off or something) and this 15% after-tax portion. But here I was sitting thinking I couldn't convert this after-tax portion to Roth until I leave my company! Like the regular 401(k) policies. Turns out I was wrong. You can, depending on your employer. It's just kind of annoying to do so via Vanguard- you have to either do an indirect rollover or you have to request a form from Vanguard each time. Say I wanted to do this every 2 weeks, when I get my paycheck? I would have to request this same form from Vanguard each time. The indirect rollover has its own drawbacks as Vanguard simply spits out a check that you can then contribute to an IRA- but you'd have to work with the provider to let them know that it's actually after-tax money, and I figure they could mess that up. As I understand it, there is a pro rata piece. If you convert the entire amount it gets rolled over to a Roth for the contribution piece and a Trad IRA for the growth piece. If you have, say, 10k in total in the account (of which 6k is contributions and 4k is growth) and only want to rollover 8k of the 10k, you'd actually rollover 80% of the 6k and 80% of the 4k (pro rata). My plan moving forward is to rollover the entire after-tax contribution every 2 months into my Roth, thereby avoiding all capital gains taxes. That's what I've learned- hope no one else made my mistake and this is useless info- but thought I'd share! [link] [comments]  |
| Posted: 07 Dec 2017 10:32 AM PST What's the absolute minimal requirement for FIRE? I'm okay living off the grid in some tent, so as long as I can sustain myself and have some self-sustaining energy like solar panels for minimal use. I'm okay with farming or hunting for food. I don't mind hard work, so as long as I do it on my own terms and it serves a purpose that isn't merely to make money doing some asinine, jaded task. Any advice? I'm looking for a place that, at the very least, I'm able to take a year or two off in the wilderness or something and going back to a job if I get lonely/need some extra cash for emergencies. Thanks. [link] [comments]  |
| Posted: 07 Dec 2017 06:10 AM PST Probably the thread that user that interests me the most was the user who lived just outside of St. Louis, where I live, who said he was spending almost $2k a month on electricity farming cryptocurrencies less than a year back. [link] [comments]  |
| Balancing retirement saving and saving for a business. Posted: 06 Dec 2017 06:40 PM PST I have a unique opportunity to buy the electrical contracting company I work for in a few years. This is my opportunity to advance myself quickly towards FIRE in a shorter amount of time. What i have trouble figuring out is how to balance saving for retirement (I currently put 6250 a year into my SIMPLE IRA at work) and put the rest into savings split between emergency fund and then what I call my "buy business account". People that either bought a business or saved to start your own, how did you save? [link] [comments]  |
| What are your favorite apps/programs etc. for keeping track of your financial life? Posted: 06 Dec 2017 07:34 PM PST |
| 457b with higher expense ratios still worth it? Posted: 06 Dec 2017 06:07 PM PST I also posted in r/personalfinance, but since I have FIRE goals I'd love some input from this community as well :) I have been contributing to my work's 457 (city government employee) plan through Nationwide. As i educate myself more and more i'm noticing the expense ratios for their branded ETFs (Nationwide) are much higher than say a similar Vanguard one. (example: Large cap S&P: Nationwide GRMAX is 0.60 vs. Vanguard VFINX of 0.14) They all seem to be 3-5 times more than any vanguard stuff. My question is this: Is it still worth it to contribute to this plan (with a mixed asset allocation) or should I go to something else with lower ratios? I like that it is tax sheltered and I don't even see the money, but i would also like the lowest fees. Should I just deal with it now and reassess when I move? I don't plan on being here more than 2 more years. My budgeting is as follows: (rounded) Pretax: 11% pension (matched, required) 14% 457b 3% HSA (matched) Post tax: 10% Roth w/ betterment 5% ITA w/ betterment 10% long term savings/Efund 5% short term savings Debt: 23% (very low interest student loans, but would just like them gone, freeing up this amount for investing, will be gone in 28months) Any critiques or suggestions for my $$ allocation in general is also welcome! [link] [comments]  |
| Taking out enough money from 401k to pay off mortgage. Smart or stupid? Posted: 06 Dec 2017 05:41 PM PST All these years I have been maximizing my 401k instead of prepaying the mortgage on the theory that it is better to get the tax deferred, employer matching investment in the stock market that is enjoying strong returns - rather than eliminating a low interest mortgage made even cheaper by the mortgage tax deduction. ROR on 401k being much higher than the after tax deduction mortgage payment. However as I approach age 59 1/2, I am considering a big - no 10% penalty - withdrawal from my 401k (more than $500k) at age 59 1/2 to pay off what is left of my mortgage (about $100k). Will still have plenty in the 401k to retire on later at age 66 (especially if bull market continues). Not having to pay a monthly mortgage payment will greatly improve cash flow so that I probably will never have to go into debt again. As I get older I find security is more attractive than opportunity when investing - and I like the idea of having a roof over my head that I can never lose while living completely free of debt. Am I being smart or stupid? [link] [comments]  |
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