Financial Independence 24/m with a BSCS currently working as a truck driver |
- 24/m with a BSCS currently working as a truck driver
- For those who became FI/FIREd and went back to school to pivot, what's your story?
- Anyone with kids and a wife FIRE?
- Daily FI discussion thread - January 07, 2018
- Passing on some fatherly wisdom.
- Brief Lapse in FI goals- taking a year off traveling
- Spiritually inspired desire to FIRE?
- Personal/Luxury Savings Account?
- Prenups
- Potential Large Inheritance! Feels like Cheating, and Puts My Job Satisfaction in Question.
- junkie to FI/RE? need YOUR advice, please help...
- Worth sacrificing 6% company match for a higher salary?
- Psychology, Potential Market Pullback and the right SWR?
- Which net worth are you striving for before FIRE?
- I want to graduate from personal finance to FIRE. I have multiple questions, actually.
- Any advice on buying this house FIRE community?
- Investing anxiety if history does not matter
| 24/m with a BSCS currently working as a truck driver Posted: 07 Jan 2018 06:27 AM PST Just felt like sharing my story and wanted to open myself up to comment and criticism. A few years back I entered the Navy. I ended up getting out with most of a BSCS. I spent an extra semester finishing up my degree and received my BSCS in December of 2016. While I'm glad I finished up, spending an extra semester living in the high cost of living area (and paying for college out of pocket for my final semester) put me in a bit of trouble financially. It was a tough choice, but after finishing college I ended up moving back in with my parents to save money during my job search. The search was slow; I spent several months sending out around 200 applications to any entry level development job within 3 counties, making follow up calls, and adding items to my resume. My home is in a remote part of New York, and it seems that there's no one hiring someone right out of college up here. While I could have applied at NYC, I didn't feel like I was in the right financial situation to make a move to the city. After a month of sending resumes I ended up picking my pre-navy job back up - a cook at a local restaurant - so that I could pay my bills. I always told myself I would never go back to cooking... I really hate it. I needed a way out. I spent a lot of time looking at job openings in my area, and noticed that most of the truck driving jobs advertised a pretty good pay rate. As of May last year, after several months of sending resumes, I still hadn't received a call back. I decided to take a dive and called up some local truck driving schools, opting for one with a decent reputation that could push me through within a month. Believe it or not, I was pre-hired by 4 or 5 companies before even finishing my driving test, and had the option to choose whichever one payed the best. (There's a real shortage of truck drivers, nationwide, and if you need a decent paying job yesterday it would be a great place to start.) I began working here full-time last July. I opted for the 5-and-1 schedule when I began, which put me at 72 hours on duty each week at $19.40 plus overtime (about $1700 a week). It turned out to be a great choice for me to stay and switch my career choice, as I've been able to earn a pretty decent wage while living at home with my parents to save cash. Since I made peanuts in the Navy, and worked minimum wage before, this is my first decent-paying job. Here's how I've been able to leverage it to my advantage: Real estate: -Purchased an empty plot of land, zoned for a 2-family, in a small town near me for $2k. Planning to build my own rental property beginning next year, and have already had my plans approved by the code office. -Purchased a home in pretty solid shape at a foreclosure auction for $20k. It came with an adjacent single-residential lot that I will either build on or place a mobile home. I make $200/mo (net profit) cashflow on the current home, and hope to make $300-400 on the adjacent lot after I build on it. Business: -Formed an S-Corp which I will develop into my own trucking business once I have some money saved up. It'll probably be on the back burner until the tail end of 2018 when I can afford a truck and trailer. -Formed another S-Corp which I'm developing into a web design and management company, drawing on my experience making websites in the past. I currently have two outsourced graphic designers working for me, and manage 3 websites. I make about $20 in very low-maintenance cash flow from each website and hope to grow to several hundred over the next year. I'll probably only work my current job until I have the duplex built. At that point I'll be financially independent enough that I can live at home with my parents and build my businesses without worrying about my bills. What do you guys think? Edit: Spacing [link] [comments]  |
| For those who became FI/FIREd and went back to school to pivot, what's your story? Posted: 07 Jan 2018 01:04 PM PST 29M here. Majored in Finance, ended up at tech companies, recently lost job due to unfortunate circumstances at a startup. FI for past few years and want to get into a more creative industry with less office politics/stress. Considering getting a degree in design. For those who became FI/FIRED and went back to school, what's your story? [link] [comments]  |
| Anyone with kids and a wife FIRE? Posted: 07 Jan 2018 03:29 AM PST I'm trying to see how this would be possible for me, but two kids and a wife who doesn't work makes it pretty unrealistic. When my two kids graduate college in 20 years, that may be an option, but has anyone done FIRE before the kids are out of the house? My wife can stay home because I eat a shit sandwich at work, which I'm happy to do for her and my kids. I don't think I'd be marginally happier for less pay elsewhere. Jobs are jobs to me. Is it possible to FIRE with two kids and a wife who doesn't work? How? [link] [comments]  |
| Daily FI discussion thread - January 07, 2018 Posted: 07 Jan 2018 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]  |
| Passing on some fatherly wisdom. Posted: 07 Jan 2018 02:54 PM PST Long time lurker here, my father dropped some insights on me today about his journey towards financial independence and the mistakes he made on the way and I felt I should summarize and share. A little background My father came from a low income, paycheck to paycheck family. He watched both his parents work soul sapping jobs for measly pay and vowed he wouldn't live that way. Sound like the poster child for financial independence right? I thought so too but today he confided in me that he is unhappy and wishes he had done things differently. He worked hard to reach FI but felt he missed out on the prime decade of his life in the process. He gave me two guidelines to prevent his mistakes: (Note: These guidelines actually run contrary to a lot of the wisdom on this sub but bear with me, it's not about throwing FI out the window it is more about leading a more balanced life.) 1) Everyday be doing something that makes you smile or be thinking about something that makes you smile. Some people love what they do for a living and that's great but most people don't. We spend a huge portion of our lives working, even if we do reach RE, and it doesn't make sense to to subject ourselves to misery today in order to reach happiness tomorrow. So, Do something that makes you smile everyday: If you hate your job and could be doing something you love, do it, even if this means earning less and postponing FI/RE. But, if you can't be doing something you love, which is the reality for many that's okay too. You still have to do something that makes you smile though. How you do this is up to you, it could mean saying fuck it and taking a sick day to go on a road trip with some buddies even if it means you can't save up as much this month. Reality is different though, we all have rainy days or days we just have to grind and get the unpleasant things done. This however doesn't mean you can't be doing things that make you smile. A great source of happiness is progress towards your goals. A common goal of everyone on this sub is to reach FI/RE, problem is humans are inherently shortsighted and progress towards financial independence is to distant to generate happiness on a daily basis. How do you combat this? Set short term actionable goals that you can see and feel the results of. This could be your related to your FI goals (e.g don't go to starbucks this week and put that $20 bucks saved into savings) or it could be for other life goals like fitness or relationships, whatever you want as long as it helps you get through those unpleasant days with a smile on your face. 2.) The often spouted phrase: "Surround yourself with like minded people" in order to be successful is bullshit. It is more important to surround yourself with friends and family. It depends on your definition of success though. If you think success means having a lot of money then sure go ahead and prioritize your professional relationship, but if you think there is more to success than that then don't neglect your social support network. My dad burnt a lot of bridges with friends and family in the pursuit of financial success, and it didn't come back to bite him until much later. The truth is the types of connections you make and nurture to aid your financial success are not the ones that stick around. What's the point in having financial freedom if you have no one to enjoy it with? My main takeaway is that it is easy to focus to on the end goal (FI/RE) and forget about the journey. In the end your happiness is paramount. [link] [comments]  |
| Brief Lapse in FI goals- taking a year off traveling Posted: 07 Jan 2018 02:01 PM PST Hello everyone, I've been a recent lurker on this forum because I obviously have similar goals of early retirement. HOWEVER, I wanted to ask is if anyone has ever taken an extended break to travel for a year and then returned back to their FIRE goals. How successful were you despite a year of little to no income? To give you a sense of baseline, I am a 29F with a NW of $285k ($209k in retirement accounts and $79k in savings), renting in a HCOL area. My total yearly expenditure is close to $55k (which I could probably cut down on) and I make $170k annually. I'm putting roughly 35% of yearly earnings into retirement. No debt, no real estate, own a car that's been paid off. I've always wanted to travel for an extended period of time but don't know if I can wait until RE (even if it's within 10 years) to put this off. How detrimental would it be to quit my job and travel without any income for about a year and then come back and (hopefully) resume my current situation? [link] [comments]  |
| Spiritually inspired desire to FIRE? Posted: 07 Jan 2018 03:18 PM PST I'm curious if anyone here decided to pursue FIRE due to spiritual inspirations / experiences? I'm 30, male, $650K NW (not counting fully paid cars and my wife's teacher pension) and thinking of quitting my job in finance (just under $300K/year) within 3 years to either FIRE or pursue entrepreneurship. I grew up in poverty and graduated college with -$25K net worth. When I was younger, I was very money & status hungry with high material ambitions, however my mind set has radically changed in recent years mainly due to spiritual studies. I've studied all the major religions, but the general teachings of Buddhism really struck a cord, and then I dove deeper into Zen (Chan) Buddhism. After reading Dogen, Huang Po, Gateless Gate and various other classics, although I will not dare say that I have "achieved" any special insight, my mind is completely blown. Zen also led me to study Daoism, which further blew my mind. I admit that in the past, I was the classic Type A young male with the "typical desires" one may imagine. However, after 2 years of study and meditation, these desires has nearly all fallen away and replaced by a desire to acquire knowledge (which cost nothing in the age of the internet + public libraries). I'm not against making money -- actually I plan to make a lot of it after I FIRE by pursuing "right livelihood", "value add" business ventures that benefits the general public rather vs rich people that I work to further enrich currently -- its just that I have zero desire to spend it. I view money right now as a source of freedom and after I get my 2 kids set up in the world (education mostly), I will likely donate whatever I have left off. Not only is my desire to spent money greatly reduced, I now believe that spending a lot of money is poisonous. I know people / colleagues who made several millions but blew it on women, cars, fancy vacations, drugs etc. The dopamine rush one gets from spending money, in my view, is not unlike snorting cocaine. They are on a hedonic treadmill which I have zero interest in. I'm just curious if anyone has similar experiences? [link] [comments]  |
| Personal/Luxury Savings Account? Posted: 07 Jan 2018 12:52 PM PST I've been working on FIRE for a couple years now and have made great progress but something I struggle with is a "luxury" allowance. A once in a lifetime trip, a new TV, the newest iPhone. How do y'all fit those little things that are important to you (I'm in tech) into your FIRE lifestyle? Do you have a travel savings budget every month? Do you anticipate spending X on electronics every year? I struggle to take money out of savings once I put it in. I can almost see the days being added to my end date. As of right now, every extra cent I don't use goes to FIRE and I am having trouble remembering to enjoy life on the way to FIRE also! [link] [comments]  |
| Posted: 07 Jan 2018 03:24 PM PST I'm engaged and plan on getting married at some point in 2019. I was prior service and I am currently a Federal employee. Is it possible to put a clause into the prenup where she wouldn't be entitled to my pension/ 401k etc? If I use my VA home loan on a house, can I get a clause where I could keep it? Not trying to be Debbie downer, she doesn't know this is coming. I've seen enough divorces to know I'm not going into this unprotected. [link] [comments]  |
| Potential Large Inheritance! Feels like Cheating, and Puts My Job Satisfaction in Question. Posted: 07 Jan 2018 08:56 AM PST My step grandfather died a few weeks ago. We were not all that close but my mom and I have come to realize there's a potential for my mom to get half a million, When split among 4 people (my brother, sister, myself, and my mom) it comes to 125k each. Nothing is set in stone, we're not sure exactly what the will says. Background: 24M. Graduated a fancy undergrad college in chemical engineering. Decided f my engineering degree, I want to teach since it will be more meaningful (and I'm not in it just for the $). Howevern I read money mustache and got really into FI about a year ago. Since then, I save about 60% of my teacher salary and am looking to retire in the 35-40 age range. I'm an inner city school teacher in my first year and it's been a really tough year. Inner city schools are nothing like the top public schools I went to (or most of you went to), I could go on with an impressive list of things that absolutely suck about teaching here, but I chose this school for social justice reasons. I personally believe this is the most important and impactful thing I can do with my life, so I'm sticking it through trying to gradually get better. Hopefully things will click in my 2nd or 3rd year. The reason I bring up my job is that my current frustration with my job has fueled me to save agressively. The idea of making work optional is super alluring when I'm struggling with my day to day job. My line of thought has been to put in a solid 5-10 years teaching and then retire (potentially finding a side hustle to help me reach my FIRE number if I leave teaching sooner than 10 years). Now back to the original point: now I may be given a large sum of money. That would change my FIRE goal from age 35 to age 29. My first thought at that sum of money was sheer excitement, But there were many thoughts following. One, it feels like cheating! I didn't earn this money and FIRE won't feel entirely my doing and accomplishment. Two, it entirely lessened my excitement about money. FIRE is so alluring, but at the prospect of being handed it, it does not excite me as much. Three, I started thinking hypothetically, what if I were given my entire FIRE number? It would feel ridiculous to retire now at 24 with one year of profrssional work. What if I were given half of it and could retire in 3 years? Still seems ridiculous. All of these hypotheticals beg the fundamental question I ask myself all the time: what would I do if money were no object? I asked myseld that out of college and it lead me to teaching instead of engineering. When I answer that now, however I'd love to fill it with hobbies galore: carpentry, reading, triathlons, races, backpacking, travel, time with family etc. And yet, I'm stuck with how much I want my job. I do not love my job right now, but I believe in it so so much. When I think of what truly makes me happy, I always come back to those hobbies I listed above. Occasionally, a moment in teaching will be a truly happy moment too, but selfishly I would NOT go through the stress of teaching just for those moments. But when I think of how can I best serve the world, teaching over city kids is right at the top of the list. I could go into carpentry, for instance but part of me feels selfish for not giving the inner city teaching a chance. Also doesnt help that my job is SUPPOSED to suck my first year. It's a tremendous learning curve, but that doesn't lessen the daily suckiness of going to work. So, this post is more about job satisfaction and striving for happiness, but FI adds an interesting dimension. If I had to work until 60, I would stick this teaching out, but with aggressive saving I can get that down to at least age 40, it feels right. But if I magically could get that down to age 30, age 28 (with an inheritance) it no longer feels right. What are your thoughts? EDIT: a lot of people kind of went overboard when I mentioned my FIRE number of 400k. I haven't really put thought into my FIRE number for the reasons many people posted: I'm too young and don't know what my future will look like (family size being one of them). 400k is simply 25 times my current COL which I live very comfortably in. But my FIRE number wasn't the point. It was the question of what I do with extra money? Don't worry I'm not going to quit my job because of it. I'm going to invest it, forget it, and then assess my FIRE number when it makes more sense to. With regards to my job satisfaction, I'm realizing from you guys that that has nothing to do with the inheritance. Thanks for that reminder. [link] [comments]  |
| junkie to FI/RE? need YOUR advice, please help... Posted: 07 Jan 2018 01:10 AM PST Hail adventurers and well met! Incredibly fascinated by this amazing community. What a tremendous resource to stumble upon when i needed it most. Intro: Not much more than a year ago, i was lost, coming up on a year clean from heroin, was still lacking much direction, it was considered a large purchase for me to acquire a new tablet and i had no assets or capital to speak of. Primary source of income was S.O.'s minimum wage job while i worked on freshening up my IT skills and looked for more work as the contracting gigs were few and far between. Life Situation: Single (40M) + S.O. and small child (holidays + weekends) in continental United States. FIRE Progress: I only recently became aware of FIRE and began lurking this subreddit within the past ~30 days. This is my first step in the process towards taking FI/RE much more seriously. Gross Salary/Wages: 1099 independent contractor, grossing roughly $10,000 / month with project set to expire in April, unsure of status after that. Right now it's about a coin flip if we get another 60-90 day extension. Hard to say, but i consider it to be finite, if not on borrowed time. Yearly Savings Amounts: Will circle back to this, but none/nothing to speak of, unfortunately. Other Ordinary Income: S.O. continues to bring home 30-35 hours / week and covers her share of monthly expenses, which continues to be a huge help. Rental Income, Actual Expenses, and Depreciation: N/A Current expenses: (~$2075/month) - Rent $500 - Utilities (including internet) $200 - Food, gas, other essentials $800 - Medical $575 Assets: $392,000 - $16,000 US Dollars (USD) - $8,000 Automobile - $240,000 Ethereum (ETH) - $120,000 Bitcoin (BTC) - $6,000 Litecoin (LTC) - ~$2,000 various Altcoins Liabilities: ~$44k student loan debt in default for nearly two decades. I will also have tax liabilities potentially in the $40-50k+ range. Specific Question(s): I honestly don't even know where to start. I need some help. Without turning this into a drama fueled rant, i do think it's important to try and give a little background to help readers potentially understand how i ended up in this situation. I'm very grateful to be able to sit here and type this post and have found a wonderful forum to begin expressing some newfound interests. I'm a single male who has been a junkie for a decade and a half. I'm coming up on two years clean and have been working on this current project for ~11 months. The company i work for pays us in Bitcoin. I've learned a TON about the technology and cryptocurrency markets in general. I really believe these speculative tokens will someday have real world value, but at the same time i also understand the immensely risky nature of these various beta tests and know it could all come crumbling down with one swoop of regulation attempts, or one hack, or one bug is discovered. I've been working as much overtime as is available, living as frugally as possible (didn't even buy a car until we hit six figures net worth) and trying to keep about $10,000 / month in the various crypto markets while only selling enough BTC for fiat (USD) to cover our monthly living expenses. I paid for my car in Bitcoin a few months ago. The computer i use for work every single day was paid for with Bitcoin. Due to my unfortunate series of poor life choices, i'm essentially starting from scratch in my forties, but with ruined credit and some work experience and marketable technical skills. With the end of this project looming, i want to begin doing something to potentially diversify and fortify what wealth i've been fortunate enough to build over the course of 2017. I know many folks don't regard cryptocurrencies seriously, but i haven't gambled a hundred dollars in hopes of nailing some 1500% returns overnight. I do (somewhat) understand the risks, i've learned some expensive lessons along the way, but eventually figured out a dollar cost averaging approach that has worked well for me. I want to continue building this wealth, but not even sure where to start. I also cannot be assured that my income will remain consistent beyond April or May, which is another consideration. I don't use credit, so i haven't had any huge need to begin repairing that. I can secure a private loan if/when we are ready to buy a home, but not sure i'm ready to make that kind of commitment until i've figured out a path forward with all these unknowns. I apologize in advance for the rambling nature of this post. It is a mess, as am i. Constructive criticism of all manner welcome and any specific advice, words of wisdom/encouragement are much appreciated. TL;DR - Dollar Cost Averaged my way to some successes in 2k17 with Bitcoin (and Ethereum) in the crypto markets. How to i go about protecting wealth build in a virtual world towards a FIRE future? [link] [comments]  |
| Worth sacrificing 6% company match for a higher salary? Posted: 06 Jan 2018 05:18 PM PST Currently my gross income is $67k/yr. The new job will be higher, but I do not know exactly how much higher yet. At what salary do you think it would be worth it to accept the new job with the higher pay (but 0% matching). With my current salary, I plan to max my 2018 401k regardless of which option I choose. Any extra money will go into an IRA. (Don't think I'll have enough to max both yet) My main concern is that with the new job only $18,500 (the 2018 401k limit) will be deposited each year, but with my current job $18,500 plus the 6% my employer matches (which right now is 67,000 * .06 = $4,020) will be added. Over a few decades (I'm 24 y/o) that extra 6% each year could add up considerably. I was thinking that an acceptable salary would be ~$80k. $67,000 + $4,020 = $71,020 (to compensate for the loss of company match). And then $71,020 * 1.10 = $78,122 (this is to get a normal 10% increase that you normally aim to get when switching jobs) I appreciate any advice. Thanks! [link] [comments]  |
| Psychology, Potential Market Pullback and the right SWR? Posted: 06 Jan 2018 05:48 PM PST Without getting into the optimal SWR question which seems to be very individually based, I have a question regarding how to psychologically prepare for a pullback now that we appear to be near a relative market high spot. Is anyone else simply discounting their retirement savings by 25% (horrible, awful, terrible pull back of the worst order) and then applying a 4% SWR? If you can clear this hurdle, even the most fiscally conservative among us should feel ok dipping our toes into ER in these market conditions. [link] [comments]  |
| Which net worth are you striving for before FIRE? Posted: 07 Jan 2018 05:51 AM PST For me, it will be at least 1 million euros, preferably more. [link] [comments]  |
| I want to graduate from personal finance to FIRE. I have multiple questions, actually. Posted: 06 Jan 2018 08:56 PM PST Long time lurker. First time poster. I have no debt. I have 6 months of expenses in savings. I am working slowly, but steadily on eliminating my mortgage. I max my 401K. I opened an IRA and maxed it (5,500/year) as well. I don't qualify for a Roth IRA. Where do you put the rest of your money? I don't understand the next place to put it. Also, I'm a single mother. My ex-husband very generously gave me the house we bought together to raise our son in when we divorced to minimize the disruption in our son's life. The house was a screaming deal bought at the nadir ($415K) and is now worth roughly $660K. It is in the best school district near my work, zoned for the best schools in the district. However the mortgage is a lot each month ($2,500), and the house is large for two people (myself and my son). I did not imagine myself having a mortgage after age 35, but I also didn't understand how rapidly housing value could go up. What is the FIRE advice on keeping a big, expensive house that is in a super great neighborhood? Other FIRE questions:
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| Any advice on buying this house FIRE community? Posted: 06 Jan 2018 04:17 PM PST Hey dudes, looooong time reader, don't post much at all, but I do quietly cheer you guys on. Alright help me with this housing decision. I live in Dallas and rent from my landlord for a ridiculously cheap sum of 795 a month. She offered to sell me the house for 350K. I have 30k saved up for a downpayment. I work full time and I'm going to grad night school classes to get a MS and an MBA, I should be done with grad school by the end of this year (cross your fingers). She wants owner financing, where she carries the note and wants to charge a ridiculous 5.5% interest rate. Zillow/other estimates are that the home is around 400k, its a duplex with a long time renter (and friend) on the other side. My dad (godbless him) has stated he would help me, never gave a hard number so lets figure he goes in 50/50 with me and my downpayment is 60k. The numbers say that my principle and interest payment is $1,646, with taxes at about $600 insurance at $125 for a grand total of $2,371 monthly payment, of that the renter would pay $800 and I'm left with $1,571 in rent. My salary is 76k but I've been getting bonuses that have pushed me up to mid 90k. Using a conservative 70k salary dividing by 12 and using the 28% "rule" the most I should pay is 1633, which this is under but I have sooooo many questions: It is kind of scary to "depend" on my renter. He's rented for longer than me (him 8 years me 5). The location is amazing, you can walk to 3 different grocery stores, over 20(+) restaurants and bars but far away enough that the friday/saturday bar crowd doesnt make noise/nuisance at night. Arts district/live music is a 5 minute cheap uber and I really love living here. So questions: 5.5% and 350 is steep, I looked at comps and they around the 400k range. This would be my first house. I'm terrified the renter leaves. If he did I don't think it'd be hard to find a new one and charge 1,000 to 1,100 (I'm pretty close to a university and the proximity to nightlife would make it an easy sell) but I'm afraid of quality of life if a bad renter shows up and I'm forced to live with them for a year. I have no debt and my net worth (only counting investments) is 250k. I'm terrified! What if my friend the renter leaves and despite what I said above I can't find anyone and I'm on the hook for the full 2,371 a month. My plan is to sell half of my crypto stock this march, being conservative would let me pay another 30K in downpayment to get total payments down to 2,104 and w/ the renter at 800 my payments would go down to 1,304 (which is a reasonable rent in this city, most average apartments go for around 1,100-1,300 and each unit of this duplex is a 2 bed 1 bath with an actual sizable back yard for each unit). Anyone have any experience doing this? is it fucking scary as hell? Do you only buy the house with the full knowledge that you could last years paying with no renter? I could probably pay the full amount without a renter for about 2 years before I'd be in hot water and would be forced to sell. And please let me know if I'm thinking about this incorrectly but my theory is: I'm going to pay for a roof over my head no matter what, so if I can shove bonuses and windfalls into equity into the house until my monthly payments fall into the range of what a renter would pay, than I should pull the trigger and buy this house. Sorry for being all over the place with this post I'm really fucking scared and I don't have family or friends in my financial position to ask these questions. Final thoughts: I will never ever live in such a great place for such a low price (795 a month). This is a wake up call that my choices would be to live in a much worse place for 1,000+a month, or pull the trigger on this deal, pay 60k now, another 30k in march (or negotiate to pay the full 90 in april) and try not to hyperventilate that I'm relying on rental unit to be occupied 60% of the time. Ending on a note of optimism: I could see this being a huge step up. And I love the option in the future of either 1) making this my forever home; tearing down the duplex and building a forever home in the future or 2) moving out in 5 years and just becoming a land lord myself, either doing the upkeep myself or contracting a 3rd party and having my first passive rental income stream. Any responses are very appreciated, and sorry for the scatter brain post I'm just incredibly nervous this is the biggest financial decision I've ever made. [link] [comments]  |
| Investing anxiety if history does not matter Posted: 06 Jan 2018 10:56 PM PST Hi all, TL;DR
I have recently achieved my first milestone of 100k NW. In the pursuit of financial independence, I have been exploring investment options and stumbled on this amazing community. I have read through the materials and resources often recommended, and have opened a taxable brokerage account. However, I am anxious invest and lose a chunk of my net worth as a result. My thinking is below: In this community, it is generally accepted that the average investor (or even the professional) does not know how the market will behave in the future, and that historical performance is not an indicator of future performance. This applies to individual stock as well as ETFs / mutual funds. My anxiety comes from the fact that it is however generally accepted that over a long enough timeframe, returns are positive. This community widely accepts the trinity study's finding. However, the trinity study is a back-test on historical market data, and if history is of absolutely no indication of future performance, how is the average investor so optimistic about long-term returns? I have been holding off on investment for this reason. As an example, somebody who bought CAC40 (biggest 40 French listed companies) on 1-Jan 2000 has lost money as at today, 18 years later. Again, history is of no indication so the example above shouldn't matter, but it is very possible that the US stock market goes through a 10-year bear market, and that long-term >4% real returns are not real if history is of no indication. I just wanted to check with the community if anybody shares this feeling, experiences the same anxiety, or if I am missing something? Happy Sunday [link] [comments]  |
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