Financial Independence As of today, I'm a millionaire. Holy Sh*t |
- As of today, I'm a millionaire. Holy Sh*t
- New Article - "Don't Retire Early. Change Careers Instead."
- My Monthly Cashflow Visualization: Updated Year End 2017
- Those FIREd, Looking from outside to this sub
- Daily FI discussion thread - January 10, 2018
- Weekly Self-Promotion Thread - January 10, 2018
- Help— self directed SEP IRA
- 23 Years for FI - FL Teacher Scenario
- Roth 401k Questions
- Instead of spending money on frivolous things, what hobbies have you picked up or what do you do to pass time?
- Re-thinking principal preservation + 4% SWR
- How do you calculate home equity in your FI plan?
- Just after some advice.
| As of today, I'm a millionaire. Holy Sh*t Posted: 09 Jan 2018 05:46 PM PST Each year, I keep a summary sheet of my investments, stock, cash, debts, etc. My goal has always been financial independence even though I never realized it until later in life. I just never wanted ANY debt (never paid a penny of CC interest in my life), and wanted to be completely financially secure. Throughout the years, I've paid off debt aggressively, starting with the highest % loan first, and made a game of it. I seriously got a thrill out of figuring out how I could either increase my income, or reduce my expenses to put more money against debt each month. Just last year, I knocked out my mortgage at age 33. That kicked my savings/investing into high gear, essentially giving me that much more to invest each month. Today, when I ran my summary, my total net worth crossed just over the $1MM mark. I have to say, I sure as heck don't feel like a millionaire. I still live somewhat frugally, but thats the life long habit that got me here. Anyway, thanks to this subreddit for the constant reminders and tips along the way. I still have a long way to go before I'd consider myself FI, but this is a major milestone I wanted to celebrate with FI (since I wouldn't tell a soul in real life!) [link] [comments]  |
| New Article - "Don't Retire Early. Change Careers Instead." Posted: 10 Jan 2018 11:13 AM PST This article seems to hit on the points that I see in here a lot. Does retiring early = happiness. [link] [comments]  |
| My Monthly Cashflow Visualization: Updated Year End 2017 Posted: 10 Jan 2018 11:40 AM PST After much experimentation, this is my preferred single-image visualization of our (wife and I) monthly cashflow. One of the best things about it is the fact that the ratio of the green area to the non-green area indicates our savings rate. It's quite easy to eyeball, and as you can see in the last year we have finally regularly hit a 50% SR. Interesting Notes for the Data Fiends
Visualization Problems
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| Those FIREd, Looking from outside to this sub Posted: 10 Jan 2018 03:36 PM PST Now that you have been in the FIREd island for sometime, what comments in this sub makes you chuckle from those who are still trying to get to where you are? [link] [comments]  |
| Daily FI discussion thread - January 10, 2018 Posted: 10 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]  |
| Weekly Self-Promotion Thread - January 10, 2018 Posted: 10 Jan 2018 03:08 AM PST Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. [link] [comments]  |
| Posted: 10 Jan 2018 08:56 AM PST So I'm maxing out on my employer 401k and my Roth IRA. My side business is finally making some money and I want to get into alternative investing like consumer loans (ie lending club, etc.) and eventually real estate once I save up enough. I've been scouring the web for good self directed IRAs but it feels a bit like a black hole. Any suggestions on good custodians for the alternative investment vehicles I'm looking at? [link] [comments]  |
| 23 Years for FI - FL Teacher Scenario Posted: 10 Jan 2018 03:59 PM PST I was bored at work and was reading Mr. Money Mustache (http://www.mrmoneymustache.com/2011/09/17/the-race-to-retirement-revisited/). One of the first comments is from a teacher not believing FI is possible so I did some rough math to estimate Years to FI for a teacher in Florida. My assumptions include No initial debt or savings, average historic US inflation rate of 3.22%, average historic US stock return of 7%, safe withdrawal rate (SWR) = 7% - 3.22%, 2018 single person tax laws, no use of tax-deductible accounts, FL average starting salary of $35k increasing at 3.22% (inflation) until reaching median salary of 46k (and no further pay increases). I considered inflation to be adjusted via pay increases and SWR. If a teacher starts his/her career at 20 he/she will retire at 43! That is still amazing to me, especially given the fact that my calculations are super conservative (smaller SWR, larger inflation rate than today, no bonuses/pay increases for 13 years, no life changes/credits/or other deductions). I didn't include dividend/capital gains taxes though. See the spreadsheet here > https://1drv.ms/x/s!AoaTs66Js-SpgkjANFPIcWaZKns1 < [link] [comments]  |
| Posted: 10 Jan 2018 03:59 PM PST My girlfriend's work started offering a benefits package with a $500 match for a 401k plan and a Roth 401k plan with no match. She decided to invest in the plan with the match, but does the community here feel that there is a point to her investing in the Roth 401k without it? To give background she is 23 making around 45K. I personally did not like the idea of her locking up here money for the next nearly 40 years. Is it unwise for her to overlook this opportunity and contribute that money to a mutal fund to retain liquidity for investments down the line such as property? If not mutual funds I would love to hear suggestions for low risk, higher liquidity investments! [link] [comments]  |
| Posted: 09 Jan 2018 06:44 PM PST Hi all, I have a bad habit sometimes spending some of my paychecks or part of my emergency fund on material items or going out and eating because after my 9-5 job, I can't seem to find a free activity or hobby that wouldn't hurt my wallet. With the remainder of my free time, I usually go to the gym, then after that hit the mall or shop online to pass time, I really hate this habit and want to break it so I can stop getting such excess in my life but I feel like my mind has to be preoccupied with something whether it's spending or exercising, or has to look forward to something in order to feel productive. I'm well aware that being TOO frugal is bad, but at the same time, I think that my habit sometimes gets the best of me and I make purchases that I regret later. [link] [comments]  |
| Re-thinking principal preservation + 4% SWR Posted: 09 Jan 2018 11:01 PM PST Hey peeps! I've thought about this issue for some time and I couldn't fall asleep tonight as my mind churned around this. I got up to type. Basically, living off the dividends/interest/gains without touching the principal is a great idea in theory, but when you pass from this world that quality of life is not going to be affected by how large or untouched your principal is. Obviously, different folk are going to want to pass on a different amount to their children (presumably mostly constituted of the principal), but let's take an extreme where you DO NOT want to pass down ANYTHING to anyone. SCENARIO 1 This is actually a huge change -- you would need to hit only ~57% of your original target amount (2.165/3.75). SCENARIO 2 I know there are many good reasons to preserve the principal. But what I'm getting at is -- preserving the principal is a choice, not a necessity. SOME REFERENCE NUMBERS (Withdrawal amount | untouched | 0-at-30y) $30,000 | $750k | $435k [link] [comments]  |
| How do you calculate home equity in your FI plan? Posted: 10 Jan 2018 07:43 AM PST I know a lot of folks don't include home equity in their net worth as it's a fluctuating number based on an estimate of market value. Our home is likely going to be our key to financial independence, however, and I'm unsure how to work it into my plan and math. Essentially my husband bought a house in a rapidly gentrifying neighborhood, for 300k. The latest appraisal from the city put it in at 1.2M, and those appraisals are typically a little lower than market value. Similar homes nearby are selling for closer to 1.5M and it's possible that a decade from now the homes will be worth closer to 2M. Brooklyn real estate's crazy. We owe 165k on it and don't intend to sell it anytime soon. I'm 28, he's 39, and we hope to raise our future kids here. Since we don't intend to sell it soon, is its value therefore meaningless in terms of FI? [link] [comments]  |
| Posted: 09 Jan 2018 10:58 PM PST We want to maximise our savings and want to look at investing as I feel money sitting in an offset account is a waste. My partner and I are in our late late 20's and reside in Sydney, Australia. Monthly Income: Income 1: $5,100 Income 2: $6,322, Rental: $4,680 Total: $16,102 Monthly Expenditure: Health Insurance: $184, Contents/Home Insurance: $61.54, Phones: $30.77, Car Insurance: $92.31, Fuel: $160, Food: $600, Education: $340, Internet: $49, Entertainment: $60, Health: $230.38 All property costs (strata etc): $1,263 Mortgages: $8,882 Total expenditure: $11,953 Difference Income - Expenditure = $4,149 All my mortgages are principal and interest with a total debt of about 1.7 million with a conservative estimated value of 2.5 million. All the properties are within 15 kms of Sydney's CBD. 1 x home loan (3.89% variable) 3 x investment loans (these were recently fixed for 5 years at 4.49%) As our loans have been changed to principal and interest, we have taken a massive hit in our saving capacity. Our currently savings goal is $4,000 a month with $50,000 is our offset account. My partner and I have been very frugal in almost every aspect of our lives, no cafe coffee, meals from home, cutting all our bills, buying only half price at Coles and Woolies and the only debt we have are the loans for our properties (no credit cards) We have also talked about saving for the next 4 years as the market appears to have slowed down substantially. In 4 years, we should have a healthy deposit for a family home. I have been on these forums for a while, and want to move our money from the offset into ETFs or the like. My partner is wanting to only pay down property loans. My partner wishes to work till retirement age and I want retire in 10-15 years. I just feel that I am a LONG way from being financially independent, and will not reach my goal of early retirement. Also, what are everyone's thoughts on buying a family home instead of more investments over the coming years. Any advice will be greatly appreciated. [link] [comments]  |
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