Financial Independence Canadian FIRE'd in Cambodia. 37, with a wife and kid. |
- Canadian FIRE'd in Cambodia. 37, with a wife and kid.
- Calculators Galore (Early Retirement, Target Number, and Coast Number Calculators)
- Anyone out there have any concerns about the market here?
- Washington Post article: Hold tight or splurge? Booming retirement accounts are making that a tough question.
- People who kept investing during the Financial Crisis
- Ready to FIRE but spouse needs convincing
- Daily FI discussion thread - January 28, 2018
- Too old to RE...but when can I FI?
- Does Anyone Single Stock Pick Here For FI?
- Looking for advice to maximize new opportunity
- Good reads for a newbie on a journey towards FIRE
- Best way to diversify bonds into a 100% stock portfolio?
- Change investment allocations when market turns?
- Abandoning USA in favor of better opportunity
- What else can I do?
- starting to save when living in a developing country
- Best Online Wealth Management Tool?
- What is the opposite of frugal but not sloth or hedonism?
| Canadian FIRE'd in Cambodia. 37, with a wife and kid. Posted: 28 Jan 2018 01:17 AM PST OK, so I pulled the trigger and retired to Cambodia. Almost lean FIRE but i'm rich over here. $330 000 CAD in high dividend ETF's = $1200 CAD per month $28 000 CAD in LRSP = returns reinvested $75 000 USD rental house in Cambodia = $400 USD per month $75 000 USD home in Cambodia = -$125 USD per month (water, power, WIFI, cable) $10 000 USD emergency fund = $0 a month So we have about $40 give or take to spend a day over here, which is hard to spend. Beer is 40 cents a can, I just had Pad Thai at a restaurant for $2. Let's just say it's very cheap. We want to put a little coffee shop on the ground floor of our house so we can "barista FIRE" but it's more just for fun to give my wife somewhere to hang with her friends. Cambodia uses the USD which sucked when buying our place but whatever. My cell phone plan 4g unlimited is $8 a month. I was paying $120 in Canada. Always saved a bit back in Canada but mostly I felt like Canada was becoming very expensive for the quality of life achieved. So I sold my house and moved. There is something inherently pleasing about swimming in the ocean every day, eating truly fresh meat and veggies, and getting a full body massage daily. Good bye Calgary. Shoot me any questions. [link] [comments]  |
| Calculators Galore (Early Retirement, Target Number, and Coast Number Calculators) Posted: 28 Jan 2018 11:35 AM PST Hey, I've been lurking on this subreddit for two years, and I'd like to share six FI/RE calculators I created based on my interest in this topic and I hope this subreddit can find utility in them. I just graduated and am about to turn 23 (I am assuming I am younger than average here, but who knows), my favourite calculator by far is the FI/RE Calculator because it showed me the power of compound interest and that the real difference is in your savings rate, not necessarily the interest rate. When I first started reading here, I used the Moneychimp Compound Interest Calculator and the Networthify Calculator. It was fun to see how money could grow, and I feel like these are just an extension of that original interest. I created them all in Numbers (Standard free OSX program) and exported them to Excel. I don't have access to excel but I think it put related tables on different sheets so just follow the naming. If someone wants to clean up the excel files for me I'll update the excel link to theirs. Download links at the bottom. Early Retirement Calculator A large spreadsheet showing money saved based on different saving rates. There is a legend at the bottom showing that the colouring differentiates between three Safe Withdraw Rates (4%, 3%, 2%). I use it by inputing my annual after tax income and scrolling right across to my desired monthly budget, then down until it meets my SWR, then left across to see my possible early retirement age. It's also fun to scroll to the bottom to see how much I could have if I don't retire early. Target Coast Year I think some people have requested this one. It shows you when you can start to coast and when you can fully retire based on savings goals you input. Target Number A basic calculator that shows how much money you need to save in order to retire. It gives you the total amount needed to save, and then breaks that down into annual and monthly saving goals. Target Amount If you already have a target number in mind this calculator shows you the amount you need to save in annual and monthly goals, as well as showing you how much you will be able to spend in retirement at five different safe withdraw rates (4%, 3.5%, 3%, 2.5%, 2%). Target Year by Target Number A very simple calculator similar to the target number calculator that shows you when you can retire based on savings goals you input. Target Year by Target Amount Similar to the Target Year by Target Number calculator but uses a set target amount goal that you input. Notes I am no spreadsheet expert, and these are completely made up based on what I wanted to calculate in my own life. Best I can tell the calculators are accurate to +/- 1 year, so take it with a grain of salt. There is a lot of hidden table and opacity trickery to hide the unnecessary calculation cells so be careful when making edits, try to just stick to the input tables that are there. I locked the graphic tables in Numbers, but have no idea if this transfers over to excel. In the sheet names I used "Number" to refer to the full amount of retirement saving, and I used "Amount" to refer to what you will be spending in retirement. (So "Amount" = "Number" X SWR%). I also used the term "expenses" similar to the way MMM would use it. Money is either saved or expended. So be aware that maybe not all saved money will be invested, but saved for future expenses. [link] [comments]  |
| Anyone out there have any concerns about the market here? Posted: 27 Jan 2018 08:46 PM PST I love this sub-Reddit and folks are smart from a traditional investing sense but it seems very odd to me that almost everyone is continuing with their asset allocation as "business as usual", expecting recent gains to continue, and/or overestimating their position on FIRE like this is a "normal" environment. Almost every key metric is historically at extreme levels (valuations, sentiment, debt/GDP globally, ETC...). Also, any negative outlook here quickly gets down-voted. I think this is very interesting... please don't take this as a negative post - that is not my goal here but appreciate your feelings about this. UPDATE: after 15k views and over 350 comments, my views above seem correct overall in terms of the positive sentiment on this thread. There will be a lot of disenchanted folks. [link] [comments]  |
| Posted: 28 Jan 2018 03:29 AM PST I'm sure many here will enjoy the anxiety boost from the folks cited in this piece: http://wapo.st/2BxTXcZ
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| People who kept investing during the Financial Crisis Posted: 28 Jan 2018 02:47 AM PST In hindsight, you made exactly the correct decision - well done. How did you keep your head when all around you were losing theirs? [link] [comments]  |
| Ready to FIRE but spouse needs convincing Posted: 28 Jan 2018 11:55 AM PST We just hit 3M and no one knows among our family and friends. I am ready to pull the trigger on FIRE but my spouse needs convincing. We are in our early 40s with young children. My spouse loves his job and doesn't plan on retiring till 55 and also for health insurance reason. My spouse is not convinced about me retiring and wants to save at least 5M to be conservative. This is in case one or both loses our job or hit with another recession. We are probably more concern about the cost of health insurance and making sure we have continuous coverage for our family. We are frugal and savers. We never inherited money or had a windfall. We maxed out on our 401k since our 20s even when we only made 30k a year per person. My main reason on wanting to FIRE is so I can spend more quality time with my children without the stress of my job. Salary is 250k Evenly split - Taxable accounts 1.1M - Retirement accounts 1.6M. 401k and IRA. No pensions - Cash 200k - 529 100k - 350k Home fully paid in a MCOL. Not included in our net worth. Annual savings with both of us working. - Max out on 401k and IRA - 50k to taxable accounts. - 15k 529 Expenses - 28k car loan - 25k daycare per year - 85k annual living expenses Right now we live on one income. If I quit, our only savings would be my spouse 401k and IRA. Our spending at 85k a year would probably stay the same. Spouse's salary would cover that. We wouldn't have additional money to save or invest. My contributions have been 50/50 so my retirement account is similar to my spouse. I don't think we need to take money from our existing accounts since we can definitely live on his income. We wouldn't be able to upgrade our cars or home which he wants or take expensive vacations. Traveling with a large family is expensive as well as eating out which we don't do much of right now but he would like to when our kids get older. What are some of the points and convincing plan that I can layout to say we will be okay if I quit. What would be some next steps? i.e. move some investments into less aggressive investments? First time posting. [link] [comments]  |
| Daily FI discussion thread - January 28, 2018 Posted: 28 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]  |
| Too old to RE...but when can I FI? Posted: 28 Jan 2018 10:47 AM PST 38 years old here...feeling a bit down as I'm just discovering the whole FIRE concept and wasted my 20s/30s not saving. Anywho, would love to turn this around and at least become FI. Wondering how soon I could do this by? Currently making 90k annually with 40k in my 401k. No IRA. 10k in an emergency fund (sitting at Cap1). Private pension is 1.1% of highest salary times years of service (will be vested at 5 years of service come 2019). Single, female, no kids or pets, working from home in a moderate COL area. Don't love my job but don't hate it (as of today lol). Don't own a car. Goals: Become FI. Possibly own a home one day? (Rent versus buy calculator says buy in my city). Start traveling more now that I'm remote and still kinda young-ish (still trying to figure out how to do this without incurring too many additional costs). Buy a car within next 2 years maybe. Questions: 1. Using napkin math, what's my FI number? 2. How soon do you think I could get there? Totally willing to take on a side hustle or 3 (I do some eBaying, Poshmarking and "eBating" but only made about $1k from that last year). Budget: Total net salary (after taxes/insurance/401k): 4296 Expenses: Food (groceries/drinking/eating out): 500 Ridesharing: 150 Household items: 50 Travel: 500* Emergency fund: 1000** Electric: 100 Cable/internet: 100 "Me" fund (hobbies, entertainment, beauty): 150 Charity (I pay 2 of my mom's bills a month): 180*** Medical: 50 Christmas: 50 Gym: 30 Cell phone: 90 Rent (includes rental insurance, water/sewer/trash): 1240 Total expenses: 4190 Net salary minus expenses: 106 *Saving for 3 milestone birthday trips between 2018 and 2019. Doing some churning but expect will still have some expenses. **Now that my EF is at 10k, I still planned to contribute to this until I have enough to buy a car cash as well as a house downpayment one day. ***Mother hasn't worked in several years and is basically in dire straits to the point utilities get cut off if I don't pay. I don't pay for everything, just electricity and car insurance for now. Used to give her cash-don't do that anymore. [link] [comments]  |
| Does Anyone Single Stock Pick Here For FI? Posted: 28 Jan 2018 09:01 AM PST Hello, Just as the title states. Has anyone here FIREd by picking individual stocks? I've been reading a ton on Warren Buffet and on his philosophy and style, as well as all of the books he recommends. (Intelligent Investor, Security Analysis, Dhando Investor etc). And to me, that makes a ton of sense to invest that way. By buying $10 bills for $5 and taking extreme care to limit downside risk by buying when a company is on sale and loading up. I know it is not a popular viewpoint on this sub, but I am curious if anyone has done this here, and what their experiences were like as this is the route I will most likely be going. In a few months I'll be debt free and should be able to start my FIRE journey by year's end. [link] [comments]  |
| Looking for advice to maximize new opportunity Posted: 28 Jan 2018 01:39 PM PST I just recently got divorced and I want to make sure that I take this opportunity to maximize my options. Here's the breakdown: Self-Employed - Monthly s/e income = $11,000.00 I pay myself a salary through my S-Corp/LLC of $$55,000/yr. ($1865/bi-monthly) I am refinancing the house into my name and doing a cash out to pay my ex his equity split. I am also paying off ALL of my debt at the same time, with the exception of one loan, which has a balance of $14,500. The refi will be 80% of my homes value. ($115,000.00) Once the refi is done, the only monthly debt I will have is the mortgage and the aforementioned loan. I would like to eventually relocate to another state (1-2 years?), and retain my house and rent it out for additional income/assets. I do not currently have an emergency savings, however that is first on my to-do list. I would like to live completely off of the salary I pay myself, and not touch the s/e income at all, if I can help it. What would you recommend I do to maximize the fact that I will be essentially debt free to facilitate FI/RE? My monthly total for recurring expenses is relatively low (approx $1300.00) [link] [comments]  |
| Good reads for a newbie on a journey towards FIRE Posted: 28 Jan 2018 11:26 AM PST Hey, we have discovered the goodness of the FIRE movement! Calling on the community for any good reads/blogs/reddit groups to follow and people to learn from. Thanks for your tips 🤙🏽 [link] [comments]  |
| Best way to diversify bonds into a 100% stock portfolio? Posted: 28 Jan 2018 06:26 AM PST We have about $500,000 in our 401k and we both contribute the max each year. The portfolio and contributions are 100% stocks right now. I'm not risk adverse. Planned retirement is in 12 years, I get a safety net pension that is very secure. Thinking about doing it 3 ways. 1) The safe and easy way would be switch 20% contributions and 20% of the portfolio. 2) Change portfolio by 20% and keep contributions 100% stocks. 3) Change contributions to 50/50 stocks and bonds. keep the portfolio going. Based on the current administration policies and how the economy is reacting, I'm leaning toward 3 knowing it is higher risk. I'm probably overthinking it. Any comments are appreciative. [link] [comments]  |
| Change investment allocations when market turns? Posted: 28 Jan 2018 07:34 AM PST We all know that the market is going to turn sometime. It can't just keep going up. Right now I have a pretty risky allocation for most of my accounts which are at 90/10 stocks to bonds in order to meet my retirement goals(live off interest 30 years from now). It's been great during this market but I sure don't want to keep that when the market turns. Is it wishful thinking that I would be able to switch to a more bond heavy allocation once I see enough evidence of a downturn? I know you're not suppose to try and time the market but would it be too crazy to think I can just change my allocation to, say 25/75 or something like that when the market turns and come out on top? I guess ultimately I'd have 3 choices to make when things start going south. Do nothing, pull out, or change my allocation. What do you guys think is the best move? [link] [comments]  |
| Abandoning USA in favor of better opportunity Posted: 28 Jan 2018 01:31 PM PST I am unemployable for about 95% of jobs in USA due to a DUI. It was no big deal, just 4 hours in jail, no accident, but it is preventing me from being able to work at every single trade / government job, so the only thing left for my level of knowledge/education is to work in a factory, fast food or retail ($15-$20 an hour) with horrible retirement benefits. I really want to be a tow truck driver (tow yard owner some day), and it is difficult for me to get that job in USA now. I know I could get a government job in UK or USA if I wait another year, but I really don't want to go back. I have 700k saved up, with no useful knowledge or skills. What would be the best way to go about getting rid of my USA citizenship, in exchange for a citizenship with free health care + will give me a DUI / criminal free record + not tax me, if I decide to retire to Japan or Taiwan? [link] [comments]  |
| Posted: 27 Jan 2018 09:48 PM PST My wife and I are mil to mil in USAF yearly income together around 80k. No debt, great credit scores, 32k invested between VTI,ITA,VEA, and CQQQ and about another 35k in our roth TSP accounts in the 2050 lifecycle fund. In which we both contribute about 20% of our base pay per month. Additional 4k in old roth accounts that i plan to rollover to a better fund and 10k in savings. Currently no housing bill at all. Only bills are internet. Phones, netflix, amazon. We can save about 50% of our income each month atleast for the next year. Future plans end of this year. Leave the military and join the FAA as a Air Traffic Controller. Possiblity to increase income 2 to 3x current amount. We own nothing. We are stationed in Japan so cars are junkers maybe worth 1k a piece which is what we bought them for. Transitioning back to the states will be expensive and will have many puchases to get settled in. We are both 27 years old and one of my biggest goals right now is 1 mil by age 40. Seems impossible right now but I am sure it is withn reach with new jobs. Is there anything else I should be doing or worrying about right now? Can I do things better? [link] [comments]  |
| starting to save when living in a developing country Posted: 28 Jan 2018 01:30 AM PST Hi all i just discovered this subreddit and i find it very inspirational. Even if life is different in developed country i think that your way of view can be helpful for me so i need to have your advices about how to do a better plan of my financial life,here some details : F 38 years old married (M43),three children (13,09,07) Country: Algeria in North Africa Incomes:together equivalent of 2000$/month Spending: 450$ /month food(i cook all at home,) 70$/month for Internet water and electricity and gas(all are cheap in my country) 60$/month for fuel (we have two cars necessary for work and fuel is cheap here) 25$/month phone 200$/month for school children 40$/month for going out once a month with children 60$/month :donation 30$ /month for gym for all the family(work convention) 100$/month(various) we don't pay any thing for the house we live in but it can change (in 4 or 5 years) Other spending/year car assurance: 200$/year other car fees:200$/year one trip for holidays 2000$/year Other informations: we have all Medical assurance (include in our work) our work also offer a pension plan at 55 years old for women and 60 y for my husband( about 50% of our actual salary) for investing we have only 20.000$ in stock exchange and about 3.000$ for emergency i know i can do better with our incomes but i don't really have a clear target, the dream of my husband is to retire in Morocco but for that we must have a financial independence cause life is a bit expensive than Algeria . Thanks all for your time. [link] [comments]  |
| Best Online Wealth Management Tool? Posted: 28 Jan 2018 04:48 AM PST We are a late 30s couple with 3 kids approaching our first million. I'm looking for an online app for getting a complete picture of our finances and planning in one place, from 401ks to 529s. I've looked into PersonalCapital and SigFig. What do you all use/recommend? EDIT SigWig -> SigFig [link] [comments]  |
| What is the opposite of frugal but not sloth or hedonism? Posted: 28 Jan 2018 07:38 AM PST I saw a video with the top iphone police scanner app. He told that people sometimes forget that a ferrari can be a networking tool. To show people a lecel of wealth or success. He had been insome rich peoples housesbecause of that car. I know that financial independence leans toward frugality. But I want to read a bit more about the opposite. When you actually invest in a $10,000 Hermes briefcase and get a high earning job because of it (along with your own skills). There is a reason leaders have to wear a certain type of clothes and not just cheap jumpsuits. And its not solely formality! I could be spending my money in funds and investing etc but I wouldn't be solving my own problems in real time real life. If I need to pay $200 for an ultrasound to give me a decently correct bodyfat percentage, is this needless expenses or mindful caring about your body? I think the ladder. To me, the needless would be to pay for that underwater holding your breath, method that the athletes ise, to determine bf%. I do not have the level of wealth to pay for such a measurement. Let's circle back to the Hermes Handbag. I have no ise for it currently, and it might get stolen or torn very easily. Except for a few cheapish but tailored suits I don't own anything even approaching that level of luxuriousness. If I bought it and brought it to the university, it miggt very well get stolen at some point. But it might help me tremenduously in hob interviews and mindset of a wealthy. I will consciously begin to expect more out of life than a middle class job. Is there a sub that is [not frugality but not hesonism / stupidity or more like "mindful luxury"]?? [link] [comments]  |
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