Financial Independence Have the values you've learned here ever ended a relationship? |
- Have the values you've learned here ever ended a relationship?
- Daily FI discussion thread - January 26, 2018
- [META] r/FI Redirect Here?
- The Future of Luxury Real Estate in Jeopardy
- Critique my FI plan:
- Weekly FI Frugal Friday thread - January 26, 2018
- 45+ year old. Can I be FI in a few years?
- Thoughts on ESPP Plan - 2 Year holding period
- FIRE is an gift and a curse
- I think it's time to engage semi retirement but wanting to hear opinion
- Anyone ever use a SERP retirement plan
- Between diversified portfolio or "free money" for an investment property. Recommendations? Ideas?
- Critique - Portfolio for mid/long term investment
- How do I FIRE after I hit the my number?
- Calculated Risk
- Impact of travelling young on FIRE date
- Financial Independence with $500k
- 24 year old here - am I too young to FIRE?
- From "Rich Broke" to FI: Need Some Advice Starting Out
- Maxed out retirement plan for the year, can’t contribute to Roth. Is Starting an HSA a good idea?
- How is you’re FI “retirement” income structured?
| Have the values you've learned here ever ended a relationship? Posted: 26 Jan 2018 09:54 AM PST I don't know if it's the values I've learned, or if it takes a certain person to be open to those values in the first place--but they are really making me rethink a relationship. A small vent--I met a guy who is 9k in credit card debt. I was sympathetic as he grew up in poverty, and for some reason thought I could help him. I'm a financial planner, so that is what I do for a living. Yet he still buys ridiculous things on Amazon. I told him he should try to limit his going out to eat to 1X a week (because I know that he wouldn't stop) and he thought that was ludicrous. He expects me to pay for dinners etc because he is in debt and I have a well paying job (yet he somehow has the funds to buy beer and amazon splurges). I've found jobs for him (He is still in college) but he 'doesn't like them' or 'doesn't want to wake up that early.' His mom pays his car payments after he bought a brand new, upper-end Mazda. The most ironic thing is he is adamant about sustainability and getting out of the clutches of consumerism. While he is on the extreme, have any of you ended a relationship because of the principles that go along with Financial Independence? To me, it's not just about money--but about personal responsibility, ignoring consumerism, self sufficiency, discipline and hard work--all of these things I take pride in. Someone who lacks the will power to make basic changes or who has so little pride that they continue on in their lifestyle that has thrown them into debt-slavery, or someone who refuses to take personal responsibility for their actions and choices loses my respect immediately. The nail in the coffin was when I showed him MMM "your debt is an emergency" and he claimed that he likes the premise, but the actual application was "way more difficult than he claims." I do not believe it is that difficult to STOP SPENDING MONEY. It almost makes me feel guilty, because I immediately framed it as me caring more about finances than the individual-- but when I thought about it--again, it isn't about the money. I think that people who have the same values and principles I have will naturally lean towards frugality and a desire for independence. Yet my nature is to try and open people's eyes and help them come up with a plan. I guess I never really realized there are people that you cannot help. My job has people WANTING help, so this was a real eye opener for me. A good lesson learned: to keep my principles in tact requires a bit of selfishness. [link] [comments]  |
| Daily FI discussion thread - January 26, 2018 Posted: 26 Jan 2018 03:09 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]  |
| Posted: 26 Jan 2018 01:22 PM PST Can the mods start r/FI and have it redirect here? It seems we often abbreviate to that anyway. Why not make it official and maybe a bit easier to find us? Note: I'm not a reddit power user so maybe redirects are against rules? [link] [comments]  |
| The Future of Luxury Real Estate in Jeopardy Posted: 26 Jan 2018 11:06 AM PST Been thinking a lot about buying a home lately and I'm basically looking at absolutely everything on my local market. I'm fortunate enough live near some of the most affluent neighborhoods in America and whenever I'm nearby those areas I like to drive down the streets and take a look at the mansions. Many of them are/were owned by famous families who helped create some of the biggest industries in the world. The homes themselves were designed by the most prominent architects from over the past 150 years. Over the years as I've driven down these streets I've noticed more and more of the estates are for sale. At this point it seems half of them are empty now. When checking the prices for these homes it's clear the families are struggling to sell these properties, even at a loss. Many of them lower their prices by millions and take years to sell.. According to CNBC and many other sources, more and more people move into the millionaire income level every year. Free enterprise has never been better. Yet, according to Business Insider (and other sources), less and less people are buying large estates. It seems the latest trend is "minimalism" for people at all income levels. So, my question is, what's the future of these properties? What's the future of luxury real estate in general? What is the outlook on future generations owning these homes? What are your opinions? [link] [comments]  |
| Posted: 26 Jan 2018 05:44 AM PST 25YO male getting married this coming year Sources of income currently: "Side" Business earning 30k a year Income property at ~3-4K cash flow "Real" job at 67k SO job at 60k A handful of taxable investments throwing off a few hundred a year in dividends $162k total Assets: ~$45k in IRA/ROTH Ira - not planning to touch until 59.5, contribute the max for both of us - 2 homes worth $490k total w/over 100k equity & growing... live in 1 rent the other - 10k emergency fund - $15k 401k - $3500 pension plan - $10k savings for another income property Expenses: I've made an inflated budget that covers more than we actually spend... $4200 a month. So basically in "non job" income I've calculated we can cover 67% of expenses currently. SO will not be quitting job so technically I could quit now The plan is to buy another rental property that should add hopefully around 5k a year on the income side then save up 1 years expenses and boost taxable investments a little bit to where it's spitting out a meaningful amount of dividends to add to the budget. The one year expenses takes the pressure off of earning short term money in my business. So, if we save about 50k in cash, month 1 draw down $4200 for expenses. Then hopefully in that month replace the $4200 plus whatever else possible getting added to taxable investments and Roth. I feel like I could quit now but wouldn't have much margin of safety Does it make sense to structure like this? And should I include 2 maxed out ROTHs in my expense calculation? [link] [comments]  |
| Weekly FI Frugal Friday thread - January 26, 2018 Posted: 26 Jan 2018 03:09 AM PST Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! 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]  |
| 45+ year old. Can I be FI in a few years? Posted: 26 Jan 2018 06:09 AM PST Hello FI! In the next three to five years I intend to sell my house and move across the country (United States) back to the area where my parents live. They're getting older, and I would like to spend time with them and help them out. I would like to not have to rely on an income from work since there aren't many jobs in my field there, and the pay is generally much worse. I'd like to post my situation and get any advice on adjustments or strategies that I should adopt. Sorry in advance for the wall of text! First, some stats with approximate values:
I want to buy some property and build or remodel a house when I move back. I've never lived a very extravagant lifestyle. I live comfortably, but my car is almost 10 years old, my house is below average for the area I live in, etc. I don't have any serious health problems (yet!). I'm getting into better exercise and eating habits. I'm slowly selling all of my cryptocurrency. I've already sold about $130k worth, and my cost basis on the whole $285k is only about $20k (I got in at a good time and held... should have sold it in December!) Some concerns/questions I have are:
Looking forward to any recommendations! THANKS! [link] [comments]  |
| Thoughts on ESPP Plan - 2 Year holding period Posted: 26 Jan 2018 08:21 AM PST Wanted to get your thoughts on this ESPP plan that is starting up and if we should contribute to it. The purchase period is 2 years, where most of the others I've seen online are all 3 or 6 months. The ESPP is your opportunity to own our future and share in the success of "The Company". It enables you to save money every month for 2 years to buy "The Company" shares at a discount, with no brokerage fees or commissions. You can save from 1% up to 10% of your salary each pay period. Your contributions are automatically deducted from your payroll on an-after tax basis. Your contributions are held in a non-interest bearing account until share purchases are made. The total number of shares you will receive at the end of your 2 year contribution period will be the equivalent of buying "The Company" shares at the market price at the start, or end of the saving period - whichever is lower with an additional 15% discount. Your shares will be deposited into your individual ESPP account. If you change your mind, you can get your contributions refunded at any time prior to the end of the 2 year purchase period. "The Company" picks up all purchase-related commissions and account fees. If we did this we would sell right after the purchase. We are currently both maxing out our 401ks, HSA, and contribute to a Roth IRA. We're doing pretty good on the retirement account aspect and I need to start padding our taxable holdings. [link] [comments]  |
| Posted: 26 Jan 2018 09:29 AM PST I find it incredibly ironic that I was happier as a broke college student with a bunch of broke close friends than I am as a FIRE'd 34year old with literally no close friends. Somewhere along the way, the journey to FIRE left me very alone. I feel like I lost the ability to identify with people anymore. [link] [comments]  |
| I think it's time to engage semi retirement but wanting to hear opinion Posted: 26 Jan 2018 10:48 AM PST I'm early 40's. Corporate life has drained my spirit. But I've hustled hard and remained frugal and it has paid off. 700K NW: Investments 500K (Mostly vanguard index funds and some reits and a small amount of peer 2 peer..about 50% in retirement accounts. ) Real Estate: 200K (2 rentals owned free and clear..renting yields around 6%) My desire is to quit the corporate gig and go live abroad in prob SE Asia...I've lived in Asia before and like it. I've got about 20K a year in freelance income that I can most likely generate for at least a few more years. I imagine my living expenses in SE Asia would hover a bit under 2K a month and I would try to hustle a bit of side income. So does this plan sound reasonable? [link] [comments]  |
| Anyone ever use a SERP retirement plan Posted: 26 Jan 2018 02:54 PM PST "A supplemental executive retirement plan (SERP) is a nonqualified retirement plan for key company employees, such as executives, that provides benefits above and beyond those covered in other retirement plans such as IRA, 401(k) or nonqualified deferred compensation NQDC plans." My company won't match so can only max at 18k in the 401k, but they do offer a SERP, which can be used as a tax-deferred account similarly to a 401k. I can put up to 85% of my income. I will be highly compensated so this can be advantageous. The downside of a SERP is you could potentially lose the money if the company went insolvent. This company is HUGE and continues to expand. That will not happen. If you plan to distribute the money to yourself while employed, it can be incremented over 5 years. If you distribute after you leave the company, it can be incremented over 10 years. This will be taxed similarly to a 401k distribution. So should I use the SERP for tax deferment or put that money in a brokerage where I would have more freedom? [link] [comments]  |
| Between diversified portfolio or "free money" for an investment property. Recommendations? Ideas? Posted: 26 Jan 2018 11:57 AM PST Hello. I am 27, making 60k. I currently have 40k in equity on my 135k home, 20k in index funds, and 5k in savings as my emergency fund. I feel very confident and secure in my job, with opportunities to grow and increase my salary. Overall, I feel pretty happy in my current situation. My doubt is with the following situation: My dad, who has been a financial example and mentor (he is 55 and has been on FI/RE for the last 5 years, I don't have any idea of his net worth but I am certain it is beyond 7 digits) has made me an offering. He is invested heavily in real estate, and has told me that I should consider buying a rental property, making a down payment of 30k, of which he would give me 10k as a gift. I am extremely grateful and happy for this generous offer, and am aware of how fortunate I am of having his support. However, in order to do this, I would have to reallocate my investments in index funds to this property, and my net worth would be tied very heavily to properties. I don't know how I feel about this, but on the other hand it is "free" money. My dad is not very well versed in stock markets and has made most of his money through building businesses or investing locally in things he knows. As such, his offer is tied to investing in real estate, as he considers it safer. In general, I don't like to ask him for money as I feel he has already given me too much and I am beyond grateful (he paid for my education and I have him to thank for not having student loans). I've learned a great deal just from watching him on frugality and the importance of saving and investing. He knows of my savings habits and he offered this as a gift in order to give me a push in my goals of financial independence. What do you guys recommend or think? Thanks [link] [comments]  |
| Critique - Portfolio for mid/long term investment Posted: 26 Jan 2018 02:29 AM PST I've been analysing the stock market for the last 2 years. I've made some small investment on the SPY S&P 500 index like 3 months ago. It's up 9% since then. Gave me more confidence. Until now I only kept my money in the bank and some funds from the bank (with very low returns like 1%-2% per year) After lots and lots of portfolio analysis I create a portfolio that is closer to a final decision. I haven't shared this with anyone yet so I'm looking for some constructive critique on it. I want to apply a buy and hold strategy with rebalancing when it is necessary. Planning to keep the money in this portfolio for the next 5 years at least. Can go as long as 10 or even more if it proves to generate well.
It's made of: * 77% - Index ETFs & Stocks * 23% - Bonds I've made some long term backtesting analysis on it and it looks like this: (since 2013 as VWOB was formed in 2013) https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2014&firstMonth=1&endYear=2017&lastMonth=12&endDate=01%2F17%2F2018&initialAmount=100000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&showYield=false&reinvestDividends=true&symbol1=SPY&allocation1_1=20&symbol2=VGT&allocation2_1=25&symbol3=VHT&allocation3_1=20&symbol4=BND&allocation4_1=15&symbol5=TIP&allocation5_1=5&symbol6=BRK.B&allocation6_1=5&symbol7=VWO&allocation7_1=7&symbol8=VWOB&allocation8_1=3 I'm a bit concerned about the raising interest rates and drop in bonds BND/TIP prices over the long run. They have been going down for decades now. Should bonds be included or not in a portfolio now? What are the alternatives? Here are a few of my ideas on why I choose the stocks/indexes above:
I'm not looking to beat the market. I want to generate income/keep the value on my hard earned money that are sitting in the bank and doing nothing :( ... inflation erodes them. Do you think this is a good mix of index funds on exposure to the market? Thank you! [link] [comments]  |
| How do I FIRE after I hit the my number? Posted: 26 Jan 2018 03:46 PM PST So let's say I'm comfortable with $50k/year retirement. With %4 SWR I need $1.2MM. What would the investment portfolio look like so that you don't have to worry about your retirement income. Can someone please break it down? Like %3 in XYZ stock, %1 in XYZ dividends, etc? [link] [comments]  |
| Posted: 26 Jan 2018 03:20 PM PST As many of us have learned both IRL and here in our shared stories the path to FIRE is often a lengthy journey filled with prudence and careful planning. We save, we spend less than we earn and bank raises. If available we max out the 401K and educate ourselves on the wily ways of Wall Street so as not to get dazzled or defrauded. We try to invest wisely and ride out the storms. Slow and steady it seems often wins the race. But what about those moments when you, the stoic and FIRE-minded individual decided to color outside the lines and take a calculated risk?? What did you decide to do? How did it turn out and what did you learn? Was it a wild ride in Vegas or something more sedate like a high performing mutual fund? A muscle car that turned into a collectible gold mine? A home purchase in a sketchy area that gentrified? Did the experience make you more or less conservative in your approach going forward? [link] [comments]  |
| Impact of travelling young on FIRE date Posted: 26 Jan 2018 07:33 AM PST I've seems that many people on this subreddit decide to travel a lot once reaching FIRE. I'm 21, getting close to finish my degree (without student debt) and have been given advice by many others (not on the FI subreddit) telling me to travel while I'm young and don't have to support a family etc. I'd love some advice :). Travel a bit while young and push back my FI date or save the expensive trips for later life? It would be great to hear from your past experience. [link] [comments]  |
| Financial Independence with $500k Posted: 26 Jan 2018 02:43 PM PST I have $500k saved up and I know I can FI with $50k per year. What are some strategies that I can get to $50k/year passive income, with least amount of risk and diversification? I am thinking about real estate investment. I already have 1 house in Detroit that I bought for $50k (cash) and I'm cash flowing about $500/month on it. If I buy 10 more houses, that would be total of $500k, but considering I'm making $500/month cash flow per house (after maintenance, taxes, vacancy, etc.), that's $5K/month. If I can keep the houses occupied for 8 years, I'll have recouped my principal. If the real estate market crashes, I am sure there will still be renters (I'm thinking about mostly section 8). What do you all think about this strategy? [link] [comments]  |
| 24 year old here - am I too young to FIRE? Posted: 26 Jan 2018 02:24 PM PST TL;DRI'm 24 and want to FIRE ASAP. Thinking about FIRE @ 30 with plans for a home, 2 kids. Before calling me crazy, please see the about me below. About me:
why I want to FIRE
eventually:
my questions, but first thank you for reading & reaching this far.
[link] [comments]  |
| From "Rich Broke" to FI: Need Some Advice Starting Out Posted: 26 Jan 2018 11:49 AM PST Life Situation: I'm 32. Single. Claim 0. No dependents. Rent in (expensive) Southern California with girlfriend. We share expenses but not combining incomes—I'm hopeful things pan out for us as things are looking good. :) FIRE Progress: Net worth = $88k Need to get to $715k+ for FIRE at current expenses (~7.5 years after paying off debts), though I'm assuming expenses will go up when we get married and have kid(s). Also, I expect some significant purchases for us in our future that include travel, possibly a small home (in a more affordable area) and/or possibly a venture mobile. Still reasoning this out and have yet to make sense of how achievable that is once we combine income. I'm also considering how I might work remotely to travel and live in a more enjoyable, more affordable area for us as my current line of work has that possibility. Gross Salary/Wages: $135k + ~$20k bonuses Yearly Savings Amounts: 0% 0%!? I want to pay off debts. I was contributing 14% (401k Pretax 6%, Roth 8%). Once my employer begins 5% base salary match in February, I will contribute up to match. The aim is to reach 72% savings (~$69k/year) by the time I pay off my debts in early 2019—see Liabilities below. Current expenses: $26,400/year Assets: $138,868 Previous Employer Retirement: $44,093 (Should probably roll over to Vanguard for my own management?)
Current Employer Retirement: $66,173 (Will begin offering 5% of base salary match in February for first time. So will contribute but should probably roll over with above to Vanguard for my own management?)
Checking 1: $2,500 Checking 2: $2,910 Robinhood: $2,223 (Started this last year for fun to begin learning about stock market for fun—not a good use of money, so should consider what to do with it?) Coinbase: $1,067 (Bought $BTC before the boom and waiting on capital gains—just for fun.) 2016 Honda CR-V, ~6,000 miles: $22,125 Liabilities: -$50,762
Having just discovered FI, I will be contributing $3,300+/month after expenses income to paying off debt as quickly as possible. I will stop contributing to my current employer retirement plan until debt is paid off (until they begin 5% match in February). The (stupid) credit card debt I transferred to a one year 0% interest account with a local credit union (includes balance transfer fee)—will be paid off prior to interest rate kicking in 9/2018. Student Loan 1 will be paid off in March using tax return (~$6,500). Student Loan 2 will be paid off in July with aggressive increase in payment. Once that's done, I intend to aggressively pay off the car loan—aim to be paid off in 1/2019. Then I'm FREE! Specific Question(s):
Big thanks! So happy to have discovered this sub. [link] [comments]  |
| Maxed out retirement plan for the year, can’t contribute to Roth. Is Starting an HSA a good idea? Posted: 25 Jan 2018 09:54 PM PST Income is above the Roth limit. I have a SIMPlE IRA that I maxed out with a bonus for 2018 (12,500 + match) Here's were it gets tricky. Since I have the simple ira, I cannot do back door roths. So should I max out a tradition, keep it in my taxable account or start an HSA. Roughly talking about 30k. I plan on retiring at this company so won't be rolling that account over. Though I do plan on transferring the balance to cheaper fund through fidelity soon, but I will still actively contribute. [link] [comments]  |
| How is you’re FI “retirement” income structured? Posted: 26 Jan 2018 05:16 AM PST What type of accounts? Ira, Roth, taxable.. If you are using index funds, how do you draw down on them? Just taking dividends? Managed payout find? Do you own anything any outside of the suggested index funds? [link] [comments]  |
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