Financial Independence Retiring in Southeast Asia might be a lot harder than you think |
- Retiring in Southeast Asia might be a lot harder than you think
- FI at 38 years old, but I am reluctant to give up my high paying job.
- Savings At Lowest Level In 10 Years
- I can't do it anymore.
- Daily FI discussion thread - January 29, 2018
- Study on the link between early retirement and mortality
- What's the FI take on down portfolios?
- Weekly FI Monday Milestone thread - January 29, 2018
- What's this subreddit going to look like during a crash/correction?
- How do you intend to organize your withdrawals once FIRE'd?
- Early Financial Freedom and Medical School
- Suggestion for good short article in Spanish about basic investing and maybe FI?
- Using Coast FI as a means for Lifestyle Inflation
- They're watching us (gain financial freedom)
- Quarter Life Crisis/How am I Going to Afford Living?
- BI article we all can marvel at...
- Transitioning Inheritance to 401k
- I am a 22-year-old state employee and a member of the National Guard. I want to set myself up for success in the future.
- Newly Wealthy 29 year old
- Wall Street fighting against Vanguard?
- FIRE: 47yrs and hitting $6.5M net worth
- Anything else I can do to accelerate my path to FIRE on the planning / savings / investment side ?
- What to do with extra cash from a growing Emergency fund?
| Retiring in Southeast Asia might be a lot harder than you think Posted: 29 Jan 2018 04:18 AM PST I am a European guy, lived in Southeast Asia for over 10 years, worked and travelled a lot in Vietnam/Indonesia/Philippines/Thailand. Occasionally, a thread comes up where people discuss the naïve and romanticized idea to retire in one of these places on an Ultraleanfire budget. I have seen this idea go horribly wrong countless times. Mistakes to avoid when retiring to Southeast Asia
Further challenges of retiring in Southeast Asia:
Monthly income needed in Southeast Asia
OK, you still want to go. How can you make it work:
Maybe some other long time expats can help and chime in. [link] [comments]  |
| FI at 38 years old, but I am reluctant to give up my high paying job. Posted: 28 Jan 2018 07:37 PM PST I hit my number this year which comfortably covers my expenses on a 4% SWR. However, I am at a point in my career that I am earning way more than I ever have and I am lucky enough to like what I do. I have a wife and young kids and I am not sure I want to retire but would consider taking a part-time, low-stress job. But if I am going to work, I'm thinking I should just keep my current job and make 10x more money. I thought I would want to RE, but it just doesn't feel right. Has anyone else had this experience? [link] [comments]  |
| Savings At Lowest Level In 10 Years Posted: 29 Jan 2018 07:51 AM PST https://www.cnbc.com/2018/01/29/us-personal-income-dec-2017.html Basically the savings rate was 2.4% the lowest since 2005 and the amount saved was $356.1 billion was the lowest since December 2007 when it was $365.1 billion [link] [comments]  |
| Posted: 29 Jan 2018 04:28 AM PST I've been diligently working towards FI for a couple years now and I've made a lot of progress, likely reaching FI in my mid-forties. I'm a bit unique in that I don't work in an office environment, but in a high paying ($120k+) blue collar trade with a chaotic schedule. Some days I get to bed at 8AM, others at 4PM, and never at night. I also work every weekend/holiday and never have 2 days off in a row. As you might expect, my body never quite knows when it's time to sleep so even when I'm exhausted I'll have a hard time falling/staying asleep. I'd say that on average, over the last 7 years, I get 4 or 5 hours of sleep each day. Going along with that, I have no social life/hobbies other than half-asleep "Netflix & Chill" sessions with my wife when our paths cross. I'm also into powerlifting, which I still manage to do 3 or 4 days per week, even while running on empty. It's just always been my "thing," so I've kept up with it despite the odds and despite how counterintuitive that may be (I'm still hitting PR's though!). I digress... I'm having a sit down with my boss tomorrow to say enough's enough. In a perfect world I'd go into management, which would result in a temporary pay cut, but even with my education and experience my company has shown no interest in recruiting from within (I've tried). Likely, the best case scenario is that I'm offered a day time position, which will require 20% more hours for 40% less pay. It's just as likely that nothing's available during the day time and I'll have to find a new job. It's certainly possible that I'll regret this, but how does that potential regret compare with making great money and never having the time or energy to enjoy it? I'm torn about this but I'm just so tired of being tired... Anyways, thanks for listening. [link] [comments]  |
| Daily FI discussion thread - January 29, 2018 Posted: 29 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]  |
| Study on the link between early retirement and mortality Posted: 29 Jan 2018 05:31 AM PST Summary:
Direct link to the study: https://www.ncbi.nlm.nih.gov/pubmed/28233361 New Year Time article about it: https://www.nytimes.com/2018/01/29/upshot/early-retirement-longevity-health-wellness.html [link] [comments]  |
| What's the FI take on down portfolios? Posted: 29 Jan 2018 08:31 AM PST Let's say you decide you need $1mil to be FI, drawing 4% and living on $40k/year indefinitely. And let's say you got to $1mil after a serious long market climb. So, you're FI and you ER. Now a correction happens, and your portfolio loses $300k. You now have $700k to your name. You don't sell anything, though. Question: Are you now not FI anymore? And therefore do you need to "unretire"? I ask because I've had some encouraging returns recently and doing some math of assets think my numbers are a perhaps more optimistic than I thought. I sort of see the light at the end of the tunnel, but was wondering how I should be factoring in and planning for corrections. [link] [comments]  |
| Weekly FI Monday Milestone thread - January 29, 2018 Posted: 29 Jan 2018 03:09 AM PST Please use this thread to post your milestones, humblebrags and status updates 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! 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]  |
| What's this subreddit going to look like during a crash/correction? Posted: 29 Jan 2018 04:08 PM PST Just a theoretical/fun one. If the market tanks sometime in the next 12-18 months like it did in 2008, what would happen to folks pursuing FI? What kind of posts would start showing up on this subreddit? How would the community mindset change from where it is now? [link] [comments]  |
| How do you intend to organize your withdrawals once FIRE'd? Posted: 29 Jan 2018 03:21 AM PST Will you, for example, withdraw 3% from your Vanguard Lifestrategy Accumulation fund on a set date every year, or withdraw an amount monthly? Or simply change your accumulation fund into an income fund and have the money come in as and when it dictates? (If this is even possible) Just interested in the nitty gritty of being FIRE and how best to organize it, I want to have planned my withdrawals and taxes before biting the bullet. [link] [comments]  |
| Early Financial Freedom and Medical School Posted: 29 Jan 2018 02:32 PM PST Hello fellow FI seekers. I just read Set For Life which has resulted in me doing all I can save and make a plan to get FI as quickly as I can. I know that medicine is what I want to do and it has been for as long as I can remember. I have just graduated college and have very little education loans left to pay. I'm not sure how long I should wait to apply to medical school since scholarships are never a guarantee. Almost all books and articles I read on the subject really discourage graduate school as it is expensive and will delay the process of reaching FI. I have explored and shadowed every other position the medical field has to offer and have realized that becoming and OB/GYN is my dream. Becoming a doctor is the only position that has the ability to change the system in the way that I hope to influence it. However, I'm not sure how this dream and my dream of early financial freedom will work together. Do I just take the loans and pay them off when the big doc salary comes or is there a better way? Anyone have any insight? [link] [comments]  |
| Suggestion for good short article in Spanish about basic investing and maybe FI? Posted: 29 Jan 2018 08:55 AM PST The article should be in Spanish and written so an absolute "layman" could understand. This would be for the U.S. stock market. The type of investing would be basic stuff: basically brokerage investing for index/dividend/growth funds and some bond funds for retirement investing, as well as retirement accounts. These are accounts intended to be held for years (we're 47 now, so depending on when we hit a good number, we might begin withdrawing. Depending on how things go, could be as soon as 5 years). The primary goal is to explain how this kind of investing--as opposed to speculation--is not appropriately comparable to pure gambling. And how hoarding hundreds of thousands in cash is not necessarily a purely safe bet either, due to inflation risk, etc. A secondary goal might be to introduce the idea of FI/ER in Spanish and presented in a reasonable, understandable way. If there is nothing in Spanish you can think of, I'd take suggestions in English, short articles only. [I was motivated to ask about this finally when today I told my wife that if I did a trade with a market order, it's possible I'd have to buy the trade with a bit of margin money--probably no more than $500 or so, which we easily have in our checking account. And I told her we had two days to pay it back to the broker interest free, and the interest was 8% a year, so only 11 cents a day....And she wigged out, saying I was crazy to "borrow money" at an interest rate. Just totally didn't hear the numbers of this!] [link] [comments]  |
| Using Coast FI as a means for Lifestyle Inflation Posted: 29 Jan 2018 04:15 PM PST As anyone thought of using coast FI (not saving anymore) as a way to justify meaningful lifestyle inflation? For example, my wife and I are currently debating whether we should buy our dream house which would increase our expenses by ~30k/year. This would reduce our savings down from ~70k/year to ~40k/year and obviously push out our FI date. But I've been somewhat justifying the purchase in light of the "Build the life you want and then save for it" mantra. This above example would obviously not be the true definition of coast FI since we'd still be actively investing but it seems useful and reassuring to know that even if we don't save the 40k/year we could still fully retire in our mid to late 50s in our dream house. Has anyone thought about coast FI this way? I've always viewed that term as keeping your current expenses the same, get a lower paying, less stressful job and stop saving rather than increase expenses to achieve an important goal, keep the same job, and dramatically reduce saving. I guess the trade off is clearly that we will be working longer, but it seems less stressful knowing the savings requirement isn't as important because of the front loaded savings over the past few years. I really value this community's option so I'm interested to hear your take on this. [link] [comments]  |
| They're watching us (gain financial freedom) Posted: 29 Jan 2018 04:11 PM PST Marketwatch is reading our stories and sharing our success to the masses. I feel like this community is somewhat a form of bragging, but at the same time the struggle and process are also shared. Keep bragging, my friends! [link] [comments]  |
| Quarter Life Crisis/How am I Going to Afford Living? Posted: 29 Jan 2018 03:57 PM PST I'm stressing myself out over the logistics of life after college right now. I'm graduating in May and I really don't understand how I'm getting pretty discouraged after crunching numbers about income and costing of living + loans. I'm a marketing major with some experience in web design and internet marketing. I'm not skilled enough, nor do I really want to be a full time developer as my job, even though they make a lot more. In an ideal situation, I should be able to at least find some sort of entry level job, but those only pay between 35k-45k per year. I live in Maryland where rent is very high and a lot of the jobs are in DC/Baltimore (which I'm trying to avoid bc of $). I would love to move back home to avoid rent expenses but my parents live in a very isolated part of western MD that has basically no jobs is too far to commute anywhere decent. So I basically have to move out if I want to start a career. Here's what I'm coming up with as my possible financial scenario. Let's say I land a typical 40k per year job. 40,000 x .8 (federal, state income tax, ss, and medicare) = 32k income after taxes. Divided by 12 months = 2666 per month. 2666 - 900 Rent and Bills (Best living option I know of is to split an apartment, even the cheapest two bedrooms around here are usually 1600 plus 100 for bills, this is actually shooting a little low) - 400 Food (I'm not overweight but I honestly do eat a ton cause I'm a very active person. I spend about 100/week in college eating mostly cheap foods. Sometimes more if I eat out) - 583 Loans (35,000 in debt total and I'm trying to pay it off in 5 years for the sake of FI. This is not including interest) This leaves me with 783 per month but that's living a completely barebones lifestyle which I know is unrealistic. So here's some random expenses. -200 fun (Drinks, going out, sports game, gym membership, concert, golf, snowboarding) I wouldn't do all of those in one month but you get the idea. -150 car (gas and oil changes, maintenance, thank god I don't have a car payment. Sorry Moustachians but I do need a car in my life) So that brings me down to 433 per month. Assuming I have no emergencies (car accident, injury/hospital bill, speeding ticket, maybe I get laid off) So in a perfect year I can save 433 x 12 = 5196 and I got bitten by the travel bug which means I'm likely to at least blow a grand or two on a vacation. I sit here and look at these numbers and I really doubt my self discipline to not spend more than this on random things like entertainment or going out/living life. Anyway, saving this much each year and putting it into an index fund really isn't going to get me very far on the journey to early retirement. God forbid I get a job that doesn't even pay this well. Can I get some thoughts/advice? Am I overthinking this and panicking? [link] [comments]  |
| BI article we all can marvel at... Posted: 29 Jan 2018 03:26 PM PST Spells out the difference in mindsets around the US and this thread. Discuss? [link] [comments]  |
| Transitioning Inheritance to 401k Posted: 29 Jan 2018 03:25 PM PST Hi all - hoping I can pick your brains for some advice and that someone can correct me if this would be an awful idea, tax fraud, or anything else. I'm a recent college grad with no debt making $40,000/year (plus 6% 401k employer match of $2,400). I'm also receiving $11,000 annual graduate tuition assistance from my employer, of which everything over $5,250 is taxable. The going rate in my field is closer to $65,000-$75,000 with a graduate degree, so it is definitely worth getting. I'm currently saving $5,500 per year in a Roth IRA, $3,050 in a HSA (employer matches the last $400), and $4,800 (6% of my income plus 6% match) in a 401k. In total, this makes my taxable income $28,300, and my taxes $3,170:
I was (un)lucky enough to inherit about $250,000 from my dad last year and want to make sure I'm leveraging the opportunity as well as I can. It's currently in a Vanguard brokerage account invested in a target date fund. It has been invested for just over a year, so it will be taxed as long-term capital gain when I withdraw. My question is: would it make sense to improve my tax situation by upping my 401k contribution to the $18,500 maximum to lower my taxable income to $12,200 (federal taxes: $1,250), while paying the bills by withdrawing from Vanguard brokerage. This would lower me to the 12% income tax bracket, so the long-term capital gains on withdrawing from brokerage would be null, and I'd save $1,920 ($3,170-$1,250) on taxes to reinvest. The downside I see is that I can't withdraw the funds until I'm 59.5, which may throw a wrench in FIRE plans, while the upside is an extra almost $2,000 to invest, which is a pretty big chunk of money at my current income. When I withdraw the money, I don't see any extra tax burden, as income from both brokerage and the 401k would be taxed as capital gains. My other idea, if this is a bad one, is to transition $15,000 from the brokerage account to a 529, which would save $450 on this year's state taxes, and - with a good 30 years to grow before I have any kids going to college - would hopefully be enough to pay for an education. Please correct me if I'm being dumb! Don't want to mess anything up. [link] [comments]  |
| Posted: 29 Jan 2018 03:04 PM PST I am curious on what I need to do now to make life better later. With the state government, I have a 401k that isn't invested in anything in particular that I am aware of. I'm going to set up a meeting with someone with the retirement system to help me set investments up. I also have another retirement account with them that matches 8% of my salary, so I invest the full 8% from every check to take advantage of the "free money". Currently, there is a "Rule of 75" for the category of employee I am with the state, meaning that to receive full retirement, my years of service and age at the time must equal 75. For me, this will put me at 47-years-old and I can receive full retirement from the state because I will have had 28 YOS at that time (I started when I was 19). I joined the Army National Guard when I was 17, making me 37-years-old when I have 20 years in. I will have 6 years in come this July and I am staying in the National Guard, but I'm switching to the Air Force National Guard with no lapse in service. I plan on taking advantage of Tricare once my wife and I decide to start trying to have a baby. Right now for me, it's cheaper to go with the state employee health plan. At work, there are many people with 25+ years in that wish that they could retire, but they can't afford health insurance. Will staying in the military help me with health insurance? I want to be able to take advantage of being able to fully retire at 47 years old, but I have no idea what I'll do for healthcare. I don't want to be another person that is stuck at a job because they can't afford health insurance once they retire. The dream is to be able to enjoy retirement at a young age and reap the rewards from work and decisions that I make now. What advice can you offer to help prepare me for the future? [link] [comments]  |
| Posted: 29 Jan 2018 02:58 PM PST I've always wanted to retire early and travel cheap living off interest. I live in Australia (all $ mentioned will be in AUD) and at the start of 2017 had about 200k saved with my wife. I'm married and all finances are shared and shared decisions etc. I got involved with cryptocurrencies (mostly Ether) a while back and sold about 85% of what I held a couple of months ago (prices have since gone up about double since then). After the tax I'm going to have to pay I've now got about $1,100,000 in mostly cash plus about $650,000 in cryptocurrencies (about 485k if I sold due to tax). I always thought if I saved a million dollars there'd be no way I would be working - but the reality now is it's still hard to give up my job ($86,000 + $13,000 super - flexible hours, good holidays) even though I'm bored almost to depression there. Now that we have that much money we're thinking of buying a house, but where we would actually want to live and own a house in Australia would be about $650-700k (after fees/rates etc. estimate about 3% rental yield). My wife earns about 90k + super ; similarly doesn't love her job but doesn't hate it. Has anyone had experience with sudden wealth and still feeling stuck? [link] [comments]  |
| Wall Street fighting against Vanguard? Posted: 28 Jan 2018 04:22 PM PST Not sure if it's been posted here before but saw this while scrolling through the news. https://www.wsj.com/articles/wall-street-to-vanguard-were-not-your-doormat-anymore-1517157915 What do you guys think this will do? Majority of my portfolio in the market is with vanguard. Should I be worried? [link] [comments]  |
| FIRE: 47yrs and hitting $6.5M net worth Posted: 29 Jan 2018 02:20 PM PST Just hit a big milestone and want to get your advice and also answer any questions. I have been working full time since 22yrs old with a college degree. now in management and making $650K/yr. now almost 47 years old with wife [not working] + 2 kids. Net worth: Total: $6.2M with $300K in 529 for college fund.
Expense
Savings
Future
[link] [comments]  |
| Anything else I can do to accelerate my path to FIRE on the planning / savings / investment side ? Posted: 29 Jan 2018 07:41 AM PST Here is a bullet summary of different techniques we are using now, and some details about my current situation. I know there are opportunities on the spending side but will probably do a separate post in r/personalfinance for that. I'm more interested in feedback on the savings / investing side to make sure I"m doing the things I can when it comes to accounts, house, etc. I started the FIRE journey 'late' at 35. Married - dual income. My (36yo)gross $190K, her (35yo) gross $64K. No debt except mortgage $275K @ 3.25% (30 year fixed). Kids are 4 and 2 years old Pre-tax savings - max out HSA, 401K, 403B, 457B, no matches, 80/20 split equities / bond funds in all. Currently $300K across these accounts Post tax - 11K into backdoor roth per year, also 80/20 split 529 plan - (500 / kid / month) (is this enough)? Emergency fund - 20K (should this be more or just keep investing for faster FIRE with slightly more risk)? Mortgage plus taxes & insurance is $2500/ month. (currently $260K equity). Right now we also have a nanny $ 2200 / month. We should only have about 1 more year of nanny After all this and our spending we are left with maybe 10K / year additional. I have previously been putting it against the house to pay down the house faster. now I'm thinking I should invest this in a taxable account instead. thanks for any feedback. [link] [comments]  |
| What to do with extra cash from a growing Emergency fund? Posted: 29 Jan 2018 01:36 PM PST Hey all, I know this is more for /r/personalfinance but the answers aren't usually aligned with the FI/RE mindset. I feel that I have been a bit too conservative lately and I should put my cash to use somewhere else. I'd like it to be in the most tax advantageous place but also safe in case I have to use it. I currently max out tax-advantaged accounts and have been putting the extra monthly cash in the new VTC ETF. I know this is not the smartest move tax-wise but it is better than the 1.25% in the savings account. Current cash $41,000 The minimum necessary for a year (mortgage, bills, food, transportation): ~$20,000 I'd like to keep for the emergency fund. Thank you for your ideas! [link] [comments]  |
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