Financial Independence How is FI possible for someone with a regular job? |
- How is FI possible for someone with a regular job?
- I Bought A Gym To Accelerate My Financial Independence
- Finding the perfect FIRE location: How much do things cost in _______?
- Those seeking Financial Independence, what's your spending guilty pleasure?
- Daily FI discussion thread - February 26, 2018
- Churning AMA's off. I apologize for creating the controversy, everybody...notes are inside.
- 15 year FIRE plan progress.
- Retirement account options for a high-earner with 401k company match
- Leveraging to millionaire in 8 years and Retire like a frugal king - plan
- Weekly FI Monday Milestone thread - February 26, 2018
- The 4% rule worked 95% of the time. What happened to the 5%?
- My FI Story ($300k net worth, 28 yo)
- Using HSA and investing the leftovers
- The same house for life
- Housing costs and FIRE
- What are your portfolio tracking and management techniques?
- Looking for advice to get started into FI
- 28m needs guidance
- Balancing Work/Life when considering new job offers
- Do you worry about changes in tax law affecting your long-term FI plans?
- How Much Did Your Net Worth Increase Per Day Last Year?
- Tax arbitrage (residency state)?
- John William's (Economist) studies claim that USD inflation is actually close to 6%. If this is true, how does this affect your FIRE plans?
| How is FI possible for someone with a regular job? Posted: 26 Feb 2018 07:22 AM PST I'm a long time lurker and I'm not working towards FI. But my fiance and I we've been working towards our mortgage deposit for the last 4-5 years. We've managed to save decent amount of money but by looking at some of yours FI targets it's not even a 1/30th of some of your targets. I have an ok'ish job in London and she's a teacher both on ok salary but the cost or living and everything else in London is so high it took as nearly 5 years to save enough for the deposit for the mortgage and we won't even be able to buy anything in London as we won't be able to afford it despite being very frugal for the last 5 years. We'll have to buy something outside London, and by observing my friend and colleagues is still a great achievement in my opinion because people do struggle big time to save enough money for a house deposit. Some of my friends will probably never be able to do it and some of them will live with their parents forever. I've come to a conclusion that FIRE is pretty much impossible for us, we would have to work and save for at least another 25 years so we may as well keep doing what we are doing now and keep buying properties and work till we 65+ and then live off of the rent from two or more properties that we manage to pay off before we retire, our minimum target is one for us and two more that we can buy to rent. Feels like FIRE is accessible only to people on a really good salary or enterpreneurs that can save a lot every month from runing their own business. Saving towards FIRE on a regular salary in UK is almost impossible. What do you think? [link] [comments]  |
| I Bought A Gym To Accelerate My Financial Independence Posted: 26 Feb 2018 01:18 PM PST "Wages make you a living; profits make you a fortune." - Jim Rohn Hello FI/RE community. In December 2017 I purchased an existing 9Round franchise to help speed along (and to some degree hedge) my family's financial independence. It's been an interesting 3 months and I decided to write about my experience so far to those of you that may be interested in starting a business or buying a franchise as part of your financial independence plan. Feel free to ask questions, I am not really sure how much detail to put since this post would be a mile long if I included everything. BACKGROUND
Long story short: I wanted to hedge my medical supply business with another income stream so I asked the owner of the 9Round that my wife and I work out in if I could buy him out. The gym was profitable but he lived across the country and wanted out so it was a win-win situation. Gym's typically sell for 3x EBITDA but honestly I barely understand what that means. I am NOT a numbers guy. I am an ideas guy. I purchased this gym for potential and not because I scrutinized the numbers. My book keeper and CPA think I am crazy but I prove them wrong all the time. :)
All in I will be around $115k. I have made about 35% of the required upgrades and have 3 months to complete the rest (new sign, flooring, etc). The gym was profiting about $2k per month (with 170 members) but I am anticipating bringing in $10k per month a year from now (hopefully 270-300 members). The gym is fully staffed and I spend between 5-10 hours a week there including my daily 30 minute workouts. THE GOOD I profited about $1k in December, $7k in January and $2k in February. I have made a few mistakes already and learned from them. 95% of the members are AWESOME and really appreciate the change in ownership. And I actually love my time "working" at the gym...I wish I had more time to spend there. THE BAD Good trainers do not necessarily make good employees. I have had to spend a lot of my time breaking bad habits and teaching sales to the trainers. 9Round corporate gives an estimate of how much everything will cost, but honestly, they were off by at least 10% on everything. Also, they will say the music system is $35/month (and that is true) but you have to pay $420 upfront plus another $250 for the player. That happened with insurance and worker's comp and a million other little expenses. Those $500 expenses start to add up quick when you first open. Finally working with the city and county for permits is crazy. 3 business days actually means 3+ weeks. THE UGLY I bought the gym in December which is the WORST month to own a gym. Especially since the previous owner did a lot of Black Friday Sales and I had a ton of cancellations my first week. I was in full panic mode most of December. Remember when I said that 95% of the members were awesome? That leaves 5% that are completely rude and intolerable. I have a ton of stories, but the bottom line is that people sign contracts and then don't want to pay. The people that ask nicely generally get a very fair buyout deal but I will not have people yell and lie to me. I had someone call my cell phone (not sure how they even got it) on CHRISTMAS DAY to cancel and then kept texting me that they hadn't received a confirmation 20 minutes later. The other major "problem" is that since I became owner of my 9Round, my medical supply business sales have increased 20%. This is a great problem to have, but it has taken me away from the gym and I still have work to do with the employees. They are all young and don't have much life experience...a little more teaching from me will go a long way! CONCLUSION I honestly thought that I would jump in and increase sales 30% or more. It has been slower then expected but I am still confident that I can build this business up to at least $10k per month in profit in a year or two. Once I get the right employees in the right positions, I am certain this will run with very little input from me. I don't know how to end this other then to say ask me any questions you want. I am sure I have left out a ton of details and this already feels like I wrote a novel! TLDR: I bought a gym to accelerate my family's financial independence and have had mixed results so far. Have an awesome day! [link] [comments]  |
| Finding the perfect FIRE location: How much do things cost in _______? Posted: 26 Feb 2018 10:19 AM PST A big part of FIRE involves finding the perfect place to retire to, with a balance of low cost of living, safety, healthcare, language barrier, culture, public transportation, education for children, food, etc... I remember seeing a post maybe a year ago where people mentioned where they lived, things they liked and disliked about it, and how much things cost. I've always wondered myself about the specific costs of living somewhere else, and I'm sure many of you are as well. There are sites like numbeo and expatistan, but most have found those sites inaccurate/unreliable. This is another attempt to get this discussion started from people who live/have lived in certain areas. The intent of this post is to inspire maybe new FIRE locations that we have not considered, or reconsider certain FIRE locations that we had planned. Not sure if people will enjoy this kind of content, but I'll start with...
Pros Cons I'm an expat here and spend about $2000/month and that's really me splurging and living way above my means compared to the US. I could easily cut down to ~$1300/month if I cared and still live above average. How much do things cost where you live, and what do you like or not like about it? [link] [comments]  |
| Those seeking Financial Independence, what's your spending guilty pleasure? Posted: 26 Feb 2018 10:01 AM PST |
| Daily FI discussion thread - February 26, 2018 Posted: 26 Feb 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]  |
| Churning AMA's off. I apologize for creating the controversy, everybody...notes are inside. Posted: 26 Feb 2018 01:16 PM PST My inbox has been lit up with comments and messages, which range from saying the churning AMA idea was cool, to accusing the subject of ill intentions and dishonesty, to questioning my judgement. It's all good. Given everything I've heard I'll try to reconstruct what happened later on, but the AMA's off due to the friction/controversy/toxicity/etc. it--and by extension, I--caused. Sinned without malice, you might say, but nonetheless. Feel free to hit me up directly if you'd like. [link] [comments]  |
| Posted: 25 Feb 2018 04:37 PM PST My I started my career in 2001. In 2005 I decided to try to FIRE in 15 years using a high savings rate 80%. My only awareness of FIRE came from my brother who FI in his early 30s and fatFIRE at 45. I otherwise didn't research FIRE until I came across this subreddit 3 years ago and began monthly tracking again. Over my 17 year career:
Here is a graph of it and my budget for the past 3 years, current, and next year budget. Cummulative Earnings/Expenses/Savings Graph Net Worth
I'm currently in the OMY phase and expect to stop early at 1.4M +/- whatever the SP500 does when my job is finished in a few months? Expenses I live in a M/LCOL area. My target was 12k/year which was pretty close to what I achieved. I spent on average 13.1k/year during the accumulation period 2005-2017 and 16.2k/year if 2001-2004 is included. Some of my travel expenses are subsidized because I spend money for work on my personal CCs. I would expect my real expenses would be a few hundred higher without the perks. Employment I started out of college at 64k for company A for half a year in 2001 and was laid off due to the recession. Hired a year later by company B at 72k, but wage was stagnent during the entire period I was there. Currently with company C at 130k, but I doubt I will last past this year. 401K Company B offered only actively managed high ER funds (1-3%) with additional hidden 0.25-0.5% administrative fees. Contribution + match was 227k and grew to 275k when I left. Compared to my current company C's low fee SP500 index fund it would have been around 455k. So I got ripped off to the tune of $180k. House Paid off after first year. Maintanence was higher than I expected. Roof+Siding+Windows+Door+HVAC x2 = $2140/year over 12 years. Housing cost ran ~$5.8k per year during my home ownership period. Prior to this I was renting a room for $4.8-5.4k per year with utilities included. Car Owned two vehicles over the time span, average of 9 years each, bought new each time. Average car expense of ~$3.2k per year. My current vehicle was bought used. I have amortized the cost over 5 years vs just using annual depreciation. I plan to keep it for 10 years or whenever maintanence gets too high. I'm not a car person. Variable Expenses Other than random home maintence, the majority of my random expenses comes from vacations which can range from 500-1500 for a domestic trip with friends or 1-3k for an international solo trip. [link] [comments]  |
| Retirement account options for a high-earner with 401k company match Posted: 26 Feb 2018 10:18 AM PST Hi, I'm currently making $149000/yr. I budget heavily with YNAB. I have 6 months of savings in my checking account ($30k). With my current lifestyle I plan to invest about 60-70% of my income. I'm maxing my company match roth 401k at 6% my income. I'd like to start maxing any type of of tax-advantaged retirement account. My question... What are my options for opening another retirement account? My research uncovered that my adjusted-gross income is too high (above $135k) to contribute to a ROTH IRA in 2018. Also that I am not eligible to deduct my contributions to a traditional IRA either because I'm above that limit as well. Anyway, with somebody who is a high-earner and earning a 401k match, are there any sensical retirement account options for me? Or should I just do vanilla investing, like with mutual funds, etc? [link] [comments]  |
| Leveraging to millionaire in 8 years and Retire like a frugal king - plan Posted: 26 Feb 2018 10:07 AM PST Background: After multiple startup failures, ideas stolen and so on, I decided it is time to get a job and try to become a millionaire in 8 years using Leverage to build wealth. I am 23 years old from Malta, where the minimum wage is around €9k/yr, average gross wage is €15k/year, the prime minister makes €60k gross/yr. I consider myself to be very frugal, without even trying, as I don't like going out with friends a lot and have very minimal expenses. I am single and couldn't care less about getting a gf for the time being at least and I still live with my parents, so I do not have rent / food / bills. Assets:
Expenses
Goals
How? I am going to try and make at least €20k in the coming 12 months, doing a full and part time job to maximize the gains. Once I get the €20k, I will sell around €30k worth of shares, ask my parents for €35k cash to help me buy an apartment (like they did with my brother) for a total accumulated cash of €85k. I will go to a bank and take a €35k small home loan to buy a small 1/2 bedroom apartment valued at like €120k-130k. I will rent the place for like €7k / year. This will increase my total income to around €27k/yr now I will pay all loan in 2 years, and will have €20k extra cash to take a new loan for a second apartment valued at 140k. Rent the new one, and put all income from dividends/wages/rent into it to pay it off fast - around 3 years. After it is paid off, sell both apartments for their new market value (say 4% increase annually) for a total of like €310k. Take a business loan of €250k to add to the €310k and purchase a house to demolish and develop 5 apartments (standard for my country) - (loan will cost around €2k per month, which will be hard without rent and only wage but we'll see). The 5 units will cost around €200k each. Sell them all off, pay off the loan + interest and the remaining is profit + investment. I would have made around €400k profit in 1 year. Purchase another house and develop it without any loans this time and make another €400k profit. I'll be age 32 over €1mill net worth and own around 5 apartments. Rent them out for €10k/yr each passive income. You can now go ahead and critique my plan - so as to get me to rethink my plan, Thanks :P [link] [comments]  |
| Weekly FI Monday Milestone thread - February 26, 2018 Posted: 26 Feb 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]  |
| The 4% rule worked 95% of the time. What happened to the 5%? Posted: 26 Feb 2018 03:44 PM PST |
| My FI Story ($300k net worth, 28 yo) Posted: 25 Feb 2018 06:07 PM PST I started my career in corporate finance in 2012 making $67K. I didn't track expenses, blew a lot of money going out with friends, but didn't pay rent by staying at home. In 2013, salary increased slightly to $69k, lifestyle pretty much stayed the same. In 2014, moved for a new job in a HCOL area, but had corporate housing so still didn't pay rent, salary stayed flat at ~$70k. In 2015, moved to mid-to-high COL area for another job w/ $78k salary, paying ~$1500/mo in rent, still didn't track expenses. In 2016, started to learn about and become interested in FI. Received a promotion, with a salary increase to $96k. In 2017, started tracking net worth and expense with Personal Capital. Switched companies and received a salary increase to $110k. At the beginning of 2017, I had a net worth of ~$200k, annual spending of $40k, and an FI goal of $1M. Entering the 5th year of my career, I felt great about my financial position, especially given I had not really focused on saving other than maxing my 401k. I was on track to RE in my mid-30s. But 2017 was the hardest year of my life. Switching companies seemed like a great move initially. The company had great reviews, reputation, and culture. However, the role that I took turned out to not be a fit for my skill set or interests. I feel like I am floundering in my role and feel like I've made a terrible career move. My health deteriorated due to stress. My mental health also slipped. Feeling the rapid momentum of a promising career come to a screeching halt has left me with feelings of loss, regret, and mental fog. I wanted to tough out 2017 in order to learn more about myself and track progress on my FI goals. However, I have come to a point where I feel my current path is not sustainable. Here is where things currently stand:
I feel a sense of pride for what I have accomplished, but looking at these numbers, I can't help but feel empty relative to my current state of happiness (or lack thereof). I've read and internalized the "build the life you want and save for it" post. I do feel it's applicable here, but I simply don't know what I want in my next career move. I know that this post isn't strictly FI-related, but I hope that (1) my story will be valuable for members in this sub and (2) like-minded folks can help me think through actionable next steps. At a high-level, I feel the current options are:
Let me add some color as to why I like and dislike each of these options. 1) get an MBA The FI-part of me doesn't want to take on the debt associated with further education. I am also not interested in the typical career paths post-MBA (I banking and consulting). I feel I could get into a top 15 school, I would grow as a person from the experience, but I don't think I would be satisfied in the typical MBA careers. I think I could be successful going this route since it is the most familiar. 2) get a technical degree I've worked with software engineers in my current role and the job has attracted me because there is strong market demand for them, they seem to have flexibility, and their earnings are similar to my current level, allowing me to continue to progress in my FI goals. The problem is that it is unknown - I don't know whether I would succeed in this role or in school. 3) get a JD I always thought that if I had graduated undergrad in a different time, I would have went to law school. I've always enjoyed debate, logic, and excelled in pre-law classes during undergrad. However, the job market for lawyers was abysmal when I graduated so I never went that route. Now, I feel passion calling me. I feel I would be successful going this route, but it involves taking on the most debt and foregoing the most income generating years. 4) find another role at my current company I've honestly felt like I screwed up my reputation at my current company in many ways. I could find another role but I don't think I would be happy doing so. 5) Become a product manager I am a user of a specialized SaaS platform for my field. I've used it for 3 years and consider myself an advanced user. I've spoken to the hiring manager and he is excited to bring me on given my background would bring a different perspective to the team. However, this would be a totally different role for me. I don't know if I have the right skillset for it, which brings a lot of career risk. What would I do if I failed in this role? I would make similar money to what I am making now, and would continue to progress toward my FI goals. 6) pursue a passion This is obviously the highest risk path. I am typically very risk averse, but this path sounds appealing since I feel so lost at the moment. TLDR Made good progress toward FI in first 5 years of career. Experiencing a quarter/mid life crisis regarding where to go from here. Seeking advice/wisdom/counsel. [link] [comments]  |
| Using HSA and investing the leftovers Posted: 26 Feb 2018 01:49 PM PST Normally I'd ask something like this in the daily thread but I didn't find any similar threads while searching so I figured I'd create one for future reference. I have an HSA with about $7,000 in it and another $3,000 going in throughout this year. I'm planning on maxing it next year (raises for my wife and I, woo!). I don't want to deal with the hassle and risk of keeping track of medical receipts and reimbursing myself down the line, so I use my HSA to pay for my and my wife's out-of-pocket expenses, ~$3,000/year. However, I'd like to invest as much of it as I can in stocks while also keeping $7000 (our out-of-pocket max) of it in something safe such as TIPS. This is a relatively short term strategy in the sense that as the balance increases, less and less of it needs to be in a TIPS-like vehicle. Is this the best way to have my cake (invest my HSA dollars) and eat it too (use it for medical expenses)? Would TIPS be the best option for something like this? [link] [comments]  |
| Posted: 26 Feb 2018 03:01 PM PST Question or point for discussion. I bought my house two years ago, I'm 27 now. First house but decent size 1,700 sft, good area, an hour drive from Toronto (closer to 2 in peak rush hour). There is kinda two points I have. Our plan was to live here for 4-5 years and then upsize to the big single family home. However, the market has risen 25%+ year over year. My wife and I both make a comfortable living, $100k for myself in the private sector, $~70k for her in public sector with pension. I have no doubt that in 5-7 years time we will be at $200k salary (pre tax!). The thing is even at that salary I can't imagine picking up a $650,000+ mortgage. It seems bonkers to me. Now I'm feeling like we should stay in our spot for life (finish the basement) and be mortgage free by 40ish. It's the only way to have some freedom imo. The second point is, maybe advice I'm not sure, but if I could go back I would have taken out the extra $100,00 mortgage and bought the 2,300 sft house with a double car garage. I was scared to go into too much debt at that point but looking back at no point would we have had issues making mortgage payments. It probably would have been an extra 5 years before mortgage free, but maybe a better solution. Again not sure if there is a question here maybe just anyone else feel the same/been in the same situation. [link] [comments]  |
| Posted: 26 Feb 2018 07:34 AM PST Hi all, Lately one thing I've been concerned about in regards to my FIRE journey is the impact housing costs will have. Right now, I live in Chicago, which is expensive, but not as expensive as you'd think for the third largest city in the country. However, even considering that, to live in one of the more popular areas if I wanted a nice building, I'm looking at probably 1500 for a studio (I dont have quite as nice of a place now), one bedrooms grow considerably from that. Condos can be affordable, but houses in the city are relatively non-existent and the suburbs are extremely inaccessible. I've looked at other large-ish cities that are considered cheaper based on CoL calculators (Atlanta, Denver, Charlotte, though I know those calculators aren't perfect) and it seems that in any moderately large city, a one bedroom apartment under $1200 (now) and 3 bedroom home under $400k (later) is really difficult to find. This is just from me browsing apartments.com and zillow, so I may be overreacting, but I just don't understand how people afford this while pursuing FIRE goals. I make a pretty good wage and save close to 40% post-tax monthly, but I just feel like such a large portion of my income is lost to housing, and that even moving to a less expensive city its really not that much of an impact. I know some of this is "build the life you want, then save for it" but for those of you who are living in relatively large cities, how much do you find yourself spending on purchase price for a home, or rent, whichever fits your lifestyle? [link] [comments]  |
| What are your portfolio tracking and management techniques? Posted: 26 Feb 2018 04:05 PM PST Hi everyone, this is my first post in the community. I'm a 24 and have been investing into a personal account and my TSP through the military since the day I turned 18. I'm a long term investor and was wondering what everyone's preference is to manage their portfolios. I check my retirement account about every two weeks and am thinking of using a spreadsheet to track my purchases and fund transfers. My personal market concerns keep me from wanting to be over exposed in the next coming months. Does anyone else track their accounts often or do most ignore it for months at a time? [link] [comments]  |
| Looking for advice to get started into FI Posted: 26 Feb 2018 03:28 PM PST A bit about where I am: 27 y/o married Single income(mostly. wife can't work a typical job because of health reasons. She does odd jobs and sells some art time to time) 10k debt on a car which will be paid before the end of summer Approximately 3k in checking, 1k savings, no other investments Renting Living frugally(all extraneous outflow has been cut off, no entertainment, no eating out, etc) 30k income as a private school teacher. Goals: Wife and I want to start having a family b/f I'm 30 Want to have said family on our own land. Want to be able to have semi off-grid farm life(just attended a Polyface farms workshop) Want to be able to do fun stuff from time to time(travel, diving, etc.) Skills that I have: Advanced NAUI scuba diver, guitar, a/v technician(theatre and installation), most symphonic instruments, soon to be NASM certified trainer. Side hustle: guitar lessons after school 3 days a week. Occasional house sitting Any advice would be welcome/deeply appreciated [link] [comments]  |
| Posted: 26 Feb 2018 03:21 PM PST I've recently been looking to get started with FIRE and also just got laid off (actually a good thing). I'm looking for some short term planning advice as I want to start setting myself up for a big year this year. More backstory: I graduated from college in 2012 with a lot of student debt and started working for very low pay while living in an expensive city and not being smart with my money. I pivoted into sales reduced some expenses and this has started to pay off. 2015 - I made roughly 60k and started at a new company with much better earning potential 2016 - I made 120k but didn't live very frugally. Also got married and bought a house with my wife which drained all of savings. 2017 - I made 78k as my company got taken over and we had a down year. Got laid off with 10 weeks of base pay as a severance package. I learned a big lesson about only living on my base and not my commission. Overall my assets and expenses look like this: Checking account- $8k Roth IRA in company 401k - $17k Regular IRA in another company 401k - $2k House value is approximately $470k Student loan A: $39k at a variable rate but it is roughly 6.3% Student loan B: $16k at various ranges....from 3.15% to 6.5% Mortgage: $435k (this is shared with my wife) Average monthly expenses with mortgage are about $1,400-$1,700 and will go up as we are expecting our first child in the summer. At this point I am interviewing for some great jobs and expect my pay to go up considerably. I should be able to get a job between $150-$180k and they will start me off with a few months of base and variable pay so I want to use that along with my severance pay to either: Pay down my a student loan (they both cost me $300 each for the monthly payments and I can pay off the $16k of them entirely) OR Put it in the market as I potentially change up my 401k. I was planning on rolling over my $17k ROTH into a Vanguard ROTH so I can take advantage of their lower cost index funds. My employers provider doesn't have many options for lower cost funds and I don't want this to kill me long term. Should I pay down loans or just contribute the money I should be getting into my retirement savings? What other advice would you give me? I have drastically ramped down living expenses as much as possibly and not need to compensate with my earnings. I want to be as smart as possible as I earn more money as my career progresses. [link] [comments]  |
| Balancing Work/Life when considering new job offers Posted: 26 Feb 2018 03:11 PM PST Hi, this is a throwaway as I typically contribute to this sub. I am a younger 30s professional who currently has about $600k invested, two rental income properties (bringing in 10K per year after finances), and my current salary is ~$150,000 with 15% bonus. My current company has great 401K match, is very established, and I love my team and my boss. The work life balance, leans towards more to work for me, but I choose for it to be that way. Additionally my company has several other perks that many do not. Additionally in my role I am very comfortable, and will likely get a pay raise ~15-20% in 3 years time. I have a set of skills that are highly sought after in my industry, as a result I get contacted by recruiters often (3-5 times a week). I normally tell them thanks but no thanks, however there is a smaller company that is doing very well. They need someone to start up what I am currently doing, and they are going full court press. I would get a base salary of $205K, yearly bonus of 20-22%, and a sign on equity bonus of ~$100K. The issue is that, I currently do not have a SO, or even a dog. My new job would increase hours of work per week from 50-60 to 70-90 (rough estimate, would not know actual hours) and increased commute. With that being said I if I stay in my current spot, I likely would have additional opportunities further down the line (into what I REALLY want to get into, but may be 4-6 years), at this new job, I likely would need to make an additional jump in 3 years time. So if I stay where I am at, FI in 5 years, if I switch, FI in 3 years (no current plans to RE, unless I have a lot of kids, then likely would do it, because it's a life goal). I read this Harvard Business Review that states take the hardest path, if you want to get to the highest level, which I agree with. Part of me is like there are so many uncertain variables, that it's a hard decision (and may require a move). So how do you account for this, when considering new job offers? Lastly if anyone has had experience with making a similar jump and positive or negative, I would love to hear your story. [link] [comments]  |
| Do you worry about changes in tax law affecting your long-term FI plans? Posted: 26 Feb 2018 03:08 PM PST I'm 23 years old, just starting my FI journey. Based on my salary and expenditures, my rough, conservative estimate has me achieving FI in around 15-20 years. But I still have a lot to learn about how to minimize this time. Right now I'm in the position of deciding whether to put my extra money into taxable investment accounts or try to max out my company 401k. Obviously the tax savings of the 401k intrigue me. However, the money is useless to me if I have to wait until I'm 65 to access it. My plan ideally is to use the Roth 401k conversion ladder to access the money penalty-free once I achieve FIRE. However, I am skeptical that this will actually work. I'm constantly hearing politicians talking about "closing tax loopholes," and political churn in the US means large swaths of tax laws are being re-written every election cycle. So it seems naive to me to believe that this obscure tax loophole will still be around in 20 years when I'm trying to withdraw from my 401k. I wanted to ask about this because I don't see it being discussed here. Do future changes in tax law concern you at all? Is there something I'm missing that would make it less likely for this law to change in the coming decades? Do you consider the risk worth it? [link] [comments]  |
| How Much Did Your Net Worth Increase Per Day Last Year? Posted: 25 Feb 2018 11:15 PM PST At the beginning of every year during tax time I do a detailed spreadsheet that details my finances. I started calculating the average daily increase of our Net Worth to see if we are gaining momentum from year to year. in 2017, our Net Worth increased $337.38 per day! I was astounded by that number. To figure this out, I took our year end net worth from 2016 and subtracted it from our 2017 year end net worth. What is your daily net worth increase? [link] [comments]  |
| Tax arbitrage (residency state)? Posted: 26 Feb 2018 07:23 AM PST Has anyone purchased a home in a non-income state for the purposes of residency and taxes? By changing residency to a non-income state I'd save anywhere from 15-25k depending on my income for the year which makes me think it might benefit myself by buying something that I could rent out on occasion. I travel a lot for work so residency is relatively fickle for me and our headquarters is in FL so I'm actually down there a decent amount anyways. Anyone done something similar? [link] [comments]  |
| Posted: 25 Feb 2018 04:24 PM PST Link to website: http://www.shadowstats.com/alternate_data/inflation-charts I'm interested on commentary from people familiar with his research, and also general ideas on how to maintain an early retirement plan in a high inflation environment. [link] [comments]  |
| You are subscribed to email updates from financial independence / early retirement. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment