Financial Independence People that have a $1,000,000+ net worth, what do you do for a living and how did you get there? |
- People that have a $1,000,000+ net worth, what do you do for a living and how did you get there?
- Paid off my house today.
- So it turns out I am not cut out for the college world, but I still want to make a decent living. What are some good certifications/on-the-job training/short-term school options that I can do to get a decent job? I'm sure there are millions of jobs I've never heard of so all suggestions welcome
- Daily FI discussion thread - February 03, 2018
- An Interesting Article On Stock/Bond Allocation
- How does your business factor into net worth/FIRE?
- Different investment strategies to build wealth for a 22 year old?
- Question about places to 'park' money
- Early on the path, but I just wanted to say thanks to everyone!
- Which is harder: not knowing the life you want but can save for it, or knowing the life you want and can't seem to save for it?
- The widely dangerous and accepted growing market expectations.
- 20 year old with 40k. What to do?
- 20 year old college student, 20k in savings, whats the best plan I could follow to be FI in 15-20 years
- FIRE help - Legal cannabis grower/travel blogger
- 45 Year Old, Now I Come Home
- Sleeping in a storage locker?
- Need a peer review for a soft FIRE plan
| People that have a $1,000,000+ net worth, what do you do for a living and how did you get there? Posted: 03 Feb 2018 09:27 AM PST |
| Posted: 02 Feb 2018 08:56 PM PST :EDIT: Okay, some of you are nitpicking and drawing your own conclusions.
I follow this sub regularly, but I wouldn't say I'm actively on FIRE. I save/invest heavily in my retirement accounts, but have a leisurely enough lifestyle as-is that I don't think I'll retire earlier than say my 50's. I'm 36 now. I'm extremely frugal in some areas (haven't bothered with a haircut in almost a year, wear the same exact clothes every day (minus underclothes)) and borderline excessive in others (my one true hobby is my little airplane that cost me $30,000). Everything else either is reinvested into my self-owned business, retirement or my kid. Having said that, I live in a very low COL area, but make about $130k. That's serious money out here. The mother of my kid lives with me and fends for herself as far as her bills go. The big bills (mortgage, utilities) I handle. What's funny is I can run this company anywhere in the country. In SF or NYC, that $130k won't go very far. This was key for.... Buying a brick ranch starter home 1/1/2007 for $64k at 6% fixed. Nice quiet dead end street in the city, lots of kids running around, most of the time the neighbors aren't morons. Typical American Dream. Almost 11 years to the day, I have it knocked out. I ignored offer after offer to refinance at around 3% because I knew this day was coming soon and there was no point in going through the paperwork headache to save maybe $200 in interest (providing I had it paid off when I thought I would). If you really dig through my trollish post history, you'll find the random post here and there where I ask if it's better to pay off the house or invest heavily. Most redditors said to invest and keep plugging away at the loan. I've always patently disagreed with that. The house is now mine. Free and clear. My insurance and taxes combined don't equal $1500/yr. As an old boss once told me, "Always worry about your house first. You get that paid off and it doesn't matter what happens to you financially." I took that to heart, especially with my current business. My income could dry up at a moment's notice and I'm basically unemployable otherwise. It always just made sense to get a guaranteed roof over my family's heads. TLDR: Bought $64k house 1/1/2007 making what is probably min wage now. Paid off yesterday after bumping up to low-mid $100k's in 2014. Also, I'm apparently an aspergers-riddled hermit. [link] [comments]  |
| Posted: 03 Feb 2018 09:15 AM PST I'm currently working but making only around $38,000 a year. I don't want to be living paycheck to paycheck, so what are the best certification programs out there that I could do that would actually land me a job? I'm not opposed to going to school, but it needs to be mostly online as I am working during the day. I've also heard of jobs that will train you but so far most of those are in sales, which I absolutely hate. Any suggestions are welcome. [link] [comments]  |
| Daily FI discussion thread - February 03, 2018 Posted: 03 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]  |
| An Interesting Article On Stock/Bond Allocation Posted: 03 Feb 2018 08:50 AM PST I recently came across this article which lays out the performance of different stock/bond allocations over history: https://novelinvestor.com/simple-allocation-reduces-portfolio-volatility/ While I get the point, that increasing bond holdings reduces volatility, what is clear is that at the end of the day, stocks provided a significantly higher return in all of the cases they presented. So it begs the question - if I'm 20 and stuffing money away and no where near retiring, wouldn't I be best served to allocate 100% stocks and then incrementally increase bonds as I age to a mix similar to 40/60 or 50/50? I can't think of any argument to the contrary unless I planned on pulling out money, in which case a rapid downturn could fuck me in the short term. But if I'm not going to, why waste the additional gains that can be had from purely diversified stocks? [link] [comments]  |
| How does your business factor into net worth/FIRE? Posted: 03 Feb 2018 01:21 PM PST Reading through this sub over the years, it's clear a fair number of us are involved in a substantial form of self-employment. How do you factor this into your calculations? For example, my business has net operating income of around six figures. In the grand scheme of things, it's a pretty generic, stable business (equipment rentals) that is clearly worth something were I to sell it in the future. On the other hand, if it takes up a relatively small but necessary part of my time over the course of each year, do I even want to try selling out? Either way there's a net present value that should be added into net worth. How do you determine yours? How do you plan to cash out, if at all? [link] [comments]  |
| Different investment strategies to build wealth for a 22 year old? Posted: 03 Feb 2018 08:57 AM PST I'm 22 and I'm looking for different strategies to build wealth. So far my only investments have been into ETF's, a couple individual stocks, and my 401k. I have a good amount saved, and I have no debts. Strategies I'm considering: Buying a home/rental property - By this I mean either buying a home, renting it out, and becoming a landlord. Or, moving out, living in one room, and renting out the other rooms. Roth IRA - I already invest in my 401k, and while I know you can withdraw your contributions at any time, I'm already solely invested in the US and International stock markets. That's about all I can come up with, any other ideas? [link] [comments]  |
| Question about places to 'park' money Posted: 03 Feb 2018 03:26 PM PST Question about 'parking' money. I have most of my money in investments. A large amount of those investments, maybe 2/3rds or more, are tied up in retirement accounts - traditional IRAs, Roth IRAs, 401Ks. They are in index funds and allocated 100% stocks. I am not at my FI number yet, but I hit a milestone that's not too far away a week or two ago and I was considering pulling back some money into investments with less volatility. I don't care as much about gains at this stage, but I'd like to not slide back 20% or more at this stage. I'm trying to understand where I could move my money without creating a taxable event or incurring a lot of fees to move the money. Am limited to buying things like Gold funds or TIPS if I want to park the money in a safer investment? Also, are there generally a lot of fees in moving money from index funds into other funds like gold funds if I keep them within the same institutions? I would have thought moving a significant amount of money into bonds would be the typical move, but I've heard from a handful of different places that bonds are in a strange place right now and potentially also very volatile. Looking forward to hearing people's responses. I'll reply with additional details as needed. [link] [comments]  |
| Early on the path, but I just wanted to say thanks to everyone! Posted: 03 Feb 2018 01:48 PM PST Hi all, 24 y/o here who's been a lurker for a while. Just wanted to say thanks for all the content you all bring on a daily basis that helped set me on the path to FIRE. After graduating college just under 2 years ago and getting my first 'adult job' I was doing ok with saving (~30% savings rate), but looking back I was just making poor spending decisions mostly by racking up unnecessary bar tabs like a typical irresponsible early 20 y/o. I didn't fully comprehend the power of one's savings rate to making early retirement a reality until I really started frequenting this sub (MMM simple math to early retirement is one of my favorite reads). I had been previously lurking on r/personalfinance because I'm a Finance nerd, but this sub really brought everything into perspective. I can attribute all your success stories and lessons as a major influence in me getting aggressive with my earnings by finding a better paying job increasing my earnings (from $55k to $65K with better 6% employer match/100% vesting schedule) and reducing my expensive drinking by focusing on working out which did wonders for my savings (I just need to find a cheaper apartment situation which is a huge cost driver that I hate paying). I've currently planned to max out all tax efficient retirement accounts for 2018 which has been a short term goal of mine. All and all I just wanted to say thanks for everyone's contributions that really set me on the path. I can't wait to keep progressing with you all. [link] [comments]  |
| Posted: 02 Feb 2018 09:44 PM PST |
| The widely dangerous and accepted growing market expectations. Posted: 03 Feb 2018 01:20 PM PST It is very common on this sub to see recommendations of "buy index founds" and forget. This is definitely better than gambling on stocks. There is indeed good research (Graham for example), based on historical data, that timing the market is not productive on the long term. However, there is also very good research (see Irrational exuberance, Robert Shiller, page 11 for the chart) on what the expected return is based on current P/E ratio. When you do your growth prediction/calculation for the next few years, remember that there is a negative linear correlation (all data since 1901) between current P/E and expected growth. For a P/E of 25, the expectation of growth for the next 10 years is -5%... We cannot predict the future so the stock may keep growing at 20% for the next 10 years...But it is humble to see real data before making the 7% growth assumptions. Will you keep buying tulips because the price is keep coming up? I would love to hear from people that have experienced a few of the stock crashes in the past. I am actually slowly selling some stock and paying more on the mortgage for the next couple of years... [link] [comments]  |
| 20 year old with 40k. What to do? Posted: 03 Feb 2018 02:46 PM PST I am a junior in college - parents pay for school. Not really familiar with FI at all. I have been able to save very well from a young age doing differnet jobs like video production and micro-entrepreneurship. I have some mutual fund investments, however I would like more details on how to attain FI. Things like when to buy a home, if I should just rent until I can afford a larger home, where to put my money, what % of income to save, etc. [link] [comments]  |
| Posted: 03 Feb 2018 01:06 PM PST I am a 20 (soon to be 21) year old college student in New England. Ill be graduating may 2019 with a major in Comm and a minor in Digital Marketing and Analytics. Ive always been good with money and manage to save a good chuck of what I make. Im looking for a course of action, or plan I could follow over the next 10-20 (or 15-20) years to have lets say 1 million net worth. I know people say to start young and I already have started a little. Here is my financial situation. Savings: $12,000 ROTH: $1,950 Currently working a digital marketing internship and making about $100 a week very very part time while I attend class (8-10 hours a week). I also have a youtube channel earning be anywhere between $300-2000 a month. Last years total was just over $10,000. Plan on starting other small businesses and see where that takes me. Once I graduate ill have about 40-45 thousand in debt from student loans. Hoping to land a job paying 45-50 thousand a year minimum. If there is any more info you need let me know. Im interested in seeing what you all think I should do in order to attain a million or so net worth and be FI by 35-40. Thanks! [link] [comments]  |
| FIRE help - Legal cannabis grower/travel blogger Posted: 03 Feb 2018 12:21 AM PST I'd love some advice on what we should do next. Goal of course is to FIRE asap. Quick background: I'm white trash, seriously. Had no real concept of saving money before my wife taught me. Education wasn't a priority in my family and financial responsibility was the opposite of what my parents did/do. I was taught credit is to be used for a quick financial fix, and then to file bankruptcy on it for "free money". But that's no excuse, I should have done better. So, please go easy on me. 😉 Currently: Wife and I are mid 30s. We are 100% debt free. No kids, none coming (I got snipped) We spend about $29,000/year all in. We do have a decent savings $100k +. We travel A LOT and most travel is done through CC points/miles (this is my job - recently hired - salary about $50k/year). Before and currently own a legal, tier-3, cannabis grow/processing license in Washington state (terrible business to be in right now, we're trying to sell it). We clear under $20k/year in a good year - 3.5 years in. We own a condo outright and rent it out for $1245/month. After HOAs and fees, we clear about $875 month. We also own our house outright and plan to rent it if we buy another place (we'll clear about $1300 month on it). We have less than $10,000 in retirement investments (has been super limited since we need to be very liquid for our business and investing with federally illegal money has been a very grey area. We want to be very safe, and not piss off the feds). Plus, admittedly I'm not good here. We've used other income sources/old savings to buy our properties so we won't have issues if laws change and they come after cannabis growers and their assets - hopefully. Lucky, I have a legit salaried job now and want to start planning/investing for retirement. This is where I need advice. Property has been/is our plan for retirement. We want four of five places, generating ~ $1000/month each. This alone should FIRE us since our spend is so low. Plus, if the market holds/gets better, we'll grow our wealth. Correct? But, property is getting expensive by our standard. ~$275k for a 1,000 square foot home in an semi-ok area . Since we make $70- $80k/ year, it's a lot to us. We are considering buying in other areas like Phoenix or Baltimore - any advice is welcome. Just looking for good rental markets with good cap rates, bur we'd like to stay local if possible (Portland, Or area). So, should we run with our property plan, get a few places that'll generate enough for us to FIRE fairly quickly, or go another route? I know I should diversify and invest in the market/my roth/401k /ETFs and what not, but if we do that, I won't have enough to save for down payments on the properties we'll want. Any and all advice is welcome. [link] [comments]  |
| Posted: 03 Feb 2018 11:22 AM PST Save, Save, Save, Three-fund portfolio, Mutual Funds, Boring funds, Vicki Robin, am reading it all. I really started focusing on my relationship with money a month ago. Let us just say, better late than never. But where do I start? I have around $100k saved up sitting in my checking account doing nothing. I make around $125k/year. I have around $60k in my company's 401(K) with 8% being contributed out of my paycheck. No debts. I calculated my income and expenses - have always been green, but still can do better. No more single malts and fine dining. Why this state of affairs? - started all over again 12 years ago in the job industry. I am especially interested in this aspect of FI/RE, which I quote from the sidebar:
Help me get there. [link] [comments]  |
| Posted: 03 Feb 2018 08:22 AM PST I live in a very high cost of living area and was wondering if anyone does this. It would save me tons of money but I'm sure there is also a lot of downsides. From people who have done this, is it worth it? How did you find the right locker at the right place? [link] [comments]  |
| Need a peer review for a soft FIRE plan Posted: 02 Feb 2018 08:02 PM PST Very rough numbers but I have always been j to personal finance and I was surprised when I found out about FIRE. Anyway, onto the meat and potatoes. I'm enlisted with 4 years of service. If I retire as an E-9, which I'm confident I can make if I stay for 20, and save up to a $1,000,000. I can't retire at 39 and rake home $61.7k/year. Does this sound realistic? E-9/40% retired pay: $36,692 (40% due to the new Blended Retirement System) 1,000,000/40: $25,000 (Average lifespan is 80 years) Total: $61,692/yr doing nothing. This sounds awesome to me, but is it realistic? Thanks! Also, wrote this on my phone. [link] [comments]  |
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