Financial Independence Updating a previous post for any final thoughts. Retiring at 40. |
- Updating a previous post for any final thoughts. Retiring at 40.
- Daily FI discussion thread - March 03, 2018
- Is anyone else (homeowners only) aligning their primary residence mortgage payoff with their FIRE date?
- Turning poor diversification to better diversification?
- Thinking of quitting my job with F**k You Money (but nowhere near FIRE money), need advice.
- Living Beyond Means: Horror Stories
- Which to max first? 403b with Vanguard or 457b with Plan Member (higher fees)
- I got offered a good paying job that restricts me a lot of things.
- 24, graduated, and need a new life.
- Savings Question
- Please inform my conceptual model for estimating investment growth.
- To roth or not to roth?
- For those who started a business, how did you cover yourselves?
| Updating a previous post for any final thoughts. Retiring at 40. Posted: 03 Mar 2018 09:17 AM PST This is the link to my previous post. Would love to hear any thoughts that will effect my plans. https://www.reddit.com/r/financialindependence/comments/6ahk5g/please_assist_me_with_retiring_early_for_a_second/?st=j2jx06vz&sh=51e67514 I wanted to update this post because been some big changes. First we had a second child. This was planned but it wasn't looking realistic at the time of my original post. We been trying for 2 years and were only 2 months from giving up when we found out she was pregnant! Second...retiring at 45 has now changed to 40. I plan to retire from my job around March-June of 2019. Only thing that would change that is if the housing market started to collapse. Since I last posted my home has rose to 250k over the price I purchased it at. I have also completed a few projects that arent even being factor into the the value of the home yet. I am guessing but not planning on it that my house will increase another 30k at a minimum. The schools in my area just had a new High School built and a face life to the other schools. They have all went from 8's to 9's or 10's on the good school scales ect. They are also adding a NHL team among other businesses. The area for work is just doing well. So with that, its to good to pass up on selling. I am 95% sure I am going to move somewhere in TN. Mainly outside of Nashville (like 45 minutes hour away). I only plan to pay 200k-250k max for a home which will leave me over a 100k to bank/invest. Will take my time and maximize the money I use for a home. My mother lives in the state with her husband and we will live there for a couple of months while we home search. The time is right because our son will start High School at the end of that summer. So we need to make sure we are picking a good school for him. So all this is a little scary. If anyone has suggestions or think of anything I missed let me know. I will be adding 100$ a month for a dental plan that covers the family. Already looked into it. Another side note is my employer has a VEBA program which will have around 14k in it that I can use on any medical/dental expenses. So I will have that money for when my kids need bracers/ect My son will need them but he will get them before I leave my employers program. Any Tennessee residents that have some insight on good places to live? Mom lives in Portland TN, I would like to be within an hour of her for convenience. Been looking at Clarksville due to the good schools and cost of homes. Also will be using every low income/military discount/vet bonus I can to maximize my savings. Ill be 40..so worst case..part time work if all else fails but just dont see it. Thanks:) [link] [comments]  |
| Daily FI discussion thread - March 03, 2018 Posted: 03 Mar 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: 03 Mar 2018 01:47 PM PST I know there is a ranging debate about investing vs. mortgage payoff and there are good and bad arguments for each. It seems to boil down to potentially having more of a nest egg vs. peace of mind. Why can't there be a compromise of sorts; for instance: time your additional principal payments to line up with your FIRE date. I don't see any reason why you can't invest AND pay a little extra principal (even IF your rate is low, unless it's like 2% or something ridiculously low). Isn't this pretty much a guaranteed ROI AND some semblance of diversification? I just can't seem to find enough info about people who do both...invest AND payoff early a little at a time. It seems like everyone treats this as a zero sum game. [link] [comments]  |
| Turning poor diversification to better diversification? Posted: 03 Mar 2018 12:44 PM PST In talking with a friend, we got into things like "I got into crypto" and "I only bought $10K of Amazon a decade ago". So if you are sitting on a taxable portfolio that is majority crypto - or something less risky, like you have FI-level money of Amazon or Netflix/Apple/whatever, how do you diversify that into something that won't cost you too much? The danger is, obviously, that when you're RE or expect to be RE, suddenly your high-exposure asset craters. The easiest way I could think of was to basically sell the oldest shares first and trickle them out $20K at a time and pay your long-term capital gains and then turn around and buy good stocks with that $20K. Or funds? Any other ideas on how to spread out a high-exposure portfolio into less exposure cheaply and easily? Edited for grammar/clarity. [link] [comments]  |
| Thinking of quitting my job with F**k You Money (but nowhere near FIRE money), need advice. Posted: 02 Mar 2018 08:03 PM PST Hello all! Absolutely love this sub, I know a few of you will have been in my position so I'm looking to get advice. I hate my job. I am 28 and have substantial savings for my age but nowhere near enough to retire on (<£100k). I have been applying for new jobs at startups and failing, so have concluded I need more time to develop more relevant skills, eg programming languages etc. Anyway, I asked my boss about dropping down to four days per week and he said no straight away. I was a bit surprised because he works a four day week! I still haven't had the 'official' response from him (I first asked in a casual 121) but now I am just thinking, f--k it might as well quit. I hate that job and the four day week was just a compromise in my head because I was scared to just leave. Has anyone ever taken time out like this? Is getting out of employment altogether a bad idea? Did it actually lead to bigger and better things for people or did you just end up getting any old job to deal with lack of income? How did it affect your plan for FIRE? I really want to work towards my 'dream' job, tired of working for a big corporation as it feels like I'm standing still professionally. BUT I also don't want to do a crappy 'gap year' and leave myself poorer and less employable than before. Advice, anecdotes, criticism, all welcome! Thanks for reading. [link] [comments]  |
| Living Beyond Means: Horror Stories Posted: 03 Mar 2018 02:37 PM PST I'm always fascinated by stories on FI and PF shared by the community, specifically of people you know living beyond their means. Family members, friends, neighbors...I see this more often than I'd like, and it worries me. I have one other FIRE friend in RL. I think it's important to always keep Living Beyond Your Means in perspective, and to avoid at all costs. Would anyone be willing to share? Thanks EDIT: This has nothing to do about 'poor taste' or 'taking pleasure in other people's misfortune'. It's self induced misery, and I think it would be beneficial to share as it often, but not always, ties directly to our debt-based, consumer driver society. Please no virtue signaling. [link] [comments]  |
| Which to max first? 403b with Vanguard or 457b with Plan Member (higher fees) Posted: 03 Mar 2018 02:28 PM PST Hi all, my wife is a public school teacher and she has access to both a 403b and 457b. We're in a fortunate enough position to max both but with a kid on the way, we want to hold off a bit until we have a clear idea of expenses, and then max out the other one later if we're still comfortable. Our ultimate goal is FIRE so we like the flexibility of 457b. The 403b is with Vanguard: 60$ / yr + ER (https://www.403bcompare.com/vendors/1102) The 457b is with Plan Member, of which there are two variations:
I'm not sure if .35% makes a difference. Would love to get an idea of what you guys would recommend maxing out first. Edit: formatting [link] [comments]  |
| I got offered a good paying job that restricts me a lot of things. Posted: 03 Mar 2018 02:20 PM PST Hi everyone. I rarely use reddit to post but i made a throwaway for this one I'd like to ask for some advice related to a job I want to say that i do not write this to brag in any way, but to ask for advice and explain the situation a bit better I have quite a full c v for a just gratuated student. I've worked a lot since i was young and i also followed some hard and expensive college to which i still pay for but i'm almost done considering i worked a lot I have worked in high places some finance business related. I am good at this and i dream of creating my own business but so far i feel i still need a bit more experience in the field and i'd like to wait maybe a few more months/ a year max. Because i go to a lot of conferences and business seminaries, i met someone who was impressed by me and my c v and offered me a job with an interview (he said it's a formality because he wants me). I'm not exact yet about the payment but i know it's reallly a lot He is trustable and everything is reliable. The only thing is: This job is the kind of job where you can't tell the others what you do, something in the police and military thing (but office job for me of course). The conditions are: i am not allowed to have any kind of facebook insta etc - social media. Or if i have, i should not post or engage too often and keep an office look - something like that. I am not allowed to talk about the work i do or where i work. Stuffs like that. I mean i can say ' i do X thing' but without details. He is waiting for my answer. I am conflicted. Even though the job sounds cool, i'm not sure i am ready to give up everything .., i have a website that is starting to become pretty popular, i am popular also on social media where i engage in certain communities and activities and i love to help people and interact. However i don't make too much money from it, almost nothing, so i can't consider it a career yet. I just did it as a passion and it escaled. I'm afraid to lose a thing that i enjoy but the payment of this new job is ...just perfect. Also, i can chose another job, this time a small one, way under my college studies and not so well paid, around minimum wage or something. I'm a bit conflicted and i'm not sure yet if i can continue my social media thing if i take the first job. I am aware some wouldn't care about social media, i thought the same before. Now i just engage in communities of my interest and help others aswell and i'm helped but it doesn't bring me anything except for joy and the feeling of doing something productive and relaxing. I'm curious what is your opinion related to this situation. I'd like normal opinions not just 'take the money fuck everything'. I'm just curious what would you do. How would you act? I will take the decision alone but i'd like to ask for some other opinions. Thank you guys [link] [comments]  |
| 24, graduated, and need a new life. Posted: 03 Mar 2018 01:39 PM PST I am 24 and graduated from Va Tech. My degree is in business mgt. I moved home after school and began working at my parents boat company. I love fishing and I love boating. It is one of my favorite hobbies. Their company is one of the best(by volume and $) in the entire country and, as good parents, they would like for me to be a part of it. I really do enjoy going to work, but the boat store is in a really small, conservative town w/ no one that is my age who share my interests/beliefs. Outside of work, I have nothing. I went to high school here but all of the people that I would like to see have moved out. The ones that stayed I don't want to associate with to be quite honest. After living in solitude, I have come to realize I am a social person. I have lived here and gone to work for 2 years and have over the last year become depressed because of my situation. I don't want to disappoint my parents but I do want to be happy. I feel like I must leave this city at least for a couple years I just don't know what to do. I have a girlfriend in TN and I have friends all over the east coast. My plan after I finish at the boat store is to see my girlfriend for several weeks and figure out if 1. it living together is something we can manage and 2. if there is anything in her city I will be happy doing. After several weeks with her I will go out to mountains of California to see my best friend, work a month long (casual)job, and clear my head. Am I doing the right thing here? What do I do upon return? Background on me: I am a free spirited person. I am not even sure that business is for me. I like music, outdoor shit, art, fishing, and being around people who share common interests. I don't have or make a lot of friends but the few that I do are really strong. I don't have that ONE thing that interests me like some people do that are my age. Maybe it's music, but I don't think I can make a living from it. Thanks for the advice in advance. [link] [comments]  |
| Posted: 03 Mar 2018 11:24 AM PST I'm trying to get up to speed here and with financial intelligence in general. But I have a question I have not been able to wrap my brain around. If I have a pool of money for savings (for putting to work to earn more money in whatever fashion), that money should be growing as I put it to use to earn more money. If I NEVER spend a cent of that money (the principle & additional money earned), but continually reapply the earnings to the original pot, it will grow maximally until I die and will have never provided me with any benefit. If I use my saved money to make more money, but then spend all that money, I'm starting over completely from scratch each time and not doing great at building wealth. So, my question is what is the balance point? What rule of thumb can I use (and teach to my kids to use for their allowance) to determine a reasonable amount I can take to spend, but keep growing my pot of money I can use to pursue additional wealth building opportunities? Thanks for any thoughts! [link] [comments]  |
| Please inform my conceptual model for estimating investment growth. Posted: 03 Mar 2018 10:25 AM PST TL:DR how to do I estimate the growth my investments, so I can reverse engineer how much I need to add every month? As in, I'm building a spreadsheet of monthly investments, what do I use to calculate the compound growth and when does it compound? Long time lurker, first time poster. I recently hit my desired safety net of 6 months expenses and am about to hit 5k in capital(seperate from my safety net) that will be the principal for my investments. I'm 27 and still have two years left on my bachelors degree(going into tech). I plan to finish my current degree, do some work in the field to get my feet wet and then finish a Masters more or less debt free by 35. Ideally, I will semi/fully FI by 50 and teach at a community college for fun. While I am still in school, I can contribute a fair amount to my investments but not nearly as much as after each successive graduation. So I would like to know how to model a spreadsheet such that I can play with different invested amounts during different years(the early ones) and estimate the impact. I get that the trinity study suggests that long term growth can be modeled as 7% annually, and I get that uses a compound interest equation will help you model the resultant fund you have saved by the end of a period of years. I also get that that's not actually how it works any given year. However, where I'm stuck is the middle ground of how to calculate what I need to invest every month(or year?) to reach my goal. Its pretty obvious that there are likely conflicting answers, given that there is no immediate response to my google searches(or in the faq). It's also pretty obvious this suggests a hole in my conceptual model for investing. Recommended reading is highly encouraged, and right now what I really need is the answer to my TLDR. PS This sub has informed a huge amount of my life goals, thanks to yall. [link] [comments]  |
| Posted: 03 Mar 2018 07:16 AM PST Hi there! As the title implies, currently exploring the option of investing my money in a Roth IRA. Maybe this is a no brainer, but I'll throw out some details and maybe it'll make things more clear: Late 20's, no home ownership, rent by myself in a HCOL city Gross salary 120k, approx 2-3% raise per year 401k match: 11% gross salary Rent/utilities: 1900/month Student loan payments (6 more years left): 700/month Spend ~750-1k a month on groceries, going out, transpo etc No real outstanding debt Current investments/savings Brokerage: 10k (multiple vanguard ETFs, 20% international/REIT) 401k: 20k --> just started to max out Savings: 20k emergency fund So my question is, would a roth IRA be worth saving the extra 5500 a year for me, or am I better off just investing that money into my brokerage account? I plan on sticking with this job for awhile due to the attractive 401k contribution (saving 30k a year starting this year), and am unsure about what I need for FI but RE does seem possible by my early-mid 50s. Thanks! [link] [comments]  |
| For those who started a business, how did you cover yourselves? Posted: 02 Mar 2018 08:38 PM PST The only thing stopping me from pursuing my own business (medtech) is living from paycheck-to-paycheck or being unable to cover my basic needs. I most likely won't see any real profit for a few years. Hence my initial plan was to start my company once I'm FI. However, I'm getting a little itchy to start one now as I have some promising projects. [link] [comments]  |
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