Financial Independence Anyone here NOT a doctor, banker/upper management, elite lawyer or tech/software guy? |
- Anyone here NOT a doctor, banker/upper management, elite lawyer or tech/software guy?
- Daily FI discussion thread - April 29, 2018
- How do you actually track your monthly expenses? (Easily)
- How would a "wealth tax" affect your FI/RE plans?
- What is the average age of FIRE achievers?
- Medical expenses after FIRE!! How do you manage them? Part-time job with full-time medical benefits? Buy expensive insurance? Or something else?
- 1 year Travel, with kids, and cost savings. Would this be possible?
- Teacher fire sub
- What would you do? Have excess cash for home purchase, how do I optimize?
- Paying off my mother's debt - Financially irresponsible?
- Backdoor Conversion of IRA to Roth
- Capital gains tax from mutual funds
- FIRE planning as a student
- Rethinking FIRE mindset (obsession?) for now due to family costs
- What would you tell your 19 year old self about FI?
- How did my roommate make her first $1 million
- 401k rollover options?
- Advanced Estate Planning - South Dakota Dynasty Trust
- What are good career options for Millennials in the modern economy to prosper and reach FI? In light of stagnant wage growth, white collar automation, developing world outsourcing etc
- FI with kids
| Anyone here NOT a doctor, banker/upper management, elite lawyer or tech/software guy? Posted: 29 Apr 2018 09:24 AM PDT Honestly these seem like the only ways to reach financial independence. That's the majority of people posting on here I feel. For them quite frankly there making so much that they'd achieve financial independence passively as long as they don't spend stupid amounts of money. I want to hear from some firefighters, teachers, hotdog stand owners, plumbers and nurses. Common people making 5 figures. (I'm a civil engineering student for those asking btw) How has your FIRE journey been and what do you do differently? Edit: Nursing is awesome. [link] [comments]  |
| Daily FI discussion thread - April 29, 2018 Posted: 29 Apr 2018 04:08 AM PDT 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]  |
| How do you actually track your monthly expenses? (Easily) Posted: 29 Apr 2018 05:56 AM PDT I know I'm doing some of the right things to FIRE like maxing retirement accounts and adding to my brokerage when I can. The one thing I keep reading is that I need to really understand where my money is going. Then I can intelligently make decisions about those expenses and if they are worthwhile. Every time I sit down to do this it is just so much work to kind of normallize the information. For example this morning I exported the last month's transactions from Mint and I see credits for credit card payments. I see transfers to my Vanguard brokerage as a debit. I see transfers from my saving to checking as a credit and a debit. All these things make it difficult for me to actually determine how much I'm earning and how much I'm spending. Without knowing how much my expenses really are it's tough to figure out how much income I really need to FIRE. There has to be a better way. Any advice is greatly appreciated. [link] [comments]  |
| How would a "wealth tax" affect your FI/RE plans? Posted: 29 Apr 2018 09:12 AM PDT In order to combat inequality, several European nations have a wealth tax in place. How would a .5%/1% wealth tax affect your FIRE plans? To me it would basically delay FIRE 7-10 years as I have to compensate for lower growth and a higher sum to move my draw-down from 3.5% to 2.5% (assuming a 1% tax) That said, there are major legal impediments in the US to implementing a wealth tax, so I don't think its likely in the next 10-20 years (unless we see a major shift in domestic political preferences), but I could imagine it being implemented in the future. [link] [comments]  |
| What is the average age of FIRE achievers? Posted: 28 Apr 2018 07:45 PM PDT I am 40. Looking to achieve FIRE by early 50ish. Curious as to when all the others here plan on achieving FIRE. [link] [comments]  |
| Posted: 29 Apr 2018 09:22 AM PDT Congratulations, to all those who have FIREd!! I look up to you guys!! I have a few questions and I hope to get your inputs on these. 1) How do you manage unplanned medical expenses after having FIREd? 2) Do you part-time at Starbucks or similar for full-time medical benefits, or are there other alternatives? 3) Also, does Medicare cover all medical expenses after reaching retirement age? 4) Let us say, i FIREd, but 3 years into FIRE, I get diagnosed with cancer. How will I cover the medical expenses? Should I buy an expensive medical insurance policy after having FIREd? [link] [comments]  |
| 1 year Travel, with kids, and cost savings. Would this be possible? Posted: 29 Apr 2018 03:52 AM PDT My wife and I, thought of something crazy: Get 2 to 4 other families, buy (and then sell later) a big boat ($300k - $700k, depending on # of families). Spend a year travelling, doing homeschool. The parents could take shifts teaching/cooking/driving the boat. It would likely take a year of planning, and some creative governance, but costs for the year would very likely be less than say 40k per year. For a family if 4. I would need the internet to find a few other brave, rich, families. Would you or somebody you know be up for this? [link] [comments]  |
| Posted: 29 Apr 2018 02:15 PM PDT I'm curious if there's already a sub for teachers trying to FIRE or enough interest for one. Mainly because public school teachers are more likely to be in a different income category than many posters here but also because we have very different benefit & pension situations. [link] [comments]  |
| What would you do? Have excess cash for home purchase, how do I optimize? Posted: 29 Apr 2018 01:28 PM PDT Currently planning to move about 50 miles away for a promotion and saving cash for a future downpayment. Expecting to need 80-100k for down payment and planning to sell current home. Have about 50k in cash so far sitting in a 1.5% interest savings account. Some more info: -Approx. 450k total NW -Current house should sell for 310k, mortgage of 125k remaining at 3.25% -215k or so in tax advantaged retirement accounts -10k or so in taxable accounts -married 28m/23f making a combined 185k in MCOL area -maxing out 401k's and IRA's -45-55% SR, depending on how you measure -promotion expected in the next 2-8 months that would require a short move -aiming to FIRE in 10-12 years The question is about what the optimal setup is right now with cash and with the house. The 1.5% savings account isn't bad, but I could just pay down the current mortgage and be getting 3.25% return and take out a HELOC for the down payment. Or do I forget the mortgage paydown and dump the cash into the taxable account (index fund) and still use a HELOC for the future down payment. Or do I just sell the current house before buying the next, and use part of the proceeds for a down payment. What has everyone done with homesales and proceeds in the past? [link] [comments]  |
| Paying off my mother's debt - Financially irresponsible? Posted: 29 Apr 2018 09:03 AM PDT Hi guys, I'm about to start my career at the age of 23 (just graduating), and the company is giving me a sign on bonus of $10k, minus taxes. I currently have no personal investments or savings of my own. Anyway, I was recently speaking to my mother about finances, and she mentioned that she still had about $10k in debt. Despite what it sounds like, she is very responsible, but she was married to a man who gambled away all our family's money and she had to file for bankruptcy years ago. Thankfully they divorced a while back. So now she is almost 60 years old, $10k in debt, and has zero savings. Back to me, my plan was to use the $10k bonus as my emergency fund so I could start investing immediately. But now that I've learned about this, I really feel like I should use the money to pay off her debt so she can start saving and hopefully retire one day. Would this be financially irresponsible of me to give away my money? Am I making a rash emotional decision? Also, my mother is very kind, she has never once asked me for money and she never would, regardless of her situation. She has always helped me when I needed it and never asked for anything in return. [link] [comments]  |
| Backdoor Conversion of IRA to Roth Posted: 29 Apr 2018 09:02 AM PDT I've read the FAQ on the Roth IRA ladder but I'm sure I'm missing some of the mechanics. If I wanted to purely get the advantage of the Roth can I just open a nondeductible IRA (with taxed dollars) and the convert it right away to the Roth? My income precludes the Roth IRA directly. My horizon is 30+ years. Thanks in advance! [link] [comments]  |
| Capital gains tax from mutual funds Posted: 29 Apr 2018 08:18 AM PDT I'm planning on ramping up my FIRE strategy and in addition to maxing out my 403b, Roth, and HSA, I would like to start putting a large percentage of my paycheck into a brokerage account to trade. It makes sense to me to set up an automatic investment plan and let it go to some mutual funds/ETFs/index funds and just forget about it until I am ready to retire because I don't have the skills to trade frequently and would like to stay a little more on the safe side. Now I know that I'm gonna have to worry about capital gains tax when I decide to sell and withdraw money I have stacked away in the brokerage, but I didn't realize that mutual funds will pay out capital gains and dividends in a way that you may also be hit having to pay capital gains tax yearly without even selling the mutual funds on your own part (if that makes sense). Is this something I should be worried about once I start to have a lot more money saved up in the mutual funds? Is there another strategy that makes more sense using a brokerage so you don't have to pay these taxes ( like only trading ETFs)? [link] [comments]  |
| Posted: 29 Apr 2018 06:33 AM PDT Student here, hoping to reach FIRE like the majority, by early 40s. What does your plan consist of? Where do I start? Helpful resources? Thank you [link] [comments]  |
| Rethinking FIRE mindset (obsession?) for now due to family costs Posted: 29 Apr 2018 10:52 AM PDT Using a throwaway to keep things anonymous. So, due to a constellation of factors -- being an inherent saver, even when young, coupled with being the beneficiary of a family windfall, and finally hating my job -- I became very interested in the idea of FIRE, saving/planning, etc. Here is the thing, though. Given that I have two young children, with insane day care/preschool costs in my HCOL area (basically, the cost of a fully loaded SUV annually, paid for in after-tax dollars), I have come to the conclusion that any planning about savings rates, linear net worth growth, etc., is an example of comparing apples to oranges. My costs are so artificially high now, compared to when I would retire (or even 5 years from now), that it is almost counterproductive to focus on FIRE and calculating my net worth until the dust has settled, i.e. both kids in public school with minimal day care costs. Plus, I also know that my extreme frustration with my job drives a lot of the FIRE thinking, almost as a fantasy (albeit an achievable one). I'm hopeful that in the near-ish future, I'll be able to transition to something less stressful/more rewarding. I guess my overall thought is that I am trying to reshape my thinking about FIRE and not obsess where I am now, but rather take a periodic mental snapshot, and instead focus on it more when the day care cost dust settles. I think/hope this will also help with my overall stress levels, i.e. not getting bent out of shape about "one-off" necessary, yet expensive, costs for the family. Anyone else have a similar epiphany? Thoughts? I also realize that raising a family in a HCOL area is anathema to many here, but that's my choice and where I am. Thanks in advance. [link] [comments]  |
| What would you tell your 19 year old self about FI? Posted: 29 Apr 2018 09:02 AM PDT |
| How did my roommate make her first $1 million Posted: 29 Apr 2018 03:08 PM PDT Hello, Recently graduating from Columbia, I works in financial industry and shares an apartment with an unlikely millionaire. Chatting with her, I realized an ordinary people, like most of us, can earn our own financial independence or even freedom in our 20's, like she did. I wonder how many of you are interested in what I learned. Lesson 1, How to secure our retirement during high school, Lesson 2, How to make millions without even trying, Lesson 3, How to save money with pleasure, Please let me know. Sincerely, M.L. Square [link] [comments]  |
| Posted: 29 Apr 2018 06:57 AM PDT I've got a 401k from my old employer. Do I roll it into the 401k I've got with my current employer, move it into my Roth IRA, or just leave it alone with my previous employer and continue to let it slowly grow? ELI5 [link] [comments]  |
| Advanced Estate Planning - South Dakota Dynasty Trust Posted: 29 Apr 2018 07:43 AM PDT Hope others are interested in this topic. I plan to setup a trust that lasts forever with a situs out of South Dakota through a directed trust system. This system segregates the traditional duties of one trustee into 5 parts - Purpose Trust with Dynasty Provisions and no beneficiaries - sole purpose is to care for and perpetuate the Private Family Trust Company - Private Family Trust Company structured as an LLC - This will be established in South Dakota and empowered to legally act as a fiduciary under South Dakota state law. This will be operated by my family and owned by a purpose trust with dynasty provisions and no beneficiaries, whose sole purpose is to care for and perpetuate the PFTC . This will be as a regulated PFTC which will exempt it from SEC registration. - Trustee Agent for the Private Family Trust Company - This is a group based out of south dakota and they charge a 0.30% charge for doing the administration, taxes, etc. This is what allows the situs of the trust to be south dakota and allows for the beneficial legal protection and tax advantage. This agent which is physically located in south dakota will perform all the duties required to keep the regulated PFTC in compliance with south dakota law - Investment Committee - This will be owned by the PFTC and composed of senior family members and a neutral third-party advisor (for a flat fee). This will be governed by an investment policy statement that will be provided by me as an attachment to the Dynasty trust. The family and advisors will be empowered to make changes to the investment policy statement - Distribution Committee - This will be owned by the PFTC and composed of senior family members and a neutral third-party advisor (for a flat fee) Does anyone have experience constructing something similarly? [link] [comments]  |
| Posted: 29 Apr 2018 11:07 AM PDT |
| Posted: 29 Apr 2018 09:24 AM PDT I was reading this article and just had a realization on how expensive kids actually are. Much of the costs there could be shaved off by cutting things here and there but realistically not much can be. A few things that differentiate the DINK and the DI with kids:
I thought Financial Samurai had bloated figures for some things so I revised some costs down to bare bones and this is still what I come up with. An additional $6,000/mo required in not increasing your net worth just for having kids, and this ain't extravagant at all. I could revise some things down even more but it would potentially cause the regret of, "Would my child have been better off had I actually stuck it out in the rat race?" Let's say you're in a less expensive city so your housing costs go down a lot and there's no need to send child to private school and other things go down a little bit. Still you would probably expect at least $3,000/mo in increased costs. Didn't realize how much of a game changer kids are until now. What are all of your plans on how to pay for kids and still FI early? [link] [comments]  |
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