Financial Independence Quitting on Friday |
- Quitting on Friday
- Do people plan for possible divorces or protect their assets?
- Daily FI discussion thread - April 30, 2018
- Somewhat lean FI/RE and reasonable budgets
- ELI5 - Annuities
- Weekly FI Monday Milestone thread - April 30, 2018
- Do Long-Term Care costs factor into your FIRE plans?
- Should I use all, none, or part of my savings to pay for law school and the living expenses for the next three years?
- Temporary FIRE for time with my kids?
- My financial situation and plan 27 years of age Australian Resident.
- Has anyone FIRE’ed and failed and had to go back to work even though they would rather not? Or has anyone had a mistake lead them to have to delay FIRE? Other mistake? What can we learn from your experience?
- What is in fact considered good health insurance rates and coverage? (to ensure you are decently covered yet not breaking the bank)
- Buying rental property while one spouse is on sabbatical
- Does it make sense to adjust your FI number each year?
| Posted: 30 Apr 2018 09:14 AM PDT Friday is the day I plan on breaking the news to my boss that I'm quitting! [clarification: I want my final day of work to be June 1st, so I'm giving 4+ weeks notice] I've been with the same company for over 20 years, currently in a software architecture role but most of my time was as a developer. I'm in a very comfortable FI position monetarily and my soon-to-be spouse wants to continue to work, so I have an additional safety cushion. I've been planning this for the past 3-4 years but it's amazing that the day is finally about to approach! I must admit that I feel a mixture of excitement, nervousness and guilt. I'm not sure what my boss is going to say when I tell him the news but I have a strong feeling he's going to try to talk me out of it by offering different project opportunities or maybe be offering more compensation. Fortunately none of those things matter to me now. What I want is something he can't offer...freedom over my time! Just wanted to share this (my first post!) with the group to keep myself accountable for sticking with my decision on Friday - and to hear how others handled their "final day" discussions with their boss. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Do people plan for possible divorces or protect their assets? Posted: 30 Apr 2018 05:22 AM PDT I'm not married. But I see a lot of posts listing spouses income as well etc, etc. It seems people in this sub are planners by the very nature of being here. Do people hedge their bets so to speak? How common is that? [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Daily FI discussion thread - April 30, 2018 Posted: 30 Apr 2018 04:10 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]  | |||||||||||||||||||||||||||||||||||||||||||||
| Somewhat lean FI/RE and reasonable budgets Posted: 30 Apr 2018 02:34 PM PDT This is a question for "somewhat lean" FI/ERs... (if you're going to save up more than about $1.5 million, probably this question isn't for you). I'm trying to get a better sense of where I am on this FI/RE journey, and realized that a key puzzle piece is our expected yearly budget/yearly spend. I saw how far off we were from a $50k/yr FI and thought maybe $50k isn't necessary just yet... So, I'm trying to get a better sense for what a reasonable yearly spend might be, and am playing with numbers. If you don't mind, I'll show two scenarios and ask for your opinions and maybe sharing your own yearly spend numbers. When I wasn't sure, I put a "?". This is for a childless couple, middle-aged, non-drinkers, with mostly inexpensive wants (e.g., we own no cell phones!) other than the need to fly to Europe 2x/yr due to family. We'd like to spend somewhat more in some ways to be happier, but probably not that much more money, and I've tried to indicate that in the table.
As you can see, the rent difference is doing a lot of the work here--$9k by itself! For $1,600, we get a 2BR apt with (nice) people upstairs, one of which is home 24/7, that we can hear making a racket occasionally--and no equity or control. Of course, we also live near a great city and make more $ than we might elsewhere for these jobs. What's your views on these yearly spends? Is your similar? What are "leanish" spend are you planning for in ER? [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2018 11:32 AM PDT Hi all, can someone explain to me exactly how Annuities work like I am 5? Chase is offering 5% on 50k. From research online it seems like I give Chase money, then if I take it out after 7 years I get full 5% yearly interest, if I take it out earlier then I lose portion of the interest. But I never lose initial investment? Does this sound right? The reason I am doubting myself is because 5% seems really damn good, from my understanding that better than most investments good, why isnt everyone and their mother investing in annuities? Am I wrong? Here is the sheet they gave me - https://imgur.com/a/JDOzyRG Thanks! EDIT - Thank you kind souls in the comments, you prevented me from making a mistake :) [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Weekly FI Monday Milestone thread - April 30, 2018 Posted: 30 Apr 2018 04:10 AM PDT 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]  | |||||||||||||||||||||||||||||||||||||||||||||
| Do Long-Term Care costs factor into your FIRE plans? Posted: 30 Apr 2018 04:46 AM PDT Something I don't see covered too often on PF blogs and in people's retirement plans here on this sub are long-term care or end-of-life care, which are both incredibly expensive. Some quick stats to put my question in perspective: 1) 70% of Americans will require long-term care in their life. 2) Long-term care is expensive. 46,000/year for a home health aide, 96,000/year for a nursing home. 3) The average person who needs assisted living care needs it for just under three years. 4) 20%, and rising, of people who end up in a nursing home are there for 5 or more years. 5) Medicare doesn't pay for more than 100 days of care, and medicaid doesn't kick in until almost all of your assets are depleted. 6) Long-term care insurance is usually straight garbage: High premiums and rising as well as limited coverage in $ amount and in years If I were single, I wouldn't be too worried about this. If I burn through half a million to a million of my retirement savings right before dying, it is what it is. It doesn't affect anyone else. But as a married person, I'm more concerned about what happens if one us gets sick and requires a few years of long-term care in our 60s or 70s, taking 300-500,000+ dollars out of our nest egg and drastically reducing our partner's financial security for 10-30 more years of retirement. Fortunately, we are quite young, so the solution to my concerns is easy: We work an extra year, bank an extra 50-100K more than we thought we needed, and let it ride for 30-50 years of retirement so that it can more than easily cover any long-term care costs that come up. What about you all? Have long-term care costs factored into your retirement plans and, if not, why not? If so, what are you doing to protect yourself? [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2018 03:45 PM PDT Savings: 50K Tuition Per Year: 22k Living Expenses Per Year: 18K [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Temporary FIRE for time with my kids? Posted: 29 Apr 2018 08:03 PM PDT I am 37 and have about $1.2 million in the bank. I also have five kids, ages 12 down to 8. I am probably three to four years away from being able to comfortably retire at my current lifestyle. I have been thinking a lot about taking the next ten years off of work while my kids are young and I can still enjoy my time with them. I would then go back to work at 50, and work until 60 or 70. I know this isn't typical, but I am wondering if it isn't a better strategy. I currently work a ton of hours and travel a lot. It has been worth it up until now but I am burned out and feel like my kids are growing up without me. I don't mind working long hours but it would make a lot more sense to do so when I don't have kids at home. I know I won't be able to go back to work and make as much as I do now, but my expenses will be a lot lower without kids at home and I don't need much money to make myself happy. Is anyone else pursuing this strategy? What do you guys think? [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| My financial situation and plan 27 years of age Australian Resident. Posted: 30 Apr 2018 01:00 AM PDT Hi guys I to am after financial independence. Quick rundown. Went through a divorce lost my house that I was building and I all but whipped out my savings in self pitty and self destructive behavior with drugs and alcohol, woke up to myself and am now trying to turn my life back around. whats done is done I've learnt my lesson. And am completely sober have been for a couple of months and am committed to a life of sobriety. Currently have a cryptocurrency portfolio worth $5000. $6000 in cash saved and i am moving back into my parents to sort my finances out. Don't own a home and it doesn't look like I'll ever be able to afford one based on the current market conditions and the income I earn. My plan is to save as much of my paycheck as possible $2000 a month will be saved. Once back up to $12,000 in cash capital. I will start contributing regularly $2000 every 6 months into an ETF on the ASX share market for retirement savings I can access prior to retirement age allowed in my superannuation. I have also increased my super contribution through my employer. Also working on a side Hussle in the meantime to create my own income opportunities. I ideally would like more cash saved before investing in the market but considering this is for retirement and have security of a roof over my head I am ok with it. Every tax return I get will be use to purchase stock in strong individual companies paying dividends for compounding interest. Any feed back or advice is welcome! Thank you all for reading my post. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Posted: 29 Apr 2018 04:47 PM PDT | |||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Apr 2018 06:35 AM PDT There are so many different plans available in the US and they all seem like a waste of money to be honest. But I recently had appendicitis and my bill was $50k. I always believed in having a self-funded health savings account in case I needed to go to the doctor, but after that incident, I realized I had to start paying for health insurance to cover crazy bills like $50k. Saving this kind of money was not feasible — shit happens sometimes. Then I started quoting some health plans and I was amazed at how expensive they are... You pay so much every month and still have to cover for co-pays and a maximum out-of-pocket that is super high. How do I ensure I am covered by insurance, yet not breaking the bank so I can continue to save for FIRE? Having high co-pays and low maximum out of pocket? Or the other way around? I don't even know how to start forecasting what I would need. I am a young female who is super healthy — hospitals/doctors seem like the last thing I would need (unless shit like my appendicitis happens, of course). Just FYI, I love this subreddit and thank you all so much for sharing amazing info. PS: Even though I have been living in the US for a decade, I have always used my home country's travel insurance, that ended up covering the $50k in my appendicitis hospital bill. No co-pay, no out of pocket, no bullshit — you pay $100/month and they cover everything. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Buying rental property while one spouse is on sabbatical Posted: 30 Apr 2018 08:20 AM PDT My husband and I are both work in Seattle tech, we already own a house and want to buy rental property (not necessarily in Seattle) in hopes of becoming financially independent. I've been on a sabbatical since March and everything I'm reading says we both need to supply proof of employment for at least 6 months. Is this always the case? Any way anyone has gotten around this? I plan to go back to work in a month or two but while I'm unemployed, it seems like the perfect time to do research, travel to look at places, etc. Edit: I should also mention that I am working a few contract gigs while I'm on sabbatical, so I could be considered self-employed, but those are sporadic. [link] [comments]  | |||||||||||||||||||||||||||||||||||||||||||||
| Does it make sense to adjust your FI number each year? Posted: 29 Apr 2018 05:54 PM PDT For example say you are 24 years old. You calculate your FI number today is goal of 1.5 million in 25 years..that will have far less buying power 25 years from now. For reference, 1.5 million today in 2018 was about 863K in 1993, only 25 years ago! https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1%2C500%2C000.00&year1=201801&year2=199301 Did FIRE folks back then aim for FI numbers of 800K? [link] [comments]  |
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