Financial Independence Anyone else here feels more comfortable hanging with people who don't have alot of money? |
- Anyone else here feels more comfortable hanging with people who don't have alot of money?
- This month I achieved FI
- Daily FI discussion thread - May 31, 2018
- Those who have FIRE'd, do you wish you bit the bullet earlier or later than you did? Why?
- Inexpensive ways to learn trades (plumbing/electrical/carpentry/mechanical/etc) for fun post-FIRE?
- Do you always keep some cash in your portfolio?
- FIRE and child support.
- FIREing Abroad
- Canada, guy at work just mentioned the cost of a retirement health and drug plan (92$CAD/m). What would it be in your country?
- My wife is Taiwanese, lives and works in China (money is in a Chinese bank), and wants to put her money into an American Fidelity or Vanguard account. Is this possible to do? China is quite restrictive on taking money out.
- Giving back
- Are there any tax deductible savings accounts with no early withdrawal penalty?
- 2 FIRE Accounts -- Poke holes in my plan
- Creative problem solving desired! Sell house at 200k profit and invest?
- Is Bank on Yourself BS?
- There is a need for a method to compare countries
| Anyone else here feels more comfortable hanging with people who don't have alot of money? Posted: 31 May 2018 06:07 AM PDT Even though I have $300-$400K savings and a decent job, my best times was sharing a house with 5 other roommates and 2 of them were on welfare. 1 of them was a student and the other 2 were working minimum wage jobs. Every other Friday, we would all go out, find the cheapest bar, order a drink or 2 and have great times. At work, there are some colleagues that want to eat out at fancy restaurants every other day for lunch, and I'm thinking to myself, "dammit Joe, I'm trying to save money here!" They are talking about renovation their nice house or getting a new car which I don't have one. Thus, I usually get quiet about those subjects. Anyone else like this? [link] [comments]  |
| Posted: 31 May 2018 09:55 AM PDT So excited to write this because it was not expecting it. I created the throwaway because I'm pretty much telling no one and I want to shout it from the rooftops! Over the last two years I aggressively built a real estate portfolio that, as of this month, nets me a little over $5,000/month and my family's fixed expenses are about $4,000/month. I don't know why but I expected this kind of milestone to be marked by some kind of satisfying moment like in the movies where something happens and it just clicks, BOOM. That didn't happen at all. I received my monthly owner distributions, plugged everything into my profit and loss statements and then forgot about it. It wasn't until a couple weeks later that I realized the net income exceeded all of my expenses and even then it didn't really click, it was pretty anticlimactic to be honest. I don't feel different, I'm not going to change any of my habits or stop my investing. This is just a fun realization that at this point, I have freedom to do whatever if I so desire. There is some serious power in that realization at 27 years old. Regarding how I built my real estate portfolio I used a couple leverage techniques that worked well for me. The first two properties I bought (a fourplex and a duplex) were purchased using conventional loans with 25% downpayments. After that, I bought single family houses for cash that were in disrepair, foreclosures, etc. Those houses were purchased well below market value and since I fixed them up, I could take out a mortgage that was adjusted to the new value of the home after I made the repairs. Simple math, I buy a house for $20,000 and put $10,000 into it. My $30,000 of investment made the house worth about $45,000 and then I would take out an 80% loan on the new value. I get all my money back plus another couple grand (yes, I got paid to buy the house) and a tenant pays the mortgage for me. Rinse and repeat. On Biggerpockets they call this the BRRR method, Buy Rehab Rent Refinance. Houses are typically bought for $20,000-$40,000 and I end up putting $5,000-$20,000 worth of work into rehabs. All my houses cashflow $150-$300/month and are all located in the midwest. Still too excited to know what to do with this milestone except keep going! [link] [comments]  |
| Daily FI discussion thread - May 31, 2018 Posted: 31 May 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]  |
| Those who have FIRE'd, do you wish you bit the bullet earlier or later than you did? Why? Posted: 31 May 2018 11:15 AM PDT Assuming you would have had less means than you do now if you had done so earlier, and more if you did so later. [link] [comments]  |
| Inexpensive ways to learn trades (plumbing/electrical/carpentry/mechanical/etc) for fun post-FIRE? Posted: 31 May 2018 03:45 PM PDT A lot of posts deal with how to spend time post-FIRE. I think one thing I'd like to do is become reasonably competent in a few of the trades, purely for personal enjoyment. Any ideas on how to do this inexpensively? [link] [comments]  |
| Do you always keep some cash in your portfolio? Posted: 31 May 2018 01:48 PM PDT I am trying to build a portfolio to achieve FI. My timeline is very long (in early 30 now). My question is, do you always keep some percentage of cash (25%-50%) in your portfolio? considering we are at 10 years of bull market I am kind of hesitant to put all cash in the market. [link] [comments]  |
| Posted: 31 May 2018 04:00 AM PDT Has anyone had any experience with FIRE while still paying child support? Presumably, income levels are relatively high in this community, and reported income would be much lower after RE. I wonder if child support payments could be altered? Any thoughts or experiences? [link] [comments]  |
| Posted: 31 May 2018 12:00 PM PDT I recently read an article saying you can FIRE on only 200k in several countries around the world; Mexico, Ecuador, Thailand, Singapore, Costa Rica to name a few (there where others, but these are the ones that interest me). If this is really the case, it would drastically move up my FIRE horizon (Of course, they fail to mention the age at which you would be retiring. I'm 37 and only recently became FIRE conscious). It also comes with the added benefit of incorporating travel into our retirement, which we'd like to do anyway. Last, healthcare is much less expensive in some of these places which will most likely become our largest expense later in life. Details: Retirement at 45 would be awesome, and is the goal. At 45 I should be able to have approximately 450k invested and my home paid off. Renting out our home would provide about $1500 in income after expenses. It also give us the ability to return home if we ever wanted to. Based on the article, $1500 would cover the majority of our expenses in many of these places allowing us to not touch invested principal. We live in the SE US and home prices are going up dramatically (we have a 2/1, not updated worth approximately 300k; 100k left on mortage). We have done a fair bit of traveling and enjoy exploring different cultures and countries. We aren't afraid of "roughing it" to a degree. I'm wondering if anyone here has experience with this, and if so, what are the Pros and Cons? Would you do it again? What am I not thinking of? What about taxes? How do taxes in foreign country work? Also, If there any readers out there with local knowledge of these places, what do you think of the idea of someone from the US moving to retirement in these countries? Thanks for reading.... v [link] [comments]  |
| Posted: 31 May 2018 09:38 AM PDT 26M, work was generous enough to allow our first retiree to give a seminar. His total cost for his plan was 92/month, but he mentioned that if he didnt take advnatage of timely initiatives (company plan MUST be put in place within 60 days of turning 65) it would have been 192$/month. How much is it in your country for full coverage? (excluding dental) [link] [comments]  |
| Posted: 31 May 2018 07:02 AM PDT Hi FI! I'm American, and she's Taiwanese. We're both living and working in China, and her savings are all in Chinese banks. Her 3 year insurance-investment just ended, and she asked me for advice on where to put her money. After suggesting and explaining how Vanguard works, she's interested. We're coming back to America for a visit in August, and hoping to make the transaction, then. What's our best route to get money out of China and into a Vanguard? Thanks for any advice you can give! [link] [comments]  |
| Posted: 31 May 2018 11:44 AM PDT Hi everyone, I have been thinking for the last couple of years on how I could give back and make a meaningful difference in the world, even if the sphere of influence isn't huge. This is what I have come up with and was wondering how others would view it? The idea is simple, but it's a bit much to explain at first. Basically, I would give someone a stable job, housing and transportation (or housing close enough to make a car unnecessary). The goal would be to provide this person a scenario where they could achieve single digit housing and transportation relative to their income, in exchange for living in the housing they would agree to work towards FIRE and have their finances monitored, with the goal of them being able to fire at a level consistent with their income/lifestyle in at most 10 years. The exciting part of this would be a real life verified example of a person of modest means achieving fire through basic self discipline. Thoughts? [link] [comments]  |
| Are there any tax deductible savings accounts with no early withdrawal penalty? Posted: 31 May 2018 05:07 AM PDT This might be a dumb question but here is the predicament I am in. I live in New York and in November I will be needing to purchase my own health insurance on the New York health exchange in a few months when I turn 26. (Self employed). I realize that the state will subsidize the cost and the amount of financial help I can get is based on my taxable income. This brings me to the idea of dumping money into tax deductible savings account to reduce my taxable income to get cheap health insurance. The only thing is I'm not sure I want this money to be locked up for 30+ years just yet. Are there accounts that reduce taxable income without a 10% early withdrawal penalty? Thanks in advance for any advice. [link] [comments]  |
| 2 FIRE Accounts -- Poke holes in my plan Posted: 31 May 2018 10:44 AM PDT Looking for FI/RE advice based on my current plan -- apologies in advance for long post.
EDIT Based on Rate of Return Comments Based on these numbers at 45 (not verified calcs, so correct me if wrong!). I don't have a great idea of RE budget yet, but: @8% Returns Vanguard - $2,082k 401k - $1,492k * Drawing 15k/month from Vanguard from 45 to 65 leaving balance of $1,116k. At 65, Retirement balance is ~$7MM, could draw $50k/month, assuming 30 year retirement. @6% Returns Vanguard - $1,734k 401k - $1,195k * Drawing 12k/month from Vanguard from 45 to 65 leaving balance of $93k. At 65, Retirement balance is ~$3.8MM, could draw $22k/month, assuming 30 year retirement (with $280k leftover).
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| Creative problem solving desired! Sell house at 200k profit and invest? Posted: 31 May 2018 10:35 AM PDT I'm a bit fuzzy on the best way to approach my situation, so grace and advice are appreciated! Life Situation: 30 y.o. married with a baby, living in a desirable city and wanting to put down roots for good. FIRE Progress: New to the FIRE concept and hoping to get some advice on how to best approach the next few years. Still unsure about savings needed to FIRE, but the main question is how to maximize the next couple years, regarding mortgages vs. investing, to begin my FIRE road. Once I dial in spending and savings needs, I have a few great benefits, such as military healthcare and an eventual military pension. Gross Salary/Wages: ~$120,000. Just started a new job after taking a couple years off, as well as working in the military reserve. Yearly Savings Amounts: Maxing mine and wife's Roth IRA and will probably start maxing my 401k, new company matches 3% and contributes fully vested safe harbor at 3%. Debt: No other debt besides mortgage. Mortgage: Currently own a home. 2 years into a 30 year mortgage at 3.25%, $307k left of $325k. According to comps in the area, the house has appreciated to be worth ~$525k. We bought the house using a VA loan, so $0 down payment. Specific Question: Once we pay off the current mortgage or sell the home, we can use the VA loan again and put 0 down on another home. We want to stay in the neighborhood, but wouldn't mind a slight upgrade with a tad more space, so would buy a home slightly higher than the sell price of our current home. If the situation arose where we paid off the current mortgage and bought another home, I wouldn't be opposed to renting current home instead of selling. So my main benefits to take advantage of are the VA loan, with which I can buy a home at 0 down, and the fact that I can sell my home that has appreciated approx. $200k over the past few years. My question: in order to start building wealth quickly to achieve FIRE ASAP, should I: 1) aggressively pay off current mortgage (could put another $2k/mo towards it with current income and have it paid off in about 9 years), sell, invest approx. $500k from sale, and buy a new home using VA loan and 0 down 2) sell home now, bank about $150k after closing, invest that amount, and put 0 down on new mortgage at a higher mortgage rate (~4.25% current rates) 3) any other creative uses of available assets Hope I provided enough information but please ask for any clarification. I'm open to any and all advice and creative financial solutions! Thanks. [link] [comments]  |
| Posted: 31 May 2018 08:41 AM PDT Hey FI! Is this Bank on Yourself worth it? I always thought whole life is horrible to invest in but I have to say the conecept sounds good. Please advise. [link] [comments]  |
| There is a need for a method to compare countries Posted: 30 May 2018 10:22 PM PDT Hello FI, Do you know of any methods that allow to compare different countries when we're talking about wages, financial independence, net worth... ? As an example, being from Belgium I have no idea how to compare my salary and FI plans against Americans making 100k$+ in a tech starter job. In Belgium, this is unheard of. Therefore, I find it difficult to relate the advice, FI prospects, ... given in this sub. Further, you have to keep in mind the difference in wages, but also the COL, if you'll receive a good pension later or have to save more now, expected healthcare costs, etc. Is there any way to compare countries? I know you can compare the COL between cities, but this is only one of the things you should account for. [link] [comments]  |
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