Financial Independence Totally burned out; taking a break. Tips? |
- Totally burned out; taking a break. Tips?
- Has anyone changed careers to become a financial advisor/CPA following their interest in personal finance and FIRE?
- 22 and torn on my next steps!
- Eleven Months Into Early Retirement
- Daily FI discussion thread - May 01, 2018
- If treasury bond yields or savings account interest rates become greater than ~10% APY ever again, would they be a greater FI strategy than equities for that time?
- FIREd but needed serious health insurance, so landed a visiting position
- Executed the ultimate travel hack: I got a job at an airline.
- Just saw a WSJ article about towns offering grants to move people in.
- FIRE Spreadsheet for the Real Estate Investor
- Just landed my first job and its in government. Help with FI/RE and federal government benefits.
- [Academc survey] The psychology of money! money! money!
- College Grad, please help/critique
- Teaching investing and personal finance
- What can I be doing better?
| Totally burned out; taking a break. Tips? Posted: 01 May 2018 06:31 AM PDT Hey there! I'm new to this community, but have found a lot of useful info in the short time I've been here, so thanks for that. This post may not technically be RE/FI, but I'd really value any tips you guys may have. I'll be 34 next month, I have a wife and 2 kids, and I've been working long hours as an oil and gas contractor for the past 11 years. I have no real affinity for the job, but it's been so lucrative relative to anything I'd done before that I've felt compelled to stay in it. I'm actually typing this from a platform in the Gulf of Mexico. Being away from the family and the job itself has left me so thoroughly burned out that I recently negotiated a release and I'll be leaving my position in June. My financial strategy has generally been to pay off mortgages as quickly as I could, and as a result I've paid off a nice place I bought this past September, as well as a condo on the coast that is being rebuilt after damage from Hurricane Harvey (I'd been living in the condo while I worked down there). My wife doesn't make much at her job, but they do offer health insurance, which we plan on taking advantage of when mine ends. My mom lives with us and watches the kids while my wife's at work, so we have no daycare costs. In time I should have some rental income from the condo. I have about $100k in savings, $250k in my 401k and random investments in the $50k range. I feel as though I can return to this line of work at any time - I've been offered 3 similar positions since I quit - but I'd almost rather do anything else with my life. My current plan is to spend a lot of time with the kids, finish the Bachelors degree that I've been putting off, and work a bit part-time close to home. I don't have a firm plan for the future right now work-wise, but I'm open to virtually anything. Any tips? Suggestions? Thanks in advance. [link] [comments]  |
| Posted: 01 May 2018 11:58 AM PDT Has anyone had enough success at their own personal finance and enough interest in it to make them want to work in finance professionally? What was the difference between managing your own finances to that of a business? Do you regret the career change? Was it more satisfying to work in something that you had a personal interest in? [link] [comments]  |
| Posted: 01 May 2018 12:23 PM PDT I am a recent college graduate who has a pretty good setup right now. But I can't help but want MORE freedom. Am I being selfish? I helped start my family business 3 years ago, and am 1/3 owner. I earn about $50k a year off this business, and it is HELLA fun. I enjoy it, and could work 80 hours a week and not get tired. I also got a really good job doing what I studied in school. I make $55,000 + 10% bonus + 9% 401k matching (vested after 3 years). I have worked this job for about 8 months now, and am really seeing myself getting tired of it. I know a lot of graduates would kill for this job... am I being a selfish ass wanting to quit? If I leave before 3 years, I will lose out on essentially $15,000 in my 401k for free + obviously the $55k income +10% bonus. But I will have more time to grow the business and be truly happy. I have about $200k saved now.. and if I work these 3 years I could really cut down my FIRE time. I live by myself and have a gf, soon to be engaged, and my yearly expenses are about $20k. I know I will eventually quit... but does someone with experience know if I will regret not making this extra ~$150k while I am young? Thanks [link] [comments]  |
| Eleven Months Into Early Retirement Posted: 30 Apr 2018 04:15 PM PDT BACKGROUND Introduction: This post is part of an ongoing monthly early-retirement series and my way of giving back to a subreddit that helped me tremendously on my journey. As these posts have become increasingly popular based on the number of views and comments, and as my desire to spend a great deal of the first day of every month on reddit has significantly waned, my responses might be limited. Please check comments and posts from previous months to find answers to potential questions. I genuinely appreciate all of the positive comments, even though I no longer take the time to say so individually. Model: I wish to maintain a portfolio that began in June 2017 at $1,025,772. My maximum withdrawal rate is 3% of each year's starting balance, provided that the portfolio remains above $1M. Should the portfolio drop below $1M, I will lock back into a maximum $2500 per month ($30k per year) guardrail withdrawal until the market recovers. I realize that this is not the holy Trinity method, but consider these three factors that give us flexibility: a 3% withdrawal rate is below the 100% historically safe mark of 3.2% for fifty-year portfolio survival, the extended bull market peaked us nearly 20% above the original target amount (meaning that $30k annually is actually 2.5% instead of 3% if restarting from the peak); and our actual withdrawal rate was averaging less than 2% of the original portfolio balance (due to earning additional income) when we received an unexpected $30k windfall (meaning that our current withdrawal rate is actually negative). The budgeted withdrawal amount is $2773 per month for 2018. In 2017, it was $2564 ($2618 adjusted for inflation). Career: I am a former retail pharmacist who hated his profession for the following reasons: unacceptable amounts of stress, lack of civility from the general public, capitalism gone amok, fundamental disagreement with the overuse of pharmacotherapy as an answer for underlying health issues, and a severe opiate crisis that few have yet to appreciate. I attended college for eight years to earn a bachelors (1997-2001) and a doctorate (2001-2005) before joining the workforce for nearly twelve years (2005-2017, entirely with CVS). $150k in education costs were covered by academic scholarships ($25k), employment during college ($20k), prior savings from high school employment ($5k), revenue from an eBay business while in college ($10k), and massive help from my parents ($90k). My salary plus compensation went from $115k in 2005 to $150k in 2017. My savings rate was about 70%. Finances: I retired at the age of 38 on June 6, 2017, the day before the twentieth anniversary of my high school graduation. I am married with no kids and generated over 95% of the family income while employed. We live in LCOL rural TN. Our asset allocation goal is approximately 60% VTSAX (total US stock market) / 20% VFWAX (total INTL stock market) / 20% VWLUX (US municipal bonds). We also hold roughly $400k in house, land, and belongings not included in the portfolio. My spending model places no dependence upon supplemental income (future employment?), social security ($10k/yr?), inheritance ($500k?), house equity (no heirs?), universal health care (probable?), or universal basic income (possible?). The final balance will be left to charities and worthy causes. MONTHLY UPDATE Spending: Living expenses for the month came to $3471. This is $698 over the 2018 monthly targeted amount of $2773. Our spending is 25.2% over budget for the month, 18.0% over for the year, and 19.1% over since retirement. We generated $474 of income this month from my wife wanting to work and some of my old book royalties. Our investment withdrawal was $2997 this month, thus our pro-rated, annually-adjusted withdrawal rate is 3.24% for the month, -6.71% for the year, and -1.22% since retirement. Without the additional income stream, our pro-rated, annually-adjusted withdrawal rate would have been 3.47% for the month, 3.54% for the year, and 3.57% since retirement. Investments: The portfolio went from $1,130,151 to $1,133,244 (a 0.27% increase for the month), which went down to a new total of (drum-roll) $1,130,247 after cashing the checks and paying the bills. This is a 10.19% increase from the original starting balance of $1,025,772. Since retirement, capital income from the investment portfolio has produced the equivalent of a full-time employee generating $45.97/hr of labor income. To sustain the original portfolio balance, $18.14/hr is the pace needed for COL based on spending rate; $-5.68/hr is the pace needed for COL based on withdrawal rate. Dividends included, VTSAX (61% AA) went up 0.45% this month (0.26% down for 2018); VFWAX (20% AA) went up 0.46% (0.25% up for 2018); VWLUX (19% AA) went down 0.29% (down 1.60% for 2018). Reflections: The overspending this month was due to a collection of vacation related purchases ($500), dentist/optometrist visits ($500), and my professional tax ($500). All of these were planned expenses. The market was all over the place again but ended pretty much flat. I try to avoid viewing daily market results, but they seem to have become ubiquitous in the digital universe. I am eager to see where the annual update next month will have us on spending and investing. Experiences: I won the Andrew Jackson Marathon on the coldest day in its 46-year history with a 2:59:04, became the oldest person to ever hold the title of RRCA TN state marathon champion, and set a course record on the current three-year-old route. I drove the entire way on an eleven day, 3100 mile vacation through 12 states (TN/MS/AR/OK/KS/NE/IA/MN/WI/IL/MO/KY) to bring my wife's states visited count even with my own (49, no AK). The planned highlight of our trip, visiting Paisley Park, was cancelled when the blizzard hit. I highly recommend Garvan Woodland Gardens in Hot Springs, AR; Cosmosphere in Hutchinson, KS; Museum of American Speed in Lincoln, NE; Dana-Thomas House in Springfield, IL; and City Museum in St. Louis, MO. There was a message from a pharmacy staffing service on my home phone when we returned, but I did not bother returning the call. I was not able to convince my friend (making $70k/yr) with no savings/retirement and three kids that he shouldn't spend $40k on a new truck just because he made $80k profit on a house sale. I spent way too much time again this month following the political circus. I cut back weekly running from 40 miles to 36 miles (still five hours but much less intense) and have started allocating three hours each week to swimming, cycling, and weightlifting (one hour each). Upcoming: My time at the museum has run its course. I no longer find it stimulating. I plan to spend time volunteering as a running coach in some local clubs and as a pacer in some local races. I have a marathon on May 5. It was supposed to be a backup race for my first victory, but after my result last month, I don't plan on running it at race pace. If history is any indication, I should be able to tackle it at a training pace and still grab the overall win with a new course record (small field). I pushed the three-week Japan trip back to next year. I'd like to get back to more reading, kayaking, bowling, painting, and watching classic films. Perhaps I will also do whatever the fuck I want. Perhaps I should remove "perhaps" from that last sentence. [link] [comments]  |
| Daily FI discussion thread - May 01, 2018 Posted: 01 May 2018 04:09 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]  |
| Posted: 01 May 2018 07:51 AM PDT I understand that in the 70s and early 80s when treasury bonds and savings accounts provided double digit interest, massive inflation made real returns effectively around 0-2%. However, given that we are guaranteed the returns quoted while inflation is only a lagging indicator, shouldn't we compare these rates with historical long-term equity CAGRs and long-term inflation? If currently, the long-term nominal CAGR for the S&P is ~10% and the long-term annual inflation rate is ~3% (it may be slightly lower than that) for a long-term real CAGR of ~7%, then any guaranteed APY of 10% or greater should become a better strategy for contributions than index funds at that time. Does anyone agree or is there something major I'm missing/misunderstanding? Thanks. [link] [comments]  |
| FIREd but needed serious health insurance, so landed a visiting position Posted: 01 May 2018 11:04 AM PDT I found I needed serious health insurance a little over two years after I leanFIREd in Tennessee. Landed a two-year visiting position in another state and the insurance will pay for the cost of my surgery and treatment. The thing is the position is in a town that is in the middle of nowhere with no other towns within a two hour commute distance, so 4 hours up and down. The problem is there are no rentals available here. The rental situation is so desperate that people have resorted to buying RV's and living in them! That is what my new boss suggested but I don't want to live in a RV with my wife and two kids and then deal with dumping waste matter. There are many homes available for purchase but with a two-year horizon, buying seems inadvisable, especially given that I already have a home back in Tennessee. The home prices also seem to be at an all-time high. How should I cope with the housing situation here? Any suggestions? [link] [comments]  |
| Executed the ultimate travel hack: I got a job at an airline. Posted: 01 May 2018 04:14 PM PDT Flights for my spouse, my children, and I are free. I can retire with flight benefits when my age plus my years of employment equal 70. Definitely worth looking into! [link] [comments]  |
| Just saw a WSJ article about towns offering grants to move people in. Posted: 01 May 2018 04:14 PM PDT Does anyone know of a centralized list of towns with move-in incentives? [link] [comments]  |
| FIRE Spreadsheet for the Real Estate Investor Posted: 01 May 2018 11:36 AM PDT My path to FIRE is going to heavily involve real estate and rental properties. This sub has a ton of spreadsheets, but I couldn't find anything focused on rental properties. I've created my own version but it needs a lot of improvement and I could use some ideas on how to put it all together. Figure I would put out a blast first before diving in on my own. [link] [comments]  |
| Just landed my first job and its in government. Help with FI/RE and federal government benefits. Posted: 01 May 2018 04:40 PM PDT Hello everyone, I am a 27 year old male who just landed a federal government position starting at $100,000. I have never seen this much money before, and as I am new to the realm of FI/RE (I want to retire at 50-55) , I wanted to get some advice from you to direct me in the right path and help lessen the chance of me making mistakes. Here is some basic info about me: -Single, no debt, monthly expenses = ~$2000, fully paid off car, am a self-proclaimed minimalist and frugal (I do splurge on travel) Here is my very basic plan of investing: 1) Max out TSP account at $18,000/year 2) Max out Roth IRA account at $5,500/year (Vanguard, VTSAX) 3) Create a 6-month emergency fund 4) Put anything extra into a taxable account (Vanguard) Are there any flaws to my plan? Are there any other federal benefits that I should look to exploit? It's a very simple plan, but I would love to hear your feedback. Thank you all! [link] [comments]  |
| [Academc survey] The psychology of money! money! money! Posted: 01 May 2018 04:11 PM PDT Hi, We are researchers from University of Illinois at Chicago investigating the psychology of money. What does money mean to you? Why do you want it? How are these related to your personality traits and other social beliefs. Please help us explore these research questions by participating in this interesting study. Please click or copy and paste the link into you web browser to complete the study. Thanks! (https://uic.ca1.qualtrics.com/jfe/form/SV_bJgTLvUsM2YAT5P) [link] [comments]  |
| College Grad, please help/critique Posted: 01 May 2018 04:11 PM PDT Recently graduated from college with 110,000.00 in student loan debt 70k is private and 40k is through the government which is currently on an income-based repayment plan when i applied for the IBR, i did not have a job, so my monthly payments on my government loans are $0. Annual salary is currently 47k living in NY, I am making the maximum contribution to my employer matched 401k of 4%, and after that, monthly take-home pay of $2,643.10. My first goal is to pay off my credit card as fast as possible then save up roughly 10k for an emergency fund, after that, i will concentrate any extra income toward the loan with the highest interest rate before finally turning my attention toward my government loans. My family has been going through some hard times with recent deaths in the family, so there has been some inheritance money floating around. Because of this, my parents wanted to hold off on consolidating my student loans until they had the opportunity to pay off some of some of their debt making them better co-signers for my loan consolidation process. How much will consolidating down my student loans help me lower the monthly payment? I was thinking about consolidating only the larger loans, loan 2,3,4 and 5 leaving out loan one because it is the lowest interest rate and leaving out loan six because it is only roughly 2k. Is this a good idea or should i lump them all into one? Because i had to relocate for my job my credit card took a hit and so has my credit score, currently 680, how big of an impact will this have on loan consolidation? My parents also still have two other children they are helping through college so would co-sign on my consolidated loans tether them to my debt and be potentially harmful or have a negative effect for my younger siblings when they try to have my parents co-sign loans for them? Also, i relocated for my job three months ago. i was too timid at first to ask for a relocation fund or relocation bonus at the time, but now that i have settled in and gotten familiar with some of my work colleagues i wonder if it is not too late to try. I have a three-month review approaching next week and thought that would be a good time to ask about a relocation bonus. Something along the lines of "Now that i am settled and working for (random company name here) is a good fit would there be any way you could help me with some of my relocation expenses i shouldered when i moved?" or would this reflect poorly on me as a new hire? They did mention during the interview process that they might be able to find some relocation money in the budget, but i had so many other things to juggle i did not follow up as i should have. I also have some interest in opening up an account with TD Ameritrade; i wasn't thinking anything serious, maybe a few hundred dollars to start will 5-6 hundred just to get my feet wet and better familiarize myself with the financial world. i have always had an interest in day trading. i am acutely aware of how difficult it is and how it only works for the 1%, so I was planning on starting out with paper trading, would opening such an account be harmful to my credit score or with me seeking loan consolidation soon? any constructive criticism is appreciated the monthly take-home pay is $2,643.10 monthly expenses are as follows
There are currently six unconsolidated private loans.
Credit Card is $4,898.22 17.26% [link] [comments]  |
| Teaching investing and personal finance Posted: 01 May 2018 01:02 PM PDT Hi everyone, I will soon be applying for my MBA, and as a business undergrad I've invested and managed money for quite a while with some great success, and my professor advised I try my hand teaching groups around campus and online to gain teaching experience before applying. Is this feasible? Are there groups where I can meet more people interested in 1v1/group classes? [link] [comments]  |
| Posted: 30 Apr 2018 05:22 PM PDT Hello! I am a 24F in a MCOL area who would like some input into how my whole FIRE plan is going. I am new to this, and feel like I could improve in some areas. I just began my job this year, which accounts for the small HSA/401k numbers. I can expand on my monthly budget, if needed. About me: * Income: ~$54,000 (before tax) * Take Home: ~$2800-$3000/month depending on OT * Roth 401k: currently contributing 6% to get my company match * HSA: I contribute $70/paycheck, and my company contributes $25.15/paycheck Assets: * Cash: $27,500 in high yield savings ($10,000 emergency/$17,500 general savings) * Roth IRA: $7250 * Taxable investment account: $930 (very new) * 401k Roth: $1350 ($1000 vested) * HSA: $730 Debts: * None Monthly expenses: * $1150 Total net worth: $37,410 My current monthly savings regiment is as follows: - ~$250 to my Roth 401k (I'm not yet vested so I don't like to count my company's match) - $190 to my HSA (includes company match) -$200 to my taxable investment account -$460 to my Roth IRA -between $1000 and $1300 to my cash account depending on my take home Take home: $2800-$3000 Savings: $2100-$2300 Here's my dilemma: I know that to really FIRE, I will need to switch gears and go hard with the investments. My hang up is the desire to purchase a home. I'd love to get enough for a down payment/closing costs/hidden home buying expenses in my cash savings so that I can achieve that dream. But, am I sabotaging any FIRE plan to do so? I generally feel like I am doing pretty well in the savings department, but then I realize that saving cash isn't going to allow me FI anytime soon. And thoughts/input? How can I better balance both my FIRE and home ownership goals? Many thanks! Edited to adjust my NW to not include my non-vested Roth 401k balance. Edit 2: thank you all for your honest thoughts! I am actively looking to switch to, or at least add a traditional 401k, instead of putting money into a taxable account. I am also going to investigate maxing out my HSA. I knew I wasn't on an optimal FIRE path, and this helped greatly. [link] [comments]  |
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