Financial Independence UPDATE: Have you taken a job at a startup? How did it work out for you? |
- UPDATE: Have you taken a job at a startup? How did it work out for you?
- 3.5 Years of Networth Tracking (graph+numbers)
- Daily FI discussion thread - June 03, 2018
- Mid-year review: life changes for FIRE
- Achieving relative financial independence with a parent that is financial dependent on me.
- Successful company but thinking about shutting it down and taking 6mo off. What would you do?
- Student Loans Vs Investing
- Any British Doctors on here aiming for FIRE?
- Am I a ... millionaire?!
- Investment Ideas for a 21yr old?
- How to include ESOP in plan
- Medi-Cal
- Starting road to FIRE! Advice on starting out?
- Joining the US Reserves to pay for srudent loans and health insurance.
- Advice? Pay off school loans early or keep money for house?
| UPDATE: Have you taken a job at a startup? How did it work out for you? Posted: 03 Jun 2018 12:30 AM PDT Original thread - https://www.reddit.com/r/financialindependence/comments/8c62li/have_you_taken_a_job_at_a_startup_how_did_it_work/ Got a lot of great advice from a lot of people, and wanted to say a big thank-you to the community. It's been a wild mix of emotions over the last month and a bit, and I thought my experience would provide some help to others going through a similar, tricky time. 1) Right after the thread was posted, I attempted to negotiate a $20k increase in salary. I was offered an extra $10k and took that job. I was happy to take on the opportunity, even if the money wasn't exactly what I was after. It did feel like a bit of a sideways step, but an appropriate one. I let my current company know, and handed in my notice. They were disappointed, but made no attempt to keep me. 2) Everything has been smooth sailing up until a week ago. I was asked to meet with a mutual contact, also running a startup, that was looking for some tips on hiring someone with a similar skill set to mine. We got along very well, and I decided to pursue to the opportunity. 3) Today I received a final offer, just before I was due to start with the company I'd already accepted an offer from. The offer was an extra $20k (and $30k over the job I'm leaving), a bigger title, as well as equity, and just about everything the other company could offer. I contacted the other startup, very apologetically and let them know this was best thing to do for me in my career, and for my family. 4) Between this thread and the OP, we've managed to hit a 55% and 65% savings rate. An extra $1300 a month will do wonders for increasing that further, in our pursuit to FI. It was tricky letting the other guys know that I'm out just before due start, but I feel confident and comfortable with my decision. Sometimes you need to rip the bandaid off, and trust your gut. Time will tell whether it's the right decision! Thanks again all! [link] [comments]  |
| 3.5 Years of Networth Tracking (graph+numbers) Posted: 03 Jun 2018 03:23 PM PDT Hey all! I was putting together some FI-tracking data from my financial spreadsheets and I managed to whip up a neat little network tracking graph for myself. I figured maybe some of y'all would like to look at it and perhaps offer some advice on our path. We're a married DINK couple in our 30s. We own two houses (in the process of selling one), and have roughly a $250k annual income (give or take). We've maintained about a 65% savings rate and have a FIRE target of about $2.5M total net worth. If we can keep up this savings rate, I'm hoping to hit that amount in 7-8 years. We discovered FI around the time I created this account (mid-2014). Around then, our combined networth was probably about $50k. I don't have all the details to show exactly what it was back then (I didn't start tracking for real until 2015). My own personal networth didn't become positive until mid-2013. My spouse's was never negative (parents paid for college), but wasn't worth tracking until around 2015. [link] [comments]  |
| Daily FI discussion thread - June 03, 2018 Posted: 03 Jun 2018 04:07 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]  |
| Mid-year review: life changes for FIRE Posted: 03 Jun 2018 06:19 AM PDT Hi all! I've been following FI subs since January but it's my first time posting here. I felt like sharing my FI journey, and I'm also looking forward to receiving any advice or feedback from fellow redditors here. The numbers as of June 2018: Age: 30 (Canada) Salary: 90k plus benefits adding up to about 30k NW June 2018: 167k Home: 240k (condo, currently rented) Car: 16k (including monthly depreciation; car is in long term storage right now but I don't mind) Savings: 80k (60k in RRSP, 20k in TFSA - e-series index funds at about 85-15) Emergency fund: 12k Mortgage: 175k Car loan: 12k (0%) The first half of 2018 has been full of changes. I officially started a new position overseas that includes a good hardship benefit/allowance package, that I intend to maximize as much as I can with a very low cost of living, before I move back to Canada in 2020. I had a lot of big financial changes in the last 2 years - buying my first home and first car - and without good control of my spending my net worth stagnated and even decreased at times. Late 2017 was the time when I started to organize my finances, discovered index funds with CCP and learned about FIRE. I've always tracked my spending but never did much with the data or information (excel sheets and then Quicken since about 2 years). Fast-track to now my NW increased by 30k in the first 5 months of 2018, mostly due to a steady 50% savings rate (saving about 4.5k per month), generally good market returns, reimbursing debt (1.5k per month) and rental income (work overseas includes paid accommodation, and meanwhile I'm renting my condo in Canada). By the end of 2018, I'm planning to take the following steps: 1) Switch my index funds from TD e-series to ETF, possibly by opening a Questrade account and setting up a CCP ETF portfolio 2) Max out my TFSA instead of splitting my contributions to RRSP and TFSA. I expect my income to keep increasing steadily in coming years so I think it's wise to keep the RRSP contribution room for later. This will also help me prepare a downpayment for a second home in 2-3 years (I already used HBP). 3) Move my emergency fund from Tangerine to EQ bank or similar, to benefit from a better HISA interest rate I'm targeting a 70k net worth increase per year for the next 2 years. I want to use this period as a jump-start towards lean FIRE at age 45-50. Now 7 years into my career I can say that I love my job, and I would prefer to transition to part-time consulting work on the side rather than completely retiring (this type of strategy is fairly common in my line of work). I'm working hard and made sacrifices through my recent professional choices, but I feel like it's paying off. Meanwhile I'm learning a lot on the job, becoming a better leader, and experiencing life overseas which can be super interesting at times. On the personal side, things are going well too although it can be a challenge to be away from friends, family and significant other. We've budgeted to travel and meet as often as possible, and are both doing a great job at communicating and staying in touch. We have plans to buy a nice house when I get back and are looking to have kids in the medium-term. I think about FIRE and have run a few models/calculations but I'm not set on a hard FIRE number or date for now. I'm mostly trying to apply the general principles and see where it takes me, and I think that in the next 2-3 years I will have a better understanding of how much I will need if I was to retire early... we'll see! Thank you all for reading and happy saving! [link] [comments]  |
| Achieving relative financial independence with a parent that is financial dependent on me. Posted: 03 Jun 2018 12:37 PM PDT My father was the opposite of financial independence. Lived for the moment, and lost pretty much every little bit he had left during the recession. His social security is $785 p/month and lives in New Jersey. He recently got placed on workers compensation and makes an additional $257 a week. He's barely surviving and I often have to supplement his income to help him either not be (1) homeless, or (2) eat. Is there any hope for me? Eventually his workers compensation payments will end, and he will at most get a $30-$50K windfall from workers compensation. That will obviously not last him the rest of his life. So is there anyway for him to survive on $785 fixed income a month, or will he just work until he dies? I make good money, but his finance issues bring me down. Does anyone else deal with this on this sub? I was thinking of buying him a small place in Florida, or buying a duplex and having him live on one of the units. I'd appreciate any advice you all can provide. Note that he's been on low income housing lists before but due to homelessness he's been removed from the list because of not being contacted, everything we've been told is that it takes >4 years. [link] [comments]  |
| Successful company but thinking about shutting it down and taking 6mo off. What would you do? Posted: 03 Jun 2018 01:49 PM PDT Throwaway for anonymity reasons. I run my own company which does very well (multiple six figures a year in revenue at ~40% profitability), but I hate it. I've been burned out for many months if not longer at this point, and been close to shutting it down a few times. It has pushed me to the brink of being unhealthy mentally a few times. It's also in an industry I've worked in for a long time and have come to loathe many of the people in it. I'm ready to walk away from it. I am considering shutting it down and taking 3-6 months off to recover. I'd travel, work around the house, and investigate other business opportunities that I am unable to put any time towards because my current business takes up all my time and leaves me no other creative outlets. I've tried hiring people in the past to train them to operate it, but they've left for one reason or another and I've been left with a bigger business that I then had to operate myself. I could backfill the position, but the reality that I've come across is that I would still be involved as the owner even if someone else was running the day-to-day. I'd still have to deal with this business that I don't believe in that operates in an industry I've come to loathe. As I've spoken with people about my idea to close it down, they've all said "You've built something of value, don't just shut it down. Sell it." The truth though is that no one will buy it without a team in place to operate it. No one wants to buy a stressful shitty job. My wife does very well and come August we'll be in a fantastic financial position. Current NW is around $300k and that will grow quickly for multiple reasons. So I could take the last half of this year off financially-speaking, and we'd be just fine. The business currently has ~$50k in the bank, and I can also quickly pick up consulting work if I had to (low five figures a month). We're trending nicely towards FI and have about 15-17 years until we hit it. That'll accelerate soon with paying off some large debts. It feels like a bit of a gamble to take 6mo off (even though financially it makes plenty of sense), but I also know that I can start something new which can do just as well as this business if not better, and since I'll be more careful getting into the next one and care more about it then life will be happier, we'll do better financially, and ultimately it's a smart risk (I think). So my options as it stands are these, and I'm curious what y'all would do in my situation:
What would you do? *edit, formatting [link] [comments]  |
| Posted: 03 Jun 2018 01:25 PM PDT I just graduated and landed a job with 75k per year salary. I have ~42k total in student loans broken up like this: 9500 @ 0% 17000 @ 5.5% 16000 @ 5% With these interest rates does it really make sense to make any investments or is it better/safer to just pay off my loans from highest to lowest interest? Would the best plan be to do my 401k match @ 4% and pay off, or is there someone I'm missing. Judging by my current expenses I should have 2000-2500 per month to use. Thanks!! [link] [comments]  |
| Any British Doctors on here aiming for FIRE? Posted: 03 Jun 2018 11:18 AM PDT As a fy1 I'll be earning 23k+(£). What's the best way to maximise income? Negotiate pay? Carry on climbing the ladder until consultancy in 10 years time? 10 years to start earning a 70k+ salary? Skip to GP? Skip to management consultancy specialising in healthcare products? Your advice, case studies, examples would be greatly appreciated. I'm unsure whether the skillset required to be a doctor could be utilised in a different job to minimise the time required to become FIRE. Thank you for your time! [link] [comments]  |
| Posted: 03 Jun 2018 12:07 PM PDT Throwaway account for obvious reasons. 28 year old single male living in HCOL area. Liquid net worth: $702K Breakdown: + 10K Cash + 90K Money market + 5K International equity index + 103K Large-cap US equity index + 337K US equity portfolio (Not an index fund, I know, I know) + 150K Target-date retirement fund (401K account: mixed-cap US equity + fixed income) + 8K US equity high-dividend index (Roth) - 1K credit card balance Estimated home equity: $302K (94% of the more conservative of the online real-estate estimates minus mortgage principal balance). Bought in 2015; the market has been hot. Longtime lurker here. I didn't grow up with alot of money in the family so learned the value of saving at an early age. I dreamed of being a millionaire someday. I didn't know how and I didn't know when. Went to college, graduated with a STEM degree from a top program and now work at a tech company. My total annual compensation is >$200K. That being said, I consider myself solidly middle class, a million sure isn't what it used to be. I despise conspicuous consumption and subscribe to the "stealth-wealth" philosophy. My hobbies are mainly fitness-related. Being in-shape is one thing which you cannot buy, borrow, or steal; you have to earn it. I still dress like a college student and drive a 12 year old Honda Civic. Having a nice car does not make me happy and I bike or take public transit to work everyday. [link] [comments]  |
| Investment Ideas for a 21yr old? Posted: 03 Jun 2018 02:03 PM PDT I am 21 and currently have accumulated 45k (through working) and I need to start investing and making more off of it. I currently have it in a money market that makes me between $20 a $25 in dividends a month. What are some good beginning investments that will help me in the future and possibly lead to FI? ( I'm intrigued by FI and I think I'm behind) [link] [comments]  |
| Posted: 03 Jun 2018 11:07 AM PDT So I'm an employee of an ESOP company, and am wondering how to include my ESOP shares in my overall net worth / investment planning. My understanding is that we accrue shares over time, and the company undergoes a valuation each year. Since this is a little bit of an unpredictable process (company is growing each year, but it's hard to forecast how much) does anyone have thoughts about how I might include this in my investment strategy? [link] [comments]  |
| Posted: 03 Jun 2018 11:29 AM PDT Has any fired folk been on medi-cal, California's version of Medicaid, under the 2014 expansion rule? How do you like it? [link] [comments]  |
| Starting road to FIRE! Advice on starting out? Posted: 03 Jun 2018 11:46 AM PDT Hello all! I've been looking at this community for a bit and figured it was time to post finally. I'm starting my full time career in July and wanted some mentorship on the right moves to make to hopefully end up FI. So a bit of background is in order I suppose! I'm working in western MD (so lower COL) and starting out making 70k. Living with the parents for a year or so before they kick me out, then either renting or buying with my girlfriend. Between scholarships, parents help, and internships I managed to get my degree debt free and start a decent savings account and make some investments in my parents real estate ventures. I also have 2 full years of contributions in ira's so far. All in all I think my net worth is around 80k right now, with about 10k in cash, 25k in real estate investment to hopefully cash out soon, and 10k in gold and silver coins gifted from family. I'm currently interested in more FI than early retirement since I haven't even started working my career yet. A few questions I have would be: What's a reasonable net worth I could expect by 40 or 50? Can I assume I can reach FI without a genius idea or lucrative side business? I currently have a savings account with a smaller local bank and want to explore online banks for a better interest rate, any suggestions on what to look at? I want to start investing in the market (putting 10-20k in from coins or real estate investment to start soon, then based off salary later), should I do etfs, mutual funds, etc? I don't have a lot of knowledge in this area and I'm not sure if I'd rather hold long term or try to pick stocks occasionally. Sorry for the long post but I look forward to becoming a member of the fire community! Thanks in advance for any advice you may have, I'm excited to start learning more about FI. [link] [comments]  |
| Joining the US Reserves to pay for srudent loans and health insurance. Posted: 03 Jun 2018 10:10 AM PDT Has anyyone here done this? I am halfway through with my bachelor's in mechanical engineering and am thinking about joining the reserves as an officer to help pay for my fed loans. Is this a viable option? [link] [comments]  |
| Advice? Pay off school loans early or keep money for house? Posted: 03 Jun 2018 08:23 AM PDT Hi All, I'm hoping that you can help me make a decision. I have some school loans to pay off, and am also currently building a house, so I'm curious what you would do and would appreciate your advice. I'm lucky to have had only 10k in school loans when I graduated. I currently have a balance of $700.58 unpaid principal and .96 unpaid interest. My interest rate is 1.625%. Although I've paid close to $500 extra simply through cash back from upromise.com over the years, I've never been in a rush to pay this loan off early due to the low interest rate and small amount. (upromise used to transfer the money directly to my loan, but they no longer do this, so it would take some extra effort to continue doing this- they simply let you withdraw cash now). Whenever I had extra money, I was working on paying down my previous mortgage. I've since sold that house and bought land. If I continue paying my monthly payment of $73.54, they will be paid off by 12/2020, with the total amount to be paid at $2132.05. (Extra $1430.51!) I'm currently also building a house. I own our land, and we hope to break ground soon. The house will take 6 months to build. Unfortunately rates have crept up, and our rate is about 4.8%. My goal is to take as much as I can from savings and pay down what I can, so that our mortgage is no more than 240-250k. (As soon as rates go down, and it makes sense, I will look into refinancing). (As a side note, I contribute to my work 401k and max out my Roth, and my husband is eligible for a pension). Would you suggest taking $701.54 out of savings, paying off my school loans right away? Or keep paying monthly given my goal of paying down as much as I can before our construction mortgage converts to a permanent mortgage? If I keep paying my school loan monthly ($73.54/month), by the time our house is done, I will have paid $441.24 over the 6 months build time and still have about 2 years to keep paying. Thoughts? Advice? Thank you for taking the time to read this! [link] [comments]  |
| You are subscribed to email updates from financial independence / early retirement. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment