Financial Independence How would a 1 million dollar lottery win affect your FIRE journey? |
- How would a 1 million dollar lottery win affect your FIRE journey?
- Consider that you might never enjoy your nest egg
- Fire seems impossible, need advice
- Self-confidence in career potential > Net Worth, finally not anxious about FI anymore!
- Daily FI discussion thread - July 03, 2018
- Did your masters degree do you any good?
- Rushing to retirement vs FI 2.0
- FI and Cryptocurrencies
- Do I have any options to make productive use of my land?
- Questioning about investing majority of income
- Mitigating sequence of return risk
- Lots of people I know lost everything just when they thought they were financially independent!
- FIRE and FLOW?
- Should I have my wife “earn” the income from our business?
- Mini-Retirement. Can it be done?
| How would a 1 million dollar lottery win affect your FIRE journey? Posted: 03 Jul 2018 05:33 AM PDT This is if it happened today, and let's forget about taxes for the sake of the scenario. This might seem like a useless fantasy whose answers really just reveal how close you are to FIRE, but I'm also curious as to how you would allocate the money. [link] [comments]  |
| Consider that you might never enjoy your nest egg Posted: 03 Jul 2018 03:11 PM PDT Here's some food for shower thoughts. I'm 27, male, single, active duty (US), BS in ME, 11% to FI, above average health with no history of health problems. I've been on an FI track for the past year-and-a-bit with awesome results. "Build the life... etc." Plus it's fun; I enjoy the challenges of optimization and creative thinking. I didn't give up that much to achieve a high rate of savings. All the potential in the world, and not much concern for the future because, hey, I had a plan better than 90-whatever% of the USA had. At noon on a Thursday of March 2018, I felt like I might have a cold or the flu. I had felt great that morning. The next day I started vomiting. It only got worse. By Sunday I was hospitalized with fulminant liver failure, kidney failure, respiratory failure, pericarditis (inflammation of the sac around your heart, will collapse your heart), encephalitis (inflammation of the brain, I barely knew who I was), and a couple other things I can't remember without checking my medical records. I didn't get a liver transplant because I wasn't expected to live. Somehow I did, and am on my road to recovery. But more importantly, by the time I was hospitalized, I was barely able to communicate. I could not recognize or identify close friends or family. I did not have the chance or ability to make a will, discuss finances with my family, set up a college savings account for nieces, etc. I was vastly unprepared for the most unexpected circumstance. It took one hell of a lesson to teach me to be prepared-- prepared beyond the "save as much as possible" mantra. What are yall's thoughts? Things that seem obvious to you are not obvious-- or pressing-- to the rest of the FI community. Please share. I haven't changed my savings plan much, but. For Garfield's sake. Stop and smell the roses. Twice. [link] [comments]  |
| Fire seems impossible, need advice Posted: 03 Jul 2018 07:25 AM PDT Hey there, so i only recently discovered this sub, and fell in love with the idea, but heres the thing - I have around 250k saved up, my monthly income varies but let's say it averages around 4k a month out of which I'm able to save around 1k Now, according to the 25 year rule i need around 900k for fire... Meaning 650 to go. At a rate of 1k that's obviously impossible, but even if i get it up to 2k, or 3k, it'll take waaay too long. Now, given that I'm relatively financially ok I'm wondering how do all of you do it? Any advice you could give? Am i missing something? Edit: don't have the time to answer everyone but thanks so much! Definitely cheered me up realizing I'm on the right track. Gonna start working on saving up more to cut down FIRE time. Thanks! Edit 2; I'm 31 [link] [comments]  |
| Self-confidence in career potential > Net Worth, finally not anxious about FI anymore! Posted: 03 Jul 2018 12:35 AM PDT Just hit 1/7 of what I need to chill out indefinitely assuming I remain foreveralone and don't have kids. 1/3 actually if I super leanfire or live fast die young :) Below is a semi-autobiographical (for privacy) account of my journey to overcoming FI anxiety, hope it helps other neurotic people like me in similar circumstances: A year later, I managed to get a job at my dream company since high school, changing geographies and increasing my salary to 90k. Unfortunately, I was bored/unsuited for that role and got let go within 6 months. (Still the smartest group of people I've ever met or read about in the world, and while I would never work there again due to the stress and competition, if I'm ever billionaire I'm definitely giving them my money.) Not quite sure why (perhaps because I'm psychologically weak?), but being fired instilled in me an irrational fear of becoming destitute and triggered my interest/anxiety about FI. Earlier that year I spent 30k of my hard earned money on clearing my student loans and helping my parents pay down the last bit of their mortgage, so I only had <20k in liquid savings then. I looked at my monthly Rent + Food Expenses (about $1800) and realized I could only live on that for ~1 year. That triggered delusional thoughts like what if another 2008 recession struck right then and I was unable to find a job? Should I abandon my career in finance and get a masters in Urban Planning and pursue my dream of becoming the next Robert Moses instead? Thankfully a few weeks after getting fired and right before severance ended and I would've qualified for unemployment benefits, a startup offered me 100k and hired me. For the last 3 years I've been feeling a combination of imposter syndrome and stockholm syndrome. I like my team alot, my reviews went well and I got 10% raises each year. But I couldn't help but wonder "why the hell are you paying me this much when all I do is google how to do stuff after you ask me to do it and copy code from stackoverflow?" It didn't help that the rest of my team had masters or PhDs and I only had a bachelors. Additionally since I work at an unprofitable startup and believe our management continues to make well-intentioned but unsound strategy decisions, I still felt like we could go belly up any day and my nice undeserved gravy train salary would end. Those feelings of bondage finally freed up the last few weeks once I hit my 5 year mark since graduation and received like 15+ emails from recruiters on Linkedin. Once I interviewed at a few of these places, I realized how easy it is for me to get a job as a data engineer these days, and worst case I've now apparently developed enough client-facing skills to be qualified to work as a consulting project manager! But please oh great tech bubble, may you not don't burst for 8 more years! Although I've learned how to do it through mimicry, networking/brownnosing clients still leaves a bad taste in my mouth and I would prefer to remain in a primarily analytical role even with my substandard coding skills! [link] [comments]  |
| Daily FI discussion thread - July 03, 2018 Posted: 03 Jul 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]  |
| Did your masters degree do you any good? Posted: 03 Jul 2018 07:00 AM PDT Hi guys, So my company offers reimbursement for classes you take with a B or better for masters programs (gotta be aligned with your goals within the company which could basically be anything in any department). I have a bachelors degree in Mechanical Engineering and I've been thinking a lot about going for a masters degree. I just know that my weekends are going to be spent studying, doing HW, and stressing about exams and quizzes. Which is why I want to go for something that's going to be a good time investment and will get me closer to FI. I know most skills you can learn yourself like programming and such but I was wondering if anyone had a masters degree in something that ended up turning into a hobby or a side job? Or maybe an MBA that helped you move up the ladder? What's your masters story? [link] [comments]  |
| Rushing to retirement vs FI 2.0 Posted: 03 Jul 2018 04:18 AM PDT Hi I'm fairly new to this forum but have been thinking/working on this topic for decades, from my father forcing me to read Robert Kiyosaki books at age 12 to ERE and MMM. Please excuse if these topics have been discussed elsewhere; I wasn't able to find.. A brief bio: about to hit 30, and broadly 'FI'. Currently my liquid net worth is about 10x my+mrs annual expenses but these are inflated - more on this later - if I go back home, or most other places in the world, will be more like 30-40x so what would probably be considered 'safe' retiring assets by most here. I am sold on the concepts touted on this board and abovementioned blogs, yet Im not planning on quitting for a few more years. Here's why: A) I do enjoy my job and recently got onto a fairly sharp upward career trajectory, so will ride that as far as it goes. Approaching work more opportunistically now that I have a backstop has proven surprisingly successful. B) I don't really find it that interesting to just go and live a ordinary (boring?) life somewhere with low CoL. To me the marginal benefit of working another 3-5 years outweighs the time investment cost - especially since Im still in the skill accrual phase, which has to be given its own weight in my calcs. To me the real aim is to try replicate as much of the 'multimillionaire lifestyle' for as little cost as possible - or at least the parts that interest me. I have little interest in owning multiple cars that depreciate - but sailing the world for a few years sounds pretty good. Living in relative luxury on multiple continents, hopping around at whim, is fairly easy (bar kids). Winters skiing in the Alps, summers surfing in Indo vs living in a 3bed outside Boulder to me is a pretty bid tradeoff. I know quite a few people who 'early retired' 30s-40s) and all of them got bored quite quickly or got frustrated that they now had all the time in the world but was relatively constrained by finances. Another point I heard raised was that they would now spend quite a bit of time to save basically minimum wage (ie fixing own car, mowing own lawn) where before they were earning multiples of that doing much more enjoyable work. What Im trying to get to here - if you don't hate your job, and enjoy the typical white-collar trajectory where you start getting paid significantly more as you enter management level, is it not worth sticking around a bit longer? For myself, I was saving at such a frantic pace that I did not spend some $$ where the marginal enjoyment would have been very high in my mid 20s, and as a result was not enjoying life that much wantied to get out of my career as quickly as possible. Instead I made a conscious choice to start spending more - nicer apartment, deliveroo instead of cooking after 12hrs of stressful work, traveling the world on holidays etc - but as a result my life is now at a level where I don't feel the need to get out ASAP. My exit startegy will require about twice as much saving as the MMM model but keep in mind that as your career goes along, if you dont continually inflate your CoL you start saving more quickly, and your savings start accruing a decent bit too. Add to that that you can typically take bigger career and investment risks as well (prob best to not do both at the same time) so you can, according to my thinking and talking to friends, get from $1m to $2m a lot quicker than 0-$1m, and your post- work life will be dramatically different. Obviously this applies to only a certain number of careers but programming is one of them, so I tbought relevant to reddit. For those who do not have the luck to fall into such a path or hate their jobs - stay the course, avoid consumerism and enjoy your life outside the herd! But if you do have the ability to make some decent dough in middle ages, I just think its maybe a bit shortsighted to grind through the hard early years then knock out when it starts paying off.. Interested to hear any feedback. Also, if you had $0.5mio, 1mio, 1.5mio or 2mio in savings, what would you do differently? How long do you think it would take to move up each bracket amd would it be worth the wait? [link] [comments]  |
| Posted: 03 Jul 2018 03:30 PM PDT Anyone else here trying to augment their other sources of income by trading/holding cryptos? Its both promising, and extremely volatile, which are both factors that can be harnassed to increase wealth. This is of course something with such a high risk level that only young (<30), childless, probably single people should try to attempt it. [link] [comments]  |
| Do I have any options to make productive use of my land? Posted: 03 Jul 2018 02:08 PM PDT I own a home on 5 acres in a heavily forested area, about 3 of which are across a 4-10ft deep creek. I hadn't considered the idea of making productive use of the land and want to explore what options might be available. To the right of the land in the photo above is thousands of acres of protected natural forest, but it is privately owned. Given the inaccessibility of the land, do I have any options at all for making this an asset that can help me in my goal? I want to one day give up working and play in the forest all summer long, so any ideas that might support that after FIRE would be strongly considered. [link] [comments]  |
| Questioning about investing majority of income Posted: 03 Jul 2018 08:36 AM PDT Hey ya'll. Last year I was making 25k. This year I'm making 110k. It's been a big transition with an international sales job. 5 positions are opening up within my company to make 500k a year starting August 1st. I'm going to pursue one of those. If 40% of that is taxed, then the remaining would be 300k a year to live off of. Honestly I'd be fine living off of a budget of about 60k a year for now, which would be about 240k I could invest with. I'm currently 25k in student loan + car debt which I will have paid off entirely by Dec 2019. I'm wondering if you think it's a wise idea to be investing 240k a year into stocks? From lurking this sub and talking to financial advisers at the bank, it seems that 10k investment gets you a dividend of about $350 every quarter. This is of course an estimated average. So if over the next four years I invested 800k into stocks to get a yearly dividend of $100,000, would that be a wise decision? That money would easily get the investment back within ten years and be a lifetime of income to make up for it. I would love advice. [link] [comments]  |
| Mitigating sequence of return risk Posted: 03 Jul 2018 09:44 AM PDT I wanted to get some perspective on a possible plan I was considering. After conversations with my wife she intends to work at least part time long after we hit our FIRE number because she simply enjoys what she does and cant see herself not at least doing this a couple of days a week even at a very old age (its a job she can conceivably do well into her 60's and early 70's. should she want to). I understand that the first 10 years are crucial to mitigating the risk and thats why most often a bond tent is recommended. However suppose in 10 years I hit my fire number X. But beginning at that time I only withdraw 2% from my retirement portfolio and use that + the income my wife brings in over the next 7-10 years for the rest of our living expenses . Would that be enough to mitigate the sequence of return risk? So that after she stops working completely even though our portfolio might be 2x at that time, I then begin 4% withdrawals at the original X number and not whatever the new number is, regardless of how high it may have grown. Looking forward to hearing whether this is a solid plan that would allow me to forgo a bond tent leading up to FIRE. [link] [comments]  |
| Lots of people I know lost everything just when they thought they were financially independent! Posted: 03 Jul 2018 02:19 PM PDT 40 years of savings. 40 years of hard work. 40 years of office politics and bad bosses. 40 years of long commutes. You are 60 years old and think that your long nightmare of hard work to keep the wolves from the door is finally coming to a close. Your set. You have enough money saved, combined with your social security, to finally retire and live the life of leisure. But not so fast! Things can turn on a dime. Many things can go wrong. Here is what happened to some of the people I know just when they were going to retire: 1) Huge medical bills in caused by unexpected out of network providers and the evil balanced billing, took most of their assets to pay. 2) Huge stock market losses in 2000-2003 and 2007-2009 caused them to panic and sell at the bottom with a 50% loss and move all their money to savings accounts at the start of the recovery. 3) Wife asked for divorce and you had to give her most of your assets in the settlement. 4) Small business is sued and you have to declare bankruptcy. 5) Your home is flooded and you don't have flood insurance. Total Loss. 6) Value of your home drops 50% in the real-estate Market Crash. 7) They got into an auto accident and killed someone whose family sued. What happened to people you know to pretty much destroy their retirement? [link] [comments]  |
| Posted: 03 Jul 2018 07:39 AM PDT I was just wondering how many of you guys consider aspects of Flow) for if/when you hit FIRE? If you are unfamiliar with it, Flow is a concept widely used in psychology to describe what makes people satisfied in life. The main component is to find a balance between your skill level in a given area and the challenges you are taking on in that area. There's more to it than that, but the crude outline for the relevance here is that:
I get the impression that many people here aim for option 2 or 3 for their work life when planning for FIRE. I have seen many people retire and become either bored or apathetic, and I was wondering if and how you guys plan to cope with that? Personally I'm not keen on retiring entirely unless I have something else to fill my time with that feels meaningful. The whole Barista/coast FIRE sounds awful to me; taking a job with few challenges just to FIRE but in boredom? No thanks. [link] [comments]  |
| Should I have my wife “earn” the income from our business? Posted: 03 Jul 2018 08:53 AM PDT Thinking through social security benefits and how all of our business earnings are reported on my SS record. Should I start moving the income to her record so that she qualifies for SS at "retirement" age? [link] [comments]  |
| Mini-Retirement. Can it be done? Posted: 02 Jul 2018 05:37 PM PDT My spouse and I (both 30) want to take one year off work to travel and pursue our side interests/hobbies. We plan on settling down and having children when we turn 33/34, so before we start a family, we want to take the opportunity to travel with just the two of us. We want to know if we can do this will not dramatically affecting our ability to FIRE. THE DETAILS: My Income: $100,000 (plus target 15% bonus) My Investments: Spouse's Income: $105,000 Spouse's Investments: Joint Assets: My Expenses (Average of 15 months tracked) Spouse's Expenses (Does not track, but spends similarly to me) Why take time off? We plan on travelling, perhaps living in a low cost country abroad for a month, and pursuing our hobbies which would produce a very modest income. Perhaps its a millennial mindset, but we have been saving/investing wisely since college, and believe we are in good place to take a mini-retirement without dramatically impacting our nest egg. Questions: Thank you. This sub is one of the best on the web! [link] [comments]  |
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