Financial Independence Those with NW that is 25X (or more) salary, how are you even motivated to work? |
- Those with NW that is 25X (or more) salary, how are you even motivated to work?
- “The Richest Man in Babylon”, my most recent read
- Daily FI discussion thread - July 31, 2018
- Surprisingly not-terrible article on FI
- Fidelitie's Money Game
- FI/RE Shower Thought: Becoming financially independent is essential. Becoming rich is optional.
- Wilderness FI/RE and the path not taken.
- What kind of BaristaFI jobs allow full schedule ownership?
- People who are (near) FI/RE, how did people react and how did you handle it? Regrets?
- WFH - the best Quality of Life asset in the software industry?
- How do you get your monthly income?
- Anyone using Balanced ETFs?
- We've heard of the 4% SWR being robust for a span of 30 years. But what about longer timelines - 40, 60, 100 years?
- Burnout and health concerns, advice?
- Can I speed up the process...??
- For retirement planning purposes, how long do you project you are going to live?
- Would you dip into savings to buy a house or pay more in mortgage?
- Moving back to rental property to speed up savings.
- Anyone here just putting most of their money in an inflation adjusted annuity and call it a day?
| Those with NW that is 25X (or more) salary, how are you even motivated to work? Posted: 31 Jul 2018 06:05 AM PDT Say your annual salary is $100,000 and your investments are $2,500,000. Now, in the markets, a good or bad week will see a 5% gain or drop. How do you find motivation to continue working when a good/bad in the markets will equal your annual salary or more? Every weekday, waking up at 7am, trying to get ready quickly, perhaps prepare rush to prepare food for everyone, sit in your car/bus commuting for an hour or more, listening to useless meetings, almost falling asleep in the afternoon because you didn't get enough sleep the night before etc All of that hard work "wiped away" with a bad market week. [link] [comments]  |
| “The Richest Man in Babylon”, my most recent read Posted: 31 Jul 2018 06:56 AM PDT Hi everyone! I recently read the book "The Richest Man in Babylon" and it amazes me how I have missed this one up until now. I think it contains so many great takeaways for new investors. Here, I will list my own top 10 in case you are interested:
If you want to buy the book, you can easily find it on Amazon or similar. On the other hand, I've found a couple of summaries on YouTube that I think delivers the most important advice, and also in a more enjoyable/easier format. A few of the ones I enjoyed the most were: https://www.youtube.com/watch?v=qkUgmolMI9I https://www.youtube.com/watch?v=9rbsbZ5AitM https://www.youtube.com/watch?v=LX7j0JYhqKo Cheers! [link] [comments]  |
| Daily FI discussion thread - July 31, 2018 Posted: 31 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]  |
| Surprisingly not-terrible article on FI Posted: 31 Jul 2018 07:24 AM PDT This article discusses leanFIRE v fatFIRE. It oversimplifies some and relies heavily on bloggers, but it's a relatively decent article. The comments already hit all the usual tropes, but that's to be expected. [link] [comments]  |
| Posted: 30 Jul 2018 10:33 PM PDT I wasn't able to beat the game. Taylor wasnt happy with my decisions because I got her a thrift shop couch and wouldn't let her go to the concert. Glad to see Fidelity is teaching consumerism. https://digital.fidelity.com/prgw/digital/five-money-musts#/home How did you guys do? Edit: That spelling of Fidelity in the title makes me cringe. [link] [comments]  |
| FI/RE Shower Thought: Becoming financially independent is essential. Becoming rich is optional. Posted: 31 Jul 2018 03:10 PM PDT |
| Wilderness FI/RE and the path not taken. Posted: 31 Jul 2018 01:27 PM PDT For many years as a young man I wanted to be Richard Proenneke. I saw the PBS documentary on him as a child and I wanted to live out in Alaska, among the peaks and the glaciers and the moose. Flying the bush in Alaska was something I came very close to doing. I didn't do it. I'm more or less FI at this point, with a comfortable climate-controlled life in the lower 48. I'm happy, but I do still wonder what it would have been like. What's your FI path not taken? [link] [comments]  |
| What kind of BaristaFI jobs allow full schedule ownership? Posted: 31 Jul 2018 12:31 PM PDT Let's say I want to BaristaFIRE instead of full FIRE. But I'm struggling to find job categories that will be flexible enough for me to say "I'll come in next two weeks for 4-5 hours a day, or I'll work online for next two weeks for 4-5 hours a day, but after that I want two weeks off for my already planned trip to Asia". Any server type job, call center type work, or anything client based (even if online), requires dedicated presence without too much control over one's schedule to pursue travel goals. Besides "start an online business, blog, write e-books, FBA etc and see if it succeeds" (which seems like a time-wasted venture if your business doesn't take off and you take on all the risk yourself), are there any category of Barista FI jobs which allow for ownership of schedule but someone else is still paying you for whatever little hours you worked? I considered upwork and other gig style jobs, but there also you only make real money if you have regular clients (who will expect some regularity on their schedule and not appreciate a two week delay because I'm in Africa or whatever). One-off upwork style stuff just seems hard to get a foot into. [link] [comments]  |
| People who are (near) FI/RE, how did people react and how did you handle it? Regrets? Posted: 31 Jul 2018 11:53 AM PDT I know this topic comes up from time to time, because I like reading about these anecdotes, but I couldn't find a dedicated topic in the top50/70 of this sub (all-time). So, when you gave your notice, how did your colleagues react for example? Or family/friends? Or did you decide to tell as few people as possible? Or maybe even before FI/RE, how did people react when they find out you were "rich"/almost FI? [link] [comments]  |
| WFH - the best Quality of Life asset in the software industry? Posted: 31 Jul 2018 11:49 AM PDT I've positioned myself so that I have a very reasonable amount of stress on a regular basis (I'm a software dev) at work. At the end of the day, as long as the work I've made the expectation of being completed gets done, no one is ever on my metaphorical balls, and there is essentially no micromanagement. (* I've spent as much time learning/reading about optimal professional communication, negotiation, and career progression as I have FIRE*). On occasion I'm able to work from home, which is where the insane boost in quality of life comes into play. (*When I had my first WFH day at the company, I set the expectation to those I interact/report to that I would be available via email. Notice the lack of skype/slack/google hangout in that sentence.) When writing software, it's pretty reasonable to not notice emails that come in, so a reasonable response time to an email is at least an hour before anyone would take issue. Of course I have my office365 access from a browser (my phone), and since I set the expectation with my company to not expect to reach my via instant message, I don't need to be on my laptop (which would indicate I'm 'Active' (available, doing work, etc). (* I'm early enough in my career that most of the time other people aren't coming to me with questions constantly, I'm usually the one needing to get answers form others on occasion) This essentially allows me free reign to get my work done throughout the day, as I please. Video games to start the morning for an hour or two? do the laundry? other chores around the house to make the girlfriend happy? Mid-day grocery run? A long walk with the girlfriend if she happens to be home that day? You name it. If I only need to do 4 hours of work to compete the necessary work for that day, I've effectively doubled my hourly rate for the day. (* I also work much more effectively at home then at work (lack of distractions, have my own coffee and bathroom, etc). As can be expected from the direction of the post, my true next aim is for full work from home privilege with my current company. I'm still less then 6-figures, but when I broke it down, I realized I valued being able to work from home outweighed a 35% raise right now. Additionally, full time remote work would allows my girlfriend and I the freedom to only have to take one work place location into account when deciding where we want to move next which makes a really big difference when working in/around a large metro. Even more so, I've used this to see family and friends more regularly who live a long drive from my home. Instead of leaving Friday night to make the five hour drive back home to visit, I can head out late morning and miss all the terrible traffic, and get into town early enough to have a Friday night to enjoy as opposed to getting there and going to sleep. I'm curious if others here see such a large value in the fully remote prospect, or are pursuing it more so then a raise or more PTO days. [link] [comments]  |
| How do you get your monthly income? Posted: 31 Jul 2018 11:58 AM PDT For those that are already FI, how do you receive your monthly payouts? I know the goal is to invest in stocks, bonds, cds and real estate etc, but once you are FI, how do you get a monthly income to pay for things? I've searched several sites with no definitive answer. [link] [comments]  |
| Posted: 31 Jul 2018 11:55 AM PDT I found some information on them in Bogleheads. Anyone using them? Any advice? A handful of ETFs-of-ETFs:
Of these, I'd go with the iShares. GAL and GAA hold 20+ underlying assets, and a lot of them seem unnecessary to me, such as the high-yielding bonds. (GAA's holdings make more sense, since it at least has factor tilts, but it also has few assets under management, at about $60 million.) [link] [comments]  |
| Posted: 31 Jul 2018 11:39 AM PDT For those that want to RE, 30 years is too short of a timeframe. Are there resources for what the recommended SWR is over longer timespans? On another note, what is your goal SWR and how many decades do you expect your money to last you? [link] [comments]  |
| Burnout and health concerns, advice? Posted: 30 Jul 2018 04:00 PM PDT I know you've all heard this before many times, but I'm worried about my health and, aside from going to the doctor, wanted to see if people had any anecdotal insights. I'm a software engineer who hates computers and just does it for money. I work at one of the "big 5" tech companies, and I'm trying to survive until at least November when I get my next stock vest, and then plan to quit. I have more vests coming, but I really don't think I can make it. For the past year and a half, I get daily tension headaches. My eyes are fine, and overall my health is okay. The cause is likely a combination of stress, posture, eye strain, and sitting still for too long. I addressed those issues as much as possible but it still happens. In the last couple of weeks I've had horrible abdominal pain off and on, complete lack of appetite (already slightly underweight), and back pain. I had multiple panic attacks last week, and I usually go weeks without any. I'm sure this is stress and job related, and that I'm not sick. I'm burned out and really feel myself deteriorating. I try not to focus on it and just keep my head down on work, but it's impossible to ignore these health problems. All the usual stuff like taking breaks, keeping positive, staying active and eating healthy are no longer working. Everyone has a breaking point where that stuff stops working and I've reached mine. I know everyone will say "therapy" but I really don't want to throw money at the problem, and my issue will go away entirely once I quit, which will be soon enough. Has anyone experienced medium to long-term health issues due to burnout, daily headaches, and chronic pain? What can I expect in terms of healing, and how can I best recover after I quit? Any non-mainstream advice on making it 4 months with increasing pains in the body? Thanks. [link] [comments]  |
| Can I speed up the process...?? Posted: 31 Jul 2018 08:46 AM PDT Maybe I'm just entering a slight mid-life financial crisis as I'm turning 40 in less than 6 months... Anywho, I'm newer to FIRE and getting my crap together. Maxing 401k and IRA as of this year (only have 50k in 401k and ~15k in an emergency fund to my name at this time). Luckily no debt, don't even own a car. Single female/no kids. $95k salary+8%annual bonus; expenses are down now to $2900/month. I've been having lots of thoughts lately about my current path to FIRE which, if I keep on it, I can get there around age 55 I think (?). However, I've been feeling SO burnt out on the job I've been at for only 4.5 years lately (FYI, I'm INFP and we're always burning out/never happy with employment)-this is nothing new for me as I have this pattern of burnout. So I'm just not 100% sure I'll be able to hang on anywhere near long enough at my current salary to make my FIRE goal around age 55. The primary thing keeping me going is that I'm working from home and there is also a small pension here if I stick it out. I've been wondering what I can do to speed up the process so to speak? I was talking to a friend of mine last night (he's FI already but will continue to work till he's 50) and he stated I should funnel what I'm saving in 401k/IRA instead to a down payment on a house that has rental potential. In other words, start planning now to buy in another 2 years or so a duplex or property that has a basement suite that can be rented out to cover most/all of my living expenses. He feels that is one step I can take to free up more cash to go towards retirement funds since housing is a sizeable chunk of my expenses. Makes sense, but then I'd have to stop contributing at an age where I need to be maxing everything every.single.year. Thoughts on doing this?? I'm pretty risk averse actually, but at this time am willing to take on more risk in some way(s) if it means I can get to at least FI sooner (50 would be great). I don't know what that could be, but I'm open. Should I just keep doing what I'm doing (maxing retirement vehicles) since "slow and steady" supposedly wins the race? Anyone else feel sometimes that it seems to be a "long road ahead"? How do you deal? Did you take on a risk or find a unique opportunity to get ahead quicker? [link] [comments]  |
| For retirement planning purposes, how long do you project you are going to live? Posted: 31 Jul 2018 07:57 AM PDT I look at many financial and retirement based message boards and there are a lot of very optimistic people when it comes to their life expectancy and very pessimistic people when it comes to their investment returns. The general feeling is they are going to live to 100 years old and will be retired for 40-50 years but their retirement portfolio is going to get a 2% real return, or less, and high inflation is coming between now and death. So they are going with a 2-3% annual distribution because they will live so long and the stock and bond market is going to do so terribly in the next 40-50 years. The trouble is by being super cautious and expecting to live to 100, your lifestyle in retirement is held back by too little spending. Are the nice folks on Reddit of the same mind set? [link] [comments]  |
| Would you dip into savings to buy a house or pay more in mortgage? Posted: 31 Jul 2018 09:29 AM PDT EDIT: accidentally made the title misleading dipping into roth savings Long time lurker, first time poster. I'm seriously looking into buying a house, knowing that it would set me back on FI. Just wanting to know what's the least damaging route to get there. I'm currently 29, my expenses are 3k/mo and I've been saving around 4K/mo. I have about 170k saved right now, and was on track to FIRE around when I turn 40. Currently some options are to put the full 20% down but then dip into my Roth by about 20k and be spending 3.5k/mo on the house, or put down 15% down paying a little over around 4K/mo and not have to liquidate my Roth. I think some other details are that our rate is going to be 4.625 on the mortgage, my husband and i's combined income is around 175k, let me know if any others help. So if you wanted to buy a house in this situation, which would you choose? [link] [comments]  |
| Moving back to rental property to speed up savings. Posted: 31 Jul 2018 06:16 AM PDT Hi All, Long time lurker, first time poster. I have a Rental property that is break-even about 10 minutes from my principal residence. I am thinking of giving notice to my tenants to move out so that I can rent out my current principal residence for a higher monthly rent. This plan will reduce our housing costs by $8000/year. The reason I want to do this is because we are paying a lot for housing (about 30% of take home pay considering 2 incomes for me and the wife). The extra money saved can be used for paying off the house faster, increasing our savings, kids education, etc. Of course, I have to take into account moving costs and bringing up the rental property up to a certain living standards as I have a small family. So the impact really adds up after about 1 year of the switch. The reason I am hesitant is because my wife prefers our current house because it is a somewhat nicer area. I actually do prefer it myself but I am trying to be more practical and think about the savings. Any advice, appreciated! [link] [comments]  |
| Anyone here just putting most of their money in an inflation adjusted annuity and call it a day? Posted: 31 Jul 2018 08:03 AM PDT Even though I am basically financially independent right now, who knows what the future will bring. My wife and I want to sleep at night and have a stress free retirement. My wife asked me this question: "Why worry about what the economy is going to do and the ups and downs of the stock market in retirement? Why don't we just put 80% of our assets in an inflation adjusted immediate annuity and relax? How much would we get every year if we put one Million in the best immediate annuity that is inflation adjusted vs one that is not?" (Will both be 62 by December 31st of this year.) We have no kids or family to give the money to when we die. [link] [comments]  |
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