Financial Independence Yesterday I asked you how you feel about salary vs. happiness. Today I have collected the answers [46% of you "tolerate" your jobs] |
- Yesterday I asked you how you feel about salary vs. happiness. Today I have collected the answers [46% of you "tolerate" your jobs]
- Firefighter w/ family of 4, just hit $400K(not including pension)
- Daily FI discussion thread - July 10, 2018
- Projected health care costs at retirement: $14,000/month?? How the heck...
- Vanguard Report: How America Saves 2018
- [23/CAN] I opened my first investment portfolio before a vacation last week, and came home to an increase of eighty bucks. It's nothing compared to some of your numbers, but man does it ever feel good watching that number grow :)
- Way to protect your accumulated assets?
- Did you grow up poor and want to be wealthy?
- The metric I often obsess about: How many months of living expenses I have saved.
- What do you say to your employer about your “career aspirations”?
- FIRE impacted by estate planning
- Wanted: Surprising motivation from the first 3rd of the movie
- Protecting Assets in the Event of a Divorce
- My favorite story about a couple that actually escaped
- 25yr old Teacher in Upstate any, married w/infant, how to get to FI?
- Income Planning from Investments at Retirement?
- Would you consider me FI or not yet?
- Advice
- Degree to income philosophy
| Posted: 10 Jul 2018 05:52 AM PDT Link to the result (online Google Spreadsheet) So yesterday, I asked this sub how you felt about your job. How much happiness do you sacrifice by working, and do you feel like your current salary justifies that? I'll be honest, I didn't expect to get >100 responses but I have really enjoyed reading each and every one of them. Some of you have it pretty good, while others suffer quite a bit because of their job (this one made me laugh, actually. I'm super sorry!) All these responses inspired me to just go ahead and put it in a spreadsheet, which I now want to share with you again. I guess this is my way of giving back, as reading your answers really was fun and inspiring. If you commented on this post, then your answer should be somewhere in that spreadsheet. If not, then I'm sorry, I must have missed it. :( I think the graph itself is not that interesting, and there is probably a lot wrong with it (from a data perspective). All the data points are basically my own interpretation of your replies, some of which were detailed but more often than not less-detailed ;-) Comments like these were pretty easy to chart. You can see everything I did in the spreadsheet I linked to. I hope you don't hate me for it. Also, I've changed the axes around, as mentioned by someone else. Your happiness sacrifice influences salary, not the other way around. I like how most of you simply tolerate your jobs (about half of the replies). You don't love it, but the money is good and it provides a means to an end. This analysis also makes me appreciate my job more. Hell, I may still be in the honeymoon phase. By the way, please don't take this too serious. I just wanted to see how the r/fire crowd feels about their jobs, and had a little fun with your reactions. I might have gone a little too far, I don't know lol. Let me know if you have any questions! :) [link] [comments]  |
| Firefighter w/ family of 4, just hit $400K(not including pension) Posted: 09 Jul 2018 06:01 PM PDT Hello all, I thought I would write a brief post, first post ever on reddit. I've been perusing the FI forum for a while now, I'm kind of a numbers/finance nerd, love keeping spreadsheets of my monthly bills and I also have a Net Worth sheet I've been keeping for roughly 10yrs now. I've been a FF for close to 10yrs, Anyway, I've searched in the past for FF posts and haven't found many. Retirement/money seems to be a popular topic around the station, so I figured I would post this for anyone who searches in the future like me. Just updated my spreadsheet today and NW topped $400K for the first time. In 2009, our net worth was $-9000, so I'm pretty happy with this. Also, to clarify, this doesn't include my pension, which is a defined contribution plan. My eventual benefit will be directly tied to what I've put in, and the system I'm a part of is well-regarded for being very financially stable, so I have little worry of any future issues with it. For those unfamiliar, general expectation is to work 30-35yrs and the pension will be equal to or greater than your salary when you retire. In the last 2.5yrs our net worth has doubled, and the average monthly increase is slowly ticking upwards from a $2-3K/month increase, when I started keeping track, to a current level of roughly $6K/month increase in net worth. Obviously the good market has helped the last couple years. I max out my 457 and max out a Roth for my wife. I had to stop contributing to my Roth, it was just too much, things were getting too tight with us and two kids. Anyway, like I said, I just wanted to post this for any future like persons searching for a firefighter's side of things. Thanks for reading. [link] [comments]  |
| Daily FI discussion thread - July 10, 2018 Posted: 10 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]  |
| Projected health care costs at retirement: $14,000/month?? How the heck... Posted: 10 Jul 2018 02:44 PM PDT Just saw this on my employer portal. How do they figure this? This must be a mistake, no? [link] [comments]  |
| Vanguard Report: How America Saves 2018 Posted: 10 Jul 2018 05:56 AM PDT Here is the link. Lots of interesting figures and numbers, but what struck me interesting is the difference between participation rates, contribution rates, and balances between the genders. [link] [comments]  |
| Posted: 10 Jul 2018 03:29 PM PDT |
| Way to protect your accumulated assets? Posted: 09 Jul 2018 10:10 PM PDT It seems that most of the topics here are focused on the growth aspect of FI but protecting what you've earned/grown is just as important. Here's my story: I bought an umbrella policy with my homeowner's insurance about 2 years ago after purchasing my first house. I never thought I would have to use it but since it only cost me $250/year for 1.5M of coverage, I went for it. About 8 months ago, I was hosting a party on a rainy night and a good amount of alcohol was flowing. The weather took a sudden turn for the south and the drizzle became freezing rain as the night progressed. One of the guests slipped and fell down the stoop (about 5 steps or so) cleaving their head against the concrete on the way out. An ambulance was called for the person and the night came to an end. I assumed their medical insurance would cover their injuries and their disability insurance would cover their lost wages. About a month and a half later, I was served with a lawsuit from that person for medical costs and lost wages due to my "negligence." The insurance company provided the attorney, handled the whole lawsuit, and settled with the plaintiff. Easily the best peace of mind that $250 could have bought. I never realized how quickly 15 years worth of saving and investing can be wiped out with one accident. Are there any other ways to protect your assets in addition to umbrella insurance? [link] [comments]  |
| Did you grow up poor and want to be wealthy? Posted: 10 Jul 2018 04:30 PM PDT As I have moved through life and now travel I see a huge difference in the way people in each culture think and how it seems to impact their wealth. This is a broad statement and most people don't fit in any box, however, the way we think about money often does impact how much wealth we accumulate through life. So here is my idea. If you grew up in a very poor family in a poor neighborhood but are on this sub because you want to change and be financially independent and don't know how I'd like to jump in there with you. I'm not an expert but I have experience. I clawed my way out of a great amount of debt and then became financially independent by the age of 43. I won't know the answer to all your questions and may not even be able to answer many of them. I'm not a financial advisor. I will listen and share - free. I can't change you or your circumstances, but I can offer encouragement and will listen. I'm offering two hours a month for the next three months of personal one-on-one time. It will have to be done on the phone as I'm traveling, but that also gives you anonymity. Sometimes talking to a complete stranger about your financial struggles can help. Requirements: 1). You grew up in a poor family in a poor area 2). You want to change 3). You have two hours a month to talk to someone 4). You are willing to explore your own ideas about money and question yourself on how you think about money. What I offer: 1). I'll listen 2). I'll share my ideas about money 3). I'll give you two hours of phone time a month. I can call you if you don't have long distance. 4). I'll encourage and support you 5). I'll ask you to question some of your money beliefs and openly discuss them with you. This is free. There have been so many people in my life that helped me along the way, and I'd like to do the same. At any time for any reason if you want to stop there is no obligation. If you are interested PM me with a little bit about yourself. [link] [comments]  |
| The metric I often obsess about: How many months of living expenses I have saved. Posted: 10 Jul 2018 03:31 PM PDT I've been a real estate broker for 4 years now and it's going well. I really never have a ton of money saved because I buy a property to rent out as soon as I have enough, and I travel a lot. I find that I obsess about how many months of living expenses I have saved. It's like a game for me, imagining how long I could go without doing a single thing and still survive at my current lifestyle. I'm slightly fanatical about having no debt other than rental property that throws off cash flow, I'll take 20 million in rental property debt if I can get it. I feel like a financial marathon runner. A soldier of cash flow soon to pass the Green Beret qual course. I still find it AMAZING that we can go for a long time as self employed people while others must show up at work, cause I was one of them for most of my life, and I appreciate my freedom so damn much. It amazes me all the time. I have 1.5 years today. If I could cut my lifestyle down to $2,500 per month, I'd never have to work again cause that's how much rental income I currently get each month. Anyone else obsess about months of savings? [link] [comments]  |
| What do you say to your employer about your “career aspirations”? Posted: 10 Jul 2018 02:29 PM PDT I used to be focussed on climbing the corporate ladder and making it to an executive level position. In the past few years, I've discovered FIRE and shifted my focus to this pursuit instead. The thing is, is I'm seen as a high performer at work and part of an exclusive development program reserved for employees with lots of potential. I've always maintained my aspirations and big-picture attitude at work, and sold myself accordingly. However more recently I find that I'd rather earn as much as possible (in sales) rather than advancing in more roles. Anyone find them self in a similar situation, being a high performing employee but also focused on FIRE? [link] [comments]  |
| FIRE impacted by estate planning Posted: 10 Jul 2018 01:52 PM PDT Before I get into this post, I should state that it is my goal to be - independently - fatFIRE. However, in my case, inheritance is also a -significant- and material factor which shapes the bigger picture. All of the following has been extensively and explicitly discussed as part of an ongoing family discussion on how to create and grow generational wealth for me and my brother's families. Some of this has been discussed with estate planning lawyers, some of it has not. I'm getting lots of conflicting information and it's starting to get overwhelming. I feel more confused than when I started. For context and simplicity, let's start with the inheritance. INHERITANCE My parents (around 60) are sole owners of a medical practice which has cleared approx. $1-2MM in annual profit over the past decade. They have purchased and will be expanding into a much larger building this year, where they hope to both increase profits by increasing their patient base, as well as by leasing out the rest of the building (the building has been paid in full). They hope to continue to work for another 10-15 years and shift into more management-oriented roles. As non-physicians, my brother and I are prohibited from owning the medical practice upon their passing. The current plan is that they will try to sell their business in advance of their passing in order to monetize their current patient base, operations, etc. Current liquid holdings are actually quite low (<$1MM), but given current performance of the business and assuming their health holds, there's likely to be another $20-30MM in liquid holdings. Already established are several trusts to distribute the non-liquid assets (primarily real estate currently worth ~$15MM) between my brother and I, as well as an irrevocable life insurance trust to provide immediate liquidity for taxes.
OUR PERSONAL JOURNEY Married couple (30 & 28), total annual income of ~ $275K (depending on bonuses and equity vesting) Two young kids, 3 and 1 Total current NW of $1.0MM $470k investments across a mix of Roth & traditional 401ks, and non-tax-advantaged accounts $330K cash (I know) $200k home equity $300K in remaining mortgage debt (FWIW), no other outstanding debt Currently no college savings for the kids - grandparents have established a 529. Goal is to retire around 50 with around $4-5MM in NW (reasonably achievable)
Thanks in advance. This situation is getting increasingly confusing, and I'd prefer to get some words of wisdom from people who don't have a vested interest in keeping us on the hook at $500/hour. [link] [comments]  |
| Wanted: Surprising motivation from the first 3rd of the movie Posted: 10 Jul 2018 04:29 PM PDT It's been years since I've seen the movie, so when I saw it on Netflix, I decided to give it another watch. Nothing displayed how I felt about FI more than the first third of the movie. To recap the plot: A guy gets into a shootout between buildings, yada yada... The protagonist talks about how much of a loser he is. His girlfriend cheats on him with his best friend, and they both treat him like shit. His boss is extremely powertrippy and he explains how the most energy he expends is pretending everything is okay. He's taking anxiety meds like candy, and even sees the ATM calling him out as a $10 transaction is denied. He sums it all up with "You know what the best part is? I get to do this all over again tomorrow." Fast forward a bit and he now has a couple millions in the bank. He no longer cowers to his boss and when she pushes him to his breaking point, he finally stands up for himself to her and his "best friend". It's this mindset change, almost overnight, that drives me towards FI. The aspect that you can stand up for yourself, and remove what leverage others can have over you based on your need for a job. The ability to not look at the next 25 years with a sad foreboding that you will wake every day and pour your soul out just to make ends meet. The ability to wake up and be truly free to decide to thrive in the direction of my values, rather than submit or sell myself short. The ability to be my truest self. Anyways, thought the movie deserved a shout out. [link] [comments]  |
| Protecting Assets in the Event of a Divorce Posted: 10 Jul 2018 07:24 AM PDT Hey everyone, Sorry for the depressing topic but i'm having a bit of a rough patch and needed some advice. Bit of background 27, married, 1 child single income earner. NW around 200k (401k, Roth IRA, Crypto, Vanguards, Investment house and personal residence) 100% in my name, no joint account as my wife is a SAHM and made & spent her whole salary before we had kids (10k/year) My wife and I are really having a hard time seeing eye to eye and I fear that divorce is going to be inevitable. For the sake of our child we are trying everything to make it work but some people are just too different to work. I'm not looking for relationship advice so please save the "counseling" type advice, I'm trying everything I can but pessimistic about the future. I was young, dumb and in love and regret not getting a prenup. I'm asking if anyone has any advice on how to minimize losses during a divorce. Is there anything or anywhere that my money would be safe. I'm wondering if crypto would be a good place to hold my liquid cash? Also my investment property was purchased by me prior to marriage so I've heard that in the event of divorce that property owned prior to marriage isn't included. Maybe pay down the loan as much as possible and Refi? Last option is to try and get a lawyer to write up a postnup. My wife is probably less likely to be understanding during such trying times. Also any divorces willing to discuss how you recovered. Financials aside I feel like everything I've worked for my life is falling apart. My biggest push to retire early was to spend time with my wife and child and now it seems like I'm losing everything, wife and child will be gone, as well as my ability to retire and my reason to... And to the unmarried crowd.... no one gets married with the intent of divorce. I love my wife to pieces even as we are going through these hard times but people change and unfortunately she doesn't feel the same way towards me as she once did. I would suggest a prenup to every and anyone. It would make a lot more sense to divide assets while things are good instead of when things are bad. [link] [comments]  |
| My favorite story about a couple that actually escaped Posted: 10 Jul 2018 02:28 PM PDT https://www.truckcampermagazine.com/camper-lifestyle/truck-campers-escape-the-rat-race/?singlepage=1 Also, while I don't necessarily agree with it, these guys present a different perspective from the 4% SWR; they mention they purchased annuities to have a secure income (at least until they expect to draw social security, I believe). [link] [comments]  |
| 25yr old Teacher in Upstate any, married w/infant, how to get to FI? Posted: 10 Jul 2018 06:46 AM PDT Hi all, this is my first time on reddit and posting here. I've followed various FI blogs and read different money management books. I am looking to get more ideas to help me figure out how to tackle our situation. Here's our stats: Student loans- $100,000 combined ($950/mo) Mortgage- $168,000 (1,345/mo) 3bd/3bath Car loan- $8,655 left. & 3 yrs (270/mo) Total expenses: $4,400/mo Total income: $4,600/mo (w/o my PT job included) We have very little excess fat in our budget except maybe the whole life insurance policies that our friend/advisor sold us as he stated "in 15 years the cash value should equal the principal left on your mortgage" We have decent savings and I have a NYS pension that will pay out 60% of Final AvG salary if I teach until 55. My wife has a 403(b) but no contributions yet. What should be our next steps towards working towards FI? I'm looking for moderately aggressive moves that will get us in better financial shape without putting undue strain and stress. Thank you all! [link] [comments]  |
| Income Planning from Investments at Retirement? Posted: 10 Jul 2018 12:01 PM PDT Currently, I have no problem saving and dumping money with an aggressive allocation--but when I think about having to shift to spending that money in retirement, I get a little anxious. I think I would feel better about it if I knew the logistics of how it would work... Any retirees care to share how they decide on distributions etc... Do you pull out your annual expenses all at once? Do you sell stocks and bonds on January 1, and then pull out money as needed or sell throughout the year? Bond ladders? Use distributions to re-balance? I'm just curious on the nuts and bolts of how others are handling income at retirement. [link] [comments]  |
| Would you consider me FI or not yet? Posted: 10 Jul 2018 11:33 AM PDT Here are my stats: 31 male single $610,000 assets invested. Expenses: $700 rent in a ghetto apartment; $700 everything else (food, entertainment, shopping) Using a 4% rule, it *should* generate $24,400 per year or $2,000 per month. However, my actual dividends clocks in at $4,500 per year which is around 0.75%. (Reason being that some of my largest holdings, e.g. Amazon, pays 0 dividends) Am I considered FI or not? Edit: Also, I am single so I definitely can't live like this forever lol... [link] [comments]  |
| Posted: 10 Jul 2018 11:14 AM PDT Hey all, I am 36 and fairly new to FI. I am a little late in the game but I do not want to work forever so I am starting my journey now. I wanted to know if anyone has any advice on how I can get my long time partner on the same page? They tend to be spenders and wanted to know if anyone has any input. I know I cannot change them but would at least like their goals to be similar to mine since we live together and share the bills. They have expressed to me they would like to retire early as well but their behaviors do not reflect it at all. [link] [comments]  |
| Posted: 10 Jul 2018 07:08 AM PDT Does anyone have a philosophy on how much you would be willing to spend for a degree that has X income after completion? For example: You generally wouldnt want to get a degree that cost 150k if you would only be making 20k salary. But going to 400k worth of student loans for a 300k job makes much more fiscal sense [link] [comments]  |
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