Financial Independence Fidelity to begin offering zero (0.00%) expense ratio mutual funds to individual investors |
- Fidelity to begin offering zero (0.00%) expense ratio mutual funds to individual investors
- Daily FI discussion thread - August 01, 2018
- Mindset Changes: A Milestone
- Weekly Self-Promotion Thread - August 01, 2018
- What happened to retired people during dot com crash or housing crash?
- What major "tricks" am I probably not yet aware of?
- Those of you who turned your side hustle into a career...
- Advice: Double your efforts to be financially independent because age discrimination is getting worse every day!
- Book Review: The Millionaire Next Door
- Is a 529 plan worth it for an adult with no dependents looking to RE?
- What do you think about the newly approved short term health insurance plans as a potential option during early retirement?
- How to keep the FIRE spark alive?
- Moving Into an RV to boost savings, shorten time to FIRE
- Questions about tax gain harvesting in my case.
| Fidelity to begin offering zero (0.00%) expense ratio mutual funds to individual investors Posted: 01 Aug 2018 09:19 AM PDT Probably not earth shattering if you're only paying five basis points on VTSAX but still pretty interesting. Wonder how they'll make money? [link] [comments]  |
| Daily FI discussion thread - August 01, 2018 Posted: 01 Aug 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: 31 Jul 2018 05:33 PM PDT Long time Lurker here. I'm 23 working in finance and have had 2 huge mindset changes this week. 1st: I have just crossed over my first 100k in net worth and with it comes a sense of peace. I feel myself soaring above the rat race and look around to see so many people/coworkers who only dream of being debt free. I feel so calm. 2: I thought I was doing well saving around 50% of my income but I started seeing this girl who doesn't make nearly as much as I do but saves by living frugally in a way that doesn't seem like a chore. I realized because of this, I feel so much more inclined to go the extra step in saving more, be it by changing my own oil, taking up woodworking to create and repair household items, etc. It can be so fun finding ways to cut a little money here and there. We went on a date to Goodwill and dressed each other up in $10 outfits and went out on the town. Normal date costs:~$60-100.... This date: $20 Just wanted to share and contribute a bit. Would love to hear about all of your mindset changes and milestones be it financial or personal! [link] [comments]  |
| Weekly Self-Promotion Thread - August 01, 2018 Posted: 01 Aug 2018 04:09 AM PDT Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. [link] [comments]  |
| What happened to retired people during dot com crash or housing crash? Posted: 31 Jul 2018 09:12 PM PDT Anyone here willing to share what was it like during those scary times? Did you have to go back to work? Was your passive income still functioning? If you relied on dividend, did you get any? If you relied on pension, did you get any? Or did you double down, took the opportunity and became even wealthier? [link] [comments]  |
| What major "tricks" am I probably not yet aware of? Posted: 01 Aug 2018 10:50 AM PDT I'm still only about a year into this mindset, and realize how little I knew about financial complexities for the first ~2.5 decades of my adult life. I always assumed that how one structured things wouldn't matter to taxes and so forth, and that in the end, it always works out that you pay the same taxes no matter exactly how you do things--that all that counts is money in over the lifetime, and that the function between income and taxes was "linear". Tax tricks were only for the ultra-rich who had money hidden in the Cayman Islands or something. I now see that I couldn't have been wronger and "naiver". Examples: Pay just one penny over the ACA cliff and it would cost you $4,000 in tax subsidy. Sell $77k in your stocks one day before the one year anniversary of your buying them and you pay thousands in taxes. Sell them one day later and pay $0. Stay in a foreign country for 182 days and have no family or business "center" there, and pay no taxes on U.S. long term capital gains income; live 184 days, and pay 21% on your U.S. long term capital gains. Etc., etc. [These are all simplifications and leaving out details, but it is just to make the point.] So now I'm trying to uncover some of the best strategies and tips to make the most of one's money. My most recent one, which I asked about here in a recent post, is tax gain harvesting. Another great one talked about here frequently are Roth conversions/ladders during years in which one's income is very low. I'm also starting a SOLO 401k for myself this year. Many of these are particularly relevant for FIRE types. What are some other great tax or financial "tricks" or tactics (or avoidance of "gotchas") for FIRE hopefuls that I might not know about but should? (I know you can't know what I do or do not know, so just suggest ones that everyone should know and some probably don't; it will likely help me or the community here in some way.) [link] [comments]  |
| Those of you who turned your side hustle into a career... Posted: 31 Jul 2018 11:25 PM PDT How did your get started in your business and what finally made it click for you? Also interested in any bloggers on this subject. Thx [link] [comments]  |
| Posted: 01 Aug 2018 01:29 PM PDT I am sixty one years old and have lots of friends and relatives 50-60 years old who have lost their jobs/careers due to age discrimination. Their employers wanting a hip, young and inexpensive workplace will make live impossible for them at work, or will just terminate them in the waves of layoffs that hit corporate America. They want to go back to work but employers "generally" want younger cheaper candidates. If they try to accept less pay or a lower level job the code words becomes, "you are overqualified." Age discrimination is the perfect reason to double your savings and live frugally. Become a knowledgeable investor and pick the best stocks, bonds, mutual funds and other investments. Do your homework! Work in your field in an interesting well paid job is not guaranteed and once you are 50+ it is going to be a lot tougher to find a new job. Anyone with a story to tell about how age discrimination encouraged you to redouble your efforts to become financially independent. [link] [comments]  |
| Book Review: The Millionaire Next Door Posted: 31 Jul 2018 11:20 PM PDT I recently read the book The Millionaire Next Door by Thomas Stanley and William Danko. I highly recommend it! The overarching premise of the book is that there are many people out there who are reasonably wealthy (i.e. millionaires), but who do not exhibit the stereotypical signs of wealth (big house, flashy car, clothes, jewelry, other typical signs of living beyond one's means). This main point is likely something that most readers of this sub already get. But the book is still very worthwhile even without the premise constituting a revelation to the reader. The book got me thinking: What would the country, or the world, look like with significantly-less consumer consumption? Surely, this is the hallmark if the FIRE community. Would it mean significant job losses in the sectors producing those consumer goods? Would it encourage investment into new sectors? Would people be freed up to simply not work as much? The book studies the many differences between those who are wealthy and those who are not, highlighting the characteristics shared by modestly-wealthy millionaires - the heroes of the book - and lacking by their prodigal neighbors. I made note of several items that I thought were of particular interest to me:
One criticism levied at the book was that it demonstrated survivorship bias - the authors focused on people who were actually millionaires, and not the people who had "died trying." I think that criticism is misplaced. If you look at NBA players and see that the average height is 6' 7", and that 94% of the players are at least 6 feet tall, and the average height of all men is 5' 9", you'd be wrong to conclude that tall height is a predictor of success (because we know that the vast majority of tall men are not in the NBA and not particularly good at basketball), but it would be reasonable to conclude that tall height seems to be an important trait of successful basketball players and that it seems less likely that you could become a successful basketball player if your height was under that threshold. In other words, tall height is a likely-necessary, but not at all sufficient, condition. Overall, I definitely recommend. It was an enjoyable book that can be read in a couple of evenings. [link] [comments]  |
| Is a 529 plan worth it for an adult with no dependents looking to RE? Posted: 01 Aug 2018 10:43 AM PDT I'm mid 30s, single with no kids, looking to retire (or at least barista FIRE) within the next 5-10 years. I'd like to be able to take classes I find interesting when I have more time to do so. I am NOT looking into grad school, just individual classes or maybe some certificate programs. I am also taking advantage of my current employer's educational assistance program right now, but I'm more restricted in what I can get them to pay for. I currently am able to save just about 50% of my gross, max out 401K, Roth IRA, and HSA, and I'm working on reducing expenses further so I can save more before quitting the high income gig. I know 5-10 years is a short time frame for money to grow, but I still like the idea of basically prepaying for education and getting some tax-free gains in the mean time. I was thinking throwing somewhere between $5K-$10K within the next year and just letting it sit until post RE. I figured that would be enough to to be able to take classes as I please for awhile, while not being a large enough chunk that I'm worried about the extra 10% penalty if I end up needing it for something else. And while I don't have kids myself, I could pass it on to my niece or nephew if I don't use it. Is this a good idea? bad? What additional things should I consider? (No state tax benefits for me; $35 yearly fee). I'll provide any additional info that may be necessary. [link] [comments]  |
| Posted: 01 Aug 2018 08:41 AM PDT I just read an article about these plans in the Washington Post. There are obvious disadvantages, similar to the religious Health Share plans in that they don't need to meet all of the ACA requirements, but the prices, co-pays, and deductibles seem very affordable. Major disadvantages include coverage limits around $750k, and the lack of coverage for preexisting conditions. Some examples of companies include eHealth and agile. The new rules allow one to keep these plans for up to a year, with options to renew coverage. [link] [comments]  |
| How to keep the FIRE spark alive? Posted: 01 Aug 2018 05:46 AM PDT Hello fellow FI'ers, I found FIRE through Mr. Money Mustache and have been a follower to varying degrees since. My issue is that my savings rate tends to drop after a month or so of "peak enthusiasm". Then I revert to many of my bad consumption habits – fashionable sneakers, eating out, etc. After a while, I again "rediscover" FIRE and MMM and become a bit more disciplined again. And the circle starts all over. Most of my friends and my spouse aren't that into it, and knowing that despite all optimization I still have about 10 years of career ahead of me, I begin to feel a bit... worn out? MMM is great for inspiration, but he posts very infrequently these days. How do you do it - any tips on keeping the "spark" alive? Or is it easy for you? Did you manage to turn on the autopilot so that you don't even think about it anymore? Thanks! :) [link] [comments]  |
| Moving Into an RV to boost savings, shorten time to FIRE Posted: 31 Jul 2018 06:58 PM PDT We are about to pull the trigger on moving into an RV travel trailer full time next month. **Situation:** 32 yo, married DINKS, no debt, HCOL city apartment rental (by choice), 1 car, $400K combined NW, 28% SR in HCOL city, expected to jump to 35%-40% with RV living. Wife works remote from home (secure job, with company 8 years). We are keeping both of our current jobs. No kids expected for 3-4 years. Financing RV & the truck to pull it (trading in car), monthly truck/RV loan payments will equal ~1/4 of our current rent in HCOL city. I work outside of the city so my commute will be cut in half by staying in campgrounds/RV parks near work. Campground fees will be anywhere between 1/6 to 1/4 our current apartment rent. Full time RVing is our FI dream, why not start now? Projected expenses in RV life: * Health insurance (unchanged) * Truck/RV insurance (will double) * Gas will increase for work commute (it's a big truck), but we don't plan on traveling much (yet) * Apartment Rent, Utilities & Comcast bill (will go to zero. Somewhat offset by RV/truck payments, campground fees, I estimate these to total 1/2 of our current rent (25% loan payments, 25% campground fees). * Internet $0, wife has phone with unlimited data with hotspot paid for by work so no more shitty Comcast!!) * Food budget (unchanged) * Storage unit fees ($65 a month, negligible) Thoughts? Any other full timers out there either FI/RE'd or chasing FI/RE? EDIT: My wife and I did a 2 week, 4000 mile test drive of "RV life" in a rental in June and we LOVED IT. Expenses were obviously much higher because of the miles driven. Starting next month we aren't planning on driving the rig much other than between campgrounds every 2-3 weeks. The rental gave us a good idea of what we're getting into. Our 33' rig will get us into 85% of national & state parks. Between Nov & April we probably wont drive the rig at all since we'll be staying at a year round campground with winter hookups. EDIT #2: We've visited the two main campgrounds we'll be staying at and both have cell service, a little store, and wifi on spot. They are also within 2-3 miles of civilization (walmart/costco/restaurants/Starbucks/etc). EDIT #3: RV repairs ARE going to be an issue, I realize this. Even with a new rig things break all the time. We've decided to buy new so we'll at least have the "bumper to bumper" warranty so to speak from a very reputable manufacturer, but I also plan on learning how to repair as many things as I can myself before taking it in to the dealership. EDIT #4: thank you for downvoting. The nice folks commenting and offering value below is why I posted this in the first place. Everyone else can kindly move along [link] [comments]  |
| Questions about tax gain harvesting in my case. Posted: 31 Jul 2018 05:59 PM PDT I've recently been told (on here and r/leanfire) about tax gain harvesting, and think it might be a great move for my wife and I, but I had some questions. EDIT: Might be helpful to mention I'm hoping to ER "soon", though I'm not sure what that means, perhaps a few years, around early 50s.
Thanks, FIRE people. [link] [comments]  |
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