Financial Independence My 401k just hit $50k! |
- My 401k just hit $50k!
- Who knows the truth about your net worth?
- Daily FI discussion thread - August 31, 2018
- Idle Apathy, problem with lack of routine
- How did you make the bulk of your money?
- Thoughts on tithe and giving
- Rental does not always go up...
- Weekly FI Frugal Friday thread - August 31, 2018
- Real Estate vs Brokerage Accounts
- Is there a personal "Net Worth Clock" like usdebtclock.org?
- How do you go on a stock shopping spree in a recession when FIRE folks keep no cash?
- Retirement Bridge before Tapping tax deferred accts
- Geo-arbitrage and your money
- Executive order brings changes to 401Ks and IRAs
- Thoughts on 'sustainability as investment'
- People in the accumulation phase: what would you do if you were out of work for more than 6 months?
- On what are you willing to spend money to save time?
- FI seeking car enthusiasts: What % of your net worth do you feel comfortable paying for a car?
- Thoughts on this article against FIRE?
- Sabbatical questions
- Increase in Social Security for NOT working?
- Spreadsheet upgrades? Sparklines feature in Google Sheets
- Anyone ever attend a Camp FI or Camp Mustache and have any input?
- Am I doing my spreadsheets wrong?
| Posted: 31 Aug 2018 12:37 PM PDT Just excited that I met a little goal. I'm earning $115k, SR 16% and my 401k just hit $50k. I've got about $400k in home equity and could really afford to save more but I think I've got decent balance right now. That is all! Edit : Hey, since this one is getting more attention than I thought it would and to give some more detail : I am 37 and live in a HCOL area. I make $115k and my wife makes $75k. We have one child. I work in aerospace manufacturing. We have a house and a condo with combined equity at this point of about $400k. This equity came from selling our first house, putting all equity ($125k) into the new house plus some savings. Condo was purchased with 20% cash down and we carry a mortgage but values around here have been going up at a staggering clip (PNW). My SR is 16% - 10% 401K and 6% discount stock. I get a 3% match from my company on the 401K and 15% off market pricing on company stock. Company is a Fortune 500 manufacturer and is well diversified as far as what industries they serve. Should my contribution to my discount stock be higher? Probably. My SR could be higher but I am comfortable, we are able to do what we want when we want and I don't feel that I'm being irresponsible at my current SR. I'm a victim of lifestyle creep for sure so I've been making a conscious effort to reign that in. Let me know if you have any more questions - I'll try to answer everyone and thank you for the feedback! [link] [comments]  |
| Who knows the truth about your net worth? Posted: 31 Aug 2018 12:12 PM PDT I tell people I am saving, etc, but no one knows how much I have, or that I max out my 401k, etc. Not my girlfriend, not my brothers and sisters, not my friends. Who do you share your net worth with? [link] [comments]  |
| Daily FI discussion thread - August 31, 2018 Posted: 31 Aug 2018 04:10 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]  |
| Idle Apathy, problem with lack of routine Posted: 31 Aug 2018 06:53 AM PDT I am starting to think early retirement is just not an option. I'm 40, 95% FIRE, but in transition period. I've been running a business for the last 12 years. I'm just so bored. And maybe having an existential crisis. Stuff like travel, volunteering, hobbies, just seem so trivial and pointless. It feels like these things are for relaxing after work. But in isolation have much less utility when there is nothing to relax from. Going on holiday from this already relaxing life has zero appeal. I wish I had the imagination or creativity, to write books, make stuff. But i'm not sure I do. I like doing other people's crossword puzzles. Studying held some interest for a while, but it just is hard to keep motivated without a longer term plan. I feel like I can't renter the workforce either, as no-one will hire someone who has been doing their own thing for a decade. It's obvious i have leverage and employers don't like that. I'm seeing a therapist but he is obviously tired of listening to my 'problems' and can't understand why, if I'm so bored, i just don't get up and do something. The stuff people suggest, join a book group, volunteer, learn a language, seems like the kinds of suggestions given to elderly care home residents, to keep the inmates quiet and pass the time until they go to sleep. It just seems designed to pass the time. Just need to vent! [link] [comments]  |
| How did you make the bulk of your money? Posted: 31 Aug 2018 12:45 AM PDT |
| Posted: 31 Aug 2018 04:54 AM PDT Something I don't see a lot of people talking about on here is tithing and giving during their FI journey so I thought I would start a discussion. I know at face value, it slows down the path to FI, but I've felt convicted lately and have since reworked my budget to include 10% tithe. That's a massive chunk to disappear from my earnings, never to give me interest or pay out in any way, and honestly it's going to still be a big hurdle for me when it comes time to execute. I'm trying to be less obsessed about hoarding every penny I get to hit my target numbers, and get into the habit of giving while my net worth is still low. As far as my FI journey goes, it's time for me to put in some work and find other way to keep on track. I'm going to be searching for other avenues to increase my income, and this will force me to hold a tighter budget. What are everyone's thoughts on giving? I understand the general demographic on Reddit has no interest in the church or tithing, so I'm talking about giving as a whole. Do you share your earnings and still hold rigid FI goals, and if so, why? [link] [comments]  |
| Rental does not always go up... Posted: 31 Aug 2018 11:00 AM PDT This one might be obvious to many people, but it was not obvious to me. Just want to share. One mentality many property-gurus told us is "the rent will go up the next year! Hence you get more profit/your rental can cover your mortgage next year!" Turns out, reality is totally different. We bought a small apartment unit for investment. But the rental does not cover the mortgage. So we have to folk out some money for the mortgage payment. The next year, rental went up. Yay! We enjoy a bit of nice income. Maybe order extra pizza a month. The 3rd year. The rent went down. Turns out a new, similar building was finished not far from our unit. Many tenants are moving to new building. Now our rental just cover our mortgage. We can see another building being built nearby. Not sure what the future holds. Our rental might drop again. Turns out rental don't always go up... [link] [comments]  |
| Weekly FI Frugal Friday thread - August 31, 2018 Posted: 31 Aug 2018 04:10 AM PDT Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! 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]  |
| Real Estate vs Brokerage Accounts Posted: 31 Aug 2018 04:26 AM PDT The whole idea of financial independence is still brand new to me and I can honestly say that I am learning multiple new valuable pieces of information per day thanks to this subreddit. Just a couple weeks ago, I discovered Bigger Pockets and it got me wondering: Why do the majority of people in this sub (at least those that share their portfolios) invest with index funds over real estate to reach FI? The Bigger Pockets podcasts and videos make it seem as though REI is as simple as putting in the effort. Obviously it's not as easy as buying more shares of a fund, but it seems like as long as you know what you're doing, there's a good chance you'll be successful. I understand that many people here work long hours to earn big salaries and don't have the extra time to put in, but what about the lower earners working a more typical workweek - teachers, trades, nurses, accountants, etc.? [link] [comments]  |
| Is there a personal "Net Worth Clock" like usdebtclock.org? Posted: 30 Aug 2018 06:17 PM PDT I want my current Net Worth to adjust in real time to look like this site: http://www.usdebtclock.org/ Does anyone know of a site that does that? I have calculated that my NW goes up on average about $0.10/min. I would set up and tweak various clocks to track individual expenses, the balances of Roth IRA, HSA, Bank accounts, investment growth, SSA estimated benefits, etc. I just think it would be cool to see go up in real time. Obviously I would also want it to have a leanFire clock, Fire clock, etc. Any ideas? [link] [comments]  |
| How do you go on a stock shopping spree in a recession when FIRE folks keep no cash? Posted: 30 Aug 2018 08:11 PM PDT On the cash reference in the title, really meant to say that the FIRE community tends to keep a lower proportion of cash in relation to their overall assets/portfolio. I'm assuming many people shooting for FIRE are maintaining something like 75% stocks and 25% bonds with perhaps some real estate thrown in. The general consensus also seems to be that holding a large amount of cash or having a large emergency fund is bad/unnecessary due to inflation. So, when FIRE folks say a market crash is the best thing since you get stock at bargain prices, with what funds are people buying this with? Just small savings? Selling bonds? Buying small amounts with each paycheck? I'm guessing it's these reasons as there might not be a magical way to pull out a lump of cash to go shop, unless you've been keeping cash. Curious what everyone's input is. [link] [comments]  |
| Retirement Bridge before Tapping tax deferred accts Posted: 31 Aug 2018 12:15 PM PDT I would appreciate any thoughts on the following: Current situation: -Dual income of $450k annually (projected to grow to $600k over the next 3 years and remain steady) -Ages 33 and 34 living in Chicago - $1mm House ($650k mortgage balance) - annual expenses now at $12k / month (trying to have kids now and will increase) - $350k in 401ks - combined 401k contributions of $60k annually (includes maxing out both of ours, profit sharing, company match) - No debt other than mortgage (including no student loans or car payments) - $50k cash savings We are now in a position where I would like to aggressively save for early retirement. My thought is to create a "bridge" until tapping into tax deferred accounts. For example: Save enough to stop working at 55 (or even 50 if possible). At that point live on saved after tax assets until 70, at which point I would have required minimum withdrawals from 401ks worth $5mm+. So, my goal would be to max out 401ks (60k / year) for the next 21 years. Retire at 55 and let the 401ks sit for another 15 years until tapping at age 70. I would be saving XX amount to live from 55 (or 50) until 70. I don't want to convert any 401k assets and let them grow untouched until I am 70. Does this plan make sense? Thoughts? What else should I be thinking about here? Happy to provide more details on personal situation. Thanks all! [link] [comments]  |
| Posted: 31 Aug 2018 01:48 PM PDT Recently I went on a vacation to a rural region of my state. I was blown away at how much more affordable things are. Then, I just saw this post about how much your $100 is actually worth. Have you considered moving to make your dollar go farther? Seems like some places you get more bang for your buck. [link] [comments]  |
| Executive order brings changes to 401Ks and IRAs Posted: 31 Aug 2018 01:40 PM PDT Trump signed seeks a review of how required minimum distributions from 401(k) plans and individual retirement accounts are calculated, and for regulators to see how small businesses can more easily band together to offer retirement plans to their workers. https://www.cnbc.com/2018/08/31/trump-seeks-changes-to-retirement-accounts-in-executive-order.html [link] [comments]  |
| Thoughts on 'sustainability as investment' Posted: 31 Aug 2018 08:00 AM PDT Hey flammers, This may seem a tad out there compared to conventional posts but I want to hear your thoughts! I've gotten really into solar builds and aquaponics for a while now and can't stop considering the benefits over time. While something like a solar array or 5,000 freshwater system is definitely a large start-up, it seems like (depending on where you live) one could invest marginal sums on the scale of thousands to tens of thousands into offsetting the cost of living. Can any of you project those kinds of savings on food and power (and even making that your "fun activity) to justify funding such a specific and initially expensive hobby-approach to 'living large on less,' comparable to tiny home culture or traditional permaculture? I realize most of us here lean toward investing a good deal of our expendable income into retirement or market things that I'm not too privy on, but does it always make more sense to contribute financially towards something that can grow on the scale of something like an IRA or bonds through time? What if you could literally live on 20% or less of your income due to having a near-sustainable (and perhaps already paid-off) property, or is the growth overtime from more "traditional" investments toward retirement and properties worth it every time? Thank you for reading this and I hope I don't seem like too much an eco-freak trying to break some mold! [link] [comments]  |
| People in the accumulation phase: what would you do if you were out of work for more than 6 months? Posted: 30 Aug 2018 06:22 PM PDT In what order would you pull from your accounts to live off of? Savings, then brokerage, then Roth IRA principal? What if that ran out? I know many people here have buffers that could probably last for several years if something happened. In my case, even with $150k in assets, I still worry about the possibility of being out of a job for an extended period of time. This bull market is all I've ever known, and it's going to be weird when things start going in the opposite direction. [link] [comments]  |
| On what are you willing to spend money to save time? Posted: 31 Aug 2018 01:21 PM PDT |
| FI seeking car enthusiasts: What % of your net worth do you feel comfortable paying for a car? Posted: 31 Aug 2018 09:12 AM PDT I know you're in here. This might technically be a PF question, but it's very specifically targeted to FI minded folks, and even further specific to car enthusiasts in that subset of people. I wasn't quite sure where else to put this. [link] [comments]  |
| Thoughts on this article against FIRE? Posted: 31 Aug 2018 08:59 AM PDT I'm curious what your thoughts on the arguments made against FIRE. Yahoo Article Against FIRE [link] [comments]  |
| Posted: 30 Aug 2018 09:33 PM PDT I'm considering taking a Sabbatical this year. I'm in my late 20s, and have worked full-time all my adult life (including breaks from school, etc). I've never been able to travel or have much time off before (max amount of time off I've taken at a time has been a week). I've got a fairly high paying job, and am comfortable enough financially that I would like to take some time off, and take a "sabbatical", and I've got a few questions. I work for Microsoft, and they don't have much of a sabbatical policy, but I've been there for a while, and have a good relationship with my manager, so I'm hopeful of being able to talk to him about this. I appreciate any insight, even if doesn't answer a question on the list below! (For context, I'm interested in financial independence, but also want to take advantage of being young while I still can)
I know I can read all the online articles, but I want to hear from you and your experiences! <3 [link] [comments]  |
| Increase in Social Security for NOT working? Posted: 31 Aug 2018 10:31 AM PDT This doesn't make any sense to me but hopefully someone can add some insight. I work for a state government which has a pension that exempts the state (as well as me) to pay into social security. However, I have enough credits to qualify for social security from previous employment. We had a meeting with a representative from our state pension system and he said something along the lines of "When you do want to claim SS benefits (assuming you qualify), and you meet with them (SS officials), they will try to give you more than you earned because it will show that you were unemployed for x number of years. However, you will then show them that you were in fact making money and they will adjust your SS benefits accordingly." This sounds a little to good to be true and I couldn't find any mention of it anywhere on the interwebs. If anyone has any info I would appreciate it. Also, I know that I probably won't see any SS benefits in 20 years, but I am curious nonetheless. [link] [comments]  |
| Spreadsheet upgrades? Sparklines feature in Google Sheets Posted: 31 Aug 2018 10:24 AM PDT I just discovered this feature through work https://support.google.com/docs/answer/3093289?hl=en I've been referencing this site: https://www.benlcollins.com/spreadsheets/sparklines-in-google-sheets/ The spreadsheet nerd in me is thinking about how I can utilize this in my financial tracking docs. They seem way more lightweight then the heavy charts and honestly more aesthetically pleasing. Might as well make my once a month updating a bit more luxurious. I wanted to throw it out here in case anyone else has used them and wants to share what they did with them. [link] [comments]  |
| Anyone ever attend a Camp FI or Camp Mustache and have any input? Posted: 31 Aug 2018 09:47 AM PDT Just curious if anyone out there has attended one of the camps and what you thought about it. [link] [comments]  |
| Am I doing my spreadsheets wrong? Posted: 31 Aug 2018 01:32 PM PDT I have a google sheet, and one thing it does is figure a prediction of future values based on my current account balance. So I have the cells Current total of all investments Future Value in 14 years My question is about the number of years part. Every year I need to change this last value (like from 14 to 13). When do I adjust the years number? Every year on my birthday? Is there an easy way to make it countdown based on my age? [link] [comments]  |
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