Financial Independence First Salary ever..... And I just saved 50%... GETTING STARTED |
- First Salary ever..... And I just saved 50%... GETTING STARTED
- Diagnosed with Cancer- Now what.....
- Success getting spouse on board!
- Daily FI discussion thread - September 30, 2018
- Londoner attempt to FIRE
- How do treasury bonds at >4% yield alter possible SWRs?
- Possibility of a wealth tax in the U.S?
- Does it make sense to buy bonds when you have a mortgage?
- 29M looking to FIRE by 40 or 45! Need feedback on my numbers!
- House-Hacking
- 401k for immigrants
- Advice to your former self
- Advice for a 20/21 year old to achieve FIRE—but in a sort of alternative kind of way?
- What is your advice for someone aged 19?
- Has anyone here achieved FI from being a professional athlete, celebrity, or other “high profile” career? How did that end up?
| First Salary ever..... And I just saved 50%... GETTING STARTED Posted: 30 Sep 2018 06:32 AM PDT So, last month I started my first real job out of college and yesterday I got my first salary. It is not much but for an entry level job, it is ok. I come from a culture where people don't retire and just work and slave away for the best part of their lives. People are identified by the jobs they do rather than the lives they live and I despise that shit. I just want to have all the experiences I can think of and you guys have shown me FIRE is the way..... I know it is just the start and I have a long way to go but I want to thank this community for all the direct and indirect assistances you guys have provided. I don't have a FIRE number as of yet but I am proud to tell you all that I am not 0% FIRE anymore.... Edit: glad to see all the appreciation from you guys.. still proving my original point. THANK YOU........... [link] [comments]  |
| Diagnosed with Cancer- Now what..... Posted: 30 Sep 2018 04:39 AM PDT Okay so about a month ago my world got turned upside down. I was at the dr for an unrelated check up and the bloodwork showed some concerning markers. Long story short I got sent for some tests and eventually I was diagnosed with testicular cancer that has metastasized and spread to my spine. I have started chemotherapy and the doctors are hopeful. Anyways, I guess this experience has really opened my eyes to the facts that my financial situation needs improving, and I don't want to go straight from working to the cemetery. Over the past month I have read a lot on this sub and a lot of other financial advice books and articles, but I thought I would look to the experts here on this sub for some advice where to start and how to create something for my future self. I have a job I absolutely love, and earn pretty good money $75k AUD/per annum, and I contribute whatever the minimum is to super (Australian version of a 401K) as until my diagnosis I didn't even know what super fund I was with. Turns out I have nearly $12,000 in super which I was pretty surprised by considering I didn't really know what super was or that I had a super fund. We also have maybe $4000-5000 between out savings account and everyday account. note: turned out I actually have income protection through my super as well as a $300,000 life insurance policy payable to my wife if I pass away. We have some debts, less that $2000 in credit cards and other high interest debts, and student loans that we pay off each month. I think just over $40k left between my wife and I. We have been paying them off since we left school but I never really looked into what rates we are paying or how much principal/interest we pay, I just kinda followed the "repayment plan" they sent us. But other than that we don't have any debts. My wife and I both drive cheap used cars that we bought with cash, and we live in a modest apartment, well within our means. She works in a mostly cash industry and because she runs her own business she doesn't have a super fund or contribute to super, nor does she have any sort of long term saving or investment account or plan. Based on a the last few months before diagnosis, we are able to put $500 into savings (each) and I put another $300 into a separate locked off account which pays our loans (with a hearty surplus that was saved). Both out savings and out debt repayment account were cleared out just a few weeks before diagnosis by some legal fees we were expecting, so now we are pretty close to starting point again. I guess my question is what's the best use of the money we are saving/putting into our dept repayment account. Should we get our savings to $5000-$7500 then increase our payments on our debt to the maximum we can manage, paying off the principal of our loans as quick as possible? Or should we stick with the payment plan provided and put the rest into some sort of savings/investment plan for our future selves? Also what's the best kind of savings/investment plans available? Is maxing out my Super-contributions the best option or should I look at other funds/accounts? Thanks for all the advice. Assuming I am around a year from now (which for the record I plan to be) I want to be in a better state and closer towards my goals of FI. Not necessarily RE, as I love my job, but I want the freedom to make my own choices and do what I want to do. Thanks again! [link] [comments]  |
| Success getting spouse on board! Posted: 30 Sep 2018 08:26 AM PDT My wife just opened a Vanguard account. We are one month away from her loans being paid off, and she has decided to start rolling that money into investments rather than using it as extra play money. We approach finances like adult partners, so I haven't "taught" her anything, nor have I "made" her do anything. We talk a lot about our goals for the future and I always share how our money management now will contribute to those goals. It's so nice to be on the same page. It was a longer process because I didn't force anything on her (and granted, we started with similar ideas about money), but I'm so pleased we're doing this together! [link] [comments]  |
| Daily FI discussion thread - September 30, 2018 Posted: 30 Sep 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]  |
| Posted: 30 Sep 2018 08:51 AM PDT Hi all, thought it'd be interesting I'd share my thoughts from the UK given that most stories seem to be US based. 26 years old, on a fire path since 2 years. Working in tech and on OTE £80K/y (or $100k). Started two years ago with an accumulation plan through a direct debit that was taking £100/week from my account and putting it into a saving deposit. Automatically (that's the best advice I can give to those looking to start). Continued to build this accumulation plan as my salary increased and now saving about £1.5k/month. Earlier this year I bought a flat (RE prices are high in London but due to brexit you may get good deals) for £330K, with a £130K deposit with the help of my family. Took a 200K mortgage, fixed interest rate for 10 years, 40 years length. Monthly repayments are very low, but I thought I'd stay cautious and go for a longer deal as I'm doing this on my own and was afraid of how possible economic downturns in next few years may impact me. Now however I can afford paying that and more and currently doing overpayments on my repayments for over 125% of the monthly capital. If I continue with this trend, I'll be debt free in 12 years. Also doing overpayments means if anything happens to my current conditions (lose my job, decide to go into further education/MBA, take off year travelling) I can pause my mortgage payments as I already paid a lot in advance. And most importantly, overpayments save interests. Goal is to build an investment/savings pot of £100K in the next 3 years (currently at £35k) and eventually purchase another property with a long term rental yield purpose. Ultimate goal is be fire at 40, or at least FI by 35. Happy to be in this community and thanks for sharing your thoughts. [link] [comments]  |
| How do treasury bonds at >4% yield alter possible SWRs? Posted: 30 Sep 2018 09:44 AM PDT Was looking at historical treasury bond rates today, and noticed that the longer ones have often been at >4%. Even the 1 years have as recently as 2006-2007. Given the rising interest rates, it's possible those yields will peak above 4 in the near future. Assuming they do rise above 4%, could one construct a 1-30 year mixed bond ladder and have a SWR equal to the lowest yield? If you lock in enough of these, doesn't this buy down your risk? Or are you know just trading it for the risk of inflation making 4+% too little? [link] [comments]  |
| Possibility of a wealth tax in the U.S? Posted: 30 Sep 2018 03:30 PM PDT Wealth tax as defined as a tax levied on the entire market value of assets that an individual person owns, with liabilities deducted. So for example if you have 2 million total in your 401K, IRA and standard brokerage account and no debt, you will owe the IRS 1% of that ($20000) during the next tax season. Having to pay that on top of withdrawal rate living expenses, dealing with inflation rates, and capital gains tax might be crippling for most retirees. Now most of us would view such a policy as quite radical and "impossible" to become law in the US. However, consider that most everyone would say Donald Trump, whether you support him or not, did unexpectedly became the president of the United States. By unexpected I mean that 5 years ago, the majority of the country did not think he would ever be a POTUS. Similarly many things we think as unlikely today, may not be far from the future. For example policies favoring more wealth distribution is close to the mainstream in the US. Senator Bernie Sanders openly favors a wealth tax and has many supporters. The 99% and Occupy Wallstreet movement wasn't long ago. Also, property taxes are already a form of wealth tax and politicians can easily point to it as an existing policy to make a broader wealth tax easier for the public to swallow. So how would we theorerically deal with an introduction of a wealth tax in the US? Could anyone trying to FIRE in countries with wealth taxes comment on how they cope with it? Such as Netherlands, France, Spain? [link] [comments]  |
| Does it make sense to buy bonds when you have a mortgage? Posted: 30 Sep 2018 01:00 PM PDT I have a 3.875% interest 280K mortgage that I'm considering paying off next year after taxes are sorted out. I have the payoff amount sitting amount in Vanguard funds for the meantime. I'm about 1% in bonds right now and feel like I need more for better balance. However, it seems silly to have any more when I could just "buy" my own mortgage/bond back by paying off early. Can anyone make an argument for buying bonds in this scenario? [link] [comments]  |
| 29M looking to FIRE by 40 or 45! Need feedback on my numbers! Posted: 30 Sep 2018 09:13 AM PDT 29,M Looking to be FI between ages 40-45. Looking to get some feedback. My networth is +64K. Currently following Dave's baby steps, but recently switched focus on savings rate versus debt repayment to achieve FI sooner. And tips, tricks or suggestions? ASSETS Real estate = 169K Roth IRA = 54K Roth 401K (SR 12%) = 13K Other Savings/Investment (SR 38-50% just started) = 2K Total Assets = 238K LIABILITIES Mortgage = 126K Student loans = 32K Credit card 🙄 = 16K Total Liabilities = 174K Networth = 64K @ 29yo Again, I would appreciate any tips or advice to be FI by 40-45. I earn about 3200 per month and I've been trying to save about 50% between 401K, CDs, and investment accounts. [link] [comments]  |
| Posted: 30 Sep 2018 08:07 AM PDT Hi everyone! I also posted this in the real estate investing sub but I'm interested in house-hacking as a means to financial independence after I read "Set for Life" by Scott Trench. -- UPDATED NUMBERS -- I'm currently in a SFH that would sell for $260k with a monthly mortgage of $1700/mo. There is a duplex that I'm interested in with an asking price of $385k but that I'm hoping to get in for $350k. Using a 30-year fixed loan with 20% down on that duplex would result in a monthly mortgage of $2350/mo. The first floor rents at $1500/mo. Therefore the net savings on the mortgage would be $850/mo. What I don't understand is the time horizon for the move to become a better choice financially. It seems like it would take at least 7 years to come out ahead financially because: > Assuming 8% of selling price of current home as the cost of selling the home = $20,800 > After the proceeds of our home and what we currently owe on the note, we would need an additional $38,800 in cash for the down payment > Closing costs on the new house was quoted at $14,000 (updated) Therefore, the total transactional cost would be about $73,600. If you divide that by the $850/mo savings in the reduced mortgage it would take about 86 months to recoup or over 7 years. I was told not to include the down payment on the new property since this is the equity in the new duplex. This particular deal doesn't seem to accelerate a financial independence position within the next 5-10 years. Also, since interest rates have risen, I was quoted about a 4.6% rate when we're currently in a 3.9% mortgage. Does it make sense to consider house-hacking as an option to accelerate FI despite the high costs for selling our current home and closing costs on the duplex? [link] [comments]  |
| Posted: 30 Sep 2018 10:32 AM PDT As the title say I am an immigrant. I am still waiting to get all my immigration documents, so there is still a chance of being sent back home (I am not here illegally). My question is if I start contributing to my 401k and I leave the country, will i be able to withdraw the money i put in? Or I should skip contributing to my 401k and just invest it in my country until I get all my immigration documents? On average, I get between 14-17% profit on all my investment I have in my country. I could increase this while waiting for the documents, and once I have them I can use my country's investment profits to buy and pay for a house here. And I would shift my investment to the US. [link] [comments]  |
| Posted: 29 Sep 2018 11:30 PM PDT Okay so I'm sure this has been done before, but what are the biggest tips you wish you could give yourself 5 years ago, to help get to FI sooner. [link] [comments]  |
| Advice for a 20/21 year old to achieve FIRE—but in a sort of alternative kind of way? Posted: 30 Sep 2018 11:45 AM PDT I'm a senior in college with a job lined up after school. I interned for the company over the summer, and then they offered me a job in late August. I'll be making a starting salary of 49K per year and will start working July 2019 (So I'll actually only make half a years worth of income for 2019 plus an additional relocation lump sum and additional signing bonus). I am an illustrator/painter, and I'll be working as an illustrator at a pretty big company. The job security is good. People tend to work there for a long time (the longest being 60 years!), and most of the artists are older and within 10-20 years possibly will retire. People tend to work there for their entire lives. I know that promotions are likely and I'll be able to get raises as time passes. Initially, my plan post-grad was to move back home, get a part-time job or work full-time for my dad, and save a hefty cash reserve while working on my art portfolio and looking for freelance jobs. I planned on slowly breaking into children's book publishing, building a following for my art, and being an independent artist. I expected anywhere from 1 year to 5 years doing this before taking off. But now, with a full time salaried position, that plan has shifted. I discovered FIRE recently because off all the research I've been doing trying to prepare for post-grad life. When I graduate in May, I will have no debt—loans or otherwise. My father has also promised to provide my first vehicle when I graduate, and even if he didn't, I'm sure I could save and come up with enough for a cheap used car. I know FIRE people advocate public transport, but that wouldn't really work in the city I'm moving too, and I want the convenience of a car, so that's a cost I'm perfectly fine eating. Unlike what I've read of most people who FIRE, I actually love what I do. I sometimes get overworked and burnt out, but not the same way I imagine someone doing something unfulfilling would. It's actually a bit hard to relate to some of you who hate your jobs, which is why I wanted to make a post, lol. I loved my internship this summer, and love the job and company that I'll be working for. It's almost too odd how perfect I fit in there. The 9-5 life was fine, because I was doing the kind of stuff I would want to do anyway. Plus school feels like a 24/7 job; all the free time this summer off work hours was almost overwhelming. I was super sad when the internship ended and I had to come back to school. I'll be making art until the day I die or the day my hands stop working, whichever comes first. I might eventually leave the company or switch to part-time, such as if I was starting a family/adopting (I want to homeschool/actually spend time will my potential kids, but that's another story), or if I wanted to move my career in a different direction, but it won't be for the sake of never working anymore. I guess my mindset about work is different than the average person, because I didn't approach college/jobs/career as in what will make me the most money or give me a secure job or what have you. I went with what do I feel I am called to do/what is my purpose/what do I like to do and not only that, but what am I good at that people will pay me to do. Because of that, I don't actually need to retire from something or even to something. I'm in the midst. The reason I am interested in FIRE is the financial independence part. I don't want to have to worry about money, but focus all my time and energy on what I am creating. My first priority once I start working is to save an emergency fund to cover a full year of expenses. Since I'm not concerned about retiring at any specific age and ditching my job, I don't want to hard and fast subscribe to the 50% of income saved rule or some other high percentage, but just be smart about it and save/spend my money wisely. My work offers a 4% match for the first 5% that I contribute to my Roth 401k. I can get an HSA will my health insurance and plan on maxing that out so that money would be able to start gaining returns. I'm still doing calculations, but I estimate a little under $8K yearly in total of those accounts if I did the minimum in the 401k and maxed out the HSA. The only problem I have with these things is that I can't withdraw money from my 401k in my youth without penalty and that my HSA is for those eventual medical expenses as hopefully there is no real need for me to use all that money with my current health and age. What can I do to have resources to do things in the years before I'm allowed to take money from retirement accounts? Many FIRE people start investing in real estate, but that honestly sounds terrible to me as an individual. It's really another job and I already have a second job doing my personal work. In my mind, my salary job is sort of my side hustle that enables me to do my real job which is make whatever art I goshdarn well please. It's actually even better than a side hustle because I'm being paid to come in everyday and work with extremely talented knowledgable artists and improve my craft. My personal projects have the potential for both good active and passive income, but even if they made no money, I see no reason to waste my time chasing real estate when I can invest in my life's work. Might as well get paid for what I'm going to do anyway right? I'm not saying real estate is a waste, as it obviously isn't, it just wouldn't work for what I want my life to be. All the initial work to get started and stress of maintaining it doesn't appeal to me, even if I could potentially make a lot of money. What other things can I invest in? I'm single without debt, so I have no real obligations other than myself. I want to take advantage of this time to really prepare for whatever may happen in the future. I want to be relatively financially stable if I eventually get married, or if I get really sick, or if I want to buy a house, or if my parents need help, or if I want to self-publish a book etc. I suppose this isn't quite FIRE, but I really like the overall principles of it, and would like some advice. So what would you suggest for someone like me, who already has the luxury of doing what she wants to do in her vocation, but is young and wants to build wealth? Thanks! [link] [comments]  |
| What is your advice for someone aged 19? Posted: 30 Sep 2018 08:51 AM PDT Hi, Im a high-school dropout and earn about 600$ per month which is a pretty good amount in India for a job. Most of my costs currently go for my hostel fees, and my transition. I am transgender so I spend a lot of money in healthcare and medicines. My goals right now is to continue saving money (I have been saving since 18) so that my emergency backup is good enough (saving at 40% rate...) And then slowly drop the saving rate to 30% so that I can enjoy life while also saving( you never know when you'll pass away :p). Medical costs will go down once I finish my transition (in the next 2 years) and by that time I hope to also increase my earnings. I have no debts and I live on my own with my own earnings while occasionally sending money to parents. I want to keep this going, aka saving as much as I can until a few more years but later on I want to turn towards investing or real estate or something that gives me good returns back I guess. I eventually want to move to a good place like new Zealand or Canada for better living conditions and also for retirement etc. What is your advice for me? Thanks [link] [comments]  |
| Posted: 29 Sep 2018 04:51 PM PDT Edit: Not asking for specifics due to obvious reasons. [link] [comments]  |
| You are subscribed to email updates from financial independence / early retirement. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment