Financial Independence Bill proposing a universal savings account passed the house |
- Bill proposing a universal savings account passed the house
- Anyone go part time?
- Daily FI discussion thread - October 04, 2018
- Retirement won’t fix you
- How can we improve?
- How do you stop agonizing over the past?
- Kiplinger article: Playing with FIRE
- [23M Canada] Another Non-Tech Job, non 6 Figure Salary (Yet) FI Set Up
- This grid shows how long it takes to achieve financial independence based on your annual income and expenses.
- Is "Partial FI" really a thing?
- Rat Race - A Short Film
- [26M] Contractor vs. Civil Servant
- No mortgage or larger nest egg?
- What if everyone was financially literate?
- If you were given $1 million in cash right now and wanted to quit your job, how would you invest it?
- Advice on finding a wealth manager?
- How many years before retirement should I start my bond tent?
| Bill proposing a universal savings account passed the house Posted: 03 Oct 2018 04:15 PM PDT Main takeaway from the bill for me was the Universal Savings Account which lets you contribute $2500 per year and lets you withdraw for any reason tax free. Also, included are some changes involving 529s and for withdrawals from IRAs, 457(b) or 403(b) if you adopt or have a child. For those interested: https://www.govtrack.us/congress/votes/115-2018/h411 [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Oct 2018 09:57 AM PDT Anyone going part time (lets say 20-30 hrs per week) instead of RE all the way? What has been you experience. I'm thinking of doing this in the future. I have a colleague who did this but they are dual income, unlike me at this point. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Daily FI discussion thread - October 04, 2018 Posted: 04 Oct 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: 04 Oct 2018 01:30 AM PDT I've been working hard towards FI for a couple of years now, and though it is still some distance away I have started think about life beyond. I had always assumed I would naturally follow through on the Retire Early part once I was able, but lately I have started to have some doubts about that. Anyway I saw this post featured on CampfireFinance the other day that made me stop and think about why I thought I would want to retire. It ends with the quote below, and the more I thought about it the more I realised it was probably true.
I must confess that took some of the wind out of my sails! But I'm glad I started thinking about it now, rather than three months after I had pulled the pin on my career. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Oct 2018 02:23 PM PDT Getting married next week and want to see how people think the wife to be and I are doing and what we could be doing better. I know we are doing solid overall as we are both financially responsible but I want to make sure we are doing the proper things to be FI as early as possible. My reasonably achievable goal for us is to hit a million and be comfortably FI before we are 45 so about 15 years. I turn 30 in about a month and she's a few months after that. Current Status Wife is a teacher at a private institution making very low 50's. Call it 50k a year for simplicity. I am self employed and my income is variable. For simplicity we will assume I only make 50k a year but it's usually more than that. So we will assume a combined 100k a year, everything else we make past that from our incomes is gravy that can just be auto invested in mutual funds. It appears with current fed/state tax that about 20k a year is lost to taxes on 100k so we will take home about 80k/yr until the brackets change (not factoring in that we will save some from pretax 401k investments and other small things). Current Assets ~70k cash ~50k equity in our condo ~10k crypto ~52k fidelity taxable acct all invested in FSTVX ~5k vanguard invested in VTSMX ~4k in some teachers retirement thing when she was in public schools ~15k in roth IRA all invested in FSTVX ~16k in an IRA BDA all invested in FSTVX ~13k in 401k in mostly VIGRX Current Liabilities ~137k and 29 years left on mortgage at 3.5% (condo worth around 190k) ~14k on car loan at 2.5% (car worth around 17k) Expenses We spend roughly 45k a year, let's call it 50k to be safe because unexpected things like car fixes/house fixes/medical expenses aren't included in that. ------------------------------ Our Plan So basically worst case scenario on our income and expenses each year we expect to save 30k, potentially more and are currently at about 240k net worth. About 110k of that is invested in retirement/brokerage accounts almost 100% in mutual funds. Our goal is basically to at minimum max out her HSA, 401k, and two roth ira's each year invested in FSTVX/VIGRX or similar. Even at a very conservative 5% return over the next 15 years that brings us to just over 1mill net worth by the time we are 45. We will have most likely one but potentially two kids at some point in the next 3-5 years but I am hopeful that we would still be able to save 25k+ once having a child. Wifes job would get us half off daycare programs and we also have grandparents that are fully retired and would be able to help here and there. Are we doing what we should be doing to reach our goal? Are there smarter things we can be doing in terms of where we invest the money? Most of our expenses are necessary and not cuttable (mortgage/insurance/etc), we could cut a couple thousand a year going out to eat less and buying a few less things but ultimately I think we lead a reasonable life that is enjoyable and upping our savings by 2-3k a year wouldn't be worth giving up these cuttable things. Thanks for any advice on how to improve our investment strategy. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| How do you stop agonizing over the past? Posted: 04 Oct 2018 04:03 PM PDT Long time lurker here and big fan of this subreddit. Me and my wife are in late 30s. I started learning about investing only for last 2-3 years when I was already 35. Before that we were not terrible at spending, but almost clueless in investing. We have grown our net worth a lot since then by investing in index funds, saving with more discipline and just by being "aware". Market has helped too. We are still in good situation, but when I see some of the posts by people at my age or younger who started early and have much more net worth, I almost feel poor. I cannot stop agonizing over the past. If I had known what I know now, maybe I could have retired by 50. Now It might be around 60. A few lost years early are really bad for compounding in bull market. I cannot help but running scenarios in excel and agonize over how I could have been so stupid. It doesn't happen every day, but often enough. I am still relieved that I have the awareness now. "Ignorance is definitely not bliss" when it comes to investing. How do people in similar situation deal with this agony over lost time? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Kiplinger article: Playing with FIRE Posted: 04 Oct 2018 03:14 PM PDT The article doesn't say too much in itself, but it reads like the intro to a short series on FIRE, which could be neat. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| [23M Canada] Another Non-Tech Job, non 6 Figure Salary (Yet) FI Set Up Posted: 03 Oct 2018 10:55 PM PDT Good day r/FI, Long Post This sub is undoubtedly U.S. oriented, and r/fican is drier than talking to the broadside of a barn. I've been longing for some more Canadian content, but I figured I would do something about it myself and share my story. I suppose I can X-post to r/fican if this garners enough attention. The usual conditions apply: Throw-away account for obvious reasons, as well as the Backstory I am in the air force, which places me in a luxurious position as far as benefits are concerned. I won't go into the details of the medical and misc benefits as much of that is irrelevant in the land of nationalized health care. The big talking point is the defined benefit pension plan, which is extremely lucrative in today's labour scene. Alternatively, leaving the military before that would mean the amount contributed up to that point would be it. My parents voluntold me into military academy which I rather naively agreed to as a teenager who played far too much Call of Duty for his own good. Can't say the overall experience was pleasant but looking back at it now, it was an excellent decision. I got a full ride for my undergrad and the 4 years spent there are pensionable. I majored in political science, which has nothing to do with my trade nor will it ever be relevant in my career, as far as I can gather. I live in military housing in a small town. It's a 1,500 sqft 3br duplex home. It is far too large for me but it was the cheapest of the units available at the time of my move. I currently live by myself but I am seeking a suitable roommate. Rent is only $780 monthly, which will not be included as it is automatically deducted from my pay. Finances Let's take a look at the breakdown of my monthly budget:
Monthly tally is as follows:
Break Down
Things of Note
I'd be very open to hearing some different views on the higher pay vs. pension dilemma. Thanks for taking the time to read my post, ladies and gents. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 03 Oct 2018 06:41 PM PDT For anyone interested: http://www.fourpillarfreedom.com/the-financial-independence-grid/ [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Is "Partial FI" really a thing? Posted: 04 Oct 2018 02:03 PM PDT Just read something that gave me an interesting outlook, but it seems contradictory. It's about being "Partial FI" meaning that this author has passive income, but not enough to be FI. Two points strike me as odd. (1) you're either FI or not. It's not really spectrum, so much as a cushion, IMO. (2) Nearly no one can do this at such a young age. He claims to be drawing a pension that takes 20 years. Anyway, here's the piece. Maybe I'm wrong on something here. thoughts? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 03 Oct 2018 04:57 PM PDT This short film completely nailed how most working adults in the developed world live their lives. I can't speak for everyone, but at least for me, the main drive to FIRE is exactly to remove myself completely from this reality. It is unlikely that this movie will bring anything new to the folks who are already part of this community, but it might serve as an additional aspiration. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| [26M] Contractor vs. Civil Servant Posted: 04 Oct 2018 05:53 AM PDT Hello, Long time reader, first time poster. I'm probably not the first person in this community to deal with this decision but I didn't see any previous threads, so I thought this may be a useful discussion. I've been working as a contractor for the federal government for two years. Generally, young contractors in my position end up moving elsewhere after a few years or taking a civil servant job. I am often told, both by contractors and government employees, that I should hop on to the first government job I can find. Government jobs typically offer better job security, better benefits, and lower salary. However, I have pretty good job security barring large funding cuts to the agency I work at. My benefits are okay - 3% 401(k) matching, 15 days PTO, HSA, etc. But I currently make $80k/year, after overtime I'll probably clear $100k this year. If I took a government job I'd probably make closer to $65k, although raises are better and more consistent. I would essentially have the exact same job whether I work for the government or the contractor. I could probably make more money if I was willing to move and hop between jobs occasionally, but I really love my job and will likely spend my entire career here. To make things a little more complicated... I like having the option to FI/RE but I like my job so much it's very possible I won't retire early. Obviously there's plenty of time for that to change though. From a FI/RE point of view it seems to make sense to stay a contractor for more early-career money. I'm currently maxing out my Roth IRA, 401(k), and HSA contributions and still saving more on top of that. My net worth is around $100k. I realize there's no definitive answer to this issue since I haven't set a goal retirement age and might not FI/RE at all - but I'm interested in how others have tackled this decision. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| No mortgage or larger nest egg? Posted: 04 Oct 2018 06:53 AM PDT My wife(30) and I(30) just built a new house to accommodate our growing family. We have no car payments, student loans are paid off, and we pay off the credit card in full every month. I did some mortgage payoff calculations and if we pay double on the house we will have it paid off in 10 years rather than 30. It feels amazing when we paid off the other things and don't have those monthly bills eating our money. Is it worth it to save $225,000 in interest and not have those payments anymore or to use the $2000 and put it into retirement investing? If my thinking of FIRE is correct, 25x our yearly experiences puts us at about $600,000. After the house, putting the $4000 at 7% gives us $665,000 not taking into account my wife's 401(k) and my pension that I can't draw on till 55-1/2 at the earliest (with penalty). Is it better to be free of payments and financially free with 10-15 years before retirement or to prolong payments and start a nest egg? Obviously I can make more money with compound interest the longer the nest egg sits, but has anyone done paying off all debts and be stress free sooner? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| What if everyone was financially literate? Posted: 04 Oct 2018 08:33 AM PDT I read all about how these fintech startups are trying to get millennials/young people, women, people in marginalized communities, etc. to be more financially literate. Do you think things would be different if everyone knew more about their personal financial health? With credit card rewards, people say that it's possible to reap the benefits of the rewards because there are people who are definitely not gaming the system properly. Do you think "succeeding" in the PF/FI/RE space requires that there be people who are "failing" at it? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| If you were given $1 million in cash right now and wanted to quit your job, how would you invest it? Posted: 04 Oct 2018 01:25 PM PDT I had always liked the thought of buying cash flowing real estate property but realized that a good real estate portfolio would take time to build especially if you're a newbie. There's also the potential headaches of dealing with vacancy, bad tenants, bad management, repair expenses, etc. Are there any good resources to help me figure out how to build my portfolio and what would you guys do if you were given $1 million dollars in cash and want to maximize passive income in a short period of time? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Advice on finding a wealth manager? Posted: 04 Oct 2018 08:36 AM PDT Looking for a WM in the DC area for a family member who has approx 15 working years left, and a portfolio of approx 750K. Any advice? Want her to be able to retire early, and find a good WM to help her get there. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| How many years before retirement should I start my bond tent? Posted: 03 Oct 2018 08:06 PM PDT There was a recent post that provided lots of info on bond tenting strategies after retirement but was light on information on how many years before retirement you should start tenting. Your opinion is greatly appreciated! FWIW, I plan on starting mine 5 years before because it was a nice round number. Change my mind! [link] [comments]  |
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