Financial Independence First Vacation Post Retirement |
- First Vacation Post Retirement
- Daily FI discussion thread - October 02, 2018
- 23M, just crossed 100k in savings, first big milestone
- FIRE on NPR (Boston's WBUR)
- Nursing and FI
- FIRE number for linking years until pension withdraw, and pension reliability
- Maxed out my savings rate...quit my job (that I like) and find a better paying one??
- FI and Startups
- Needing some inspiration (FIRE plans w/ kids)
- Am I able to retire before ~67?
- Glad I found this sub. Keep up the grind!
- Am I being too optimistic?
- Is it okay if I only have a near term plan?
- 29 years old, 200k savings, want to quit law profession and start fresh. Convince me not to?
- Question about the traditional 10% return of the market
- Warren Buffett and Compounding
| First Vacation Post Retirement Posted: 02 Oct 2018 10:53 AM PDT Just got back from our first post-retirement vacation (a 14-day Caribbean cruise and 5-day family visit beforehand). I had some concerns about whether I would enjoy vacation post-retirement as much as I did pre-retirement. As in, what exactly am I vacationing from? Turns out, those concerns where unfounded. Pre-retirement, if I took a 14-day trip, it took me 5 days to unwind, then I'd spend the last 5 days dreading the trip ending and going back to work. Then there was the inevitable checking of work email the entire time. None of that this time.. complete relaxation the entire time. No phone, no internet, no email, just completely unplugged for the first time in years and loved every second of it. [link] [comments]  |
| Daily FI discussion thread - October 02, 2018 Posted: 02 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]  |
| 23M, just crossed 100k in savings, first big milestone Posted: 02 Oct 2018 12:58 PM PDT So I want to be upfront and say I received about 15k earlier this year due to an inheritance. Without it I would not have reached the goal as soon as I did. But here is some background Started saving very young, probably around 8 or 9, which I mostly credit my dad for. He set up a system for my siblings and I where we could loan him money at a 10% interest rate which he would then keep track of it through excel and I would contribute money every now and again. Got my first job delivering newspapers when I was 12 or 13 and started making the big bucks. I'm talking 100$/month which was a lot for me at the time. I worked a lot throughout high school doing minimum wage jobs and by the time I graduated I had saved just over 15k. At this point I finally opened a Roth IRA and have been maxing it out since then. The money I loaned to my dad had reached around 11k and he didn't want to keep paying 10% interest so he cashed me out. It was also at this time, right after graduating high school in 2014, that I decided to join the military. It wasn't until 2016 that I found this sub and started to get more serious about saving money. I created a monthly budget as well as a spreadsheet to track my net worth. When I started that about 2 years ago I had ~30k saved. Now, 2 years later, here I am at 100k. Assets Savings ~$8,500. Just got out of the military so I wanted to have some liquid savings to help with the transition. Roth TSP ~$45,500. Really started getting serious with this the last two years. Put in 60% of my base pay but still couldn't quite max it out. Roth IRA ~$30,700. Been maxing this for about 5 years now. Vanguard Brokerage $15,700. This is where my inheritance went, all in VTSAX. I bought a car in 2016 but paid it off fairly quick, so no liabilities. Didn't include that in my assets but I paid around 15k. I plan on driving it until the end so I don't plan on selling. Should be starting school soon and fortunately the GI Bill will cover the tuition. If there is anything I didn't cover I'd be happy to answer some questions, [link] [comments]  |
| Posted: 02 Oct 2018 11:15 AM PDT http://www.wbur.org/hereandnow/2018/10/02/financial-independence-retire-early-scott-rieckens Caught the end of this in the car on the way back to the office. Sounded like mostly every thing was presented in a positive light [link] [comments]  |
| Posted: 01 Oct 2018 09:18 PM PDT So I am a new grad RN, BSN who just started working in a hospital in Southern California. Trying to figure out how nurses are making enough money to FI with housing expenses (Not NPs or CRNAs that kind of obvious). Is it just all over time? Working an extra shift? I heard working OT really doesn't make to much of a difference on your pay check (my hospital makes us wait 6 months before we can work OT). [link] [comments]  |
| FIRE number for linking years until pension withdraw, and pension reliability Posted: 02 Oct 2018 04:22 PM PDT Hello, Looking for some advice. I currently contribute to a pension (required, and through government employer), max 457b and max IRA. Two questions/concerns:
Example of what I am getting at: Hope that's clear enough! [link] [comments]  |
| Maxed out my savings rate...quit my job (that I like) and find a better paying one?? Posted: 02 Oct 2018 02:36 PM PDT I am a single 31yo male living in a HCOL area (Boston). Work as an engineer in the defense industry since I graduated school (2009). Since learning about FIRE, I've been starting to track all my accounts and budget (never made one before ever) and here is what I think my situation looks like: After taking into account all my bills and discretionary spending, I have about $1000 left per month that I can do whatever I want with. Currently, half of it goes into my Money Market account (for big purchases, house repairs, travel, etc.) and half goes to a post-tax brokerage account. My retirement savings rate is about 35% and that's the highest it can go on my current salary. I have been considering switching jobs to go to the private/commercial sector for a higher salary, but there are a few things that I really like about my current job, hence the indecision. Current snapshot: Salary: $100,000 Net Worth: $360,000 (not including home equity) Emergency fund: 6 months fully funded Annual Retirement Contributions: 401k: $18,500 -- company matches 100% up to 8% of my salary (will go up to 10% at my 10 year anniversary). 85% stocks/15% bonds, all in low fee index funds. ROTH IRA: $5500 -- portfolio is similar to 401k HSA: $2000 -- includes company match Taxable Brokerage: highly variable, up to $5000 depending on situation What I like about my job: -9/80 schedule -good PTO policy and very flexible hours (basically can take off or travel whenever I want to) -ability to earn OT in certain situations -mostly low to moderate stress working environment -good benefits and 401k match What I dislike about my job: -low pay relative to my peers (my friends group are all high achievers and I am by far the lowest paid out of all of them) -feel stuck and struggling to be intellectually challenged -not really learning very much new stuff -lots of red tape -low salary growth rate (typically ~%4 per year if you do well, even promotions are like ~%5 percent) -threats of being laid off due to cyclical nature of defense work (highly dependent on congressional budgets, etc.) Is the grass really greener on the other side? I have heard that in the private/commercial sector, salaries and raises are way higher, but I also hear that it is much more stressing and the work/life balance is worse. Any thoughts or advice? [link] [comments]  |
| Posted: 02 Oct 2018 09:21 AM PDT So, I work for an early stage startup. Before this I co-founded a different startup. Now startups usually don't pay very well (unless they're successful) and they're high risk, which contradicts the 'steady income' part of FIRE. However the earning potential that startups have is incredible. Is FIRE compatible with startups? Does anyone else here have experience reconciling high risk / high reward ventures with FI? [link] [comments]  |
| Needing some inspiration (FIRE plans w/ kids) Posted: 02 Oct 2018 06:37 AM PDT My wife (30) and I (28) want to FIRE. I've come to the conclusion that childcare is single handedly going to derail our FIRE plans. We have a daughter who is 18 months old now and her daycare costs roughly $12K per year MCOL area. We would like one more child and that child will be in daycare for 4 to 5 years as well. This is roughly a total expense of $100K in our prime saving years before we FIRE. Is there anyone who has had kids and FIRED with incurring this type of expense? [link] [comments]  |
| Am I able to retire before ~67? Posted: 02 Oct 2018 01:32 PM PDT After reading here for awhile I just don't know if RE is possible for me. We didn't start contributing to our retirement until we were around 32 and even then it wasn't a ton. I'm 38 now and wondering if it's even possible or worth it with where we are now. Married ---- Combined Household Income: 150k/yr. ---- House: Paid for, valued at ~180k ---- We're 100% debt free. Savings: (emergency fund) $20,000 Investments: 401k Balance total: $16k ROTH Balance total: $80k Brokerage Fund: $11k Contributions: Roth: Maxxed at $916/mo total 401k: ~$2000/mo total - My wife has an unlimited 50% match so we'll be increasing hers to the 19k limit starting in 2019 Brokerage: No regular contributions yet Kid's College: $100 ea/mo to 2 kids college funds I've read the FAQ here a few times but still don't understand many of the terms people frequently use. I usually estimate 10% YOY increase on a mutual fund but I know that's not guaranteed. What do you use? If I put in less and make calculations, it makes retirement sound impossible. I'd like to retire with 80k/yr SWR but am willing to accept 40 - 60k if it's the only way I can retire. Therefore, my target is ~2mil that I'd like to get to if possible. Is there any way I can foresee retiring early? [link] [comments]  |
| Glad I found this sub. Keep up the grind! Posted: 02 Oct 2018 01:10 PM PDT Just heard an NPR story about the "FIRE movement" and immediately found this sub. Awesome that there is a group of people living frugally to achieve freedom from the wage labor system. Gives me hope that it's possible. Recently hit net zero on my student loans after paying off 60k over the last 3 years. Was tempted to take a loan out of my 401K to finish it off, but as I am planning on changing employers in the next year I decided against it. Keep up the grind folks!! [link] [comments]  |
| Posted: 02 Oct 2018 06:12 AM PDT My wife and I are both 33. I would like to retire as soon as possible; she plans to continue working for a while as she enjoys feeling useful (edit to add - her continued employment will also give us an avenue for health insurance). She earns ~$50K and I make $180K for combined net household income of about $170K, and we live in a moderate COL area. She has ~$550K in mutual funds. I have $66K in Vanguard, $12K in a traditional IRA, $41K in work-sponsored retirement accounts, $5K checking, and a measly $500 in crypto (down from $2.5K lol). We don't have or want kids and live fairly modestly, currently renting at $1700/month; total monthly expenses are around $4-5K combined (including rent). I have only started saving in the last year since that's how long it took to pay off my student debt. At my current average savings rate, I'll be putting back about $100K every year. My planned breakdown is $5.5K in trad IRA, $41K in work-sponsored plans ($18K in a Roth IRA, remainder in target date portfolio), and the rest in Vanguard funds (80% stocks, 20% bonds). I occasionally casually interview for higher-paying jobs, but I don't plan on a substantial increase to my income for the foreseeable future since I am pretty happy at my current office. The nature of my work is such that I could probably make about $20K as a contractor working a few low-stress hours a week, which I wouldn't mind doing and still consider myself essentially retired. Both my wife and I will be inheriting homes/land at some point (in low COL areas), and she is also likely to receive a high six-figure inheritance at some point; these are obviously huge variables and I don't want to rely too heavily on these things. Ultimately, I'd like to be able to keep up my half of the monthly expenses until my wife retires (let's say at fifty) and we can both live off the combined nest egg. Is 5 years too optimistic for quitting? Any comments on my investment strategy? What did I leave out? [link] [comments]  |
| Is it okay if I only have a near term plan? Posted: 02 Oct 2018 12:45 AM PDT I have been reading about financial independence since I stumbled on MMM three years ago. This is something that I want to do. I don't want to wake up when I'm 40 and not have our be close to retirement. However I have no idea how in the world I would get there. I'm a trans woman in my early twenties. I'm burned out on school. I have a trust fund of about 250k which pays expenses as long as I'm working or going to school. I don't really know what I'm interested in, and I'm a little afraid that I might be too mentally or physically frail to work in oil or the trades (as well as being a trans woman in those industries!). I've only just recently started to have any kind of real friends and I really want to hang on to them instead of traveling a lot. I think I have been improving myself little by little - I got away from my abusive dad, I'm not nearly as anxious as I was, I exercise at least once a week with my friend, I'm trying to learn to eat vegetables, I'm slowly working on transitioning, and I'm working instead of going to school. Right now I do courier My plan right now is move very close to work, so I can walk there, when my lease here next to the last school I went to runs out. My mom has been living with me for the past two years, and she's finally got some reliable income so she will be moving to the country over the next year. When she's settled and doesn't need a home base anymore, I plan on living in a van-I'd really rather not pay rent, and I believe I am OK with that lifestyle since I camped homeless lite for a couple of months and I didn't feel much different from living in an apartment. Plus it would be a good exercise in minimalism and living on less. Beyond that I don't really have any plans. Like I said the trades seem appealing from a distance, and I might have a mind for coding if I was interested in it. Right now I'm not though :/ I sort of want to keep focusing on improving myself, prove to myself I can have a work ethic, get to where I'm living on my own independently (in a van), and then see what I want to do then. I don't have any clear pathway after that, so right now I don't have any path to financial independence. I think this is a pretty good plan for the near future though. It's not the best, and there's still a lot I'm being lazy on, but I think it will help me get to a place where I have a better grasp on myself, my motivations, and what I want. (also let me know if this is not the best place for this post) [link] [comments]  |
| 29 years old, 200k savings, want to quit law profession and start fresh. Convince me not to? Posted: 01 Oct 2018 08:39 PM PDT Unfortunately I did not know about FIRE or 401ks until I turned 27 and now I am in this predicament. But here is my journey so far: I graduated undergrad at 21 and took my first job making 48k. I got my CPA license and jumped to a different company at 65k and quickly moved through a few positions to end at 85k within a year and a half. At this point I did something I now regret: I quit my job to go to law school at the age of 24. Luckily I was risk adverse and decided to only go to a good school if they offered scholarships -- in order to minimize the opportunity cost of lost income for 3 years -- so I was able to finance school with my savings and graduated debt free. I had about 45k in cash when I graduated, which is coincidentally about the same time I learned about FIRE. Since then I've been working in "big law" and have been able to sock away money at a crazy high saving rate (75%) so that I have a NW of about 200k. My salary is 190k currently, which comes out to about 10k a month after taxes, but my monthly expenditures are only $2500. If you're not familiar with the industry, big law hours are comparable to investment banking -- which means I am always on-call and if a deal is happening, work needs to get done, even if it means working 70 hours a week or weekends. I don't mind working long hours in crunch periods, but living on-call all the time is really anxiety inducing. My time is not my own and even if I am super slow until 4 pm, I am always in fear of getting that email that will blow up any of my plans for the night or weekend. But no other job pays a first year attorney who knows nothing (180k is market starting rate) -- essentially the high compensation is provided in return for your availability and eagerness to do what is really a shitty, dull job. Of course I knew and heard about all of this before I took the job, but it's hard to appreciate the actual reality of the job demands until you're doing it. I never wanted to make partner but I honestly thought I would be able to hack it for 3-4 years and leave with a 500k NW, and more importantly, enough experience to go to a more cushy in-house position (even if with a paycut) in exchange for the better work-life balance. I'm not really sure what to do but my goal right now is to stick it out until bonuses in January and then re-evaluate. What also keeps me going is the fallacy of sunk-cost. It sucks seeing my former colleagues who are now all well-established in their careers earning 100-150k while I am essentially in a transient job staring at the bottom. I calculated that I need to work in big law for one more year to end up in the same financial position I would have been, had I not switched careers. I wish I stayed in my business type role which ultimately was way more fulfilling than the work I do now. tl;dr: Second year big law attorney making $190k with a NW of $200K hate my job; looking for ideas on what I can do to not destroy my FIRE plan and high savings potential. [link] [comments]  |
| Question about the traditional 10% return of the market Posted: 02 Oct 2018 12:10 AM PDT So... when everyone says that the average return of the market has been 10%, does that account for biweekly contributions to the fund? Or is it just whatever is in the current fund has been getting 10% annually? So theoretically, if you contribute 26x/year, your yield can actually be more than 10% (even if the average is 10%) This may be a really weird question. I apologize in advanced EDIT: thanks for the insights! I guess the question that I was trying to ask is really more about "is there a way to plot both contributions as well as growth in the same graph?" I'd like to see how much principle i've invested compared to growth or loss anually or for whatever numbers I input [link] [comments]  |
| Warren Buffett and Compounding Posted: 02 Oct 2018 12:02 AM PDT Warren Buffett often talks about compounding. What things have you done that helped compound your way to FIRE? One thing for me has been a revelation that sticking as an employee at a company has compounded my retirement savings contributions, company matches and also relationships at work. What other "compounding" techniques has helped accelerate your goals to reach FIRE, besides the obvious of investing regularly and making saving automatic? [link] [comments]  |
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