- "..for men retiring one year earlier causes a 6.8% increase in the risk of premature death and 0.2 years reduction in the age at death, but has no significant effect for women."
- I picked up a part time job despite having a great day job.
- Rich, Broke or Dead - How life expectancy plays a role in choosing your withdrawal rate
- Daily FI discussion thread - October 08, 2018
- Small business ownership investment to FIRE
- Weekly FI Monday Milestone thread - October 08, 2018
- Rule of 55 - Why does it exist?
- FI exit strategy (Conversion Ladder vs. Taxable accounts vs. 72(t) SEPP)
- Umbrella Liability Insurance
- New Subreddit: r/EntrepreneurFIRE
- I get the big picture of FIRE, but is there a podcast you'd recommend that fills in the smaller gaps?
- I don't see how I could ever become financially independent without massively increasing my income, and I don't see how I could massively increase my income.
- Mr Money Mustache Subreddit?
| Posted: 08 Oct 2018 12:33 AM PDT Interesting research paper on early retirement. Conclusion: "We find that the reduction in the retirement age causes a significant increase in the risk of dying before age 73 and a significant reduction in the age at death among men. Specifically, an additional year in early retirement increases men's probability to die before age 73 by 1.85 percentage points (equivalent to a relative increase of 6.8 percent) and reduces the age at death by 0.2 years." [link] [comments]  |
| I picked up a part time job despite having a great day job. Posted: 08 Oct 2018 11:17 AM PDT So a little restaurant opened up a 30 second walk from my condo, and I applied to work there. I got the job and helped them open the store. They serve very good (but slightly expensive) healthy food and I enjoy eating there every day. I get a 50% staff discount which makes it a very good deal for my HCOL area. Here's the thing. I work a very 9-5 day job with no overtime. I make between 80-100K/year depending on bonuses. This second job is not impacting my performance (if anything it's making me appreciate my day job more). I feel like I'm getting a lot of judgement from people on both sides, a couple of people I work with at my day job know, and everyone at my second job knows I have a very good day job. I enjoy working in the restaurant because it's the complete opposite of my day job, very physical, I get to interact with people (customers), and I get to create things that make people happy but the days are long. I am mostly doing it so I've got some extra stuff to do in the evenings. I tend to get lazy and spend more money than I should if I have too much free time. Plus the staff discount is saving me between $50-100/week in food and helping me with my weight loss goals. I am hoping to save up at least 2-3K for tax time and then reconsider if I want to keep the part time job. All in including tips and the savings from the discount I calculate the earnings around $19/Hour ($14 minimum wage in my home city). What do you guys think, is this too aggressive of a move as I'm reaching for FIRE sooner, or am I wasting my time giving up 15-20 hours/week for a minimum wage job? Edit: My goal is to FI within the next 10 years. Probably with more of a medium/fatfire lifestyle. I own two condos (one pre construction) and intend to rent them out, and perhaps move to a LCOL area in the future. Currently my goal is to save about 50K before the condo finishes in the next 3 years. This part time job (if I kept it for all 3 years ) would account for 15-20K of that very easily. [link] [comments]  |
| Rich, Broke or Dead - How life expectancy plays a role in choosing your withdrawal rate Posted: 08 Oct 2018 01:19 PM PDT I really like this new calculator that is from the same site as the sidebar fire calculator. It calculates returns using data from historical cycles (like Firecalc and cFiresim) to compare the probabilities of (1) your money growing over the retirement period ("rich") or (2) running out of money ("broke") using a 4% (or other) withdrawal rate, and compares it with life expectancy data (i.e. "dead"). https://engaging-data.com/will-money-last-retire-early/ As age increase, the probability of death, obviously goes up, but it really puts into perspective that while you want to get your failure rate down over a 40-50 year retirement, the most likely scenario by far is that you die before running out of money. Personally, I used cFiresim in the past to tweak the numbers to try to get my failure rate down to under 5% and preferably 0% to make me more comforable. This tool reframes that whole idea and makes it clear that the probability of failure when i'm 90+ years old, while non-zero, are likely to be very small. [link] [comments]  |
| Daily FI discussion thread - October 08, 2018 Posted: 08 Oct 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]  |
| Small business ownership investment to FIRE Posted: 07 Oct 2018 07:10 PM PDT I've seen a lot about side hustles, real estate and investing in the stock market here. What about buying a small business (that isn't a side hustle) to earn profit? Risk/Reward is higher, but other than crypto investment I don't see anyone posting about the higher risk side to get to FIREing. [link] [comments]  |
| Weekly FI Monday Milestone thread - October 08, 2018 Posted: 08 Oct 2018 04:10 AM PDT Please use this thread to post your milestones, humblebrags and status updates 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! 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]  |
| Rule of 55 - Why does it exist? Posted: 08 Oct 2018 06:05 AM PDT Just curious. With the general public policy for tax-advantaged 401(k) accounts being based upon saving until age 59.5 (due to the 10% early WD penalty), why does the Rule of 55 exception even exist under the IRS Regs.? (Allowing you to access your current 401(k) monies penalty-free if you leave, get laid off or fired from your current job the year you turn 55 or later. ) Seems to render the age 59.5 rule moot? I.e., why didn't they just make it age 55 for free access to 401(k) in the first place? Is there public policy or legislative history for this? So later middle-agers are a bit more secure or independent? Regardless, really glad the Rule is available to us! Thanks. [link] [comments]  |
| FI exit strategy (Conversion Ladder vs. Taxable accounts vs. 72(t) SEPP) Posted: 07 Oct 2018 06:52 PM PDT I've been optimizing my savings around being at the very top of the 12% Marginal Tax Bracket. To oversimplify: I effectively fill Roth and other post-tax investments until I hit the MFJ taxable income crossover where I'm pushed into the next higher bracket. Thereafter, I contribute 100% of earnings to tax-deferred accounts where I have enough headroom to continue this strategy for a couple more years so as to not pay an additional 10% tax on those marginal dollars. If I run out of headroom I intend to invest in taxable accounts. Now that I'm working out my exit strategy I've got myself in a bit of a quandary… While we have ample savings, we don't quite have enough in taxable accounts and Roth contributions to carry us across our ~4.5-year Roth Conversion Ladder Bridge. It doesn't seem to make sense for me to divert pretax savings into taxable accounts since I would be paying an additional 10% taxes on those dollars up front (the 10% early withdrawal fee later with lower taxable income seems far better than this… the only risk I see here is rising taxes). I do like the idea of the SEPP, but my situation is a bit more complicated (was trying to avoid the tl;dr, but would love to submit for a full case study!), and I greatly value the flexibility of the conversion ladder. I'm thinking about splitting my tIRAs and doing a conservatively low amount of SEPP on one of them (which I gather I could slightly reduce further one time if needed). I'm really focusing on years 2 through 4.5 and then from there until year 10 when my wife should have access to 457b and a sizeable and well-funded pension. I'm guessing I will have to pay some 10% fees on a couple years' worth of supplemental withdrawals, but really feel it very feasible either expenses can be brought down further (really hoping my wife likes the documentary coming in January!) or side hustle could easily offset the income gap. So before spending tens of hours whipping up another set of sheets I thought I'd bring it to you guys – what do you think? Am I missing anything? Or maybe some points or considerations to put in those sheets so I don't have to redo it 5 times as I trip and stumble the hard way. [link] [comments]  |
| Posted: 08 Oct 2018 10:21 AM PDT Hi Guys, I am thinking of getting some additional liablity insurance for me and my husband to keep our assets protected now and into retirement. We currently have good coverage for auto as well as renter's insurance. What is the rule of thumb for the additional umbrella liability insurance, and what do you guys use to keep your nest eggs protected? TYIA! [link] [comments]  |
| New Subreddit: r/EntrepreneurFIRE Posted: 08 Oct 2018 12:59 PM PDT Hey FIREers, I've created r/EntrepreneurFIRE for fellow entrepreneurs, small business owners, and side hustlers who are aiming to FIRE from business ownership. Why do we need another community? Aren't there enough? The main reason is that none of the FIRE related subreddits really handle entrepreneurship. They are more focused on day jobs and market investments. I wanted to create a subreddit aimed towards entrepreneurs and the specific struggles with FIREing from business ownership. Of course there is r/fatFIRE, and even though they are more open to entrepreneurship, they are mostly focused on high income 9-5 jobs as a means of obtaining wealth. Dint even get me started on r/Entrepreneur... Ok, but isn't FIRE advice applicable to anyone? Yes and no, entrepreneurship has its own sets of challenges (and benefits) that typical employment just doesn't have. These include but are not limited to:
I hope some of you will come join and share your experiences and wisdom! Feel free to start with an Intro post so that we can get to know eachother better! -Caleb [link] [comments]  |
| Posted: 08 Oct 2018 10:57 AM PDT |
| Posted: 08 Oct 2018 03:53 PM PDT 24 years old, make about $125K a year + 3% 401K match. I can see a route to $200K/yr over the next 10 years, but I don't see how I'd go beyond that. I currently have $35K saved (started late). My goal is to retire before 40. I estimate I need $150K/yr in spending post retirement. Assuming a safe withdrawal rate of 3%, I need $5MM. Assuming I save 50% of my income, we're still looking at taking 20 years+. That's even if I get 7% returns. I'm feeling hopeless here. Am I misunderstanding something? [link] [comments]  |
| Posted: 07 Oct 2018 08:03 PM PDT |
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