Financial Independence Mechanics & Technicalities of Managing Finances once FIRE |
- Mechanics & Technicalities of Managing Finances once FIRE
- This correction is a great opportunity
- Daily FI discussion thread - October 28, 2018
- How to achieve FI living in a country which is going towards hyper inflation?
- Financial independence and hobbies
- Has anyone moved to the US from another country to FIRE?
- Need input on the minimum annual income to accomplish the goals of this movement
- Applying Minimalism to Finances
- If early retirement is all about reducing your expenses, why not pay your mortgage off early?
- Market Correction
- Considerations for FI'ers re: buying index puts to hedge portfolio risk
- Is it impossible to hit fire 26 60k salary cause i only see IT guys and doctors.
| Mechanics & Technicalities of Managing Finances once FIRE Posted: 28 Oct 2018 11:04 AM PDT I have been following this sub for nearly 3 years and the advice / posts have allowed me to continually grow my net worth. Now that FIRE seems like an actual possibility for me some day, I got to thinking of the actual mechanics of it all and wanted to see if anyone that has already FIREd could opine. Essentially, I'm wondering what the best methodology is and the mechanics behind harvesting your portfolio. Let's just say for arguments sake your portfolio is $3MM and you are using a 3% rate for an annual spend of ~$90K/year. How are you accessing this cash flow? Some questions and thoughts I had as I think about this:
I feel like I have many more questions on this topic and want to ensure I'm setting myself up the right way when the time comes to pull the trigger (which is unfortunately still a few years out). [link] [comments]  |
| This correction is a great opportunity Posted: 27 Oct 2018 06:44 PM PDT I get to see all of the equations in my spreadsheets that aren't robust enough to handle a correction, like the one that now assumes I can't retire until I'm 179. [link] [comments]  |
| Daily FI discussion thread - October 28, 2018 Posted: 28 Oct 2018 04:07 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]  |
| How to achieve FI living in a country which is going towards hyper inflation? Posted: 28 Oct 2018 08:31 AM PDT The title says it all. I am living in a country which has been slowly deteriorating financially. The currency is weakening very fast and I see it going towards hyper inflation. Although I am able to save and invest half of my income for last 4 years but I don't see getting closer to my goals. Stock market has been really bearish because of overall uncertainty. Property is something which has been beneficial up to some extent. But it is not easy to buy a property in the first place without getting a loan. My investments have failed me and I see my friends cars and other material purchases increasing in value due to inflation. I understand FI requires a lot of variables to be just right and I may not simply achieve it, which is ok. But I would really appreciate some kind of advise I can get. I am keeping the post generic but if any specific info is required I will provide in comments. [link] [comments]  |
| Financial independence and hobbies Posted: 28 Oct 2018 08:37 AM PDT How do you manage your hobby and your objective to be financial independence together? I ask because I have a big problem. I love graphic novels/comic books, video games and Vinyl records. The last one can be manage with less money. Video games can be found cheap too, but comic books can be a pain. What hobbies do you have? [link] [comments]  |
| Has anyone moved to the US from another country to FIRE? Posted: 28 Oct 2018 01:51 PM PDT I see a lot of posts talking about retiring in the US when they live and grew up there or moving out to go to countries with lower costs of living. I was just wondering if anyone has moved to the US after they hit their number to FIRE or any information would be appreciated. Being from the UK we have the NHS so what are healthcare costs like? What are the hidden costs with moving that might impact FIRE? How expensive is living in the US and does it vary greatly between states? Also how would I get money in retirement accounts that I technically can't touch until the retiremenr age. Am I still able to own a property in the UK and rent it out and get the money sent to a US bank account? [link] [comments]  |
| Need input on the minimum annual income to accomplish the goals of this movement Posted: 28 Oct 2018 12:54 PM PDT I understand that this question is vague, but given the data I was just scanning from the survey, I'm curious to hear responses about income levels that are considered reasonable to achieve financial independence (and early retirement) in consideration of life expectancy and inflation in the US. Is it common for those in this movement to become an expat in a country where cost of living is nominal in order to make money last longer? Is this more likely to be followed during your years of saving or upon retirement (years of spending)? And how typical are stories of living out of a van/tent or freeganing to decrease expenses? I'm just wanting to understand this movement better regarding quality of life and whether that's usually favored (basic comfort) or sacrificed and where the threshold for entry (annual income) tends to land. Note: Being directed to articles with facts and figures is a more than adequate response as I'm most interested in numbers/data. [link] [comments]  |
| Applying Minimalism to Finances Posted: 28 Oct 2018 12:29 PM PDT Hey all, does any here apply minimalism or there minimalist lifestyle to finances? Any tips for anyone with that goal? This includes bank accounts, investment accounts, credit cards, etc.. Over the past few months, I've been in the process of consolidating my finances to get a grip of all of my accounts. I don't want to be stressed anymore managing 7+ accounts. Thinking about moving everything to Schwab and Ally. [link] [comments]  |
| If early retirement is all about reducing your expenses, why not pay your mortgage off early? Posted: 27 Oct 2018 08:42 PM PDT At 30 years old, my wife and I have current monthly expenses of $5,000– $2,000 is mortgage and $800 daycare; rest is miscellaneous daily living at this time. In 20 years, we're planning for a paid off mortgage ($392 /mo in extra payments) and daycare nonexistent. Our monthly expenses should in theory be closer to ~$2,200 meaning our retirement number is around $660,000–$800,000. With that said, why would homeowners not rush to pay off their mortgage, regardless of interest rate? The lower your monthly expenses, the lower your amount needed in retirement, right? [link] [comments]  |
| Posted: 28 Oct 2018 07:17 AM PDT Honest question: with this market correction I've been seeing a lot of people on this subreddit make posts about retirement as if your entire retirement depends on the current market's state. I'd like to hope that it's just a few who unfortunately fell victim to the optimizing maximum retirement vs. maximum annual withdrawal rate. So, how many other people here have set up other forms of retirement aside for situations like this where the market drops? i.e.: non market dependent assets like a life insurance plan with a cash value to buffer years where you wouldn't want to touch your 401/403 or Roth? Interested to hear what everybody else has. [link] [comments]  |
| Considerations for FI'ers re: buying index puts to hedge portfolio risk Posted: 28 Oct 2018 07:56 AM PDT tl:dr - there is a risk management strategy where you spend 2-5% annually buying puts (short positions, or bets against) an index like the S&P 500 that will offset losses that might occur during a major correction. Is this viable for most FI'ers, or will this cut into returns too much to be viable? Also, if the put is bought within a non-retirement account, and the market doesn't correct, would the ability to declare the loss on your income tax return affect the viability? http://www.cboe.com/strategies/beginner/index/buying-index-puts-to-hedge-strategy/part1 [link] [comments]  |
| Is it impossible to hit fire 26 60k salary cause i only see IT guys and doctors. Posted: 28 Oct 2018 11:13 AM PDT Current net worth is 183k. I have 100k in stocks/indexfunds/401k/roth ira. Rest is cash and plan to buy a rental. I live at home and have no debt. Finance degree living near NYC. I only see IT guys and lawyers/doctors who making bank but no regular joes. Has anyone made it not making more than 100k? [link] [comments]  |
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