Financial Independence [Paula Pant's Podcast] - "Why I Hate the FIRE Movement", says Suze Orman |
- [Paula Pant's Podcast] - "Why I Hate the FIRE Movement", says Suze Orman
- Daily FI discussion thread - October 01, 2018
- Cutting Costs In Professional Office Environment
- Weekly FI Monday Milestone thread - October 01, 2018
- What would FIRE be like without consumerism?
- How can we plan FIRE for future medical costs- not just about medical cost inflation
- How confident are you in the stability of the US economy in the long term? (50-75 years)
- Opinions of Sequence-of-Returns Concept
- "We are not to judge thrift solely by the test of saving or spending"
- Emergency accounts to keep people out of their 401K.
- Newbie -Struggling with an issue many here share -whether to buy a house in HCOL area
- “self help” and “get rich” and “financial advice” speakers on YouTube are only making themselves rich. How do you actually get rich while benefiting others as well?
- Factoring in Inflation/Taxes into FIRE Calculations?
- 40 year old newbie to conscious FIRE planning, need some guidance or places to start.
- FIRE Documentary "Playing With Fire" Follows 2-time Emmy nominee Scott Rieckens through his family's FIRE Journey. Includes interviews with many FIRE community ambassadors.
- [Need Advice] 26-year old guy, big savings, lost job, potentially tanked career, road to FI stopped, seeking sense of life
- PSA: Drip money into investments, don't dump!
| [Paula Pant's Podcast] - "Why I Hate the FIRE Movement", says Suze Orman Posted: 01 Oct 2018 04:29 AM PDT One of my favorite FIRE related podcasts is Paula Pant's, "Afford Anything". You can imagine my surprise when I opened Overcast and saw the title of her latest episode with Suze Orman, titled, "Why I Hate the FIRE Movement". It's a controversial episode to say the least. My first reaction was to feel angst and a bit of disenchantment with what Suze says about FIRE and how 1, 2, or 3 million dollars isn't enough. It took the wind out of my sails for a few minutes until hearing her go to such an extreme with saying expenses could hit a million a year, etc. It's hard to hear someone who is worth $50 million+ rant about how one can't live responsibly on $80,000/yr in order to prioritize freedom, time, etc. Fortunately, the FIRE community provides solid data, tools, methods and a community to support the mentality that Paula summarizes so well in the last 10 minutes of the episode. I'm sure Paula would appreciate if most commentary and discussion would take place on her blog, FB, or Instagram, but I just thought I'd get the ball rolling with this amazing community. [I have no affiliation with Paula, but just felt as if it was the right thing to do linking her original work. Please correct me if I should't have linked?] [link] [comments]  |
| Daily FI discussion thread - October 01, 2018 Posted: 01 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]  |
| Cutting Costs In Professional Office Environment Posted: 01 Oct 2018 06:05 AM PDT Anyone have any good tips for how to cut costs if you work in a field that requires professional dress, etc. Since starting working, I'm surprised at how expensive just being able to participate in work is (ex: dry cleaning, suits, gifts for coworkers, etc.) Secondly, anyone have any tips for how to cut these costs if you're female? A lot of pressure to meet certain standards of grooming, appearance, etc. and it can really add up. [link] [comments]  |
| Weekly FI Monday Milestone thread - October 01, 2018 Posted: 01 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]  |
| What would FIRE be like without consumerism? Posted: 01 Oct 2018 10:21 AM PDT I read the post comments under the Suzie Orman/Paula Pants post and thought I should stoke the fire a little. 😀 A lot of the people on the post were talking about sustainability and not consuming for the sake of the planet and what-not. For the record, I understand the sentiment and empathize but I'm not totally sold on the philosophy. The reason being that I feel FIRE is only possible because of the 4% rule (or whatever % floats your boat). The 4% rule works because the economy is growing. Adam Smith aside, the economy is growing in large part because of population growth and consumerism. For example, I have kids so I need to spend more than what I need on my own. Additionally, when they get older, they will want their own place with their own stuff and will marry and have kids and so on. I'm no expert on this but this cycle is what I understand to be the basis of economic growth. That said, the US birth rate is below replacement rate (we have fewer than 2 kids born for a couple). Now some people may say "Great, the Earth is already overpopulated" but this means that consumerism (domestic and international) takes a more prominent role in keeping the economic growth (and the 4% rule) going. Now thinking beyond that, let's assume we all come to an agreement that consumerism is bad and that the Earth is overpopulated and stop having lots of kids and buying only the very bare essentials. In that scenario, the 4% rule stops working and we get no growth on our savings. So we need to save every penny we will ever spend. If we were to live to 85 and retire at 45 (40 years at 35k ), you need to save a minimum of $1.4 mil. And that's assuming inflation in non-existent or accounted for with any marginal growth you may have. It also assumes you don't out live your money and have very predictable spending and health care needs. If you have other takes on this, please share. Like I said, I'm just stoking the fire so we can have a very necessary conversation about this contraversial topic. [link] [comments]  |
| How can we plan FIRE for future medical costs- not just about medical cost inflation Posted: 01 Oct 2018 03:15 PM PDT Can today's standard FIRE calculations accurately capture expected medical expenses in the future? Yes, I know withdrawal rates include estimated returns minus overall inflation, but what is startling to me is that might leave us behind from the biggest medical advances in the future due to unexpected technological costs rather than true medical cost inflation. What I mean is that the cost increases aren't about paying higher nominal amounts of money for past standard of care treatments (which is inflation), but that we have to pay more for truly better future treatments. For example. I could be wrong but nobody here wants to pay and receive 1960s, 1980s, hell even 1990s quality of healthcare; note that the average cost (not inflation adjusted) of care in 1960 was $146 per person (which is $1243 in today's value per year!) while today it is $11,193 for 2018 quality of care. If push comes to shove most people here want state of the art healthcare before considering the price tag. There are new advances in the past couple years like HCV cures that cost $84000 upfront. Or emergent mechanical thrombectomy for certain types of devastating strokes that would otherwise leave you paralyzed or nonverbal (absolutely incredible that this exists today). Or checkpoint inhibitor therapies that have hugely boosted specific advanced cancer survival rates that were thought impossible only 10 years ago. Now we think 20-30 years down the road, there are probably more fantastic medical treatments that every one of us would want...but have to pay for. How can we incorporate our FIRE plans to account for these future expenses? Plan for withdrawal rates of 3%? Or 2%? [link] [comments]  |
| How confident are you in the stability of the US economy in the long term? (50-75 years) Posted: 01 Oct 2018 04:06 PM PDT It goes without saying that the future is unpredictable. And people like us who amass wealth in various investment vehicles obviously have faith that the system isn't just going to fail and leave our investments worthless. But sometimes I have this fear that all this diligent investing will be rendered pointless by some kind of severe shock to our society and economy. It just seems like we are approaching an era of unprecedented challenges ( to name a few: climate change, automation, overpopulation, and the apparent decline of democracy throughout much of the world) Does anybody else worry about this every now and then? if this is not an appropriate question for the sub, I apologize and will remove the post right away. Edit: Sorry for the Americentric title. This question is really directed toward people of all countries who strive to be FI. [link] [comments]  |
| Opinions of Sequence-of-Returns Concept Posted: 01 Oct 2018 11:45 AM PDT I would consider myself a beginner-intermediate to the realm of personal finances & money management. Always on the move to learn new concepts and bounce ideas/opinions back and forth. I was wondering what the opinions were of the concept of utilizing non-market correlated assets as a way of preserving wealth in retirement. Things such as annuities, and to a lesser extent, cash value life insurance plans. This is one illustration I like to refer to when I think about Sequence-of-Returns. In both columns, the individual is withdrawing $70k (adjusted for inflation). On the right, the individual only has the one market-correlated investment. On the left, every year following a market downturn, he drew from a non-market correlated asset, allowing your investments to rebound. By the end of the sequence, the difference in account values is impressive. Annuities are generally reserved for the "senior" demographic and cash value life insurance plans have mixed reviews/reserved for the super-wealthy from what I understand. Do people think that this concept should be considered more for FIRE enthusiasts approaching the point of RE? The bull market can only run for so long one would think. [link] [comments]  |
| "We are not to judge thrift solely by the test of saving or spending" Posted: 01 Oct 2018 10:28 AM PDT I recently came across the following quote from the American Industrialist Owen Young that was somewhat eye-opening for me and I think is relevant to this sub:
Curious to hear your thoughts on this and whether / how it should be applied to FI [link] [comments]  |
| Emergency accounts to keep people out of their 401K. Posted: 01 Oct 2018 09:46 AM PDT Will this work? I wonder if it will in addition to the 401 limits. If so, this will be good for FIers. [link] [comments]  |
| Newbie -Struggling with an issue many here share -whether to buy a house in HCOL area Posted: 01 Oct 2018 12:46 PM PDT Currently, we're a single income family with two children. We recently moved to a HCOL area. We are renting a 2 bed condo and up for lease renewal. Looking for advice on what to do next. We'd like to retire as soon as possible, but also need a few comforts for our kids like a backyard. Our current lease is for $2200 and they are raising the rent to $2500. There is ongoing maintaince on the property that makes it undesirable as well as its in a bad school district/ not so great neighborhood. We didn't know that when we moved in. Our other option is to rent a house for about $3100-3300 a month. The houses in this price range are rundown, but at least we'll have a backyard. If we want to buy a similar (larger, more updated house), we're looking at $7000-8000 a month in PMI, taxes, maintanence as interest rates are around 5%. We can't currently afford a house on salary alone. That may change in the future. Should we just rent the house? Almost $3500 in rent plus utilities seems like we're just burning money. Anyone in a similar situation? Our financials: Income: 175k (but will increase to around 190k starting in Jan and probably 215k by June 2019 when the process completes for a major promotion, high likelihood unless something crazy happens) Bonus: 50-100k depending on company success Stock: 20k in stock/deferred comp Comp: 240-300k this year, next year 300-360k Retirement: 250k Cash 300k ( potential downpayment) Stock: 350k Wife can go back to work, but we currently have two young children. [link] [comments]  |
| Posted: 01 Oct 2018 07:03 AM PDT One of the most well known of these financial advice and get rich guy is Tia Lopez and he's a con artist. He sells junk. So how does one actually get rich while benefiting others? I know about the invisible hand in the economy. But what are some direct and feasible ways? [link] [comments]  |
| Factoring in Inflation/Taxes into FIRE Calculations? Posted: 01 Oct 2018 08:14 AM PDT Wanted to ask, do you guys account for inflation/taxes in your FIRE calculations? I often see high level scenarios thrown out (e.g. if you invest X at an average return of 15% per year for 15 years, you'll achieve Y by Z age. But is that "Y" really "Y" if we factor in annual inflation (which seems to hover about 2% in the last couple years) and the federal (and potential state taxes) on those gains/returns? [link] [comments]  |
| 40 year old newbie to conscious FIRE planning, need some guidance or places to start. Posted: 01 Oct 2018 01:27 AM PDT I'm 40 years old, have a good career (which I don't enjoy at all) with minimal education and very few transferability to new industries because my industry tends to pigeonhole you. I work in management so my only real skills are soft skills as I've long lost any technical skills since I've been doing management roles for the last 7 years. I'm also Australian so any US specific inputs, whilst I really appreciate them, may go over my head. Anyways, my wife and I both work. We have $350K in retirement funding. We have two investments valued at $1.2m with $800K owing for the next 15 years. We save $5000 per month after all our expenses and loan repayments are considered. I'm looking to retire early or at least once I've established a passive income stream of about $1000 per week with growth that is higher than inflation (maybe 5%) per year. I don't know if I'm talking sense because I'm still very much a financial novice. All I've ever known is how to work work work and don't want to keep working and being stressed for the next 25 years. Anyways, that's a brief outline, any support would be greatly appreciated. [link] [comments]  |
| Posted: 01 Oct 2018 10:51 AM PDT I came across this just today on the Millenial-Revolution blog and thought I'd share with the fine folks of the /r/fi community. From the trailer it looks like a very well put together documentary following Scott and his family through their FIRE journey and includes interviews with JLCollins, MMM, Vicki Robin and The Mad Fientist, among many others. From the MR article:
Note, I'm not affiliated with the film in any way, just thought this high-quality production was worth sharing with the community. [link] [comments]  |
| Posted: 01 Oct 2018 03:55 AM PDT Hey guys, I'm 26-year old guy living in Poland. I've held serveral high paying positions as a Manager in IT sector here. Every month I've been making about 4 times median net salary (bit more than 13k PLN) and additional 3-4k PLN on my other minor activities (some passive income), sometimes double that. Life was an amazing. Just for comparison for US folks - it's about 3.5 PLN for 1 USD. The costs of living are way less though, translating to about 1 PLN = 1 USD for some common items, rent, etc compared to those in the states. I've been very financially savvy - managed to save about 75% of my income, used a lot of banking promotions (i.e. bank pays me 5% from each purchase), used credit cards wisely (always paid in full before), NEVER had any issues. I'm having a very low COL, resisted lifestyle creep, never spent frivolously. I was on the ride for a nice life, hoping for my first million PLN before or right after hitting 30 years old. Then the unbelievable happened - and it's not only one thing, it's a series of events. So, at the end of July I loose my job. They let me be on board for August paying me in full, but that's it. I've been job hunting ever since, but as I've been switching jobs every 9-12 months I've realized that it makes me partially unhireable. I've got a few close calls, but after the general pattern is similar - at the end, after meetings with directors or board members, the answer is no. Right now I'm about to enter my second month of being jobless. It's killing me. Every month I loose money that I could have earned while working. It tears me apart. And the worst thing is, the offers have dried up, so potentially I'm facing another 1- 2 months of the same situation. Of course I'm applying like crazy and trying to find a way, but with every another failed process it's just sinking my mind into oblivion. The worst thing is I'm not doing anything special. Those last 2 months were just a gigantic waste of time. Everyday it's few calls from the recruiters, some fun stuff and TV shows, and in the evening meeting with my friends or meeting people and drinking till passing out. And that's it. I have everything else - good, rented apartment that is very cheap for the location, great and loving girlfriend and a pack of friends. There is absolutely no impending doom, problems (different than no job) or upcoming issues for the near future. I'm basically loaded with money (relative to my age and the country I live in), have a good people in my life BUT there's absolute lack of progress and motivation. I've come to a conclusion that money was my biggest motivation in life before. I enjoyed earning so much compared to others, I've painted amazing plans for myself and my GF, I thought that I'm living the dream. And I was drinking too much, but I still am and that might have been the reason for all of this. Before I was drinking because everything was so good, right now I'm drinking because it all just sucks. Why am I writing all this here? Because I've seen some posts regarding the same issue. How people over-prioritize FI over life and get absolutely crushed when something falls apart. I'm at this stage at the moment - starting to feel a bit hopeless and deprived of meaning in my life. Further, I feel that I desperately need to earn what I lost, but I have no idea how. For a month it was fine - I was stoked on getting about a 25% pay increase in my new job, so it could be covered in 3-4 months of working, no big deal. But 2 months? That's a lot. We don't have a strong stock market in Poland and I don't really feel ready to get into startups. I was thinking about buying a house, but it's a small ROI and I would still need to take a mortgage. I was thinking about taking two full-time home office jobs, but as You can imagine, I got turned down on both of them (which was another boiling point for me). I feel that I'm absolutely out of luck (before going to another place that said no after first successful interview I got a ticket for riding a bus without one), had my car hit by a tree (fixed it thankfully, but still waiting for insurance pay), etc. It's like the whole universe is saying one loud fuck you to me whenever I try to do something. And no, I don't want to change my field of work - IT is by far the best paying job in Poland and it would suck to be anywhere else. I thought about moving to the west, but I would take a hit on a living standard and my friends, parents and GF are holding me here. I could live like that for years - my passive stuff is generally earning more than I spend. I was thinking about trying to use all this money for starting a company or just going through while writing my novel (I have a lot planned in this department), but I'm generally deprived of all the energy and pro-activity in my life. I don't remember sitting at the computer and writing something since months. This whole situation would be a lot easier if I had, for example, about 3 million PLN (my FI number) - it would be fuck you money and I could just go live my life as I want. But right now, I have this feeling that taking few months off would cost me a lot and is absolutely not worth it - especially since I have no idea if I'll be able to create a good startup or that my novel will be a success. I'm scared of loosing this - I can't even imagine what people feel when they get fired and have no money left. I'm sorry for wasting Your time with this rant. I just wanted to vent out and this subreddit felt the best place for this. If You could bring me any advice, it would be soothing to read. Thank You in advance. [link] [comments]  |
| PSA: Drip money into investments, don't dump! Posted: 01 Oct 2018 12:58 PM PDT TL;DR: Volatility in the market is best mitigated by small weekly contributions. Large semi annual are basically timing the market on accident. Early in my awareness of personal finance I had heard "invest early and often" and "$5500 into a ROTH ASAP!" everywhere. So I placed $5500 into a a brand new ROTH IRA nov. 2015. I didn't need automatic withdraws! I am responsible! I will just put $5500 in every January. That's as early as I can. Early is good! A few days into the new year I placed another $5500... and instantly lost about $500. 4.5% of all my little baby FIRE money was gone. So I learned... kinda. Its 2017 and I will not make this mistake again! I am putting 1/2 my contribution in now and 1/2 in later. Looked good for months. A lot went on that year and I procrastinated until December, but not to worry. I made 4 contributions between Dec 2017 and March 2018. I avoided completely fucking up by investing in early jan again, but still my returns were hurt by lots of money entering around that peak time. If someone had explained to me that "OFTEN" is more important than "EARLY," I would have a lot more money today. Well, not a lot, but defiantly more. Don't be me. Get an auto withdraw to your investments. [link] [comments]  |
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