Financial Independence Detailed annual update with lots of data and graphs: 30M/28F, on the FIRE track since 2014. |
- Detailed annual update with lots of data and graphs: 30M/28F, on the FIRE track since 2014.
- (37M) Pulled the trigger with 2.6M gave my sisters FIRE money also.
- Unique mental shift from a high control religion
- Daily FI discussion thread - December 07, 2018
- Finding direction post-FIRE
- Weekly FI Frugal Friday thread - December 07, 2018
- Opinions on Fundrise for REIT?
- Fire Early - Future Inheritance?
- Is it nearly impossible to work in Corporate America after becoming truly financially independent?
- Is it worth climbing the corporate ladder if you plan to work as a part time IC after FI?
| Detailed annual update with lots of data and graphs: 30M/28F, on the FIRE track since 2014. Posted: 07 Dec 2018 08:49 AM PST Hey everyone! Just finished an annual review of my personal finances, and progress towards FIRE, and I thought I'd share all my juicy data because: (1) we love charts and graphs, (2) to start a discussion and see if you can learn anything from me or if I can get any advice from you (3) to blatantly Life situation:30M: Engineer in Big Pharma, 100k salary, 10k bonus. 28F: Registered Dietitian, 46k salary (until this month! just got promoted). Discovered MMM and FIRE in 2014, been working towards it ever since. Wife isn't nearly as interested in retiring early as I am, but is fully onboard with the reasonably frugal lifestyle (more below) Data:Total Balance of Retirement Accounts. Monthly Cash Flow Summary. (<- Graph I'm most proud of) Discussion:First: For all you folks new to the FIRE community... when you look month by month, it might be hard to see progress. But it's amazing how just 4 years later looking back I realize I went from $90k to $400k in cash + investments. You don't feel it while it's happening, but when you look back you'll be like "Holy Shit!". It's really fun that I can start to see the exponential shape of my retirement account balance account. We currently spend about 65k a year, or $5.4k a month. I'm very roughly aiming for 1.5MM as my "FIRE Number" but this is conservative: I expect retirement expenses to be significantly lower (no mortgage?), and my wife will very likely continue to work for a decade or so after I retire, and by then her salary would probably cover all our expenses even without a fat stash of investments. As you can see our savings rate is about 50%. Some interesting things you might note about the cashflow graph:
Lifestyle + Future PlansCheap janky cars. I bike the 5 miles to work when it's nice and I feel like it. Middle unit, $275k townhome, starting to see our friends moving from their $200k-$300k "starter homes" to $500k+ homes. We don't currently have plans to move. ~50% possibility of kids in the future, if it happens it will likely be timed with my "retirement" / "becoming a stay at home dad". Cheap hobbies: board games, fitness, reading, podcasts, hiking, traveling w/ free flights, drinking cheap booze with friends while grilling meat and veggies. I'm into mindfulness, introspection on what actually gives happiness, and lazy or entry level "minimalism". We love learning about fitness and nutrition. Now that I look at it, basically our approach is: learn how to "optimize" everything, then back away from the extreme version of that optimism, which usually requires sacrifice in other areas of life, and simply incorporate the philosophy to such an extent that it feels like a good balance between the advantages and the disadvantages. We take this "moderation" approach in:
In general, I think this makes for a great way to tackle the "build the life you want, then save for it" approach: we have built a lifestyle that makes us almost absurdly happy, even while working, and are saving so that we can keep the exact same lifestyle going without having to work. Oh yeah we also have an adorable dog. [link] [comments]  |
| (37M) Pulled the trigger with 2.6M gave my sisters FIRE money also. Posted: 06 Dec 2018 08:34 PM PST Canadian, Single, No kids :
I sold the family company after working there for the last 20 years. I had 3 active business to run, plus a Trust company owned by my dad. My sisters had equal shares in the 3 companies but did not work there, they will net around 1.9M each from the transaction. The last 2 years were a pain in the ass, so much ups and downs. I just hope the whole thing doesn't destroy the family. Some of my sisters are pretty good with money, others not really so I hope they will be smart about it. I had a lot of pressure to succeed but I did not feel the drive to excel at my job, I decided it would be better to sell the company while it was profitable instead of just letting it slide to chaos. I am relieved but wary of the future, it so very fresh I cannot even process the fact that I am retired at 37. So fresh, I have the buyers check in my possession and I have not deposited it yet. My house is payed in full so I plan to withdraw around $60,000 a year and see how it plays out, such a big difference in lifestyle, I don't know what I will do next... Just had to share. [link] [comments]  |
| Unique mental shift from a high control religion Posted: 07 Dec 2018 10:57 AM PST What a great sub. So much information, and I am working through it to be sure. I do however have sort of a unique question regarding mental shifts around money. Let me briefly explain. I was raised in a high control group (my opinion....not theirs), that demonized higher education, and accumulation of wealth. In fact, retirement even was something I was essentially taught I would not need because of the end of the world as we know it being right around the corner. Even now I cringe being in honors classes and telling my school counselors I was not going to go to college, or even learn a particular trade. I assumed I would never own a home, nor did I desire it. The decision to be poor for the sake of "doing more" was a sort of badge of honor. I left that religion a few years ago. It cost me about 90% of my social structure, including some family as there is a very "with us or against us" culture. So I recently became aware of some unhealthy relationships to money, and also of my straight up ignorance around it. I plan on sharing more in the future directly when a couple things settle to get the subs input.
Let me be clear that I am not necessarily blaming my former religion for my choices nor looking for sympathy. I'm just trying to be honest with myself about the mental impact of growing up believing that secular education was a waste of time, that the collecting of money and wealth for the future was inherently wrong, and neing overly trusting with others in a way that has put quite a bit of my hard work at risk. So after all that, I have 2 questions since I am working on being dedicated to FI, but recognize some unique challenges digging out from my old mentality.
TL;DR - I grew up in a high control religion where I developed an unhealthy relationship with money and education, thinking the acquiring or either or both was inherently wrong. Trying to shift to being responsible and smart with my time and money to FIRE and extricate myself from some bad decision. I'm 40-m. Edit - Formatting and syntax Edit 2 - I'm actually surprised by all these down votes. What exactly am I doing wrong here guys? [link] [comments]  |
| Daily FI discussion thread - December 07, 2018 Posted: 07 Dec 2018 03:08 AM PST 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: 07 Dec 2018 01:05 PM PST TL;DR - Post-FI guy is trying to figure out what life should look like, comparing long-term travel to pursuing work in a field he's passionate about. I think I'm looking for some advice here, mainly from folks that are already FI and have perhaps experienced the dilemma that I'm currently facing. I FIREd from a high-paying career I loathed in 2017. My wife left her job this past July. We currently share a house with another family, good friends of ours since college. Since my life post-FIRE resembles nothing like it did when I was working, I frequently try to observe what aspects of my life I'm getting enjoyment from to better understand what I want my life to look like post-FIRE. Leading up to FIRE I always thought we would travel once the chains of the working world had been cast off. We haven't done so up until now because I injured my knee some years ago and I'm currently going through a comprehensive rehabilitation process to try and reverse significant muscle atrophy that has occurred since then. Lately, I've been thinking about what might bring me the most life satisfaction - getting involved in real estate vs. long term travel. This coming year we have the opportunity to travel extensively without the burden of children, which probably won't be the case much longer. I love the idea of being able to take several months and see some of the wonderful scenery the Western U.S. has to offer, with no restrictions on how we wanted to make that happen. If that went well I was thinking 2020 might turn into a year spent outside the U.S. However, I have noticed that I don't do the best with a completely unstructured life. Living with another family adds just enough structure to life that it has paired very well with FI for me. I suppose I'm a little concerned that long term travel with no real structure will be less enjoyable than I think it will. I have been passionate about real estate for quite some time now. I've bought both land and houses. I'm a bit of an odd bird in that I love researching deeds, reading zoning ordinances, and studying development plats. I love walking large tracts of land. I love seeing things improved. That improvement process, and all the moving pieces, really pushes all my buttons because I tend to focus on the vision of what something could turn into. I've considering getting a Bachelor's degree in Geomatics, which is the study of measuring the surface of the Earth for all things development related, soils, hydrography, subdivision design, etc. Doing that would also make me a registered land surveyor, which would have certain benefits as well. I've also considered becoming a real estate agent. While simply buying and selling houses is not the aspect of real estate that I'm most passionate about, there are related areas of knowledge I will naturally acquire due to my interests (zoning, storm water runoff, etc.) that would add value to my services as a real estate agent in being able to help people. I also love the metropolitan area we live in. Our town, which is a suburb of the city, will experience extreme growth over the next 10 years and I'm really excited about the future of the town. My passion for the area in general only fuels my desire to want to get involved with local real estate. There's also a part of me that really likes the idea of being involved with the community, in general. My biggest concern with diving back into the "working" world as an RE agent is fitting it into the lifestyle we're enjoying post-FIRE. I don't want a rigid full-time job. I would love to work at something I'm passionate about that would further my involvement in the area, and create a sense of satisfaction in my life, but I want that to happen on my terms, and I understand how difficult that can be to accomplish. In my mind I imagine accomplishing the nirvana of finding a "job" that I'm passionate about, that works on my terms, still allows me to have the down time I want, gives me the satisfaction of creating something, while positively impacting the area I live in, which I am growing to love so much, and as a byproduct of that passion, has created an income stream that allows us to experience some luxuries/give to charitable causes that we otherwise would probably not have done with our current FI income stream. I'm also deeply concerned about my knee injury, and what it means for my future health. I don't have a specific injury like a ligament or meniscus tear that can be fixed. Over the last few years my left quadriceps has significantly atrophied as a result of favoring the leg. I only recently realized this and am now very focused on doing everything I can to rebuild the lost muscle. Unfortunately there is no magic bullet, and this will likely be a multi-year process in physical therapy. I'm already 7 months into rehabilitation and, while I've made significant gains, my left leg is still very weak compared to my right. My ultimate goal is to get back to crossfit-level condition, because I've seen what weak muscles do to people in their 70's and 80's. I know that if I don't address this while I'm young my quality of life will suffer greatly when I'm older. The best thing for my leg is having a home base where I can lift weights. Some of my exercises are a bit different because they target different muscle groups or ranges of motion that don't necessarily translate well to constant travel. In one breath I consider the unencumbered freedom that comes from FIRE, and in the next I think about how amazing it could be to find that "glass slipper" work situation that would probably represent my best life. It's a great quandary to have. I figure some other folks have been through this themselves and could probably impart some wisdom on me, if they are so inclined. Thanks for reading! [link] [comments]  |
| Weekly FI Frugal Friday thread - December 07, 2018 Posted: 07 Dec 2018 03:08 AM PST Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed 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]  |
| Opinions on Fundrise for REIT? Posted: 07 Dec 2018 12:47 PM PST Does anyone use Fundrise, and if so, why? It seems to be similar Vanguard REIT; you contribute to your online account and Fundrise handles the investing for you. I'm not sure what to think about this option, so if anyone has any ideas please let me know! Thanks! [link] [comments]  |
| Fire Early - Future Inheritance? Posted: 07 Dec 2018 07:57 AM PST Mid 30's We are not financially independent yet.. We both work full time with good jobs and have managed to put about $300k into 401k - 200k equity in our home etc. I own a side business that does 6 figures in revenue that I pay myself a nominal salary from. Sitting fairly good by most standards but haven't reached fire. We are set inherit enough (10m) to live on more than comfortably when we are older late 50's early 60's. But I want to reach fire sooner than later! I am looking at more passive income streams such as multifamily etc. I have the opportunity to buy some duplex's that I can swing within my normal current means. Or if I come up with a larger down payment I could get 24 doors. I have been approved for all 24doors (100% financed leveraging assets) now but they could put me into an uncomfortable position of cash flow if I keep current vacancy rates if 100% financed. But they would allow us independence about 10 years earlier. I could cash out my 401k and put a sizable down payment down and this would eliminate this vacancy / cash flow risk. Would you cash out your 401k if you know in the future it will not be needed to have a chance of fire significantly earlier? Or start investing excess in smaller properties and build over time? [link] [comments]  |
| Is it nearly impossible to work in Corporate America after becoming truly financially independent? Posted: 07 Dec 2018 10:43 AM PST In another post, I told everyone about inheriting 2.0 million after my Aunt died. The day before the check came I was working a job that I enjoyed enough and thought my coworkers were OK. I did not even mind the commute to the office. It was just the life I led. Maybe you won the lottery, maybe you made a mint on an investment, or inherited lots of money. Things have changed big time for you. The media has asked people what they would do about their jobs if they won millions in the lottery. A good percent say they would not quit their jobs and would continue to live a similar lifestyle, other than a nicer car and vacations. I thought I would continue to live that way too after I got the inheritance. But it did not work out that way. I quickly determined that all the little irritations at the office with my boss and coworkers and the general tedium that I had accepted without question before, when I was poor, suddenly seemed super irritating. For the first time, I said to myself often, "I don't need this!" I started to pick fights with my boss and coworkers just to see how much I could get away with. (Unlike some of my close friends, they did not know I now had 2 million.) Eventually, they got tired of me and I got tired of them and before the ax fell, I told them in no uncertain words, TAKE THIS JOB AND SHOVE IT! (I suspect without the inheritance I would still be working there, a hard working easy going employee.) So, if you suddenly got millions could you put up with the trials and tribulations of your current job? [link] [comments]  |
| Is it worth climbing the corporate ladder if you plan to work as a part time IC after FI? Posted: 06 Dec 2018 07:19 PM PST I'm just starting my career in the tech industry. At my current savings rate I estimate I can hit FI in about 10-15 years. When I do FI, I plan to work part time in my current role. I was wondering if it's worth it to climb the corporate ladder (ie. going into management), especially if I end up going back to an individual contributor role working part time. I'm curious to hear everyone's opinions and personal stories. [link] [comments]  |
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