Financial Independence MMM Divorce, Relationship Thoughts & FIRE |
- MMM Divorce, Relationship Thoughts & FIRE
- My progress report after 10 years on the path to FIRE
- 23, Quitting my high-paying corporate job to be my own boss
- How do you all feel about FIRE being "discovered?"
- Daily FI discussion thread - December 03, 2018
- End of life planning and FIRE
- How much of your FI goals are dependent on your employee stock options?
- Weekly FI Monday Milestone thread - December 03, 2018
- Early into my career, but the FI mindset has already given me confidence decades in advance
- Looking ahead to 2019, what are your largest controllable expenses and can they be reduced?
- FIRE - Passive Income
- How long did/will it take for you to FiRe?
- 529 and Forecasting
- Backdoor Roth limited to $5,500, so how are people making Roth ladders then?
- A few questions from a beginner
| MMM Divorce, Relationship Thoughts & FIRE Posted: 03 Dec 2018 10:02 AM PST I have to admit, hearing of MrMM and MrsMM's divorce shook me. I had always looked to them as a couple who was genuinely happy with one another and had things figured out. Putting some thought into it, I think what took me most off guard is that I felt they were people so intentional with their lives - whether that had to do with money, having children, their professionals, city where they live and I thought their relationship as well (making the assumption their intention when getting married wasn't to divorce). To all you couples out there on the path to/at FIRE, I'd love to hear from those of you in genuinely happy long-lasting marriages - what do you attribute it to? How has this impacted your FIRE plans? Edit: links https://forum.mrmoneymustache.com/off-topic/mmm-is-now-divorced-from-mrs-mm/ https://twitter.com/mrmoneymustache/status/1069573918124531714?s=12 [link] [comments]  | |||||||||||||||
| My progress report after 10 years on the path to FIRE Posted: 03 Dec 2018 12:42 PM PST So, background on me. - 32M (will be 33 soon), single with no dependents, no plans on marriage. Introvert who enjoys spending my free time alone for the most part. - My dad drilled the basics of money management and common sense into me at an early age, which definitely set the foundations of my path to FIRE before I even heard of the term. - Parents focused a lot on making sure I got a strong education and paid for my college tuition while I covered living expenses with a part time job, after I graduated college they let me find my own way and I have not received any financial assistance from them since then. - After graduating college I joined the Army as an Officer. The salary was average but there were many strong benefits I got as part of the military (housing allowance, very low cost insurance, the GI bill to help continue my education etc). I also volunteered for a deployment overseas, which was tax free income for that year + imminent danger bonus, not to mention there's not much to spend money on when you're in a desert. I also spent over 2 years in Korea, which was similar (still paid taxes, but didn't spend much money and also got a bonus for being near the DMZ.) I also benefited from the bull market we've had since the recession, once I knew I had a secure job I put away as much money as I could into the market after I started working. - After 9 years in the military I got out for health reasons, got 60% disability rating which means free healthcare through the VA as well as a disability check. Got a new job as a manager little over a month ago. Major milestones: Winter 2008, Graduate College Early 2009 – Began working with the army, starting net worth $17k from part time jobs in high school and college. 2011 – Deployed to Iraq, hit $100k net worth. 2013 - $200k net worth, stationed in Korea at the end of the year 2014 - $300k net worth 2015 - $400k net worth, get back from Korea 2016 - $500k net worth, found out FIRE exists, and that there are more people like me. 2017 -$600k net worth 2018 – Leave the Army middle of the year, get new job a few months later. $711k net worth at very beginning of October, then lost $50k with the market correction, recovered a bit since then. Current Stats: Current net worth - $688k - $475k in taxable index funds - $122k in Roth IRA - $73k in TSP - $18k in cash (kept a lot in cash while looking for a new job) I rent so no house, and I don't count my car or personal belongings in my net worth. Income - $90k from salary, $13k from disability payments. Pre-tax savings rate - 67% (based on the last 3 years) My current annual expenses are hard to determine as I have a new job, different benefits and live in a new location. Should have a better idea in several months. Future Plans: I believe, that given my current Investments, as well as my disability payments and free health care, that I could potentially leanFIRE right now. However, I'll most likely continue working until my early 40's and build up enough so that I can FIRE worry free and not have to be too tight on my budget. I know I started off life strong thanks to support from my parents, but I'd like to think I made it this far thanks to the life decisions I made after becoming independent. And it's very liberating to know that I could stop working now if I chose to. [link] [comments]  | |||||||||||||||
| 23, Quitting my high-paying corporate job to be my own boss Posted: 03 Dec 2018 12:21 PM PST I've made a few posts about this over the last year or so... but it's finally here! Mid-January I will be leaving my desk job and going full time with the business I helped start a few years ago. I had the conversation with my boss, and then the rest of the team at work today to let them know. I have 1 big project left to finish, and then I'm outta there! This will make a big dent in my net worth projections (losing almost 6 figures a year in salary+benefits, down to 1 income of mid 5 figures, and possibly less). HOWEVER! I am at a point in my life where I have good money saved up, and I may never get a chance like this again. I have read numerous times on here that financial independence is not necessarily about being wealthy, but having the freedom of time with no financial worry. I am not attracted by fancy cars, clothes, and houses. But rather, freedom of time, traveling, and experiences. Our business does about $1m a year in revenue, with myself being the primary marketing person (currently working evenings and weekends). Having 40-50 hours a week to do what I love, and not being burned out from 8 hours at a desk all day SHOULD give us huge upward trajectory. I am scared and excited at the same time. 20 more work days to go. [link] [comments]  | |||||||||||||||
| How do you all feel about FIRE being "discovered?" Posted: 03 Dec 2018 08:38 AM PST Good, Bad, or Indifferent? I have known about FIRE since 2011/2012...I discovered MMM's website around 2012. Far before any of this stuff became "Mainstream." I also had an account on here before this one. Anyhow, this forum went from being a small subreddit where I recognized the majority of users. Additionally, incomes were much smaller and almost everyone was into some form of minimalism, frugality, etc. With the growth, we of course, have people here with large incomes and to me the "build the life you want" thread ushered in a new era (I'm not saying it is a bad thing; just highlighting the change). Savings rates were much more "hardcore" back in the day. Now I'm seeing FIRE documentaries, multiple blogs, regular articles on NY Times, and the like. The landscape has certainly changed and it feels weird to me sometimes. I have seen good things about FIRE like the dude on bbc.com that was renting our rooms in his home to the annoying Suze Orman. For me, my secret club got discovered lol and I'm still gathering my thoughts on how I feel about it. I think it is good thing in the long-run though. For society as a whole especially. [link] [comments]  | |||||||||||||||
| Daily FI discussion thread - December 03, 2018 Posted: 03 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: 03 Dec 2018 03:57 AM PST I've seen a lot of discussion here about health care options when RE, but I haven't seen as much about planning for the final years of one's life. Perhaps it's simply because it fits under "regular" retirement planning, but I'm curious how r/FI people look at things like senior living facilities, long term care insurance and other end of life planning. [link] [comments]  | |||||||||||||||
| How much of your FI goals are dependent on your employee stock options? Posted: 03 Dec 2018 03:16 AM PST I'm 24 right now, and I have started planning for FI a year back. I work for one of the FAANGs, and most of my asset is in vested company stocks. Even in my planning for FI, a lot of it depends on the company stocks.
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| Weekly FI Monday Milestone thread - December 03, 2018 Posted: 03 Dec 2018 03:09 AM PST 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]  | |||||||||||||||
| Early into my career, but the FI mindset has already given me confidence decades in advance Posted: 03 Dec 2018 12:28 PM PST Hi everyone, I don't know if this is a particularly relevant post than many of you will even care about, but they're thoughts that are rolling around my mind at the moment that maybe someone will appreciate. I'm very early into my career, currently three years out of school working towards becoming a licensed engineer. I work for a decent company that's investing in me and trying to tailor my career to my interests. My manager is a major support and I can rely on her to have my back all the time. I've made some strong industry contacts and have so many doors open to me at this point. All of this has been attained because of the mindset I got through this subreddit and the financial independence mindset. I had a lot of trouble when I first started working, spending frivolously and making bad choices. I came across the personal finance subreddit and straightened myself up but it was financial independence that gave me real confidence with my future. I put aside the desire for material possessions, turned my focus on debt repayment and investing. I have an emergency fund, I have a great investment account all in ETFs that's doing fantastically right now. I've splurged on a nice vacation but it was still well within a budget I could manage so I incurred no debt. I couldn't be happier. And this comes full circle back to my career. I'm really early into the process, only being three years into my career and less than a year into getting on the right path so I only have ~10k invested, but it's given me real confidence. I feel like I'm in control of my life. I'm so far from actual independence, but I can feel it coming and if I follow the path before me I won't have to work, but can choose if I want to. And just knowing that it's coming makes me feel like I'm choosing to work already, and it's given me a much better attitude at work, which feeds back into how well my career is going. I guess what I'm saying is thank you to this sub and all the contributors here that have helped me build my confidence and feel comfortable working toward this goal. I want to retire by 50, I know life will throw all sorts of twists and turns at me but I look forward to the challenge and the freedom that comes with achieving FI. [link] [comments]  | |||||||||||||||
| Looking ahead to 2019, what are your largest controllable expenses and can they be reduced? Posted: 03 Dec 2018 12:16 PM PST Being that half of financial independence is pruning your expenses (within reason), I would love to hear everyone's tips and tricks on keeping costs down while still living their fullest lives! Based on my preliminary 2019 budget, I have:
Resolutions
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| Posted: 03 Dec 2018 12:32 PM PST I have been reading lot of posts and articles about FIRE. I came across one of the on cnn or cnbc and everyone talks about passive income of around 80-100k every year. So, I am curious, what is that passive income:
If I have around 1M in cash, what is the best way to generate that income? I have been in VTSAX and other mutual funds, but the volatility is crazy and gut-wrenching. So, I am not sure what are the other ways to get that passive income built? Thanks in advance. [link] [comments]  | |||||||||||||||
| How long did/will it take for you to FiRe? Posted: 03 Dec 2018 08:42 AM PST I know it's probably been asked before, but how long and why? What were the biggest challenges along the way? When did you start? [link] [comments]  | |||||||||||||||
| Posted: 03 Dec 2018 06:33 AM PST Let me start by stating that I don't know the best forum to ask these questions. I just know that I like the way this forum operates and thinks. So we just had our first child and we intend to have two. Our first child is less than 6 months old and college and grad school are far off. In my family, education is incredibly important...what I mean that if it makes sense, it was paid for and no loans were needed. This was for both undergrad and grad school. It is our goal to continue this and attempt to ensure our children are able to study without any loans. Due to our family's situation, mostly tragedy, our children will likely be the only grandchildren. With that said, two members of my family essentially pledged a gift of $15K annually into a 529. This gift is to be repeated each year and per child. Obviously nothing is guaranteed but these two pledges are from very well off people. Their gift, in addition to our gift ($10K) means that they're sitting on $40K in their 529 and the child isn't 6 months old yet. Even if we assume that the child "ONLY" receives $30K in total from everyone (us included) and the 529 grows at 4%...That child, when they enter college, will have a $750K+ balance in their 529. Assuming the following:
Do you think the amount in the 529 in 17 years will be sufficient for the above? What do you anticipate private school with living expenses to cost per year for undergrad? What do you anticipate private school with living expenses to cost per year for grad school? [link] [comments]  | |||||||||||||||
| Backdoor Roth limited to $5,500, so how are people making Roth ladders then? Posted: 03 Dec 2018 09:50 AM PST I want to open a backdoor Roth for the 2018 tax year in addition to my work 401(k), but when I went to open a traditional IRA account, which eventually will be converted to the Roth, Vanguard's site warned me that the annual limit is $5,500. I thought that number was only for a normal Roth IRA. I was under the impression when opening a backdoor Roth, there are no limits. When I see ladder examples online, they always use much more than $5,500. In this example -- one of the first Google results for Roth ladder -- it uses $50,000 a year: https://www.moneyunder30.com/roth-ira-conversion-ladder. How is that possible? What gives? Did I try to open the wrong type of account with Vanguard? [link] [comments]  | |||||||||||||||
| A few questions from a beginner Posted: 03 Dec 2018 07:49 AM PST I'm relatively new here and need you to critique my plan for retirement. My wife and i are both 31 and have $700k in real estate and around $100k in savings. I project that within the next 4 years that i will have 1.5MM in real estate and assets assuming that the Canadian real estate market doesn't take a massive hit. I plan liquidating after the 4 years and investing 1MM in stocks/bonds and spend the remainder to fully pay off a home. We will continue to work for 10 years at new, less stressful jobs and let our money grow in the investments but contribute nothing else. After the 10 years we will retire based on the 4% withdrawal which should yield around $80k annually by then (enough for us to live comfortably). Is there anything wrong with my logic, or am I missing anything crucial? Is 7% of growth a reasonably percentage? Should I stick with the 70/30 stocks and bonds ratio. This is all new to me and I want to make sure that i'm planning this correctly. Thanks in advance [link] [comments]  |
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