Financial Independence ROTH backdoor - eli5 the mechanics, and is it worth it? |
- ROTH backdoor - eli5 the mechanics, and is it worth it?
- FIRE helps me not "sweat the small stuff" and keep things in perspective.
- Daily FI discussion thread - December 02, 2018
- I had an amazing 3 year run towards FIRE, time to step out for a while?
- does 25x - 4% withdraw rule work on developing country
- For the ones with a side hustle, I'm going to try roasting coffee as my source of secondary income. Has anyone here tried this?
- Hate being at the misery of companies
- Health care thoughts on FIRE when SO just had cancer
- My version of Fire, with a question
- Any way to draw down 4% a year with rental property?
| ROTH backdoor - eli5 the mechanics, and is it worth it? Posted: 02 Dec 2018 09:55 AM PST I'm ineligible for both ROTH and pre-tax IRA. I think I understand the intent of the backstory ROTH, but it seems messy/complex, and the total $$s possible aren't that large. I spoke to a few folks and am hearing you'll need to setup a new ira to fund each year so the dollars are all from the same year at conversion, many of the finServices won't do the conversion (Wealthfront won't, for ex), etc. Am I over complicating it or misunderstanding the limits? [link] [comments]  |
| FIRE helps me not "sweat the small stuff" and keep things in perspective. Posted: 02 Dec 2018 01:03 PM PST I'm sure many of us can relate to work and career stresses in this subreddit. For context, I live in a I live in a MCOL city in Canada, making roughly $60K/year from my job plus an additional $17K/year in rent (after expenses but before taxes) from a real estate property (which was an inheritance). My goal is to save an additional $500K, of which I have saved $67K so far, and pay off my mortgage which has $300K left to go. Then I can live off of the rent money and 4% withdrawals from the savings. And some days, I feel like complaining. I work in a small city where there are relatively few opportunities for career growth in my industry. We love our city and plan on staying here (it's beautiful, close to family, and good for both my SO's job and my job), but some days, I just get so fed up. There's hardly ever any money in the budget for raises, and there's never going to be because head office knows we have very limited mobility in this city. My job always has more responsibilities and sometimes I end up working multiple weekends in a row during the busy season (I'm salaried, so there's never any money in it for me). And my salary just feels so incredibly small sometimes. But whenever I get too stressed, I try to remember how much FIRE brings to my life. I'm so very grateful to have learned about FIRE, and to have a life so free from stress that the above is really all I could have to worry about. Yeah, some days my job sucks. But so what? If it was really that bad, I could easily figure out an alternative. I could easily afford to go back to school, if I wanted. I could easily afford to take on a lower-stress administrative job, where I didn't have any high-end responsibilities and didn't have to think about work once the day was done. I could just take a year off if I wanted. But at the end of the day, I don't bother because I don't think I actually want to. My coworkers are awesome people, I have a good rapport with my boss, and a lot of independence in my role. Sure, sometimes during the busy season, my life sucks. But there are also days where things are easy - where I get to just chat with awesome people, go for lunch with clients, and do work I feel good about. I actually do like my job, just the corporate BS makes me want to throw things at the wall sometimes. But so what? Is it really worth thinking about at the end of the day, when I've got so much going for me and could quit if things were actually bad? I meet my goals, and we're saving more money than ever before. My SO has had some awesome chances to pursue opportunities in their field because my income is the more stable one, and it's helped both our income and our happiness level. Yeah, some days we get frustrated because we're always asking ourselves, "should we be dining out this week or should we save more money? Should we do some work on the house this year or should we be focusing on our retirement savings?" But at least we will never have to ask ourselves "do we want to get that dental work that desperately needs to be done, or do we want to buy groceries this month?" All of my problems are just first world problems in comparison. If you really want to get down to it, I'm incredibly lucky to live where I do in the world. There are so many people who would gladly trade their problems for mine. So if you're like me, and sometimes in your pursuit of FI you get aggravated at the struggle to increase your income, and increase your savings, and you just get so sick of the grind, try to flip that thinking on its head and keep things in perspective. [link] [comments]  |
| Daily FI discussion thread - December 02, 2018 Posted: 02 Dec 2018 03:07 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]  |
| I had an amazing 3 year run towards FIRE, time to step out for a while? Posted: 02 Dec 2018 03:13 PM PST About 3.5 years ago I made a post in r/personalfinance saying "Help! My girlfriend just left me, I have no job and I'm $65000 in debt!". My credit cards were 99% maxed and I had $100 in my checking account. With some luck and grace I got a job as a software engineer in corporate America. I got my first paycheck a few days before my rent was due. I worked like a dog and learned I had a skill for engineering. In three years I went from engineer, to senior engineer, to team lead, to mobile architect. What helped me was that I read about software for years independently. 2 months ago I recieved an offer of software Director. I've doubled my salary since 3 years ago. I make $165000 and I have about $100k in stock options that vest over 4 years. I've budgeted hard too. I'm 100% debt free and own a low mileage cheap vehicle. I have $35k in retirement accounts and $25k in my brokerage with $5k in my checking. I'm relatively healthy. Thing is, I've hated my job in software since the day I started 3 years ago. As a team lead I hated it more. As an architect even more. And as a director yet more. As a director the politics and travel is nonstop. I lose weekends to catch flights, iron executive clothes, and write weekly reports. I have fibromyalgia and being cramped in planes is taking its toll. I'm 31 and feel 50. I have very little social life because of the job sacrifice. I drink every weekend even though I don't want to because of the stress of a Monday morning. I've told myself each 6 month anniversary, "just a few more months and I'll call it." But I keep pushing it out. The degree I've led two emotional lives "I want to go on" and "I need to quit" is teetering on insanity. I'm addicted to the paycheck. I want to buy a house on the water. I love FIRE. If I'm going to work, which is THEIR time, why not get the highest price? If I can go four more years I can have close to $200k which is very close to the cost of a house where I'm looking. I'll be 35 and I can say "I'm done, I never have to do that again." But each day eats me alive. The inner argument was so bad a year ago that I got suicidal and went to a doctor. I see a therapist and massage therapist weekly, stay close with my doctor and take medicine for depression, fibromyalgia and sleep. I'm trying to stop drinking. I'm just a mess. And I can't solve my mess if I'm a director. Instead of sorting through it, it's Sunday and time for another flight. I'm terrified of losing my huge income. I'm terrified of having to work so many years for a house that I'll be too old to enjoy it. I have a bachelors in psychology and I want to get a psy.d but I don't think there's a way in hell I'll make $165k in psychology and the program would cost close to $100k. But psychology and therapy is my real passion in life. Each morning I resummon the strength to go to work so I can reach my house and FIRE goals. At the same time the voices inside me repeat every day, saying "you have to quit!". I can almost not stop the "i need to quit voice". What do I do? [link] [comments]  |
| does 25x - 4% withdraw rule work on developing country Posted: 01 Dec 2018 04:56 PM PST hello, so recently i found this mister money mustache. he basicly state that he can use the 25x savings from your spending and put it in index funds with 4% withdraw. he said that it work even in market crisis. So i would like to know if this also work in developing country? because he tested it on developed country (US). I'm currently live in Indonesia and from what i know, Indonesia has a really nice growth around 5% so there would be still many opportunity to profit more than the US but what i concern is that developing country like Indeonesia doesn't have a mature market like the US that has face many recession. So is the rule that mr money mustache applied in the US can also be applied in country like Indonesia? do i need to do rule adjustment with my own country economic condition and how do i count it? [link] [comments]  |
| Posted: 02 Dec 2018 04:09 PM PST I've been a coffee drinker all my life and I still sit at an easy three cups a day (because waking up at 3am for work forces you to do that). I'm tired of having one source of income and I have student loans I wanna pay off quickly. So I've decided to try and roast coffee in my apartment. Basic tools can be used apparently so I got an air popcorn popper and I ordered green coffee beans online so I can start trying this stuff out. I want this to be my side hustle. For any other people who do this as their source of side income, any beginner stories? [link] [comments]  |
| Hate being at the misery of companies Posted: 02 Dec 2018 03:22 PM PST Correction "Mercy" I really want FI for 3 reasons.
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| Health care thoughts on FIRE when SO just had cancer Posted: 02 Dec 2018 10:56 AM PST Been on the FIRE path for quite some time. As of now, I can leave the highly stressful job for something more accommodating except for one thing, health insurance. My SO had cancer last year. It took an emotional toll on all of us. Financially we didn't take a hit because I have good health insurance and had also purchased catastrophic insurance where the payout was to cover incidentals, We invested all of it because we had enough savings to cover all the incidentals and out out of pocket deductible which was only $1,500 for an entire year of cancer care. My SO needs follow-up care to make sure the cancer doesn't come back. I'd love to hear other's thoughts on FIRE when one's SO is going to require so much future medical care. I feel tied to my current job because when looking at what other companies provide, I'm not seeing the same type of offerings. Is the grass really not greener on the other side? [link] [comments]  |
| My version of Fire, with a question Posted: 02 Dec 2018 11:26 AM PST I am using my rental income to pay down my house and hopefully we can pay it off in 9.5 years by my additional principal payment calculations. Once we don't have a mortgage payment on our main house though, what do I do with all that cash!? Just focus on getting to the 1mil+? We already max out our Roth's every year. Edit: I'm a little averse to taxable accounts, but like real estate because i have 10 years experience managing rental properties. I'm considering purchasing one or two more rentals over the next 4 years. I'd have to reach 4 more to totally replace my salary. So at the same time I pay off the house I could have enough rental property to replace my full time job. And if i keep working then, I would be able to get enough free cash flow to fully retire before I'm 50, hopefully. Idon't see this route talked about often. Thoughts? [link] [comments]  |
| Any way to draw down 4% a year with rental property? Posted: 02 Dec 2018 04:02 AM PST Regarding classic FI using stocks, I only recently realised the 4% rule involves selling stock every year and not just living off the dividends from your retirement fund. How can you replicate this with rental property as the main retirement as you can't sell bits of the property every year? Or it's purely just living off the rental? [link] [comments]  |
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