Financial Independence Tips for getting your employer to offer mega back door Roth |
- Tips for getting your employer to offer mega back door Roth
- Daily FI discussion thread - December 01, 2018
- Life insurance
- Overthinking About Spending Money
- Backdoor Roth confusion - convert to Roth IRA or rollover to 401k?
- SPIA in lieu of fixed allocation
- The 3 "E"s of why I am still working.
- Question about rIRA or tIRA for my brother
- Maxing Roth 401k While still taking advantage of employer match?
- [30M] Started FIRE last year and feed up with my job. Where to go from now on?
- Anyone asked for a DEmotion?
- Essential reading
- What do you think is the top 10 reasons why most people don’t FIRE?
- Just FIREd at age 28
| Tips for getting your employer to offer mega back door Roth Posted: 01 Dec 2018 05:33 AM PST I work for a bay area tech company that has great employee perks in every area except 401k (no matching, no mega back door, just traditional and Roth up to $18000 through Fidelity). I want to try to convince HR to enable after tax contributions to our traditional 401k accounts to allow me to do mega backdoor Roth and accelerate my own FIRE. Has anyone done this at their company? Does doing this cost my company anything? Why would a company choose not to provide this perk in their Fidelity plan? I'm trying to plan my pitch, so any info you can provide about why HR might be apprehensive would be appreciated. [link] [comments]  | |||||||||||||||||||||||||||
| Daily FI discussion thread - December 01, 2018 Posted: 01 Dec 2018 03:09 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: 01 Dec 2018 04:13 PM PST I was wondering if anyone could tell me about cashing in my life insurance. Before I go calling the company. I would appreciate any information or advice on the subject. Thank you [link] [comments]  | |||||||||||||||||||||||||||
| Overthinking About Spending Money Posted: 01 Dec 2018 11:13 AM PST I'm 24 years old and have been working pretty hard the past few years to achieve FI. I've got around $25K saved up in savings and my IRA. I am frugal when it comes to certain stuff, especially material stuff. But I'm not all that frugal when it comes to going out on weekends with my friends, as it is one of my ways of stress release and also something I enjoy a lot doing. Of course I could've probably saved 50K if I didn't go out but going out with friends is sort of a non-negotiable thing that's a part of my life. I tend to overthink about things but this year has been really good in terms of personal growth. I've introduced meditation and mindfulness into my life and although it's not always rainbows and sunshine, my overthinking is significantly subdued. However, when it comes to my personal finances, I still tend to overthink and get slight anxiety. Trust me I budget well and am able to follow the budget fairly well each month. But I still tend to get anxious about money. For an example, I've kind of been needing a new computer for the past year but always kept pushing it because I didn't want to spend the money. I recently ended up getting one but that came with a lot of overthinking, guilt, and anxiety. I'd really like to work towards FI but without all the ruminating and anxiety... I have an opportunity to visit a friend in LA this month but I keep overthinking and giving myself excuses not to go...I value traveling as something I'm really passionate about and I also know that you need to take opportunities when they arise but I keep overthinking. So in my path towards financial independence, do you guys have any tips on how to enjoy spending money on things that are ultimately going to make me happy? [link] [comments]  | |||||||||||||||||||||||||||
| Backdoor Roth confusion - convert to Roth IRA or rollover to 401k? Posted: 01 Dec 2018 02:57 PM PST This is my first year with a higher income and I am confused with my options for doing a backdoor Roth: - Late 20's, single, new income around $160k, about $7500 currently in a Traditional IRA - My employer does not offer me a 401k option this year, so my options are: Roth IRA (not eligible due to income unless I do a traditional to Roth conversion and pay taxes) or Traditional IRA, which would be fully deductible (since a retirement plan wasn't offered this year). Therefore, I am planning to contribute $5500 to my Traditional IRA this year. - However, in January of next year, I become eligible to participate in the 401k. At this point, I believe the Backdoor Roth would be my only option going forward. - I emailed HR and they said that I could convert my existing Traditional IRA to their 401k plan as of now. My questions in order to do a backdoor roth for 2019: - Is the most cost effective move to make a $5500 Traditional IRA contribution for 2018 this month, and then rollover all of my Traditional IRA funds ($5500 + $7500 = $13000) to my employer's 401k before Dec 31st this year? - The other option would be for me to contribute $5500 this year, and then do a conversion ($5500 + $7500 = $13,000) by Dec this year, on which I will be taxed at a higher bracket ($160k + $13k conversion), right? [link] [comments]  | |||||||||||||||||||||||||||
| SPIA in lieu of fixed allocation Posted: 01 Dec 2018 02:56 PM PST SPIA = Single premium immediate annuity Example 65 year old male with $1,000,000 SWR $40,000 Buy an immediate annuity for $440,528. $559,471 goes into VTI. Annuity will give an annual payment of $30,000. Rate 6.81% for 65 yo male. The balance of the funds in total market will pay $10,000 in dividends. Rate 1.8%. This gives the $40,000 SWR. Seems like a way to reduce the worry of market movements on the income stream while allowing for capital appreciation. No matter what happens $30,000 is locked in so risk of failure is reduced. The main worry is the dividends on VTI get reduced due to a slowdown. I am not really a fan of annuities but I thought I would throw this out there. [link] [comments]  | |||||||||||||||||||||||||||
| The 3 "E"s of why I am still working. Posted: 01 Dec 2018 11:47 AM PST Albeit part time. Excesses, emergencies and enjoyment. Excesses. I love good whisky and fine optics. Emergencies, things go wrong Enjoyment, I like to stay connected and feel like I accomplished something everyday. Also, working helps me stay sharp, and not drink too much. [link] [comments]  | |||||||||||||||||||||||||||
| Question about rIRA or tIRA for my brother Posted: 01 Dec 2018 03:28 PM PST My single 23 year old brother is just starting his career and intrigued with early retirement. He's a programmer and makes $60k. He has no expenses and is living at home. Should he go tIRA or rIRA? The reason why I'm asking is because I know he'll qualify for a deductible IRA but since he's just starting his career, his salary will surpass $100k one day. [link] [comments]  | |||||||||||||||||||||||||||
| Maxing Roth 401k While still taking advantage of employer match? Posted: 01 Dec 2018 12:58 PM PST So my employer matches 50% of first 6% in contributions per payroll period. I want to max my 401k but I also want to make sure I take full advantage of the match. So if I hypothetically make $4,000 in a pay period, and contribute at least $240 of that, the employer will match $120. The problem is, if I max my 401k out early in the year, say in October, then I'm missing out on 2 months of employer contributions because my contributions stop. It's not as easy as dividing the cap by 52 and contributing that amount per week based on a percentage of my pre-tax income, because there are other factors like Overtime and Bonuses that factor into my total compensation throughout the year. If I get a bonus or work a lot of overtime, I would end up reaching the cap early. How would you deal with this? I currently decided to contribute a few percent less than what is needed to reach the cap, to leave buffer room for bonuses and overtime, and just max a Roth IRA, with the remainder of my non-spent income going to taxable accounts. If I'm $1000 or $2000 short of the cap its okay because I can always use that money in non-retirement accounts so that it is more accessible in the short term for things like buying a house or as an emergency fund. [link] [comments]  | |||||||||||||||||||||||||||
| [30M] Started FIRE last year and feed up with my job. Where to go from now on? Posted: 01 Dec 2018 02:48 PM PST Hi All, It will be a long post but please bear with me. First and foremost, I do live in Europe, English is my third language and I started my FIRE path last year. Second of all, It is a throwaway account as I fear some of my friends could connect the dots. And finally, how dumb and irresponsible I was with money during my '20… and how afraid I am that I won't make it because math doesn't add up. Since I was little my parents always taught me that risk doesn't pay – they showed me many of their friends who didn't make it and were in debts. They are still working they asses off, hate their job but have a house, 2 cars and a decent saving account. In my late teens I was sure that I will be working until the retirement age of 65 and everything will be fine – that's the way of life. I finished 3 master degrees (IT, finance and law) and started my first serious job at 26. Why so late? I wanted to have the freedom to choose my job after finishing 3 degrees as I wasn't really convinced by any of the routes. Previously I had a couple very high paid jobs but it was only temporary and ad hoc. Thanks to them I was able to buy a flat with cash in the city center. Right now, I am 30 years old, married but without kids, working a somewhat high paying job that I hate with all my heart and every night I dream about FIRE. Wherever I listen to financial podcasts or read blogs (MMM) and articles, 90% of Fi/re strategies are about US salaries and US markets so I cant really transpose them to my market. As an example I will compare salaries and prices in the US vs the country I live in
Do you see the issue? When listening to the podcast Madfientist a couple of his guests threw numbers like "Worked 3 years in utilities and bought 3 houses each for 22,000 USD" or "We worked hard, traveled the world for 2 years and bought a house to rent for 21,000 USD". I paid for my flat (old building near the city center) in 2012 97,000 USD. A flat, not a house. And I still had to make about 15k USD in repairs. On top of it, I pay each month in utilities 300 USD. But back to my story, apart from buying the flat I just threw away my money back then. I started saving properly by the age of 26 but my salary was so low I was unable to get anything out of it. During the last 4 years I had to make renovation to my flat and pay for the wedding/ring – it went through all my savings. So last year I started with 0 USD in my saving account and by now I was able to save 20k USD. Together with my wife we have 65k in low-interest savings so we have a nice security cushion if we ever lose jobs but as seen above – I still can't buy a flat with this cash even if my wife saved for the last 10 years and I saved for a year. The sq foot in my city is going up 6% every year – it is a mad-man bubble that will one day explode when nobody will be able to pay the so-high rent. Moreover thanks to the UE, foreigners can buy properties in Poland and are buying it with cash and winding up the prices. If we assume the 4% SWR Dividends Stock and index to be FIRE at 40 with monthly expenses around the median net salary 900 USD I need a portfolio of 290,000 USD for the both of us. We currently have 1/5 of it in savings. As a Manager and lawyer in a big law, I am making around 2,100 USD net each month and according to the stats bureau in my country I am in the 4.5% of the population. I try to save 50-65% of my salary but it is still not enough. On top of it, together with my wife we hate our jobs, sure, we have flexible hours but our salary won't change if we work overtime. So, I can work 25 hours a week one month or 80 hours a week the next and my salary will stay the same. Guess what do I prefer? Every god damn night I fear the next day and I just can't stand the Directors, VP and all this corporate world. The issue at hand - because I decided to shift my career to a more managerial one than an of a specialist I totally forgot how to draft, negotiate or even meet with clients. And trust me, when sending CV to Switzerland or France or UK, they only search for a specialist and not a "manager from Poland". I am fucked if I want to change jobs because my lack of knowledge is showing during interviews. When I talk to my friends who are in IT or Commerce, they have already 4 bought properties [mind with mortgage] or opening bars. And here I am wondering if I should put all the upcoming cash into an index fund (we only have 3 in Poland) or into stock (very novice) to not see it burned by inflation. I don't see the point in buying another flat (this time to rent) if I would need to get a mortgage, do renovation, find renters and all this during a property bubble. How would you attain FIRE if you were me? [link] [comments]  | |||||||||||||||||||||||||||
| Posted: 30 Nov 2018 05:13 PM PST 6 months ago, I left a good mid-level government job for a much higher level government job in a different government agency. Sure, I'm making about 30% more, but my stress level and mental and physical health have deteriorated. The money is nice, but hasn't really changed my life much. I'm still 15 years from retiring early. I really want to apply for a lower level job again. Anyone done this or have any advice? [link] [comments]  | |||||||||||||||||||||||||||
| Posted: 01 Dec 2018 12:54 PM PST Hey Folks, I'm new to this thread and trying to make up for lost time with regards to planning FIRE. If there's a thread I missed where this is answered I apologize in advance, but for someone new to this thread, are there any blogs, books or influential articles you'd suggest to a guy who is trying to get educated and up to speed on FIRE? Any any all feedback is greatly appreciated! [link] [comments]  | |||||||||||||||||||||||||||
| What do you think is the top 10 reasons why most people don’t FIRE? Posted: 01 Dec 2018 07:27 AM PST | |||||||||||||||||||||||||||
| Posted: 01 Dec 2018 10:46 AM PST I discovered financial independence during my studies, and since I had this goal to retire early. I graduated at age 23 in IT, and shortly after I found a network administrator job in Switzerland. I kept living with my parents, who live very close to the border in France, and could manage to save between 80-90 % of my salary while living very comfortably, briging me today to 270k net worth. I'm not sure I would be here today without taking advantage of France low cost of life while earning a high Swiss salary. My first goal was only 200k, but I kept working a bit more to be comfortable in case something bad happens to me or my family, and left my job a few days ago. I'm not sure about what to do yet; I thought about going in a low cost of living country to live there comfortably for the rest of my life, or going in a lost place somewhere in my country, buy a land, and start building a house (I'm very interested in building a dirt bag house, that's cheap and ecological) and then cultivate food using permaculture techniques. It's a blessing to wake up when I want in the morning, and just do whatever I want. I've just spent my previous days lifting at the gym, biking, cooking, reading books and playing videogames, I feel free, there is no more stress of waking up early and fatigue of coming back home in the evening, and I can spend time with my mother, who is no longer alone at home for the whole day. I just wanted to share that with someone, I wish the best for all of you, and hope that your FI journey will go well ! [link] [comments]  |
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