• Breaking News

    Saturday, December 29, 2018

    Home Unlabelled Financial Independence The US government shutdown and FIRE

    Financial Independence The US government shutdown and FIRE

    December 29, 2018

    Financial Independence The US government shutdown and FIRE

    The US government shutdown and FIRE

    Posted: 29 Dec 2018 08:13 AM PST

    The current government shutdown looks more and more like it won't be quick affair. It's only been a week, and there are already news articles cataloging all the financial hardship people will face because of this. Case in point, this NYTimes article I just read:

    https://www.nytimes.com/2018/12/28/us/politics/government-shutdown-workers.html

    A few choice sections (relevant to FIRE, not the political side of this):

    Dena Ivey, a furloughed probate specialist in the Anchorage office of the Bureau of Indian Affairs, lost many of her possessions during the recent Alaska earthquake, and feels overwhelmed by the man-made disaster now afflicting her family. "We're sort of being held hostage in the middle, and we have families and obligations," said Ms. Ivey, a single mother. "I don't know if I'm going to be able to make rent." She added: "I'm basically living on credit now."

    ...

    Steve Reaves, the president of the union that represents FEMA workers, said Friday that he was getting four or five times the number of calls he ordinarily received from his membership. "The worry's mounting, the stress is mounting," Mr. Reaves said. "Their concern is, what do we next? Where do we go from here? How are we going to make ends meet and pay our bills?"

    ...

    "It's a real challenge for us," said Cari Thomas, a retired rear admiral and the chief executive officer of a nonprofit that is the official relief society of the Coast Guard. "It's about $150 million each pay period to pay the active duty and civilian employees of the Coast Guard, and our nonprofit does not have $150 million, as you can imagine." She said she had been on the phone on Friday morning with a senior member of the Coast Guard, who is not eligible for the aid and was in tears, worrying about whether he would be able to pay his rent on Jan. 5.

    ...

    "We spent money on Christmas and all that thinking that we were going to have a paycheck on the first, and now we were told today that it's official, we're not getting one," said Britaini Armitage, 30, whose husband is a gunner's mate in the Coast Guard and is deployed in the Middle East.

    I am no longer a government worker, but this happened to me a few years back and is part of what motivated me to work towards FIRE. If this happened to me today, I'd be sitting back enjoying the impromptu vacation, maybe working on some projects or hobbies I've been meaning to get around to.

    While I know the majority of people that visit this subreddit are well prepared, I just want to reiterate to any newcomers that this is another reason why it is worth it to work towards FIRE, even if it seems like a goal you may never reach. Even a small war chest can be a lifesaver in these situations. Suddenly not knowing if you can pay rent or feed your family is one of the worst preventable feelings you may ever feel. Being able to walk away as you want, or remain standing if the world walks away from you, is worth every penny you put towards it.

    submitted by /u/HQdfUKCK9ehtZYwc
    [link] [comments]

    If You’re Over 50, Chances Are the Decision to Leave a Job Won’t be Yours

    Posted: 29 Dec 2018 10:39 AM PST

    Finlit Dating!! A dating app for financially literate or financially interested individuals - An Update

    Posted: 29 Dec 2018 03:31 PM PST

    Hey guys,

    3 months ago I posted on here that I am building a dating app for people who want match with others who are financially literate or who are looking to head into that direction. Along with finding financial experts, proficient players, and novice app users, you can find others who have interests in stock market trading, investing, cryptotrading, or retirement planning.

    My biggest goal for the app is to be an app that's free to message and see matches and see who likes you, and be 99% spam/bot free. To be a spam/bot free dating application takes a lot of work, but that is truly where my priority lies.

    Progress is being made, and the app needs more work before I'm done with it and roll it out to the Play Store and App Store, but now I am looking for beta testers who want to help provide feedback. The main app is scheduled to be launched in 5-6 months, at that point I am going to start focusing marketing the app in one city only, San Francisco, CA.

    After I roll out the app, the plan is to start a speed dating service within San Francisco, CA for those who would like to get to know other real people who are interested in a financial literacy partner too. At that point they will have a chance to download the app and I will start expanding from there.

    Any feedback is welcome and post here or PM me if you would like to get access to the beta. Preferably you are near San Francisco, CA or are in the USA. Right now, I know this app works with Androids when you download the APK file, but users with an iPhone would need to provide their UDID to get approved by Apple to download the dev stage of the app.

    submitted by /u/trooper5010
    [link] [comments]

    2019 Financial Goals change much from 2018?

    Posted: 29 Dec 2018 03:10 PM PST

    Are your 2019 Financial Goals to get closer to FIre much different than 2018? Mine changed a bit due to "Murphy" visiting my house late 2018. What is your top financial goal for 2019? Mine is rebuilding the emergency fund after a couple big hits that happened late 2018. Then it's back to maxing out retirement savings (I'm still contributing enough to get my employer's full 401k match), contributing to kids college funds, and paying down the mortgage. So, any changes to your Goals in 2019 to get you to FIRE?

    submitted by /u/futureFIREfather
    [link] [comments]

    Daily FI discussion thread - December 29, 2018

    Posted: 29 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.

    submitted by /u/AutoModerator
    [link] [comments]

    Going abroad after college to eventually be FI?

    Posted: 29 Dec 2018 03:06 PM PST

    I'm currently in college, and am about 45k in debt over 2 loans that have around 5-6% interest last I checked. I'm currently getting a degree in political science and taking courses in programming (Python, webapps, heavily cybersecurity focused in ethics/processes/securing our projects by design) but am not getting a CS degree. Due to this lack of official degree but potentially 2-3 years experience once I'm a year or two out of college, I worry about my job prospects. From the outside looking in, especially for internships, it seems nearly impossible to find anything if you're wanting to get into CS and don't have a CS degree. Given the current administration I'm not going to even bother applying for any internships or jobs federally the next two years, it's just not worth it at this point if we have a furrlough every three-six months and budget constraints keep people from finding work.

    I know that I want to eventually work in some kind of consulting role, that I love political science as a science and discipline, but that I don't like academia. Grad school is one thing, academia is a whole different animal. I figure that living abroad will help me not only learn a new language, live in an area that is more accessible (generally speaking), but also help me save money. If I earn $2,200/mo out of school, sure it's only 24k but it's higher than locals and I'm not one for big spending. I know I'm still in college, but I made $1,000 stretch one and a half semesters until I found work.

    Ultimately, like many in my position I think, I'm looking to go abroad and work after I graduate. Teaching English is on the table if it has to be, but I'd prefer to do something more creative/lucrative... Maybe the time I spend not teaching can be used to keep my coding and music skills sharp. I currently have basic knowledge of French and Mandarin, but I really don't want to be in China given the political climate at the moment. Earning 3k a month in Shanghai sounds fucking wonderful given the CoL if it wasn't for the health risks and political climate. I'm unable to drive, and living in VHCoL or even HCoL areas of the US doesn't seem feasible right out of the gate after college given my skillset.

    Given all this, would going abroad make a difference in knocking out my debt and giving me saving potential? I'm not sure if I'd want to leave permanently, for just a couple years, but I do want to go abroad and push like hell to pay down my student loans. Driving is out, unless I have a personal driver or Uber gets comped by my employer (not sure how common this is), and from what I've seen most major US metro areas once you're outside of the main core city area (or in LA the main neighborhood) it's all highways and not friendly to pedestrians.

    submitted by /u/Getting0nTrack
    [link] [comments]

    Cash went from worst to best performing asset this year. Has never been best in 19 years.

    Posted: 29 Dec 2018 09:55 AM PST

    Graph of this issue: https://pbs.twimg.com/media/Du-GFSTUYAAj-9B.jpg

    This year's top-performing asset class isn't stocks, bonds, commodities, or real estate.

    And no, it's not crypto-currency either.

    It is cash.

    That's right. Cash is the top performing asset class year-to-date. Beating out U.S. stocks, global stocks, investment grade bonds, junk bonds, commodities, real estate, you name it...

    Cash is king.

    Cash is underrated by most investors. Yet it's the easiest way to reduce risk in your portfolio. It can cushion your portfolio during a market crash, as well as deliver unlimited upside in the form of opportunities that have yet to come.

    But I've noticed a common problem when investors are holding cash... they don't know what to do with it.

    And to be honest, there are so many options out there between savings accounts, money market accounts, certificates of deposit (CD), mutual funds and ETFs that it can be confusing. It's easy to see why investors leave their money parked in their brokerage sweep accounts or a savings account at their local bank.

    When I first got into investing and folks would talk about cash and the "risk-free rate" of Treasury Bills (T-Bills), I thought the only way to access those T-Bills was through a bank or mutual fund or some other financial institution. But that's not the case... I'll tell you exactly where I invest my cash that cuts out the middle-man, like banks, and their fees.

    But first, let's look at the national average of interest earned in savings accounts, money market accounts and 1-year CDs. After all, with the Fed having increased interest rates, you should be getting a better return on that cash parked in your savings account, right?

    That doesn't seem to be the case...

    According to the Federal Deposit Insurance Corporation (or FDIC -- the entity that insures the money in your bank accounts), the national average interest rate paid on savings accounts is a meager 0.09%. Money markets pay 0.16% while locking up your money for one year in a CD will net you 0.60%.

    Meanwhile, the current federal funds rate is 2.25%.

    Which asset do you think will be the best performer in 2019?

    Are you increasing your cash position in 2019?

    submitted by /u/gorillaz0e
    [link] [comments]

    Preparing for Children

    Posted: 29 Dec 2018 12:45 PM PST

    My fiance is currently attending school for naturopathic medicine. We found out she is pregnant about a week ago (currently about 7 weeks). We are trying to determine whether she should put school on hold given the additional debt she will incur if she attends for another semester ($20k) versus the additional expenses I would have if she were to come live with me and prepare for this child?

    Considerations are the debt (7% annually), rent (combined $1800), her ability to work (possibly $1500 extra per month), and the debt she has already accumulated ($20k).

    We are focused on the best outcome for the child and preserving our path to FI as best we can. Any advice or suggestions would be appreciated. We are also weighing out the implications of a birth in Canada versus the US both health wise and financially.

    submitted by /u/jazzmaster32
    [link] [comments]

    Thought this was an interesting read, looks like those on the path of FIRE are potentially on to something!

    Posted: 29 Dec 2018 09:26 AM PST

    Mental illness and FIRE - what happens to those who need to quit soon but their biggest difficulty to FIRE is created by that same mental illness (the inability to hold a higher paying job)? And for those who have experienced something similar, what advice do you have?

    Posted: 29 Dec 2018 12:24 AM PST

    My stats:

    • Inability to work long hours, mid-20s from a combination of issues (sensory overload, CPTSD, inner frustrations, being retriggered)

    • Only had jobs that they were desperate for people (from a temp agency)

    • I have never been employed more than a few months at a time (burn out or let go)

    • I save as much money as possible and live as frugally as possible

    • My goal for FIRE is just to think. To have peace and calmness. I feel like I am running around all over the place (I am also single and unfortunately that means it is all me in this lonely world).

    How the hell do I do this?

    submitted by /u/test_fight_the_power
    [link] [comments]

    I make 65k a year - will I be able to retire in 25 years?

    Posted: 29 Dec 2018 01:09 PM PST

    I will be contributing 5% to my IRA and 5% to my 401k.

    I also will be purchasing some blue-chip stocks and have enough for a down payment on a decent house in the midwest.

    What do I need to to be able to retire by 50 - 55?

    submitted by /u/oldgreg4488
    [link] [comments]

    Vanguard Founder Jack Bogle Says It’s Time to Play It Safe

    Posted: 28 Dec 2018 05:14 PM PST

    As many of us are influenced by Jack Bogle's thinking and Vanguard is quite popular, thought it would be good to share this Barron's article for discussion: Vanguard Founder Jack Bogle Says It's Time to Play It Safe

    So while he's advising caution, if your timeline is sufficiently long, he does suggest to keep investing:

    If you will need money relatively soon for, say, college tuition or a down payment on a house, he suggests cashing out enough of your holdings quickly to cover the coming obligations. "If I had a big liability in a year, I'd get prepared for it right now," says Bogle. "You want to be able to fund it without pressure." But for a long-term goal, such as retirement? "Keep investing, no matter how frightened you are."

    ​

    submitted by /u/stephanlivera
    [link] [comments]

    ACA vs Work-Provided Health Insurance, am I disallusioned?

    Posted: 28 Dec 2018 04:53 PM PST

    I've had absolutely wonderfully health insurance during my working years, but I've also been low maintenance. When looking at plans on the ACA in preparation for retirement some day I basically budget in the out of pocket maximum per year, pick the level plan (bronze, silver, etc.) based on my estimated needs and roll with it.

    In my case, I'll at least need a knee replacement in the next few years. A co-worker is very worried about my coming healthcare costs in retirement, stating he has friends on the exchange who have somehow been crushed by medical expenses even with an ACA plan.

    Am I naive in budgeting just for max out of pocket per year in my retirement budget (yes, I'm aware healthcare costs are going up faster than regular inflation)?

    submitted by /u/AntiGroundhogDay
    [link] [comments]
    Read more
    at

    No comments:

    Post a Comment