Financial Independence Working towards an 80% savings rate. |
- Working towards an 80% savings rate.
- Vicki Robin vs. Suze Orman: Retire Forward vs. Retire Backward
- Daily FI discussion thread - December 23, 2018
- Sell a rental house that was once owner-occupied to reap tax benefits, or keep it for long term passive income?
- First home vs CDs vs cash vs more equity/index funds
| Working towards an 80% savings rate. Posted: 23 Dec 2018 06:49 AM PST I am at the tail end of a divorce and I have no kids. That presents a certain freedom in my life, free from many typical responsibilities. And so, several months ago I became an OTR truck driver. That means I live in my truck. No mortgage. No rent. No utilities. Next month, I finish paying off my credit cards. In a few months, I'll have my car paid off. Though my income is not as great as many of you, having my modest income combined with my cheap standard of living, I'm extatic. I have no idea what this will look like in the future just yet but my hope is to eventually live off of my investments while doing woodworking as a paid hobby of sorts. Have any of you done that? Basically, starting a business post retirement or in a semi retirement? [link] [comments]  |
| Vicki Robin vs. Suze Orman: Retire Forward vs. Retire Backward Posted: 23 Dec 2018 08:25 AM PST There's been a lot of articles and buzz between the FIRE movement and Suze Orman's opinions lately. Vicki's perspective in this article is very thought provoking. I can relate to retiring forward as that's my plan. I didn't have a name for it, but now I do! I'm curious what everyone here is planning or already doing. Are you planning to retire forward or retire backward? If retiring forward, what do you hope to achieve? [link] [comments]  |
| Daily FI discussion thread - December 23, 2018 Posted: 23 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]  |
| Posted: 22 Dec 2018 10:08 PM PST When I moved out of my starter home 18 months ago, I kept it as a rental. Having bought it in 2012 (good timing), it's gained about $300k in value, and it rents significantly cash-positive. I had been thinking I would keep it long-term and watch the rent continue to increase, providing me passive income as well as further appreciation as a part of my future FIRE strategy. I don't mind landlording, so keeping it seems like a good investment. Then I learned that there is a major capital gains tax exemption for selling owner-occupied homes, which I can still reap if I sell the townhouse soon (must have lived there at least 2 of the last 5 years, so I'm good for about another year). I could sell the house today and pay zero capital gains taxes on that $300k of appreciation. Selling would mean cashing out and giving up on my landlording long term passive income plan, but keeping it would mean passing up a large ($40-50k) potential tax savings. What do? [link] [comments]  |
| First home vs CDs vs cash vs more equity/index funds Posted: 23 Dec 2018 03:27 PM PST Hi All, Posting from a different account thn usual. Have been a long time follower of this thread and wanted to get some advice hence posting here. Me and wife both 35 are in NJ right now with 2 young kids ( 3 mnth old and 3 year old ). Both of us are working with an annual income of around 270k. We only came to USA 5 years back and have green card now. We started maxing out our 401k from 2018 and plan to do so going forward. Have started to max roth ira and 1 person's HSA and investing these in vtsax. Have around 70k in a CD yielding 2.15% and around 25k as emergency/cash. Also an ESPP from my employer worth around 60k. We gave been investing in our country of origin so far since we were not sure if we would get green card without hassle. Around 200k in real estate and 80k in a CD yielding 7% ( the interest rate is really good). Coming to the question, considering we have more stability with green card now we have been wondering if its time to buy a home by using the cash/CD/espp as down payment. We have been paying close to 3k as rent in jersey city which is really looking like a waste of money. But if i have to buy a similar property here it would be around 900k. If we move to suburbs it would take way more time for commute and we wont able to spend that time with kids. So, kind of want to get an opinion from the group on what should be next steps for short, medium long term. Is it OK to continue to pay this high rent and keep investing in other savings or should we make buying a home and creating home equity as our first priority. Especially considering the talks of slowdown next year and increasing mortgage interest rates. Thanks for reading this long post and sharing your inputs. Thanks [link] [comments]  |
| You are subscribed to email updates from financial independence / early retirement. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment