Financial Independence Would you tell a friend that you inherited a large amount of money and are now financially independent? |
- Would you tell a friend that you inherited a large amount of money and are now financially independent?
- PhD and FIRE = bad idea?
- Is the amount that I'm contributing significant?
- Median household income (by counties) above 75 K is rare in the US
- Daily FI discussion thread - December 06, 2018
- Once you are financially independent and leave full-time work- will you work part-time? Why or why not?
- FIREing to foster/adopt?
- Am I FI?
- Downsize to FIRE?
- What would you recommend: Roth or Traditional 401k?
- Contact High (Spending)
- Unpopular thought: Hedonic adaption is BS.
- U.K. Stocks Have Lost All Their 21st Century Gains. If this happens to the US Stock Market, how does it affect your FIRE plans?
- Thank you all!
- modeling growth of the nest egg. How do you do it? Here is my version
| Posted: 06 Dec 2018 08:51 AM PST My brother and I watched an elderly wealthy Aunt become very sick a week before she died. She told us on her deathbed that we would get fifty percent of her assets. (The other 50% went to charity.) While we were sorry to see her suffer and would miss her, we were philosophical because she was 96 years old. She died shortly after our visit and we both inherited well over two million dollars. After the estate was settled we got a check that would change our lives. My brother and I were in our mid-50s at the time. Both of us decided to retire from our unsuccessful careers. Combined with our existing retirement savings, we now had enough money to have a higher standard of living than we ever had while working full time. (4% annual withdrawal from a balanced portfolio.) After we stopped working, many of our friends, neighbors, and relatives asked how we would survive financially without a job. Both of us decided to be honest with people and tell them we had inherited a significant amount of money. Though, instead of being gracious about it, many of the people got angry. They acted like we were opportunists to gain lots of money from a relative who was not even in our immediate family. (We were the only living relatives of our Aunt.) After they got angry with us for telling them we inherited money, some of them asked for a loan or even a gift. What a disaster. If you inherited money from a relative and quit your job, what would you tell friends and family if they asked you how you are going to pay your bills? If a close friend told you they have inherited a large amount of money would you think it was tacky to tell you that? [link] [comments]  |
| Posted: 06 Dec 2018 06:41 AM PST Hi all, realize this is a broad and vague question but wanted to get the general consensus on getting a PhD along the journey to FIRE. I'm a 24 yo engineer who just got an offer to do a PhD in bioengineering in New Zealand. (USA origin) I haven't started my FIRE plans in full swing, but it is a life goal of mine - do have Roth IRA with yearly contributions but not saving much money other than that. I plan to in the near future. Basically, is it a financially harmful in terms of FIRE to spend four years getting a PhD, making very low wages (20k) a year as opposed to working at an industry job immediately with room for growth at four times that amount? I realize that part of the answer depends on „depends on how much increase in salary your PhD will get you blah blah" but wanted to probe the general mindset of the FIRE community regarding getting a doctorate. tldr; is getting a PhD frowned upon in the FIRE community? Edit: thank you everyone SO MUCH for your responses!! I certainly did not expect the outpouring of thought and perspective that I received. It looks like a lot of people have strong opinions about getting a PhD regardless of wanting to FIRE. I've got a lot to think about and my gut is leaning towards dont do it but all of your knowledge and advice certainly helps. Thanks again <3 [link] [comments]  |
| Is the amount that I'm contributing significant? Posted: 06 Dec 2018 07:21 AM PST So I've been lurking on this sub for a long time and this is my first post. Im 24 and make about $20k a year and am a student in college with about 20 credits left for a STEM degree. I have about $40k in student debt. Throughout the past couple years I've saved between 6% up to 20% split into a Roth IRA and my works 401K with 50% match up to 6%. I currently have about $5k investments. Reading this sub I'm worried that what I've been doing isn't going to make much of a difference in the coming years. Have any of you started out this small? If so, did the smaller contributions in the beginning make a difference later on? Thanks for reading. Any advice is appreciated. [link] [comments]  |
| Median household income (by counties) above 75 K is rare in the US Posted: 06 Dec 2018 11:19 AM PST So that people here not getting paid hundreds of Ks each in the household don't feel bad. Here's a reality check: The lower bound being zero and there being hardly any upper bound, this median means the norm is definitely not each partner in a couple making each 6 digits and not even both together reaching 6 digits. Couple making more than 75 K are very rare. [link] [comments]  |
| Daily FI discussion thread - December 06, 2018 Posted: 06 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: 06 Dec 2018 08:34 AM PST Many people once they reach financial independence want to leave the full-time rat race and stop working their 10-12 hour a day job with the two-hour commute and the relax. They feel relaxed for a few months but then get restless. They start to wonder if they could work part-time somewhere. A chance to make a few extra bucks, something to do and interact with co-workers. Trouble is there are few part-time jobs out there for older people that pay much more than $12 an hour and involve lots of standing and physical work. Anyone here moved away from a stressful full-time professional job but now work 10-20 hours a week in an enjoyable job that pays well? If so, doing what? [link] [comments]  |
| Posted: 06 Dec 2018 12:03 AM PST Hello, I'm incredibly early on my FI journey, but I wanted to have some goal in mind if I plan to retire early. I'm seriously considering being a foster parent and/or adopting my own children for the future, post-retirement. Anybody here have any experience or stories to tell regarding this area? I'm incredibly curious. Thanks! [link] [comments]  |
| Posted: 06 Dec 2018 03:55 PM PST Hi guys, looking for an outsiders point of view. I would really appreciate other points if view!! I am 27, married with no kids. I got out of the military this year. I am getting $1767 a month is disability as I got hurt. I have 2 rental properties that bring in $1700 a month (about $1000 take home after maintenance, taxes, insurance and vacancy). I have a rental investment company that brings in another $1500 a month. All rentals are paid off in cash. I have $64,000 in IRA between my wife and I. Between my wife and I, we are making about 130k. We need about 40k a year to survive. Goals: Buy a house (120k) Have two kids Travel the world When should I stop working? THANK YOU!!! [link] [comments]  |
| Posted: 06 Dec 2018 01:44 PM PST I'm just wondering if this plan makes sense and if I'm missing anything. I think we can FIRE if we downsize to smaller house with less expenses. Basically, our current expenses look like:
Current assets are:
What I've been thinking is that if we downsize to a smaller house around 150k, we would have about 350-400k left after the sale of our current house. Together with the other assets we would have:
Housing expenses in the new place would be about a third of current, (6k/yr) and our other expenses would more or less remain the same. Both myself and my wife would continue to work but part time. We'd like to use the taxable accounts to pay our housing, car and health expenses and let the 401k continue to grow for 8-10 years. Would this plan make us FIRE? Anything we are missing? [link] [comments]  |
| What would you recommend: Roth or Traditional 401k? Posted: 06 Dec 2018 03:02 PM PST Hoping for some input on whether or not to invest in my employer's Roth or traditional 401k plan. I'm a 23y/o recent grad making $48,000 USD annually, with essential monthly expenses at around $1,000. Side hustles pay for hobbies/other activities. I've currently been maxing out my Roth IRA every year for three years and have around $19,000 there. Emergency fund sitting at around $6,000 (six months expenses), so all good there. As such, I'm planning on maxing out my 401k contribution (3% matching) but don't know if I should contribute to the Roth or traditional option. I'm new on the FI/RE journey and don't have a concrete plan on when I'd like to retire, but shooting for 50 (27 years) at the latest. I really don't intend on having a significantly higher withdrawal rate post-retirement, but as I'm sitting at the upper end of 12% right now I may go up to 22% (51,801) if I have more expenses down the road like owning a home. As for right now, what would you all recommend I invest in? Roth or Traditional? Any other information you need to help give me any recommendations? [link] [comments]  |
| Posted: 06 Dec 2018 02:21 PM PST As I get very close to FIRE, I am sometimes stunned by what I hear in my social circle on spending. For example, one couple I am 99% sure have sub-100k combined income, are taking expensive vacations around the world, eating out all the time, and going to many concerts etc. Another claimed that they are spending over $2k/month/child because of the many activities. They host lavish parties yet work multiple jobs and claim to be miserable work-wise. Basically people I 'think' are earning far less than me are spending far more. I'm not very jealous (there might be some of that), but mostly I'm wondering if they have access to some secret deals where they can get great experiences for less, and I don't. Comparison is a thief of joy - and maybe it's part of FIRE to be extra vigilant when you have a social circle NOT on the FIRE path whose spending increases as they enter peak earning and yours plateaus. [link] [comments]  |
| Unpopular thought: Hedonic adaption is BS. Posted: 06 Dec 2018 01:47 PM PST I see comments in most of our threads that allude to how people are wasting their time on hedonic adaption. I, for one, think it's all a load of BS. I think that if you bought a BMW and it brings you no happiness 4 years later…then perhaps you're just not a car person. You bought the car for the wrong reasons. I still get a burst of joy every time I come home. Walking through the house thinking, "wow, we own this." Seeing my spouse and being happy to see her. I upgraded to fancy shoes two years ago, and I still feel good when I put them on. (And I didn't even know I was a shoe person, I just got tired of them looking like crap in 6 months because I always got cheap ones). Our house has a pool, and there isn't a summer that goes by (lived in it since 2011) that my spouse and I aren't pinching ourselves saying, "seriously? We have a pool? We get to just float in this thing and have a drink?" My car is about 20 years old, and I'm find driving it, because I know I'm not a car guy. I've leased newer cars before and got no additional joy beyond the utility of a nicer radio right off the bat. So long as you're intentional with what you spend money on and what things you invest in, I think it's easy for another $10k to bring you additional joy that will stick with you. [link] [comments]  |
| Posted: 06 Dec 2018 06:27 AM PST Consider 2017 as a peak similar to the 1999 dot com bubble, is it possible to see no gains in the stock market for the next two decades? [link] [comments]  |
| Posted: 06 Dec 2018 11:42 AM PST I've browsed on this subreddit for a while now, but after a year-end talk with my husband about our finances, we decided to get more serious. So I've made this account just to focus on money stuff (and to keep it anonymous from anyone who knows my main account and might eventually want money from us). Us - Married couple, early 30s, 1 kid and no more planned. I'm a SAHM, husband has a good job with good benefits and good security in his chosen career. Situation - Live in HCOL area, and not in position to move (significant family ties). House worth $590k, mortgage $410k. $60k in CC/car loan debt. So, we're more than worthless, but the crappy debt is too high, and is what made us talk about our money more seriously. We sat down and made a more serious budget for next year. Our big thing was that we went out to eat way too much, so I will be cooking more. Reddit has good subreddits for that too! But this subreddit has given us clear directions on the path forward and what the first half dozen steps are, and it has really fired us up to clean things up and take advantage of our income. My husband truly loves his job, and it's one that won't go away, so I don't think that RE is a big priority for us. But FI is absolutely possible, and it would mean we could have serious security and hopefully pass down money to our daughter and any grandkids we might one day have. So thank you all for the inspiration and the advice! We want to make 2019 the year that kicked off our FI adventure! [link] [comments]  |
| modeling growth of the nest egg. How do you do it? Here is my version Posted: 06 Dec 2018 12:11 AM PST My formula is relative simple: nextMonth=growthPrYear/12*currentNestEgg+savingsPrMonth I know it is not 100% precise but with the huge uncertainty in growthPrYear then it can never be 100% precise. For people who want to see it over time then simple forloop can do it: growthPrYear=6; nextMonth=(growthPrYear/12/100+1)*currentNestEgg+savingsPrMonth; } How much growth do you expect? [link] [comments]  |
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