Financial Independence Daily FI discussion thread - January 28, 2019 |
- Daily FI discussion thread - January 28, 2019
- Spend more on vacations?
- “My parents were immigrants who worked hard and have been through a lot so that my brother and I could have a better future. I figured it was my turn to take care of them.”
- On a scale of 1-10, how happy are you after you FIREd vs when you were still working?
- [Video] How short your life really is
- Weekly FI Monday Milestone thread - January 28, 2019
- Is anyone else confused by people in this community saying they don't know what they want to do when they retire?
- No spending money until I get a better job.
- Do I take the money now or work on my career to make more later?
- Anyone here planning on retiring with a greater standard of living than they have now?
- Starting FIRE journey, employed in Banquet Industry
- two years of IRA and backdoor conversions
- Deadline for contributing to work sponsored HSA
- [US] Please review my home rent vs. buy spreadsheet
- Mega backdoor roth always a good idea?
- Climbing the corporate ladder is moving my goals... I'm not sure this is necessarily good for me 33(m)
- How to calculate for pension
- 27M - am I stupid to quit today?
| Daily FI discussion thread - January 28, 2019 Posted: 28 Jan 2019 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: 28 Jan 2019 01:43 PM PST Hello everyone, We are 27M + 26F, just hit 200k last week. We originally planned for 3 small trips (3 days each) and 1 big trip (2 weeks international) for 2019 and will still save 80k. After asking for days off around Thanksgiving and Christmas to spend enough time with families, my SO still have 6 PTO days left he either use it or lose it. So he proposed to have 6 more small trips, which enable us to have a vacation almost every month. Last year we took a 4-day biking/hiking trip which cost $1000+. Renting a car (we don't have one) cost $100 a day; staying at a B&B cost $150 a night; bike rental + shuttle bus was $60 per person, park entrance fee was $20 each, etc. My SO loved it and wanted to do like 3 more this year. I just felt that this trip offers very low value. We could have taken our own bikes (which are much nicer than the rental bikes BTW) on a $2 bus to bike in the FREE park right outside of the city that we've never been to. I agree that we should make memories and travel more before we have kids, not wait until we RE. But I don't think we need to spend big bucks on the trips. While my SO thinks that I am overly frugal and don't want to have fun in life. How are you guys enjoying your vacations? [link] [comments]  |
| Posted: 27 Jan 2019 08:48 PM PST Thought his belonged here. Millennials who pay for their parents living expenses talk about financial independence and supporting their families. [link] [comments]  |
| On a scale of 1-10, how happy are you after you FIREd vs when you were still working? Posted: 28 Jan 2019 02:15 PM PST How much does FI actually improve happiness, anecdotally? [link] [comments]  |
| [Video] How short your life really is Posted: 27 Jan 2019 05:42 PM PST I came across this video which lays out how little of our lives we actually spend doing what we want to do. It made me very grateful that I've discovered financial independence, and that I've bought myself an extra 20 years to do what I will. I don't have a very clear picture of how I'll spend that time, but I guess I have about 10 more years to figure it out? [link] [comments]  |
| Weekly FI Monday Milestone thread - January 28, 2019 Posted: 28 Jan 2019 03:09 AM PST Please use this thread to post your milestones, humblebrags and status updates 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! 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: 28 Jan 2019 01:57 PM PST cause there's shit tons of things that i can think of for me and i don't really understand how someone could be working towards this but not be thinking about all the stuff they want to do when they acheive it [link] [comments]  |
| No spending money until I get a better job. Posted: 28 Jan 2019 04:10 PM PST My SO and I agreed last year, even earlier maybe, that I needed to work towards a higher paying job. I have not done that. I am comfortable at my current job and just generally have not been giving our debt/expenses the attention I should. So it was easy to ignore. Obviously, this is bad. Yesterday, after a talk we have had repeatedly about finances, somehow we had a breakthrough. It clicked with me finally that I was not doing what I should and I needed to get serious. Based on my track record of the last year, depending on self control to apply to jobs was not going to work. In our talk, we broke it down item by item and, if I were not in our relationship, I would not be able to afford my share of things with any money to spare. I never wanted to be that person. We each effectively have an allowance to spend how we like: Going out for dinner, clothes, gadgets, etc. Anything besides the essentials is paid for from our respective accounts. I enjoy my allowance. I also take it as a given. And so we come to the freezer. I cancelled the direct deposit from my paycheck into my funbuck account and payed off my credit card. Then, my cards went into a ziploc, which went into an old tupperware. Add water, place in freezer. All cash into our change jar. That was it. I need to feel the effects of my inaction more personally. No spending money until I get a new job. Today is day one and I feel more motivated to work on this than I have in months. I may be a sort of self centered person, I accept that, and I am willing to use that. So, here's to doing whatever it takes. Cheers. For reference our money flow: My paycheck > Allowance checking account > House checking account > Bills paid > Buffer kept in account > Savings from any surplus [link] [comments]  |
| Do I take the money now or work on my career to make more later? Posted: 28 Jan 2019 04:00 PM PST Morning All, Apologies for the wall of text. 3 years ago I (M/26) joined the company I'm with as sort of a junior network engineer, making decent money while still in Uni. I learned a lot in the 1st 6 months, nearly filling up a 128 page binder. After this however, the rate at which I was learning significantly dropped. Since then I've graduated and changed business group twice, going from Network Operations Manager, to a Change Manager, to a Program Manager. My role has stayed the same throughout, but it certainly has given me perspectives into other areas. I've been with my current boss for nearly a year now. There are a few senior networking engineers in the team I'm with, my boss has asked me to take the initiative to go out and learn. She has even promised a promotion to one of these positions as long as I'm able to proficiently do the work. For the past 6 months I've been asking for additional work from the senior network engineers, but I've only received a trickle of what I've wanted. On top of this, going on site is something that I've been lacking as I didn't have my Industry Worker card. I got this in December so I'm ready to go out now. Lastly my boss has said that she has big plans for me in 2019. Now here is the kicker, there is a job opening that is essentially my role now, plus working on roster to look after the network (layer 2 support/NOC/NMC). This role will offer me a direct career advancement, both in terms of learning and responsibility, as well as a very nice 1.6x my current pay. One of the big benefits, is as I'll be working 10-12 hour shifts 4x a week, I'll be able to study for certificates that can bring greater career advancement. I spoke with my boss regarding this, as well as the the most senior engineer on the team (solution architect), and both agreed that I haven't been doing as much as I could've been doing. They're happy for me to work overtime, doing the work of the senior engineers in a greater capacity, as well as going out on site and learning from all the techs and being a really well rounded engineer. Overtime will give me a bit more pay, but it'll definitely drain me more. If I go down this avenue, I'm possibly able to advance further and quicker than the layer 2 support/NOC/NMC role, with greater money attached. Now to add the final layer to the question, I'm saving for a housing deposit, but with the current financial situation in Australia, it'd definitely be better if I could have the money while the housing market is in a slump. I'm roughly 25k from where I'd like to be, so this job could really help me reach this goal quicker. So the question is, do I stay where I am to try and potentially further my career by 2-3 steps by working overtime doing network designs/delivery + going out onsite with techs and going on promises, or do I go to this new job and just advance my career. My thoughts are, my work goals should focus around my financial goals, and my financial goals should align with my my life goals. I'm in this to hopefully FIRE by 40, and I'm not sure how often this career opportunity will come up. TL:DR do I stay with my current pay hoping to jump forward 2-3 steps in my career, or do I take that 1 step up earning 1.6x my current pay to FIRE quicker? [link] [comments]  |
| Anyone here planning on retiring with a greater standard of living than they have now? Posted: 28 Jan 2019 01:13 PM PST Hello friends, I was wondering if anyone else is in a similar boat to me. I currently live in a VHCOL area and my expenses are significantly below my income. I have simple tastes, and other than the occasional splurge I save most of my money without trying. Sometimes friends will want to go to high end bars/restaurants/shows, and I'll acquiesce. And I have a dog which requires expensive daily walk(s)/daycare. But other than these I really don't spend money. The things I would want to spend money on are travel related, but I work too many hours to do so now. Will have my FI number in the next 5-10 years, depending on factors partially outside of my control (a family member's health care expenses and home care needs). Rough numbers: Salary ~400k Annual Spend ~70k Target spend in retirement ~100k. Most discussion around here is focused on maintaining a standard of living into retirement, and calculators are built to the same. r/fatfire has somewhat of a similar mindset at times, but my numbers are far below what they report. [link] [comments]  |
| Starting FIRE journey, employed in Banquet Industry Posted: 28 Jan 2019 01:57 PM PST First time post, long time lurker, yada yada yada. So I started the FI journey with my wife last year by doing the Dave Ramsey program. Now we are debt free with a small emergency fund built up. I've also been studying up on FI podcasts and a few books and I really want to jump start my savings and side gigs. Currently my wife works in education and is in school to be a teacher, so I figure that most of the cash flow will come from me. Currently I work in catering sales and event planning for a conference center, but most of my experience is in banquet operations. I'm starting to look for new work and I'm wondering if anyone in the community comes from a similar background and has advice for someone wanting to find work that fits my skills and fits the FIRE way of life. We are both in our late 20s with no degrees. Thank you for all the help! [link] [comments]  |
| two years of IRA and backdoor conversions Posted: 28 Jan 2019 01:45 PM PST I contributed my 2017 and 2018 IRA contributions in 2018. So when I do a backdoor roth in Turbo tax, I am getting a penalty.... How can I put this in Turbotax correctly? [link] [comments]  |
| Deadline for contributing to work sponsored HSA Posted: 28 Jan 2019 01:16 PM PST My wife miscalculated on her contributions to a work sponsored HSA and fell a couple hundred dollars short for 2018. According to pretty much everything online it says she can still contribute up to the tax deadline in April. But her HR benefits person is saying they cannot contribute after the end of the year. Not a big deal for a couple hundred bucks, but could be helpful for other people here to know if/how they can contribute to an HSA after the end of the year. Anyone have experience with this or have helpful tips? [link] [comments]  |
| [US] Please review my home rent vs. buy spreadsheet Posted: 28 Jan 2019 01:51 PM PST Hi all, long time member here but TA because money. tl;dr: Please see if you can find problems in this spreadsheet. If you only look at one thing, please check the formulas in the last block (rows 66-81). Thanks! I've been considering renting vs. buying for a bit now. From a financial standpoint, to me renting is solidly the better idea. However, there are plenty of non-financial reasons to buy. So, I wanted to quantify the financial "damage" done to my FI journey if I bought. I was able to calculate this in terms of "when would I FI if I rent" and "when would I FI if I buy". I found two big defects in many existing calculators:
Since this is a big decision, I'd really appreciate having a few more eyes on it. It's a heavily, heavily modified version of what's described here. I'm not terribly worried about the input numbers (mortgage rate, closing costs, etc.), but I am worried that I either forgot to compound or double compounded something. As it stands, it predicts that if I bought a 750k home vs. renting for 2k/mo, I would add ~5 years to my FI date. Is that right? Thanks! [link] [comments]  |
| Mega backdoor roth always a good idea? Posted: 27 Jan 2019 10:42 PM PST Just joined a company that allows after tax contributions which the Fidelity account representative said can be used for mega backdoor Roth. I already set my traditional 401k contribution rate to max out in a few months and am wondering if after I hit that max, I should set my contributions to the after tax account. I'm at a high enough income level where the marginal rate savings makes sense to choose the traditional 401k, but I'm not sure how to think through if there's any tax savings on the mega backdoor Roth. If I hold onto and invest my after tax dollars, I can sell them later during FIRE at 0% LTCG tax (or to tax loss harvest in bad situations), so would putting the money into the backdoor Roth's perpetual 0% tax have as much benefit? Tax loss isn't possible in Roth, right? Also, does the 5 year rule for contributions apply to each Roth contribution lot or do all contributed funds become available after 5 years of opening the account? I've never been clear on this 5 year rule. [link] [comments]  |
| Posted: 28 Jan 2019 12:08 PM PST I started the Fire journey 5 years ago now. My objective is to earn more money outside of work than in work. When I started out I was earning $80,000 and loved the idea that earning $80k outside of work through dividends and rental properties which, at the time, I was happy to take and Retire. Thats what I'm currently working towards, passive income with steady cash flow. The problem is (which isn't a real life problem at all) is that I'm in an industry and company that has great growth opportunities. I have been lucky enough to reach a level in my job that has almost doubled my salary in 5 years. I haven't inflated my lifestyle much at all by the way. When I eventually get to earning $80k outside of my job and say I'm on a salary of $160k+ how can I ever give up my job. That means giving up 2 thirds of my income. My salary is outpacing my cash flow massively and I can see more opportunities in the next few years in this industry. It's great having extra finances through salary but isn't the point of FIRE to eventually leave your job. I feel like I'll not be able to stop working as my salary will always be a huge percentage of my income. How have others dealt with this situation. Edit: Industry is Automation (RPA in Particular) [link] [comments]  |
| Posted: 27 Jan 2019 11:29 PM PST So I am from a europe. I actually am very much in favour of our extensive social security system. However, the fact does remain: Being in the top 5% of my country earnings wise I pay a huge percentage of my income into those social security systems. However, I also get a lot for that. Which makes planning, in my mind, a lot different compared to the very american centric FIRE community. For example I do not need to budget for health care (other than certain dental procedures), I do not need to budget for going unemployed (In my country we recieve 70% of our last paycheck for up to 2 years) and I do not really need to plan for care. However, retirement is an interesting one. First the general assumption is to work in your sixties, so there is not really a system a place to withdraw from it earlier. Also while it is likely not enough, especially with shorter years of employment, it is actually a huge sum. For example my father actually recieves more pension than I earn. Common Advice in the FIRE community in my home country is to just ignore it, there is a lot of media scare that we will not recieve our pensions anyway and there is a huge popular opinion that we wont recieve our pensions anyway. But I dont buy into that, it falls to me into the same category of people who lament that the world gets worse every day, with most facts pointing to the opposite direction. I strongly believe that I will get a pension and based on my contributions it will likely be a significant amount. However I still have a two fold problem on how to account for it. First, it is hard to know the exact amount so it is very hard to account for it in any withdrawal rate (which is further made mathematically difficult due to a tax on gains from the stock market). But the much more interesting perspective was recently rised to me by a follow FIRE. He said we europeans, in his opinion should not include bonds in our portfolios. His point is that our social security is basically all bonds and as a result we likely are forceably over invested in bonds anyway! It actually makes sense to me, but I am just not sure as it is a little bit of a foreign concept. So FIRE Community, how would you handle a social security system like we have in europe and what are your thoughts on it? [link] [comments]  |
| 27M - am I stupid to quit today? Posted: 28 Jan 2019 12:42 PM PST Profile:
Assets
Debt
Am I totally crazy delaying my FIRE progress to take 6-12 months off to travel, spend time with family, and re-group before trying to come back to this kind of decades long 9-5 life and settling down? Besides the obvious lack of income and potential career trajectory, are there any other FIRE considerations I am not thinking of? [link] [comments]  |
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