Financial Independence Next Generation Of FIRE |
- Next Generation Of FIRE
- Man plans to retire at Holiday Inn.
- How do you manage relationships with friends and family who are financially stressed because of their differing lifestyle choices?
- Rich retirees have trouble spending their money
- 20 Years of Government Inflation Data
- Daily FI discussion thread - February 26, 2019
- Anybody plan on FIREing while living in a HCOL area?
- Limited barista FI jobs
- Vice article on FIRE
- Article from Transamerica on FIRE
- (29 f) looking to quit my high paying high stress corporate job. Thoughts? Has anyone done this? Do you regret it?
- MBA for Fat FI
- Ideas and experiences aggregating passive/minimal effort sources of income to replace a traditional job.. with or without startup capital. I’ve shared mine, please share yours!
| Posted: 26 Feb 2019 04:40 AM PST Last year, my then 12 year old daughter started a lawn mowing business and after paying for expenses, taxes and the spending money she used was able to put $1850 into a Roth IRA. Because the oldest was no longer mowing our own lawn, her then 10 year old sister mowed our lawn and was able to contribute $150 into her own Roth IRA. I overheard them grumbling about the upcoming lawn season so I put an excel spreadsheet together which used random market returns between 5 and 9% (conservative and adjusted for inflation) and showed them how much money their accounts would be worth at different ages - if they left it alone, if they contributed the same amount each year - if they gradually climbed to the max - etc. Their eyes lit up. They are excited. I'm a realist. I know that they will still grumble and that there will be points where they simply don't want to get out of bed to work but I also know that they know why they're doing it and know they can get out of the race. [link] [comments]  |
| Man plans to retire at Holiday Inn. Posted: 26 Feb 2019 01:05 PM PST Some people are more creative than others. Maybe this should be on my FIRE plan as well. [link] [comments]  |
| Posted: 25 Feb 2019 04:49 PM PST We have chosen to live simply and prioritize saving, putting us on track to FIRE. While we're happier overall with this lifestyle, there are certainly sacrifices along the way (used vs new, one car family, etc). Time and time again we see close friends and family spend frivolously and outside their means then complain about financial distress. We've shared our knowledge and tools and they've continued to make different choices. It is quite feasible (practically expected) for my sibling and/or parents to have a financial emergency at some point in the future. I don't want to see them struggle. I also don't want to work extra years of my life, spending additional time away from my children, to support their choices. I don't want to ruin our relationship when I'm not okay with handing over our RE funds. I also don't expect them to understand that we can't give away a chunk of our assets and remain comfortably retired. How would you manage a situation like this? Would you address it in advance or wait until an emergency arose? If you've handled this before, was there a direct conversation or just unspoken tension? Thanks for any shared advice and experiences. [link] [comments]  |
| Rich retirees have trouble spending their money Posted: 26 Feb 2019 06:13 AM PST Short Washington Post article suggesting people have trouble going from savings mode into spend mode. Thoughts around the subreddit? [link] [comments]  |
| 20 Years of Government Inflation Data Posted: 26 Feb 2019 05:37 AM PST GRS had a really interesting chart up showing inflation for various categories in the US over the past 20 years. Interesting to see how everything except healthcare, childcare and college has progressed slower than the wage increases. Basically for the individual who's FIREd, they only care about 1 of those 3 items (unless paying for a kids school). [link] [comments]  |
| Daily FI discussion thread - February 26, 2019 Posted: 26 Feb 2019 12:07 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]  |
| Anybody plan on FIREing while living in a HCOL area? Posted: 26 Feb 2019 04:35 PM PST If so, what do you do and how do you do it? I'm 24, $68K salary, $50K total in my 401K, Roth IRA, and savings, and eat brown rice/chicken/beans/frozen vegetables/fruits/soylent/water and nothing else almost daily (except usually on weekends). I'm from New England but was thinking of moving to NYC for various reasons unrelated to FIRE (obviously). I still plan on maxing out my 401K and Roth IRA every year and continue to live frugally. I'm hoping to get a salary bump within the next couple years as I look for opportunities in NYC. Would be really interested in hearing your story! Thanks. [link] [comments]  |
| Posted: 26 Feb 2019 01:12 PM PST So I'm sort of testing out barista FI. I work at the starbucks near my house. I immediately noticed that only young people are put on barista (the fun job). Older workers (say 50+) are exclusively put on cashier. I noticed how much slower they were. I think this just comes up with aging. Makes me think though:
[link] [comments]  |
| Posted: 26 Feb 2019 07:35 AM PST Thoughts? I think something critics of FIRE continue to miss is that a lot of the value of this mindset is in becoming more mindful of spending and aligning it around the things you value. The article touches on this slightly (experiences vs consumables), but this realization had a much bigger effect on my lifestyle during the accumulation phase than the RE part itself. [link] [comments]  |
| Article from Transamerica on FIRE Posted: 26 Feb 2019 01:51 PM PST I've lurked here for several years now. I find it interesting to see FIRE gaining momentum and recognition. The article seems pretty neutral on the topic, I just thought it was cool to see this linked in an email from my 401K provider. All of my prior exposure to the subject has been in this sub, so it's cool to see it recognized elsewhere. [link] [comments]  |
| Posted: 26 Feb 2019 10:43 AM PST My salary is 90k, benefits, unlimited PTO, 401k, work from home one day a week. I'm married, my husband just left his 9-5 to start his own business. His income has declined to about 35k gross per year, as he is in the first 3 months of starting his business. Ideally we would like to see his income in the next 2 to 3 years at 60k gross. We own our home, we bought it as a flip. Our mortgage on the home is about 130k the estimated value of the home is ~320k. We would like to place our home on the market spring of 2020. We are planning on taking the next year and saving as much money as possible, the goal is to save 60k. Currently savings at 25k. My IRA's and 401k are at around 30k, I have a whole life insurance plan for 250k, which should have a cash net value of around 1.5 million at 65. Once we sell our home, we will most likely move into my mom's basement and depending on the market we will either buy another flip or buy our forever home. If we go the flip route we are in hopes of coming out with another 40-60k, staying in that home 2 years. If the market is not in an ideal spot for us we are looking to purchases a home north of Chicago, about 1 hour and 30 minutes. We would like to purchase a home in cash, eliminate a mortgage, and I would quit my job. I currently run a NFP animal rescue, which I would like to make a full time job. In the ideal, we would like to have roughly around 250-350k cash, we would like to purchase a home for about 100k, and invest around 50k into it to a remodel. The remaining money, we would like to have a portion go into investments, and have a rainy day fund. Property taxes, bills etc. would cost around 1200/month. We would like a combined gross income of about 60k gross. I'm sick of working a high stress, high paying and demanding job. I want to buy a home with an at least an acre, a barn to raise chickens, ducks, turkeys, and pigs. I want a big garage that can be converted to hold dogs with forced AC and heat. A field big enough to have bee's for honey. I'm ready to be free, give up my high paying corporate job for a simple life! I want to dedicate the next three years to focus on our dream of being independent. Am I crazy?! [link] [comments]  |
| Posted: 25 Feb 2019 06:46 PM PST First off, mods if this is too off topic then feel free to blast the thread to hell. I'm attempting to achieve Fat FI (FI Number of 5 million) and one day be a director or C-level manager in IT or Cybersecurity (CTO, CIO, CISO). I'm wondering if an MBA is the right way to get there, and if so, if I should actually do a full time top-10 type program if I should continue working and do a much cheaper online program. To do an MBA at all would be a no-brainer (I believe) except for the fact that I'm about to finish up a Master's in IT. Background - I'm 26 I've been an Army officer for 4 years managing a team that does cybersecurity work. I'm about to finish up my master's in IT from a state flagship. I have a bachelors in Economics from a state school. I already have a bunch of industry certs (CISSP, CASP, RHCE, CCNA). I believe I have the GPA/GMAT/vet bump to get into a top 10 program full time. But should I? The costs of these programs are around 130-150k assuming no financial aid, and I'm losing out on 2 years of earnings where I'd be making at least 120k, so call total cost 375k. Compare that to something like the University of Illinois, Auburn, University of South Florida, or Washington State University which all have online MBAs that can be had for under 35k. Since I'd keep working, call total cost 35k. Even though I'm going for fat FI and don't mind retiring at 50 or 55 (so I'll have a lot of years for increased income to accumulate), does the top-10 program still make sense when it costs literally 10x as much? In the context of fat FI, a 340k difference isn't life changing, but it's still fucking 340k. And even without either of these, I could pretty easily walk into a 120k/year job right now and work up from there, so just how much upside is there? What would you guys do in this situation? Should I bother getting an MBA at all if I already have an MS? If so, how should I get it? [link] [comments]  |
| Posted: 25 Feb 2019 09:21 PM PST My goal for financial independence is focused on aggregating perpetual, consistent, and reliable income (either self-directed work or straight mailbox money) to the point where I can sleep in, go to the gym late morning, take care of my immediate family, spend time with friends, take vacations, play video games, and pursue my hobbies and interests all day everyday just like everyone else, but with two major differences: 1) I don't have to work any kind of traditional 8-5 job and 2) I don't have to spend any of my savings on living expenses. It's not that I don't want to work, but rather if I work I want it to be on my own terms and requiring minimal effort unless it involves something that I enjoy. My first goal is to get to $100k/year. I asked myself-short of winning the lottery, how do I do this, while also diversifying my risk profile? How can I use all the resources at my disposal today to achieve this? Here's what I've come up with and/or experimented with so far. 1) Telecom stock dividends - my thought here was that there are companies like AT&T and Verizon which offer 4-7% annual dividends and I can't see a time in the next 2-3 decades where their core business of cellphones is going to decline. This one required startup capital...I'm currently pulling in $500/quarter or $2k/year, so not a bad start, 2% of the way to my goal! I'm thinking about increasing my investment 4x, for a total of $8k/year, or 8% of my goal. Given these dividends have seen consistency and growth over the past few decades, I feel comfortable in their reliability as long as I monitor them. 2) Commercial real estate - given some of my relationships, I've been able to get into some local partnerships of investors who own some good retail and medical office properties which generate nice leveraged cash-on-cash returns over the long term, with added tax benefits. They are in good, sought after locations and involve busy grocery stores and well regarded doctors' offices. I haven't seen any returns yet (under development), but I'm hoping this will account for another 10% of my goal. 3) Comic books - I've always been a comic book / collectible junkie. I've found that without even trying I'm able to identify new releases which will hold and appreciate in value. For example I realize that a certain comic, once signed by certain relevant parties (artists, writers, etc) and graded, will only increase in value. Holding for a year or two, especially with limited quantity releases, will usually net a 1.5x-2.0x return. Just as a hobby, this can account for 5% of my goal, and with minimal additional effort just doing what I love, I'm hoping to get this to 10% of my goal. 4) Writing and photography - always loved both of these. I feel like there's a world of opportunity here but just need to find a way to monetize this, hopefully to get another 10% of my goal. 5) Layered CDs - this one is just easy and traditional utilizing savings. Probably about 2-3% of my goal. 6) Rent house(s) - I live in an apartment (no home equity locked up) - I figure I can buy a house in a high density community (vacation hotspot or college town or something) and rent it out. Looking at a couple options which would net me about 40-50% of my goal and hope to implement in the next 6 months. 7) Piggyback balance transfers - This one is a bit controversial and not income but more of a safety net...but hey...if it works... There are credit cards out there with long term 0% APR and $0 balance fees. Don't get me wrong...I don't have much debt and am not interested in maintaining debt, but from a cost of capital perspective this is somewhat unbeatable if one can strategically implement it in perpetuity. It's not like income exactly but it can create a low risk, growing cash revolver without interest...which you could string out for a very very long time. This is what I am working on so far, to get to 90% or more of my goal, hopefully. I'd love to hear if you guys have any ideas or have already got something successful going (or even if it failed). Even if I achieve my first goal of $100k/year (hopefully even more over time), I would not quit my job...but sure would be nice not to have to worry ever again! [link] [comments]  |
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