Financial Independence Anyone else feel like they are in a mid-life crisis in their late 30s? |
- Anyone else feel like they are in a mid-life crisis in their late 30s?
- I got rid of my internet and now will save approximately $960 per year
- what is a good subreddit for Advanced Personal Finances but not necessarily FIRE?
- Daily FI discussion thread - March 05, 2019
- Taking a year off mini-retirement at age 30.
- Should I use leverage for my index funds?
- Jack of all trades, or specialize in a specific skill?
- Need some advice on the sale of a business and what to do with the funds
- Ways to sacrifice time to increase rates of return on investments?
- Does anyone have data on safe withdrawal rates for other countries/economies?
- Chapter 1: Running the numbers on a midwest multi-family property
- 6 Reasons Why 401k Plans Are a Rip-Off
- We, 30&33M, retired three months ago on £100k. Should we do anything next?
| Anyone else feel like they are in a mid-life crisis in their late 30s? Posted: 05 Mar 2019 06:47 AM PST I'm 37 and everything feels very vanilla to me. I'm unhappy in my job, I feel out of place in it. It's paying me 120k a year for 40 hours a week with great benefits. It's unfulfilling, stressful, and unrewarding. I'm debt free, house paid off, under 10 years to FIRE, paid off cars, healthy family, good work/life balance in terms of time off... but damnit, I'm feeling a lot of despair. I wonder if it's because my biggest goal is just a matter of time and beyond my control. Paying off the mortgage, cars, cutting spending, enjoying not buying things, having free time, I have all those things, all those goals are met. I can't shake this feeling of restlessness and even fear about FIRE because that means I'm going to be older and might have just 'gotten by' until FIRE which concerns me. I'd like some meaning in my life but working and waiting until fire are not that meaningful like I thought they'd be. From the outside looking in, I'm living the dream of so many people when it comes to status in the middle class and the fact that I'm feeling down makes me feel even more down because I think to myself that I'm acting like a spoiled brat, that I should just shut the hell up and be thankful I have a job at all and not think about meaning in work. Thoughts? Anyone else experience this? Anyone feel the need to call me a spoiled child? :) EDIT: Wow, so many great replies. I need some time to read them and want thank everyone contributing to this conversation!! The few I've read have been really information and even uplifting. [link] [comments]  | ||
| I got rid of my internet and now will save approximately $960 per year Posted: 04 Mar 2019 08:31 PM PST So I've done the unthinkable. Something I didn't think in a million years I'd do but I've decided to get rid of my internet line. I was paying around $80 per month and it basically gave me everything I needed (1000GB and 100mb/s) except my phone plan also had around 40GB of data each month. So I weighed up in my mind if I really need the internet on at my house and realised I don't actually use it all that often except YouTube and Netflix. Netflix is already included in my phone plan so it doesn't chew into my 40GB and I can work on living without Youtube. So to me thats pretty much a win! Has anyone made similar decisions and if so, how's it going for you so far? [link] [comments]  | ||
| what is a good subreddit for Advanced Personal Finances but not necessarily FIRE? Posted: 05 Mar 2019 11:52 AM PST I just find that the Personal Finance subreddit is kind of "basic". Threads just range from: "Help me get out of X debt!" "Hey I have Y money, what to do with it while saving for a house?" Say if I wish to discuss: -Tax optimization for investing -Multi generational wealth preservation (an ideal will to last multi generations) -Diversify portfolio across countries -etcs None of the above are necessarily about FIRE, where should one discuss those? [link] [comments]  | ||
| Daily FI discussion thread - March 05, 2019 Posted: 05 Mar 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]  | ||
| Taking a year off mini-retirement at age 30. Posted: 05 Mar 2019 03:05 PM PST First off I want to recognize that I am in a very nice situation and I understand that I am being spoiled/selfish, but the beauty of FI is it gives you options. Im looking for feedback on my plan and things I should consider prior to taking action on this plan. Background: Always been frugal and pursued money and education but also adventures/goals. I've had a job since I was 16 and paid my own way through College and living since then, always saving but now investing since getting a big boy job (pretty much 100% total stock market index funds). Got a masters degree in a technical field and work in Oil straight out of school (six figures starting salary) for ~40 hrs/week. Currently 28 years old with a NW of ~350k. My plan is to keep working for the next year or two then take a 1 year sabbatical when I have ~500k NW and 5-6 years of experience. I have no desire to retire early as I think it'd be boring, and the thing is, I don't even hate my job. I just hate being at a cube for so much of the day. I want to see the world while I'm young, physically fit, high energy, can sleep on a rock, and without a family or house. I'm flexible (open to market conditions delaying a sabbatical) but I'm pretty much set on doing this unless something comes up with my work that sends me to another country. The main goals of the sabbatical would be to go on adventures and live like a backpacker hopping around hostels but with a nest egg so I would not short myself on experiences. I would go visit new countries, rafting, surfing, hiking, cycling, drink too much with new friends, and learn Spanish fluently. I would also take a ~2 month US national park trip with my parents who are retiring around then and I haven't gotten to spend enough time with since moving away for my big boy job. In terms of when I return I'd like to focus on my career and try to make a lot of money, but I'm worried that this may be career limiting. My company does not currently have a plan for a sabbatical, but used to, so they may be open to this, we will see. But it's unlikely for my job to be held for me. Either way, I have some of the most employable experience in the oil industry and good contacts, so I'm confident I could find a job when I return. It just may not be as good as my current situation. Anyone have recommendations that I need to think about prior to pursuing something like this? Recommendations to tough it out for longer? Am I just a sweet summer child that hasn't seen a market correction that would crush these dreams? Let me know your thoughts and if their is something more I should think about. TLDR: Want to take sabbatical at 30 but looking for feedback on things I need to think about prior to doing this. [link] [comments]  | ||
| Should I use leverage for my index funds? Posted: 05 Mar 2019 11:48 AM PST Hello. I have an investing dilemma. First a little info about me: -31 years old. Annual income: 76k USD $. Good prospects in my business. At least 5% increase annually with job hops and negotiations. Savings rate: 50-60% Property value: 257,5 k Mortgage: 220k (interest rate 1,9%) Student loans: 53k. (interest rate: 2,1 %) Stock loan now: 5.2k (interest rate: 2.19 %) I am 100% invested in index funds. 70/30 in respectively MSCI World / MSCI Emerging Markets. I have 155k invested. Net worth is 170k I consider increasing my stock loan with 35 k. From 5.2 k to 40.2k. Then I will have totally 155 + 40.2 k = 195.2 k invested. As I see it I will have a (possibly) better annually return by using a small amount of leverage. Disadvantages as I see it: - Interest rates may increase. Then both the stock loan, student loan and the mortgage loan will get higher interest rates. - Can be psychologically heavy if the markets falls a lot. I'm thinking that a market fall wont bother me, but how I actually would have reacted by a 50% drop I'm not sure since I haven't experienced it myself. -With the stock loan I have today, the market can fall approx. 35% before the interest rate on the stock market bounces up from 2,19 % to 4.44%. This means that I feel the urge to "monitor the market", ie follow the market closer and check my account a couple of times a week. I know deep down that this is completely irrelevant and unnecessary. Even though I check the account frequently, I never plan to sell, I just do it to feel like I'm in control. Otherwise, I like to think that I can tolerate high risk. I had no problem seeing my portfolio fall 15 - 20% this december. It is the desire to build up wealth as quickly as possible, which focuses me to think about this. Those who have become real rich have used various types of leverage. Would you do it if you were me? Why or why not? I could really need some advice here. Thanks in advance! [link] [comments]  | ||
| Jack of all trades, or specialize in a specific skill? Posted: 05 Mar 2019 11:26 AM PST Not sure if this is the right sub to post to, but I was wondering others' thoughts on wether it's better to try to have some experience with multiple skills, or to specialize in one thing. Every job industry is different, and I get that, but just kind of wondering in general... [link] [comments]  | ||
| Need some advice on the sale of a business and what to do with the funds Posted: 05 Mar 2019 03:10 PM PST Hey everyone, We have a pending deal to sell a business. I'm trying to figure out where to best place the money and I'm hoping this subreddit can give me some guidance. I will be meeting with a financial advisor in the coming weeks, as well, but wanted to ask here, too. 35 years old. Married with children. Income will be around $60K per year after we sell. We do not own a home. We are currently renting. x1 vehicle loan, owe $33K Our current liquid net worth is $60K. Total amount to be received, after we cover taxes, will be $400K. There are a few options here that I've come up with and I don't know what's best. a) buy a condo in cash for $150K, paid off, and rent it out. Then put $100K down on a $350K house. Use the rent money to help pay for the mortgage. Use the remaining money to pay off the car loan ($32K) and put the rest (around $118K) on VTSAX. b) buy the $350K house, which would be our forever home, in full cash. No mortgage. Pat off car and put remaining $20K on VTSAX. c) put all of it on VTSAX and don't look at it or touch it for 10 years. Part of me wants to buy the house and pay off the car. Do nothing else. Just to have a paid off home, no mortgage, no car payments....honestly that sounds really nice and comfortable. The other part of me says no, just wait, give it some more time; put the money in the market and be patient, you can get a better return on that money by putting it elsewhere. Let it build for 10 or even 20 years. And THEN buy a house. What is the best answer here? What would you do in this situation? Or, option d) something I'm not thinking of. Feel free to share ideas and suggestions. [link] [comments]  | ||
| Ways to sacrifice time to increase rates of return on investments? Posted: 05 Mar 2019 12:45 PM PST Let's say you inherited 10 million dollars, out of the blue, at age 25. It no longer really makes sense to work at your 50k/year job (or even your 100k/year job) - unless you truly enjoy them (but let's assume you don't), so you decide to retire early. I know the general advice is to just passively invest a fixed amount in highly diversified equities with substantial international exposure, a fixed amount in high-grade bonds, maybe a portion in real-estate, and maybe hold onto a small amount of cash. From there, just withdraw your 4%, and happily live a high-roller lifestyle on 400k/year travelling, doing hobbies, or whatever else you want to do. But what if there's a desire to grow the wealth more? Not such a desire that you want to go back to your 9-5 job or start a business venture that will eat all your time, but still a desire. It might partially stem from an abundance of free time, especially at such a young age when all your peers are working and growing careers. I know you could theoretically purchase elements of ETF's and rebalance yourself, to save on the .1% fees, but is there anything else substantial? Everyone seems to suggest that trying to beat the market is silly, but if you wanted to commit ~20 hours a week in order to increase your returns from the year from 8% to 9%, is there a way? Or are you better off just forgetting about it and trying to find a new hobby to pass time (maybe take up volunteering). Any thoughts? Is it possible to increase returns on investments by committing more time? [link] [comments]  | ||
| Does anyone have data on safe withdrawal rates for other countries/economies? Posted: 04 Mar 2019 04:22 PM PST We all know the 4% SWR over thirty years requires a strong and stable, large, growing U.S. economy to count on future historical outperformance against other nations. But it is certainly not a guarantee that will continue. In order to plan for that possibility perhaps it can be helpful to know what the withdrawal rate range might be if the USA were to slow down like Europe has or Japan. Would it be a range from 4% to 2%? Does anyone have data on the historical SWR of 30+ years, if one invested only in Japanese index funds? Or Europe (Stoxx 600)? [link] [comments]  | ||
| Chapter 1: Running the numbers on a midwest multi-family property Posted: 05 Mar 2019 11:13 AM PST
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| 6 Reasons Why 401k Plans Are a Rip-Off Posted: 05 Mar 2019 05:16 AM PST Found this article this morning for work and thought it was an interesting talking piece. I dont agree with it but thats what discussions are for esspecially since many of us use 401k's as an investment vehicle! TLDR; Opinion piece of a guy who talks about the dangers of a 401k in kind of a vague way (IMO). spells out all the negatives of a 401k without showing any of the positives or any alternative measures (other than possibly an IRA). Reading the bold texts would give you the gist of everything.
he basically points out that there is the potential that you could be in a higher tax bracket. Now this is true, we dont know how the taxes will play out over the long term. and I have a personal question that I am always asking myself. "I will look to make about $80k this year, and because of student loans I will not be able to maximize my 401k/HSA/Roth IRA, so I am currently contributing to a Roth 401k instead of traditional 401k (I can switch at any time) that puts me in the 22% tax bracket, Am I making the right choice?"
He talks about how the only way to get money out of your 401k is through loans. obviously costly. mentions nothing of having an emergency fund, having money in bonds, having money in taxable accounts etc. Because the point of a 401k is to park money. and rule #1 is to pay yourself first
his point is that the money that is being generated from 401k matches comes from lower salaries. now I have zero data to back that or support it, but its an interesting point. one that I dont think I agree with, but interesting nonetheless.
This point is true, and depending on your employers plan, you may leave before some or all of your 401k match is vested. I think my employer has us at 3 years to be 100% vested and I know it is different for everyone. but it is something to be aware of.
talks about fees as high as 1.9% and to be fair, some people are paying that and some people are, it would be useful if he went into some detail, or links to see how you can find the fees if I was needing to find them. because yes the average person does just blindly throw money at a 401k and not look at it for years maybe
talks to the fact that the stock market might be down by the time you are ready to retire. which may be true. but if you have been investing for decades, and understand risk allocation and are getting closer to retirement you hopefully have a plan and are resetting your allocation into something less risky, ideally. What are your thoughts? I just like having discussions about this. #1 was maybe the one most applicable to me, because of the fact I am going back and forth between contributing pre vs post tax right now. edited for spelling [link] [comments]  | ||
| We, 30&33M, retired three months ago on £100k. Should we do anything next? Posted: 05 Mar 2019 04:39 AM PST Two years ago I received a large compensation payment and after going on a bit of a spree I put the remaining 100k to work so that we wouldn't have to. I spent 60k (49k for the property and 11k in renovation) on a small inner city apartment which I now rent out for £650 a month providing us with a steady income. The remaining 40k (12k on the property and 28k in renovation) I spent on an 8 acre homestead in Spain where we now live. Sometimes when there's something I really really want (like a swimming pool) I think about selling the apartment to release the cash but I know if I do that eventually the money will be gone and the whole point is to have lifetime financial freedom, not to fritter it all away. So now we're here, it's been three months, everything goes very smoothly, especially when you don't have to answer to anyone for your time, no neighbors, no complications etc... Apart from enjoying the weather and knocking back €750 worth of cold beer and European cheeses every month, is there anything else we should be doing to secure our financial future? Those of you who have also completely retired, what are you getting up to? Thanks for reading and have a nice day everyone! [link] [comments]  |
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