Financial Independence What is a good FIRE excel spread sheet? |
- What is a good FIRE excel spread sheet?
- (Asking for Clarification) Buy VTI in small amounts, and convert to VTSAX when reached $3000?
- Daily FI discussion thread - March 24, 2019
- Use HSA money to invest in IRA?
- Soliciting ERE Guidance/Perspectives. What would you do?
- (Question) Roth IRA Contribution
- Does the FIRE community typically want to retire early and then move away from everyone and everything?
- Utility of Monte Carlo models
- The path to FI/RE. Am I on the right track?
- Should we relocate with my company? We don’t want to, but are faced with a very tough decision...
- How to update asset allocation in response to your growing knowledge?
- What Does Your Financial Portfolio Look Like?
- Should I invest if I have guaranteed monthly income for life. If so, what kind of portfolio?
- Where do I invest now??
- What increments are appropriate for Milestone Monday?
- Implementing the multiple account for financial freedom
- Crossroads
| What is a good FIRE excel spread sheet? Posted: 24 Mar 2019 08:10 AM PDT I have seen a few financial independence spread sheets and websites but do any of you have any good recommendations of excel or google sheet financial independence calculators or spread sheets? [link] [comments]  |
| (Asking for Clarification) Buy VTI in small amounts, and convert to VTSAX when reached $3000? Posted: 24 Mar 2019 09:02 AM PDT With my current income level and spending budget, I'm planning to allocate ~$300 bimonthly to buy index funds. Seeing that VTSAX has the $3,000 minimum investment requirement, am I thinking correctly to: 1. First buy whatever amounts of VTI I can afford bimonthly 2. Then, trade VTI for VTSAX every time my VTI holdings reach $3,000? I'm not seeing any information that says I'd lose money during this conversion (due to transaction fee, etc.). Am I better off to save $3,000 in savings account and buy VTSAX every 5 months? I wanted to run this newbie question by the eyes of experienced FI'ers. I'd greatly appreciate your education 😊 [link] [comments]  |
| Daily FI discussion thread - March 24, 2019 Posted: 24 Mar 2019 01:08 AM PDT 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]  |
| Use HSA money to invest in IRA? Posted: 24 Mar 2019 03:47 PM PDT Apologies if this is a stupid question but I'm still learning and haven't fully grasped everything there is to know about FIRE. Some quick background info, we're a one-income family and I'm currently contributing just enough at work to get the full 401k and HSA match. We've been good savers and for the past few years have also been able to contribute the maximum to our IRAs on top of this. This year will be the first year we don't have the cash on hand to do so since there were some family emergencies that required us to lend out money and we won't be repaid until later this year. As of today, we currently just have $4k of cash available to contribute and there's no way we'll be able to save enough by April 15 to make the full contribution. The only easily accessible cash we have access to is our HSA account and we unfortunately should have enough medical expenses already to support a withdrawal of the difference. My question is, does it make sense to take money out of the HSA just to contribute it to our IRAs (either traditional and/or ROTH)? The HSA cash is already invested in a Vanguard index fund so I'm not sure if this is the equivalent of moving money from one hand to the other. Thanks in advance! [link] [comments]  |
| Soliciting ERE Guidance/Perspectives. What would you do? Posted: 24 Mar 2019 02:28 PM PDT Goal is to soft-retire ASAP to go back to school and become qualified to work in a field I am passionate about. If that is a stupid goal, please let me know. Here's a breakdown of my current financial situation: There's also about $35,000 equity in my home. My basic reading is that I need about $15k/yr in sustainable income to make this plan feasible, and I have $5k. Although I could reduce the required amount to about $10k by spending $25k. What would you do in my shoes? [link] [comments]  |
| (Question) Roth IRA Contribution Posted: 24 Mar 2019 02:24 PM PDT I currently have a Traditional IRA with Vanguard and a 401k with my employer. I was able to deduct 100% of my Trad. IRA contribution for FY 2017, so I just did that because it was easy. For 2018 my taxable income is over the $74k deduction limit for a traditional IRA but below the $120k phase out for contributions. I believe this means any traditional IRA contribution would have to be made with post-tax funds, but I am not sure how that would work. Would I also be liable for taxes when the money is eventually withdrawn (that would make no sense at all)? If not, how are post-tax contributions (and any gains) tracked and kept separate in the same Trad. IRA account? Alternatively, is there any reason I should not open a Roth IRA with Vanguard (I would then have both Trad. and Roth accounts at the same time) and contribute to that for 2018 instead? This makes sense in my head, but I could be missing something. I am expecting a relatively low income (and consequently tax rate) after FIRE and a Roth seems like what I want, but I am interested in feedback. [link] [comments]  |
| Posted: 24 Mar 2019 01:38 PM PDT I want to retire early, but I don't have any desire to live in the middle of suburbia and collect dividends. Is there anyone else like me who aspires to retire early and have a quasi-homesteading life but live comfortably? [link] [comments]  |
| Posted: 24 Mar 2019 10:16 AM PDT Does anyone here see utility in using Monte Carlo simulation to understand likely returns over time? Eg Although the market as a whole grows at a relatively stead rate across a sufficient timescale, the volatility across years can have a big impact on your portfolio's performance. I see many people here talk about the trinity study etc, but relatively fewer attempts to use quant modelling for ourselves. And if not, why? [link] [comments]  |
| The path to FI/RE. Am I on the right track? Posted: 23 Mar 2019 08:14 PM PDT Hi Guys, Long Time lurker, first time poster. I'm a 32 yr old male, living in a HCOL area, Australia. I plan to be able to retire by age 50, with approx 1.4m AUD. I'm earning 77k a year with $3.5k a month in expenses. I have $55k in savings, $120k in a Vanguard Index fund and about $100k in superannuation. I don't know if I'll retire by then, I'd just like the options that money brings as i get older and not have to be dependant on an aged pension. My questions are: -Does anybody else wonder if they are doing things right? -Is my goal attainable? - How do you "keep an eye on the prize", in regards to staying focused on the path? - How far down the path did you get before you were confident in your plan? - What triggered the decision take the financial independence path? Thanks in advance! [link] [comments]  |
| Should we relocate with my company? We don’t want to, but are faced with a very tough decision... Posted: 23 Mar 2019 08:02 PM PDT I have a good job, in the range of $100K in financial services. My wife brings in about $55K as a teacher. Due to a bank merger, I've been asked to move about 1000 miles away to the new HQ, and the employer would cover all expenses to do so. Where we are we have family who can watch the three young kids, help get to sports and school, helps us avoid childcare costs, etc. Here's where it gets tricky. If we move, the spouse won't be able to keep working, as there will be no family support network, and the cost of daycare plus logistical challenges of transportation would eliminate most-to-all of the value that we would receive from her working. Essentially, if we move, my salary stays the same, as we take roughly a $55K pay cut due to her not working. My job will no longer be around, however from what I can tell there's about a 30% chance that I can decline the move, and possibly find another role within the firm (where I do like working), likely with a notable pay decrease (probably not a $55K pay cut), and roughly a 70% chance that I will end up with a package and be out of a job. I'm 40, and most of my life I worked for about 35K, but with this company I was able to move from entry level to manager and take a few big steps as of two years ago. I would be concerned that it could be tough to replace that income, but at the same time we really don't want to move. Should we: 1.) Take the relocation, and loss of income 2.) Decline the relocation, and see what happens 3.) Decline the relocation and proactively pursue other opportunities locally? Thanks in advance for your thoughts. [link] [comments]  |
| How to update asset allocation in response to your growing knowledge? Posted: 24 Mar 2019 09:37 AM PDT TL;DR: There are some reasonable arguments that I should change my portfolio in a way that happens to be in line with recent market behaviour. How do I avoid cognitive bias and chasing returns while acting on my improved understanding? 3 years ago I went for the high-risk passive funds, planning to retire in 15+ years. More specifically, my wealth is divided into 4 more or less equal parts: emerging markets, global small cap, global REIT, cash. Since then, couple things made me reconsider:
To be honest, I didn't care much about math behind investing and hadn't done any calculations back then. I'm going to do that soon. But if I decide that different allocation is optimal, how do I avoid over-reacting? One of the things that drew my attention to faults of my strategy is that my portfolio performed significantly worse than SPY and global market trackers. I realise it should not be a factor in my decision-making, but I must assume this lingers in my subconscious and to some extent drives my research and decisions. The most passive approach would be to keep the risky funds I already have, but make any future investments in less risky (and more common in the FIRE community) instruments. This actually might work quite well since my current valuation of those risky funds is about 20% of my tentative FIRE target. Now that I think about it, it makes sense that early on in my FIRE journey I would dump all my money into the most risky assets. But I must be wary of this explanation since it looks an awful lot like a comfortable and tempting rationalization of a past mistake. If I do decide to liquidate some of my current assets to buy something more sane, I was thinking about spreading that process over several quarters/years. Think of it as a dollar-cost-averaging, or more precisely, X-cost-averaging where X is an asset I'm liquidating. That might also serve as an easy way to prevent me from quick overreactions. Please, feel free to criticize as much as you want. I will genuinely appreciate being schooled, no matter how harsh. [link] [comments]  |
| What Does Your Financial Portfolio Look Like? Posted: 24 Mar 2019 10:45 AM PDT A bit of background to this question: a few days ago I made a post detailing how I was heavy in cash and low in retirement accounts and other taxable investments. I got a good wakeup call from the folks who responded who highly suggested for me to take better advantage of investment vehicles, especially considering my age (26) and income level (low six figures). I immediately took action and have begun the process of maxing out my retirement accounts, opening an HSA, and looking into other taxable investments such as brokerage accounts. It's an exciting time for me right now because I feel like I'm learning SO much from this community and through my own research. Not to dwell on the past, but it really has me wishing I would've started investing more and in various taxable accounts much sooner. In any case, to continue my pursuit of learning what else is out there in the financially, I wanted to see what do folks' financial portfolios look like. You can include figures if you want, but that's not needed. Current Financial Portfolio:
And I'm looking to add on to my financial portfolio/currently researching the following:
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| Should I invest if I have guaranteed monthly income for life. If so, what kind of portfolio? Posted: 24 Mar 2019 11:55 AM PDT I'm mid twenties and I've done well with saving money. I just hit the 100k mark this year. I'll be in school for the next 6ish years(paid for), and I have a guaranteed monthly income of 3 grand a month for life. I've been hesitant to invest because of the guaranteed income, but to be financially independent earlier, I'm thinking I should invest. Any advice or opinions would be appreciated. [link] [comments]  |
| Posted: 24 Mar 2019 08:34 AM PDT Hi all, 29M, 31F couple. ~160k gross. No debt, besides a small mortgage on a rental property. We just finished paying off the house. We already max 401k, both Roth IRAs, and wife's SEP IRA, as well as the max for HSA. We quite literally are going to have something close to $7K a month to save after the rest of our bills are paid for. We will likely knock down the mortgage on our rental property but I want to start thinking about where to invest and grow our money best. I am thinking about just a taxable brokerage account, but my concern there is I do want the money to be semi-liquid if we look to purchase another property, a car, or have a large purchase to avoid consumer debt. If I had to liquidate my funds, I pay tax on the sale of the holdings, right? Even if the interest doesn't leave my money market account? Example: I have 10k in VTSAX, it grows in 1 year to $12,500. I flatten my position to extract 10k for a down payment on a rental. I pay 15% of my realized gains ($2,500). What if an emergency comes up and I need that money sooner? Now it's part of my taxable income, ouch! What do we do? Super exciting to start this chapter of our lives, but want to make good decisions for keeping taxes low. [link] [comments]  |
| What increments are appropriate for Milestone Monday? Posted: 24 Mar 2019 09:55 AM PDT As we pass different milestones, I wonder what makes sense. Once you're over $1M, should it be 100k? 250k? 500k? $1M. Should it be a percentage? [link] [comments]  |
| Implementing the multiple account for financial freedom Posted: 24 Mar 2019 07:15 AM PDT Hi here, I'm new so pardon my lack of vocabulary yet. A quick presentation: Life Situation: employee, looking to become contractor. FIRE Progress: new, still reading and haven't calculated ER date. Yearly Savings Amounts: 10~20% my salary after tax Other Ordinary Income: small projects on the side, an independent video game, looking for much more Rental Income, Actual Expenses, and Depreciation: ~1300$ Current expenses: too many yet ;) Expected ER expenses: ~2500$/month Liabilities: - Specific Question(s): I've read the book "Secrets of the Millionaire's Mind" from Harv Eker and I've been really inspired by the wealth management system (and how I later found out about FI/RE). Some info below: https://readingraphics.com/the-6-jar-wealth-management-system-by-t-harv-eker/ However I'm wondering how people implement that in practice. I live in Japan, where opening accounts is both complicated, expensive (and so is to hold an account), and costs shameful taxes every time you withdraw or use money, it'd eat a significant amount of money to have 6 accounts. Has anyone of you implemented a similar system? How do you isolate money? I was thinking about using my money management app and split into 6 accounts, which get "watered" proportionally with my income monthly, then input every expense into the relevant account (play, investment, etc.) as far as it's over zero, else I just don't buy it. The money stays in my current bank account. However, doing that since recently, I feel that it definitely doesn't have the kind of lasting, "human" impact that I'd have imagined, maybe because it's just virtual numbers. Are there any better ways to do it? How do you guys do? Thanks :) [link] [comments]  |
| Posted: 24 Mar 2019 05:52 AM PDT Quick background. I worked 10+ years in a hard job. 100 hour weeks, minimal if any time off. A lot of the work was unpaid on the promise of equity in the business. When I realized that promise was never going to eventuate, I quit. Quickly got another job in same field for half the hours and more pay. I've been in the new job 12 months. It's a very nice job with lots of perks but I just feel I've missed out on a big chunk of my life and want to do stuff other than work. I saved an ok but not FIRE amount of money because previously I never had time to spend it and I'm a saver anyway. Wife and I want to live near the sea, 4 hours away currently. Keeping us here is both of us are in good jobs and saving a lot, with money going into investments but the daily grind is getting to me. I feel like I already did the hard work, just without the reward. Im interested in people doing things like mini retirement or even just working part time and allowing themselves time to live their life rather than just working. Just not sure what to do currently. [link] [comments]  |
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