Financial Independence Anybody else want to FIRE to read books all day? |
- Anybody else want to FIRE to read books all day?
- Share stories of you wanting to retire early and getting laughed at!
- Daily FI discussion thread - April 17, 2019
- Using 457b to FIRE
- At what point should you sell real estate?
- Why the VBTLX?
- Working an extra decade to receive a pension?
- Going against the grain: Don’t be afraid of “golden handcuffs”
- Weekly Self-Promotion Thread - April 17, 2019
- ROTH Conversion Ladder Question
- What happens if pensions fail?
- Question for those who have already or plan to FIRE with a pension...
- Roth IRA conversion ladder
- Investing in commercial real estate?
| Anybody else want to FIRE to read books all day? Posted: 17 Apr 2019 06:52 AM PDT My stack of books gets bigger and bigger while my time to read them seems to slowly diminish. One of my dreams is to get to FI so I can take a 6 month stay-cation, buy some good Italian coffee and plow through these books in my pajamas. Anybody else have this desire? Any ideas on how to cope with it while putting up with a 9 - 5 and the other monotonies of the week? I've found that reading on the subway is the easiest time to fit books into my day, all other hours seem to be eaten up by other commitments. I've even thought about (eventually) co-running a bookstore with a friend of mine. Easier said than done, sure. But I can dream. Keep up the good work, everybody. Cheers [link] [comments]  |
| Share stories of you wanting to retire early and getting laughed at! Posted: 17 Apr 2019 10:05 AM PDT I remember my first job out of school. During lunch I was sitting with some colleagues and I expressed my desire to retire at 40-45. They scoffed at me and said, "Haha that's not happening buddy unless you win the lottery!" I am 33 now and even the most negative projections (e.g. 4% growth) would still allow me to retire at 40. [link] [comments]  |
| Daily FI discussion thread - April 17, 2019 Posted: 17 Apr 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]  |
| Posted: 17 Apr 2019 02:09 AM PDT Not sure if I have this right, but I was thinking about maxing out my 457b yearly as I read that there is no early withdrawl fee. This seems too good to be true? I am a NYS employee and have a goal of retirement @ 55. I can also make Roth contributions but would this be a waste of time since I can't take any out until 59.5 years? I will have about 23 years worth of pension that I can start taking out with no penalty at 62 also. [link] [comments]  |
| At what point should you sell real estate? Posted: 17 Apr 2019 03:56 PM PDT Hi all, Bought a rental property last year for 137k. The same model house sold this week on my street for about 162k that had some luxury vinyl plank/carpet and newish appliances compared to my mine. For about 5k I could bring it up to the level of the other house which prompted me to wonder at what point do I consider selling? Right now after closing costs and commissions and taxes I don't think selling is worth it but if it jumps higher in value and the rents in the area stay roughly the same, when is it a good idea to sell? Any rules of thumb? Thanks all. [link] [comments]  |
| Posted: 17 Apr 2019 03:55 PM PDT A lot of people in this community seem to prefer the VBLTX for their exposure to the bond market and lowered exposure to risk. According to Vanguard the current return of the VBLTX is 2.9 with an 8 year maturity and an 0.05 expense ratio (to manage the fund). However, the current top high-yield CD's through online banks are currently yielding 3.1 with a 5 year maturity and no expenses (there isn't anything to manage). Additionally, they are also backed by the FDIC (i.e they are lower risk than corporate bonds of any grade, being that they are backed by the gubmint). Thus, High-Yield CD's:
The only pro of the VBLTX is that 63.9% of it's holdings are in government treasuries, which I believe would partially exempt you from state taxes. However, this isn't enough to offset the pros of high-yield CD's. Therefor, wouldn't High-Yield CD's be a superior choice to lower risk-exposire preferable choice to the VBLTX? If not, why? [link] [comments]  |
| Working an extra decade to receive a pension? Posted: 17 Apr 2019 03:15 PM PDT My wife and I are both federal employees in our early 30s. We could be on track to FIRE by our early 40s, but if we hold out until our early 50s we would be eligible for significant pensions, about 100k/year combined. Would you work an extra decade to make that happen? Admittedly, there are a lot of variables and unknowns in the coming years, but I'd like to hear your thoughts on this situation. [link] [comments]  |
| Going against the grain: Don’t be afraid of “golden handcuffs” Posted: 17 Apr 2019 09:38 AM PDT A 2015 study by sociologists at Cornell and Washington University in St. Louis of 44 years of income data found that about 12% of the U.S. population will rank in the top 1% for at least one year; 39% in the top 5% for at least a year; 56% in the top 10%; and 73% in the top 20%. At the same time only about 0.6% of people will stay in the top 1% for 10 consecutive years. http://news.cornell.edu/stories/2015/01/hirschl-research-finds-many-join-1-percent-few-stay-long The top 1% household income was over $434,000 last year. So while one in nine Americans may at some time in their careers be among the top 1 percent, fewer than one in 160 (0.6 percent) will stay for a decade or more. Because of this 1% insecurity, sock away as much as you can if you have gotten there. Milk it for as long as statistically it'll last. [link] [comments]  |
| Weekly Self-Promotion Thread - April 17, 2019 Posted: 17 Apr 2019 01:08 AM PDT Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. [link] [comments]  |
| ROTH Conversion Ladder Question Posted: 17 Apr 2019 03:34 AM PDT Hi all, I had a question regarding the ROTH conversion ladder strategy for accessing retirement account funds before traditional retirement age. My understanding is that you begin the conversion ladder when you retire early, converting a year's worth of expenses each year. After 5 years of this, the first year of conversions are free to withdraw penalty free. The reason it's important to wait until retirement for this is to keep income tax low during the conversion process. The corollary to this strategy is you need 5 years worth of expenses ready while you are waiting those first five years. From what I've read, this is generally to be pulled from ROTH IRA contributions made while working and/or taxable accounts. Right now I am 27 and manage to save ~30% of my wife's and my gross income every year. This comes out to not quite maxing our 401ks. We are saving a little bit more each year, but we haven't even gotten to the point of opening ROTH IRAs to max out yet, let alone extra on top of that in taxable accounts. So my question is, should I be diversifying my retirement savings accounts? It seems it won't do me much good to have saved enough for retirement if all of it is stuck in retirement accounts and I have nothing to tide us over for a ROTH conversion ladder. Am I thinking about this right? Is there something else I'm missing? I do recognize this is still at least two decades away and a million things will change in our circumstances before then, but I still can't help but think about this stuff haha. [link] [comments]  |
| What happens if pensions fail? Posted: 17 Apr 2019 06:30 AM PDT I've been doing research into public and private pensions. https://www.youtube.com/watch?time_continue=7&v=rL-UV0GvRFo It seems a lot of fraud is going on in the field and that they might underperform or fail. How does this impact FIRE? [link] [comments]  |
| Question for those who have already or plan to FIRE with a pension... Posted: 17 Apr 2019 04:32 AM PDT I know it depends on how much your pension will be but for those who have retired early or plan to while also collecting a pension.. how has that affected your FIRE goal? I know a safe goal is somewhere around $1M five or take a couple hundred k and depending on your type of FIRE lifestyle. Just trying to get some opinions and feedback for those in such a situation. [link] [comments]  |
| Posted: 16 Apr 2019 08:43 PM PDT I understand the basics of early retirement transferring your pre tax 401k -> rolling it into a traditional IRA -> slowly rolling it into a ROTH IRA which can't be touched for five years. But what if you have some of your 401k as ROTH which can't be touched until 59.5 years of age. Is there a smart vessel for getting this money earlier like the pre tax 401k conversion ladder? I would think converting ROTH to traditional doesn't make sense because you'd be paying for the taxes twice. Is my only option to not touch it until 59.5? I'm early in my career so I want to set up my 401k as smart as possible and currently have half my 401k in pre tax and the other half in ROTH. Trying to retire around 40-50 years in age for what it's worth. [link] [comments]  |
| Investing in commercial real estate? Posted: 16 Apr 2019 10:53 PM PDT I'm starting the process of looking to dabble in alternative investments like trailer parks, self storage, and maybe multi-unit properties. Ideally would like to stay in CA where I live. Not looking to turn a quick profit, this is more a long term deal where ideally it would produce some income after 10-15 years. Before that point, I think I'd be fine sinking any profit, if any, into principal to pay it down. Any suggestions on where to start? Discuss with CPA? Commercial real estate agent? Any words of wisdom? I've been looking at listings and cap rates are ranging from 5 (on the low end) to 7/8/9%. Is this too good to be true? If I can invest a few hundred K into a vehicle like this with a 5-9% return I'd consider that a win. Thoughts? *edited to add: I have at least 3 or 4 investors that would also be willing and looking to put in capital. I'm thinking about 500-1mil capital to start. I'd do all of the formation and legal work myself. [link] [comments]  |
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