Financial Independence The best year of my life |
- The best year of my life
- Declaring FIRE ....TODAY!
- Do you ever just open up Mint/PC and stare at it for a while, or look at old pay stubs and W-2's and admire how far you've come?
- Sell me on FIRE please. Genuine questions about the drive.
- Daily FI discussion thread - April 27, 2019
- ESI Retirement
- Late stage FI - Professional wealth management
- Mental preparedness for net worth drop after FIRE
- Looks like the media has started attacking the FIRE movement
- Is 45k in Toronto, Canada a decent income for single person.
- Formula to see progress per month based on Saving Rate
- I received a one-time payment that needs to last for the rest of my life
- Check my math: how much Roth is too much?
- Atlas Shrugged
- What is something that you can't do without, that others might find strange?
- Was watching a movie last night, and with some *slight* modification, I think this quote could be likened to financial independence.
| Posted: 27 Apr 2019 11:53 AM PDT I will now describe the best year of my life. In Scandinavia we have something called folkehøyskole. It is a school many go to after graduating high school at age 18/19, that is sponsored like university with a stipend paying about 40% of the expenses. I chose film and worked on projects in groups. The school had art, music, film etc. Every day we did something new, and had a selection of topics to choose from. We even went to New York to make a music video in collaboration with other the other classes at the school. So it was a combination of meeting new people, learning, getting tons of new friends, working on interesting creative projects with people where making something good for fun was the purpose, not to earn money or get good grades. Something like this would be the ideal lifestyle for me I think. Living close by friends, working on fun interesting projects, chilling out, doing new novel things. It is one reason I wish to FIRE. Anyone have similar experiences, an ideal year of their life they wish to relive through FIRE? [link] [comments]  | ||||||||||||||||||||||
| Posted: 26 Apr 2019 06:37 PM PDT I am officially declaring FIRE today. I had a major health issue (life changing - heart attack) two months ago and I am no longer willing to deal with the stress of Corporate America. I am targeting a 3.5% withdrawal rate. I am a bit nervous doing this, but it is better than dying on the job in a few years. EDIT - THANKS for all the well wishes and especially everyone that took the time to tell me to GO FUCK MYSELF!!!!!! Thanks! I appreciate it. Good luck to all of you! [link] [comments]  | ||||||||||||||||||||||
| Posted: 26 Apr 2019 08:02 PM PDT I know, I'm a strange bastard, but I like digging up old shit and reflecting on the journey thus far. It keeps me going. I look at how much progress I've made over the last ~5 years, and suddenly the goal seems like it might be attainable, even if I still have a long way to go. [link] [comments]  | ||||||||||||||||||||||
| Sell me on FIRE please. Genuine questions about the drive. Posted: 27 Apr 2019 12:13 AM PDT As an intro, I'm a regular over in the r/personalfinance community. I offer advice more regularly than I receive it, (aka, I know my way around finances) but I'm curious as to the motivation behind this particular drive. I'd like to better understand the drive to reach FIRE vs living with a more luxurious lifestyle while working. To some extent I get the main drivers of more free time to do what you want and no fear about being let go, but what I'm curious about is what drives people to sacrifice both now and in the future in order to obtain certainty. A person who chooses FIRE is ultimately choosing less overall income(which is fine), I'm just curious as to the reasoning to make that a goal. I guess my main question is, why "FIRE" vs just "FI"? Is FIRE just for people who hate their jobs while FI is the real goal? Are there really a lot of 30 somethings who are retiring early and actually not working? Or is the "RE" just a technicality where you could retire early? But you're still doing work, just not fearing not having a job? I'm not trying to judge, I'm really looking for honest answers as to why I should be trying to stop earning $175k a year and be FI, let alone FIRE when I don't hate my job. [link] [comments]  | ||||||||||||||||||||||
| Daily FI discussion thread - April 27, 2019 Posted: 27 Apr 2019 01:09 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: 27 Apr 2019 03:30 PM PDT For those looking for examples of postFIRE, I highly recommend going to the ESI blog. He has a great series that he started on the retirement life. Hoping to get there soon! [link] [comments]  | ||||||||||||||||||||||
| Late stage FI - Professional wealth management Posted: 27 Apr 2019 09:24 AM PDT tl/dr: As assets grow, do FI seekers ever find value in professional "wealth management"? My perception of this community/sub is that so called "professional" wealth management types are rarely ever worth their cost. This sub seems to favor DIY management. As did I when I started my savings back when. And admittedly I got a lot wrong early on. My biggest two downfalls were not saving in taxed advantaged accounts soon enough and investing in higher fee vehicles that were marketed towards me. As I build savings (some might say "wealth") I start to wonder what other mistakes am I making. I feel like I've done the deep dive on investing and asset allocation strategies. I know what I want and have a scheme I am comfortable with. I even feel somewhat knowledgable about tax strategy. But I know little of insurance or protecting those assets. I now have a family and know little of how to ensure that family is taken care of as best as possible should something happen to me. And I know little of how to actually RE. Speaking personally, my biggest concern is health-care as I am a US worker that has had employer sponsored health insurance for their entire career. I'm left wondering what else do I not know?! As I get later and later into the FI journey I'm starting to amass some real money. And I'm starting to question my own approaches. Recently I confessed these concerns to a family member who pointed me to their "money man". Basically a "wealth management" firm that supposedly specializes in managing investments for their clients. After speaking to them their approach is comprehensive; everything from managing individual investments to helping set up legal constructs (ie trusts) for their clients. The catch is the fee; 1.5%. This fee seems atrocious to me. I'm an investor used to talking about expense-ratios in the sub 0.10% territory. Sharing this concern with the family member that referred me they naturally got defensive that I was challenging their own decisions. "You'll be sorry in the next down-turn. That's when having someone on top of this for you pays off. So you don't lose everything." And "It's nice having someone else take care of all that." For a $1M theoretical nest-egg we are talking $15k/yr right off the top! I can't help but feel that $15k would buy a heck of a lot of legal advice ala-carte. Trusts aren't that complicated, are they? There are a gazillion and one blog posts on how to navigate health-care as an early-retiree. This isn't magic. I'm left wondering how much these financial consultants aren't a way of letting yourself off the hook for managing your own poop. I mean at the end of the day it is your responsibility to look out for your own financial security, isn't it? You get a second opinion when your mechanic says you need a new engine. You google the meds your doctor prescribes, get a second opinion before major surgery. You have to be your own advocate. Recently I encountered similar advice re: the importance of seeking professional help in a discussion in /r/personalfinace. Argument was that DIY was fine when stakes were "low" when you had 10's or 100's of $k.. but when you started talking >$1M suddenly you best hire help. This makes no sense to me. 1.5% is 1.5% regardless of how much your balance is. Why one strategy when talking $100k but a different one at 10x that? One interesting aside. "Money guy" wouldn't even consider taking me on as a client unless I could bring him >$1M in assets to manage. I feel like that's somehow telling. Or do I have it all wrong? [link] [comments]  | ||||||||||||||||||||||
| Mental preparedness for net worth drop after FIRE Posted: 27 Apr 2019 02:46 PM PDT So the conversation started when I was talking with a friend about FIRE. She says she would never do that because she saw her elder relatives did FIRE but totally stressed out when their net worth goes down dramatically during market meltdown. "They are stressed when they see their net worth drops when it used to be go up for 10-20 years. They start penny pinching because they know there is no easy way to replenish it" Just to make sure I understood FIRE correctly, the most commonly used withdraw rate used here is 4%, which is 7% long term average stock market return - 3% long term average inflation. So after FIRE, the portfolio is supposed to be still stock-heavy to have that 7% avg return. This is quite different from what "normal" retirement looks like. The asset allocation is supposed to be more conservative and provides constant income without much fluctuation in market value.What if market crashes dramatically after FIRE though? For guys that are FIRE'd, are you mentally ready to accept a net worth drop? How to make sure your assets are still enough? Edit: [link] [comments]  | ||||||||||||||||||||||
| Looks like the media has started attacking the FIRE movement Posted: 27 Apr 2019 03:17 PM PDT Looks like the media has started attacking the FIRE movement. I think we can expect more attacks if the FIRE movement becomes popular. FIRE has already become popular with veterans. The Case Against Early Retirement in the Wall Street Journal. https://www.wsj.com/articles/the-case-against-early-retirement-11555899000 [link] [comments]  | ||||||||||||||||||||||
| Is 45k in Toronto, Canada a decent income for single person. Posted: 27 Apr 2019 03:27 PM PDT I'm 23 {F} and make about 45k annually. I want to move out and find a condo for myself but I'm worried that I will struggle with paying for grocery, mortgage, car insurance, and miscellaneous. What is a decent amount of income to live a comfortable life? Should I get a roommate? Average 1 bedroom condo in Toronto is about 300k+ and gas prices have gone up but I really need privacy from my parents and so badly wanna be independent. Any suggestions on what Is the best route. [link] [comments]  | ||||||||||||||||||||||
| Formula to see progress per month based on Saving Rate Posted: 27 Apr 2019 12:21 PM PDT I was playing around with the concept of savings rate (SR) and how much time I was actually buying by saving. I assume in this post a "net saving rate" (Net Income saved that isn't locked in retirement account / Net income), but feel free to play with the concept however you like. I tried to search for a similar concept on the sub but didn't find anything. The formula is: 1 + (SR / (1 - SR)) It's basically how many months can you live based on one month saved at your SR.
So if you have a savings rate of 0.5, you end up with being able to live two months on one month salary. Of course, if you invest it and let it grow it will be bigger than two, but that's already a way to see progress when everything feels slow! [link] [comments]  | ||||||||||||||||||||||
| I received a one-time payment that needs to last for the rest of my life Posted: 27 Apr 2019 03:42 AM PDT I live in a small-ish country and my case was covered by the local media, so I have taken some steps to make it harder to identify me to avoid any unwanted attention. I am using a throwaway, purposefully a bit vague and also converted the currency of my country to arbitrary units (au). For context: The median annual post-tax salary where I live is about 26,000au. The mean annual post-tax salary is about 30,000au. I sustained a musculoskeletal injury at work around 10 months ago. The injury forced me into medical leave. The injury occurred due to employer negligence. I received a one-time post-tax payout of exactly 1,000,000au. My employer will also pay for any medical treatments for the duration of my lifetime, as long as they are musculoskeletal-related. The approved list of treatments includes regular physiotherapy and massages, so I am saving a serious amount of money even if the need for expensive treatments or operations never arises. I was on the FIRE journey prior to my injury, and managed to save a decent amount of money. My current NW (payout included) is about 1,200,000au. My NW is in index funds and cash. I rent an apartment and sold my car, and therefore own nothing of value outside of stocks/cash. I have no debt. Currently, excluding some pain, the only symptom I suffer with is that I can't sit or stand for extended periods of time, and need to lie down for 5-10 minutes every few hours. Beyond that, it doesn't currently affect my daily life, I am 29 so that might (probably will) change as I age. I feel pretty healthy overall. Therefore, theoretically I could be able to work again in the near future. However, even if I was able to, the medical benefit is contingent on me not being able to work. If I work, I lose the benefit immediately. I fear they could theoretically come after the 1,000,000 as well, since the sum was calculated based on the same assumption. Even if I exclude that possibility, I will probably never work again because the lifetime medical benefit is worth too much. My total spending during the past year was about 20,000au. I expect to maintain a similar spending level in the future. My NW to spending ratio seems very high, which makes me wonder: Is there a point in stocks, and is there a point in fixed income? Am I rich enough to not have to take the risk with stocks? Or am I rich enough where stock volatility does not matter, and I should be 100% stocks? A half-half approach seems like the worst of both worlds, so I would prefer being all in on one option. I want to stress that the money needs to last for the rest of my life since I do not expect to have any income ever again. [link] [comments]  | ||||||||||||||||||||||
| Check my math: how much Roth is too much? Posted: 27 Apr 2019 08:32 AM PDT The mega backdoor roth is great and lets you contribute up to a total of $55k or so annually into your 401k, but you also can't withdraw its earnings until age 59.5 without penalty. I wanted to make sure I wasn't allocating too much into my Roth account so I put together a spreadsheet to play around with numbers. Does this look generally alright to you all? Is there anything I missed? https://docs.google.com/spreadsheets/d/18hAq0ecowb1Tq3HD6BvjC4pjn9ffpEr6ZYj3SfNjCNE/edit#gid=0 [link] [comments]  | ||||||||||||||||||||||
| Posted: 27 Apr 2019 10:43 AM PDT Read this book years ago. The movies just came up on Netflix, so I watched them. Not great movies, but watching them raised the following question: In Atlas Shrugged, wealthy, productive people walk away from lucrative careers to live in the mountains and do whatever they want. Isn't that kinda like FIRE? [link] [comments]  | ||||||||||||||||||||||
| What is something that you can't do without, that others might find strange? Posted: 27 Apr 2019 09:09 AM PDT I understand and apologize if this is considered off-topic, but I am genuinely interested in hearing what people have to say. A lot of us make sacrifices in our day to day lives in pursuit of FIRE. But is there anything you buy/use in your day to day life that you just can't (or prefer not to) do without, that most people would find strange? In my case, it is quality, comfortable boxers and socks. I live an incredibly frugal life. I buy all of my clothes at either thrift stores or discount stores, but I can't live without my Nike socks and MeUndies. I know buying things like these may seem frivolous, but my line of thought is: I wear these two things 99% of the time, so I might as well be comfortable. Does anyone else have something similar that they prefer not to compromise on? [link] [comments]  | ||||||||||||||||||||||
| Posted: 27 Apr 2019 09:40 AM PDT Manager: Listen, and understand. That FI employee is out there. It can't be bargained with. It can't be reasoned with. It doesn't feel pity, or remorse, or fear. And it absolutely will not stop, ever, until its demands are met or retirement (whichever comes first). -The FIREnator [link] [comments]  |
| You are subscribed to email updates from financial independence / early retirement. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment