Financial Independence CNBC article how to save 50% of your income |
- CNBC article how to save 50% of your income
- Save 100k before 30 (Singapore)
- What is your criticism of FIRE?
- Deciding when a 401K is less beneficial than a taxable brokerage?
- How do capital gains taxes work in FIRE?
- Coasting at work?
- Survey of Millenials and attitudes towards money/retirement
- Daily FI discussion thread - April 24, 2019
- Please Critique My Plan (Military Officer, Long-Term, Vanguard ETFs Only)
- A nice article about financial independence
- The NFL Draft’s Most Frugal Player
- What was the moment or moments that convinced you index investing was the way to go?
- Weekly Self-Promotion Thread - April 24, 2019
- Should i lower tax advantaged contributions to build up 5 year bond tent?
- Can you effectively invest more in a Roth vs Traditional?
- ESPP Loan Company
- Starting an IRA for my kids?
- [Discussion] What are some things that make your current location great for FIRE?
- FIRE is slowly ruining me - how do i fix this mindset?
- Economist article says most millennials won't be able to retire comfortably :/
- Savings rate: "Retirement savings" vs "outright savings"
| CNBC article how to save 50% of your income Posted: 24 Apr 2019 11:14 AM PDT Most of it is basic stuff but good for someone who's just starting out. Edit: Been following this sub for a while just thought I'd start posting and sharing a bit more [link] [comments]  |
| Save 100k before 30 (Singapore) Posted: 23 Apr 2019 11:40 PM PDT |
| What is your criticism of FIRE? Posted: 24 Apr 2019 02:00 AM PDT It's a tough question, but I think most people here are ones that think for themselves. Have you ever found anything about FIRE that made you stop considering it? Do you think it's unrealistic at some times/countries? Is it too much (or too little) of a goal? I want to know every downside of FIRE. [link] [comments]  |
| Deciding when a 401K is less beneficial than a taxable brokerage? Posted: 24 Apr 2019 09:24 AM PDT I'm currently at the stage where I've hit the maximum contribution for an IRA ($6,000 into VTSAX for 2019) and am contributing 4% to my 401K to achieve my employer match of 4%. However, I'm now at a crossroads of trying to determine if I should open a taxable brokerage versus increasing my 401K contributions. The standard thought would be to increase my 401K contributions for the tax-advantages. The issue is that our 401K provider (Paychex) does not have many good options. I've analyzed all the funds and have chosen to put 100% of my 401K contributions into FAEGX (Fidelity Advisor Equity Growth Fund). This has a pretty high expense ratio of 1.25%, but is still the best option available to me. Would anyone able to advise on how I can determine if increasing my 401K contributions would be more beneficial than opening a taxable brokerage and putting more money into VTSAX? Thank you in advance for any advice! [link] [comments]  |
| How do capital gains taxes work in FIRE? Posted: 24 Apr 2019 09:47 AM PDT I read the sidebar links and others but I am still financially illiterate especially when it comes to the stock market and taxes. (Assume in this scenario that there are no special retirement accounts like 401k or IRA.) Let's say I put $36k (post tax income savings) into a taxable brokerage account every year between age 20 and 50. Assuming a 5% yearly growth rate that leaves me with $2.5M at age 50. Let's say I retire at age 50, so my income is now completely derived from my investments. In this instance, let's say I sold $100k (4% rule) worth of VTSAX at age 50, which I originally bought for $36k. Since I'm withdrawing $100k from a long term investment, I'm thinking I'll be in the 15% bracket.
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| Posted: 24 Apr 2019 07:10 AM PDT How does anyone deal when work is just counting down the days until each paycheck? When your're fairly financially stable but not FIREd yet? Knowing that being fired won't matter to you but more troublesome then anything. [link] [comments]  |
| Survey of Millenials and attitudes towards money/retirement Posted: 24 Apr 2019 05:25 AM PDT Ameritrade put out a report on millienials and money (data from spring 2018, but didn't see a post about it when searching). It's similar to the FIRE Survey they posted a few months ago. Surveyed 1500 people. Some interesting stats as I'm a Gen X, watching my millennial siblings/cousins/family members grow up. Also found the differences between fe/male interesting. Listing the findings below if you don't want to click on the link. Millennials expect to start, on average, their first job at age 25 and to start saving for retirement at age 36. Half (53%) of Millennials expect to become a millionaire at some stage in their lives, or are already millionaires Moving out of home is the most likely trigger for parents to financially cut off Millennials Seven in 10 Millennials see themselves as 'Savers', as opposed to 'Spenders' Half of Millennials (50%) have credit card debt, 4 in 10 have car loans (40%) and almost 4 in 10 (36%) have student loan debt Half of working Millennials negotiated their salaries or compensation when offered their most recent jobs Half of Millennials invest in the stock market and half do not Over 3 in 10 (32%) Millennials rate their investing knowledge as very knowledgeable (8-10 on 10 point scale) [link] [comments]  |
| Daily FI discussion thread - April 24, 2019 Posted: 24 Apr 2019 01:07 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]  |
| Please Critique My Plan (Military Officer, Long-Term, Vanguard ETFs Only) Posted: 24 Apr 2019 05:02 PM PDT Good evening reddit, Growing up, I have been told to work and save money from my parents. As such, I have never researched much into investing because of the associated risks. Regretfully, I have recently stumbled upon passive, long-term, index-based investing and I believe that this is the best way to slowly but surely become wealthy for the average person. I have performed a great amount of research and I have come up with a plan which I would like to have critiqued by the reddit community. Now, let me introduce a few facts about myself in order for you to provide some meaningful and constructive criticism. Currently, I am a 35 year old Canadian military officer with an annual salary of $53,000 (as a Second Lieutenant). In about 2.5 years, I will be promoted to the rank of Captain with a pay of $79,000 per year which increases by approximately $3000 every year until I max out at around $104,000 per year. I am single, unmarried, with no children, home ownership, and/or debt. Below is what I have in terms of financial health: TFSA - $41,000 locked in for 1 more year in a GIC at around 2-3% RRSP - $15,000 locked in for 4 more years in a GIC at 2.8% HISA - $13,000 at 1.6% for emergency only Chequing - $2000 for everyday use Line of Credit - $75,000 (Never going to use) Credit Score - 774 (An excellent rating) Now, concerning my investment portfolio which I plan on executing in the very near future, I only intend on investing in Vanguard ETFs which I can buy for free at Questrade. I am sticking only with Vanguard since I like their company values, philosophy, and their founder (Jack Bogle). I understand that I still have to pay for ECN fees with Questrade; however, at $0.0035 per ETF share, this is a negligible expense. I have looked at VGRO (80% equity, 20% bonds) with a MER of 0.25% and I was planning to invest in that and rebalance with VBAL (60% equity, 40% bonds) and VCNS (40% equity, 60% bonds) as I grow older. However, as a means of cutting costs, I have decided that I would simply invest in the individual ETFs that exist in VGRO. After a quick Excel spreadsheet calculation, I could reduce the VGRO MER of 0.25% down to 0.131% by simply doing my own investing. However, for this portfolio that I came up with, I also included a REIT ETF for some real estate exposure and I replaced the VUN (Vanguard US Total Market Index ETF) which exists within the VGRO with the VFV (Vanguard S&P 500 Index ETF). So, below will be my starting portfolio showing each individual ETF with their weights which attempts to replicate the VGRO but with a MER of 0.131% instead of 0.25%: 4% VRE - Vanguard FTSE Canadian Capped REIT Index ETF 35% VFV - Vanguard S&P 500 Index ETF 24% VCN - Vanguard FTSE Canada All Cap Index ETF 13% VIU - Vanguard FTSE Developed All Cap ex North America Index ETF 5% VEE - Vanguard FTSE Emerging Markets All Cap Index ETF 12 % VAB - Vanguard Canadian Aggregate Bond Index ETF 3% VBG - Vanguard Global ex-US Aggregate Bond Index ETF CAD-hedged 4% VBU - Vanguard US Aggregate Bond Index ETF CAD-hedged This portfolio is currently set at 81% equity and 19% bonds. I plan on rebalancing every year and increase my bond holdings by 1.5% each year and reducing by equity by 1.5% each year for the next 25 years. I also intend on maxing out my TFSA's first and then my RRSPs. Currently, I plan on investing a minimum of $500 every two weeks in order to employ the dollar-cost-averaging strategy which equates to $12,000 every year. However, once I am promoted to the rank of Captain, I plan on investing $850 every two weeks which equates to $22,100 every year. I plan on holding this forever and gifting this to my unborn children as I will have a pretty decent pension to live off. Please critique my plan and help me optimize further. Also, once my TFSA and RRSPs are maxed out, what am I to do? Thank you in advance! Regards, wnhan [link] [comments]  |
| A nice article about financial independence Posted: 23 Apr 2019 11:42 PM PDT https://amp.usatoday.com/amp/3478332002 Has some nice case stories and examples. Pretty good overview too. [link] [comments]  |
| The NFL Draft’s Most Frugal Player Posted: 24 Apr 2019 04:34 PM PDT "Forget the cliché about lemons and lemonade. Christian Wilkins can make lemonade out of thin air." https://www.wsj.com/articles/the-most-frugal-player-in-the-nfl-draft-11556020802 [link] [comments]  |
| What was the moment or moments that convinced you index investing was the way to go? Posted: 24 Apr 2019 04:28 PM PDT I discovered MMM and this sub 3 years ago and it has completely changed my life. I went from just doing minimum for company match 401k/max Roth and spending away the rest on stupid stuff to now over 60% savings rate. However, I've always been a stock picker, options trader (both long options and selling covered options), and market timer. I really want to transition to the automated all in VTSAX or similar automated setup but every time I do it, I have FOMO of my old ways and revert back. [link] [comments]  |
| Weekly Self-Promotion Thread - April 24, 2019 Posted: 24 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]  |
| Should i lower tax advantaged contributions to build up 5 year bond tent? Posted: 24 Apr 2019 12:18 PM PDT Between 403b, 457b, 401k, HSA and Trad IRA I don't have any available income to build up a 5 year bond tent. I'm probably close to my highest salary amount before retirement so I'm maxing out all the accounts that lower my current taxes. Is it worth lowering a tax advantaged contribution to build up a bond fund probably I-Bonds? Also how do people track their Roth contributions over the years? I've had a Roth for about 20 years but i didn't manually track my contributions and Fidelity doesn't seem to show it. [link] [comments]  |
| Can you effectively invest more in a Roth vs Traditional? Posted: 24 Apr 2019 03:28 PM PDT I've read a bit about the debate between which you should put your money in, Roth vs Traditional. I've seen the points on both sides (eg., Roth allows you to take out your money more easily, Traditional allows you to pay low taxes if your income drops for a year, etc.). But no one ever talks about the fact that you can effectively invest more in a Roth IRA (or a Roth 401k) if you are maxing out your non-taxable investments. For example, the IRA max is $6,000. Let's say that you have a 50% tax rate for your entire life. In a Roth IRA, you could pay taxes on $12,000 and invest $6,000 after tax. In a traditional, you could invest $6,000 and pay taxes at the end (effectively investing $3,000). Therefore, you're investing twice as much pre-tax money in a Roth compared to a Traditional, and getting tax-free gains on twice as much money. This seems like a really great deal. Is there something I'm missing here? None of the articles I have read mention this point, including Mad Fientist. This is also under the assumption that your taxes stay exactly the same over time. [link] [comments]  |
| Posted: 24 Apr 2019 11:33 AM PDT I thought this company was pretty brilliant. It blows my mind how underutilized ESPPs are. I know this isn't strictly a FI post but thought this group would appreciate it. [link] [comments]  |
| Posted: 24 Apr 2019 11:05 AM PDT I really like the idea of putting 10k into an account for my kids and letting it compound interest until they retire. I know there's some rules around IRA's in that my kids would have to have earned income. What's my best option? Just opening a custodial brokerage account? If so, how do I keep their hands off it until they're 50+? [link] [comments]  |
| [Discussion] What are some things that make your current location great for FIRE? Posted: 24 Apr 2019 10:18 AM PDT I think this could be a fun discussion point as people are always talking about where they would want to FIRE or where it would be possible for them to FIRE. But sometimes the best move is no move at all. So what are some things that would make where you live or work currently a great place to FIRE? Could be personal (family nearby) or could be applicable to the community as a whole. Please also list out where you are so people done need to guess. [link] [comments]  |
| FIRE is slowly ruining me - how do i fix this mindset? Posted: 24 Apr 2019 10:12 AM PDT Ever since i've seriously started to look at FIRE and start my journey i feel like this mindset has completely taken over me in a negative way. i have become this penny pinching monster where i am calculating everything and restricting myself from enjoying anything in life. Before i wouldn't bat an eye with small purchases but now everything is on my mind. For example, I used to have no problems spending an extra $20 for a tshirt but now i'm hesitating and going: "it's an extra $5? i don't need it. i can do without" has anyone ran into this problem? how did you fix it? to be fair, i don't have a high paying salary, i used to be laid off for 3 years (just recently started working again a year ago), perhaps these are all psychological factors that contribute for my cheapness. i'm just scared of the path i'm going down with this mentality with money [link] [comments]  |
| Economist article says most millennials won't be able to retire comfortably :/ Posted: 24 Apr 2019 06:23 AM PDT |
| Savings rate: "Retirement savings" vs "outright savings" Posted: 24 Apr 2019 02:15 PM PDT I see several people mentioning their savings rate, but found it really differs on those who consider savings for retirement vs any savings they do. For example, I have the SR amount I put toward retirement (401k/IRA/etc), but keep a separate bucket for other savings (money toward a secondary investment house, new car, home improvement to increase primary home's value). This way I have a Retirement SR and an Overall SR. I imagine many people might argue investment property = model toward retirement, but may say a new car is always a deprecating asset and is not really savings. Do you personally merge all of these together or do you keep them separate? Which of these side savings items do you include in your retirement SR? [link] [comments]  |
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