Financial Independence FIREd on Friday |
- FIREd on Friday
- 76% of American Professionals Think Freelancers are Happier than Traditional Workers
- Daily FI discussion thread - April 08, 2019
- What is your (planned) schedule post FIRE
- Weekly FI Monday Milestone thread - April 08, 2019
- Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - April 08, 2019
- FIRE for Americans living abroad (EU) - my FIRE journey + questions
- Help with Backdoor IRA
- Pay off our rentals??
- Looking to meet other like minded individuals
- How making $300,000 in San Francisco can still mean you're living paycheck-to-paycheck
- Anyone maintaining two jobs to supplement your income?
- Which College Majors Lead to Fire Fastest
- Excess cash - what to do now?
- FIRE Community's Opinion on Life Insurance?
| Posted: 08 Apr 2019 02:42 AM PDT I have retired on Friday. My wife has been retired for about three years. This post is a bit about our path, and a bit about our concerns. We came to the US in 1990-1991; I became a grad student here. I got an RA, and did not have to pay tuition; they even paid me a small stipend ($1100/mo in a VHCOL area). After graduation, I had a temp position for a year, then started to work for various hi-tech companies in a HCOL area. My wife worked most of the time (except for the last three years and after birth of our second child). Both kids are out of college now. They went to a state school, and we have paid for their education. Coming from a humble background, my wife knows how to save money. We are not materialistic, and do not care about designer clothes or nice cars. The only really expensive purchase was our house, which we bought exactly at the peak. It has not reached the original price, but we like it and are not planning to move. We were moderately lucky with our investments, but did not have spectacular returns. I came to US in 1990 with 30 dollars, my wife and daughter came in 1991 on money that I have borrowed. Given what we have now, we fared well. Now I am pivoting to reading, writing and teaching math. I observed the state of math education in US when my kids went to school, and I think there is a lot to be desired here. I am talking to a private school in the area about teaching an elective class there. (Public schools require a license.) In addition to 401k plans and IRAs we have some rental real estate. Altogether, real estate is about 2/3rds of our NW. We should be fine. Still, I am not very optimistic about SWR. Here comes a bit about our concerns, as promised. I am afraid that the common 4% may be too good to be true. Having a quantitative background, I've got various considerations to support this concern. I will not bore readers with my own rambling, but will quote a book "The Battle for Investment Survival" by G. Loeb, who in turn quotes another guy. Here is what Loeb writes: "Capital compounded at 6% doubles itself in money value in only twelve years, and at 5% in little more than fourteen years. The fantastic results of this process were illustrated by the late Frank A. Vanderlip in a Saturday Evening Post story of January, 1933. He pointed out that if the rich Medici family in Italy just six hundred years ago has set aside at 5% compound interest an investment fund equal to $100,000, its 1933 value would be $517,100,000,000,000,000 (five hundred and seventeen quadrillions). The original sum could have been represented by a globe of gold about nine inches in diameter, and the final figure would be 46 million times the existing monetary gold stock of the world." The author proceeds to write that "There are many … threats, such as taxation, regimentation (including rationing), war, new inventions, political changes, and revolutions"." This argument states that the recent 7-10% returns of stock market indices may not be sustainable, universal or both. Both the productivity growth and the population growth have slowed down. It is hard to imagine that real returns of the stock market (after inflation) will beat these two variables on a continuing basis. We have selected a conservative approach and can use a withdrawal rate, which is lower than 4%. Being 58 also helps :-) [link] [comments]  |
| 76% of American Professionals Think Freelancers are Happier than Traditional Workers Posted: 08 Apr 2019 04:23 AM PDT What has become known as the "gig economy" is slowly but surely becoming more and more attractive to traditional workers. In this new survey, 76% of American professionals declared being convinced that freelancers are happier than traditional workers: The Attractive Gig Economy Continues to Rise In Spite of Riskiness (full article) [link] [comments]  |
| Daily FI discussion thread - April 08, 2019 Posted: 08 Apr 2019 01:10 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]  |
| What is your (planned) schedule post FIRE Posted: 08 Apr 2019 09:59 AM PDT To those who fired: what's your current day to day life look like To those planning to fire: what's your planned or dream post fire schedule look like [link] [comments]  |
| Weekly FI Monday Milestone thread - April 08, 2019 Posted: 08 Apr 2019 01:10 AM PDT Please use this thread to post your milestones, humblebrags and status updates 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! 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: 07 Apr 2019 11:10 PM PDT Need help applying broader FIRE principles to your own situation? We're here for you! Post your detailed personal "case study" and ask as many questions as you like, or help others who've done the same. Not sure if your questions pertain? Post them anyway…you might be surprised. It'll be helpful to use our suggested format. Simply copy/paste/fill in/etc. But since everybody's situation is different, feel free to tailor your layout to your needs. -Introduce yourself -Age / Industry / Location -General goals -Target FIRE Age / Amount / Withdrawal Rate / Location -Educational background and plans -Career situation and plans -Current and future income breakdown, including one-time events -Budget breakdown -Asset breakdown, including home, cars, etc. -Debt breakdown -Health concerns -Family: current situation / future plans / special needs / elderly parents -Other info -Questions? [link] [comments]  |
| FIRE for Americans living abroad (EU) - my FIRE journey + questions Posted: 08 Apr 2019 07:58 AM PDT Hi /r/financialindependence experts. Long time lurker and first time poster here. Really love this sub! I am an American citizen living in Europe for the last 10 years. Moved here for work, met my wife (EU citizen) and we live in a small MCOL EU city. Life Situation: US citizen married to EU citizen, filing taxes separately, no dependents, living in small EU country, age 43, wife age 34 FIRE Progress:
Gross Salary/Wages (annual):
Yearly Savings Amounts:
Other Ordinary Income (annual):
Rental properties (annual)
Current expenses (annual):
Assets: Amount & description
Liabilities:
Specific Question(s):
Thanks for any pointers! [link] [comments]  |
| Posted: 08 Apr 2019 12:57 PM PDT I made too much to put money into an IRA, so I am going to put 7K post tax money in a traditional IRA then roll that much directly into a Roth. I have 98K in a traditional IRA, and I also have a Roth IRA. Can I just put the money in my established traditional IRA and then transfer it to my established Roth, or do I need to open a new trad IRA account and then convert that account to a Roth IRA? Do I need to do the pro-rata calculation, and if so, will that mean I will need to pay tax on the money again, since it is already post-tax money? I didn't deduct this money on my 2018 taxes. Should I? Thanks! [link] [comments]  |
| Posted: 08 Apr 2019 12:04 PM PDT My husband and I currently have three rental houses plus our personal home. My goal has been to pay these off as early as possible (within the next 8 years) to avoid paying excessive interest. I also liked the idea of being debt free. We have recently discovered FIRE and are wondering what you guys would do? Once paid off, our net worth would be 25x our annual spend. If our goal is to be financially independent asap does it still make sense for our first investment goal to be mortgage debt free? (The interest savings is astronomical) ...Then, would one sell them and move $$ to a low cost index fund? [link] [comments]  |
| Looking to meet other like minded individuals Posted: 08 Apr 2019 09:25 AM PDT I am 18 and live in Vermont USA. Over the past year I've grown very interested with money, investing, and recently became interested in FI/RE. I've also discovered that none of the the people my age that I know of are interested in any of these things or see it as pointless an boring but it fascinates me. I think that being smart with your money and getting the most out of it through investing and cutting back pointless expenses is one of the most important things people can learn. I'm looking for other people who are interested in similar things and around my age (17-20) who I can connect with and create solid friendships with. In the next year or so I'm looking to move out if my parents house after completing my associates degree in my home state. I plan to move out west at some point (somewhere in Colorado, Utah, Oregon) and would love to find someone who I can split rent with and has similar thoughts and interests as me even ones they have nothing to do with money. Ex. Music, hobbies, humor. My largest struggle has been loosing all of my close childhood friends mostly due to having different thoughts on life. Most of the people I knew growing up all got into drugs, and I saw learning about things like money to be more interesting and I saw it pointless to waste my time and money on drugs and partying. Since then I haven't found anyone but adults that I can talk to about money. If there's are and young adults reading this who are open to meeting new people or even just texting and getting to know each other I'm looking to start new, and beneficial relationships. [link] [comments]  |
| How making $300,000 in San Francisco can still mean you're living paycheck-to-paycheck Posted: 08 Apr 2019 10:31 AM PDT I thought this was a pretty sad/funny article, especially since I live in SF. Some of the "fixed" costs are indeed that high or even estimated on the low end (e.g. childcare, mortgage, utilities), but the discretionary spending is pretty wild. $600/mo on entertainment? $500/mo on clothes?? Discuss! [link] [comments]  |
| Anyone maintaining two jobs to supplement your income? Posted: 08 Apr 2019 08:34 AM PDT Hey all, I'm a Chemical Engineer who's been working in the field for around 2 years now. I make great money in my position, definitely above average for my level compared to many of my peers. I think my manager went out on a limb to hire me, this is a position that would normally be filled by someone with much more experience. However I've excelled in the role, and have had glowing performance reviews since I've started. Recently however, as a way to supplement my income, I've been thinking about picking up a server position 1-3 nights a week. I was a server all through my university years and it's something I've really enjoyed doing. Doing this, I think I can add another $15k-$20k (pretax) to my income. Though I have a couple concerns about how that my affect my current employment. My largest concern is how it might be perceived in the office. While I wouldn't announce it to the office, I'm not naive enough to think that I won't eventually run into someone I work with. I'm a younger guy, recently graduated, so I'm hoping that it might just seem like a hustler. Though I already avoid going out to eat most days with many of my colleges to save money, and don't want to give off the appearance I'm struggling for money or cheap. Since I'm also the newest, and one of the youngest, engineers at my plant - I'm worried that I might seem ungrateful for the opportunities I've been given. My second concern is how I should handle it with my boss. My manager is by far the nicest, most understanding man I've ever worked for. We have a great relationship, and he enables all his employees to excel. For this reason, I thought about telling him upfront. However I worry that it may be perceived as me being ungrateful for my opportunities, and compensation. I also worry that he may think I'm not giving my full time/effort into my position and that being a sever is interfering with my day job. Really I don't see any benefit to telling him, though worry what the reaction would be if he found out down the road. So I wanted to ask your all's opinions, and hear from anyone who's picked up a second job what their experience has been. Thanks! [link] [comments]  |
| Which College Majors Lead to Fire Fastest Posted: 08 Apr 2019 10:34 AM PDT I've just graduated with an associates degree in general studies and have recently learned about FIRE. I know that there idea is to make as much and to save as much as possible. What I'm looking for is degrees/entry level careers that start at 100k+ in a HCOL area. I don't mind attending school for another 3-4: years if that means I get to retire in about 14 years. Which degrees/every level careers start at 100k+? I'm new to this group and did read the FAQ. If this post should go to another thread please feel free to let me know. Thanks for your time and consideration. [link] [comments]  |
| Posted: 07 Apr 2019 09:51 PM PDT Hi all, unfortunately didn't follow this sub until a few months back. I have learned a great deal all because of you! I've made the mistake of allowing cash to build up in checking accounts. I've always maintained a 60-65% savings rate of an income of approximately $100K after tax. I have tweaked this bad habit, now flowing the excess paycheck into a 401K, max Roth IRA, and max HSA. My goal is to reach a net worth excluding property of $1.1M in ten years. Currently have $220K saved, $85K in mutual funds, $20K in 401K. Now, what can I do with the excess cash (~100K) greater than my annual emergency fund that's sitting in the checking accounts? Is the best option to move it to my taxable brokerage account? Thank you all for your wisdom! [link] [comments]  |
| FIRE Community's Opinion on Life Insurance? Posted: 07 Apr 2019 08:21 PM PDT What is your advice regarding life insurance and how should it fit into FI plans? Should I buy life insurance coverage? If not, why? If so, I have the following questions. ▪How much $ coverage should I have? ▪Term, whole life, other coverage? If term, how many years? With or without living benefits? ▪What's a good monthly cost? ▪When is a good situation to stop paying for life insurance coverage? ▪Which company do you use and recommend? ▪What should I watch out for when buying it? I'm more concerned with me having coverage to benefit my wife. For background, I have employer-provided life insurance, but wife and I will be taking a 1 year sabbatical soon. Therefore, that coverage will go away. Current situation: ▪Married, 29M/29F, No kids, ▪Zero Debt, Paid-off vehicle, No Real Estate (we rent in TX), ▪ACA Bronze health insurance coverage, ▪International travel + emergency medical & evacuation insurance (for 1 year sabbatical), ▪Assume no income for 1 year sabbatical ▪Assume $100K to $300K net worth in Retirement & Savings Accounts for this scenario ▪Both healthy with no known health-related issues [link] [comments]  |
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