Financial Independence House committee passes bill to upgrade 401(k) plans amid ‘retirement income crisis’ |
- House committee passes bill to upgrade 401(k) plans amid ‘retirement income crisis’
- New Chart: lifetime savings rate
- Is getting a pension one of the best ways to be FIRE?
- Think I just lost my partner to a FIRE couple peddling an MLM scam
- Has FIRE forced anyone else to be handy?
- Daily FI discussion thread - April 02, 2019
- Reminder: BaristaFI is closer than you think
- Question: Reasoning behind investing into Retirement Accounts?
- Does having two 401K/403b questions allow me to surpass the 19K yearly cap?
- Graph: 10 years of spending and income
- Spreadsheet question
- What Would You Pay a Financial Advisor For?
- How to FIRE with kids?
- 4% rule question
- I screwed up
- Budget spreadsheets from net or gross income?
- Only 403(b) option is with AXA
| House committee passes bill to upgrade 401(k) plans amid ‘retirement income crisis’ Posted: 02 Apr 2019 11:17 AM PDT Not a lot of this was surprising (incentives to small employers to allow access to full and part time employees for 401k plans), but one item that stuck out to me was increasing the options for 529 utilization to private school tuition and home schooling, as well as student loans. What are your thoughts on this bill? Will it move the needle in terms of helping people better prepare for retirement? [link] [comments]  |
| New Chart: lifetime savings rate Posted: 02 Apr 2019 11:10 AM PDT People on the sub tend to like new charts and metrics, so I thought I'd add a new one to the list: lifetime savings rate. Because I have most of my expenses and post-tax earnings logged and since I started working, I could calculate it. I've been at around 55-65% savings rate over the last year, but before then it was much lower due to high wedding expenses and lower overall salary. Still, it's cool to see that of all the earnings over my and my partner's lifetime, we've managed to sock away 45% of it. We won't get to lifetime savings of 50% for another 3 years, and that's only if we can stay at a 60% SR. I'd be curious in seeing if other people have the data to calculate the number, and what it would be at different stages of the FIRE journey. [link] [comments]  |
| Is getting a pension one of the best ways to be FIRE? Posted: 02 Apr 2019 11:36 AM PDT Hi everyone, Hopefully this isn't a dumb question... but isn't getting a job with a good defined benefit pension plan one of the best ways to achieve FIRE, since this provides a lifetime monthly income? You would have to be young (like 18-30 years old), but you could achieve FIRE at age 50 if you found a job with a good pension early on and stuck with it. Good places to do this at would be the military, city/county/state/fed gov, union jobs with pensions (AT&T, etc), financial/insurance companies.... all of these places usually have a defined benefit pension. Obviously, this can't be ALL you do to achieve FIRE... but seems like no one talks about it, and it's a BIG help if you do it.... [link] [comments]  |
| Think I just lost my partner to a FIRE couple peddling an MLM scam Posted: 01 Apr 2019 06:09 PM PDT So my partner has been talking for many months about this couple that she's in a business partnership with that's going to make her FIRE within like 3 years. The story of how they met is the typical FIRE couple MLM scam story: This guy came into her work (retail) and started up a conversation with her. When the topic got to what he does for a living he said, "well, it's hard to explain, but basically I retired like two years ago (he claims to be 30) after meeting a couple who retired in their late 20's who mentored me." Then, he suggests that she can too and frames it in the way of, "would you like to work here for another 30 years or retire in the next 3?" She meets with him again, and he lets her borrow a book (The Go-Giver), which of course means that to return it she has to meet with him again. She does and eventually she ends up meeting the "mentor" couple and they explain how to retire early, "by generating revenue on the back end of online distribution." (this is important as it's always repeated but never clarified). The whole while that she's telling me about this, she's also telling me it's about changing the way you think about success, and creating the value that you want to see in the world. Whenever I ask her anything about the business structure or how income is gained in any way, she repeats that that's the wrong thing to focus on and it's all about doing whatever it takes to create the lifestyle that serves her purpose in life. Besides, there's so much you need to know about business and wealth creation that it wouldn't make any sense anyways. I ask her if she has paid any money for anything and she insists that she hasn't. I should mention that she started working a second job (overall working like 60 hours a week) in the middle of this and became very frugal because she, "needs to be incredibly focused creating the future she wants." So this whole time she's also subtly encouraging me to meet this couple and go along with her on this journey. I should mention that she hasn't tried to recruit me and I know she's not out there recruiting other people. She also hasn't asked me to buy anything and isn't selling any products to anyone. She insists that this is a real methodology for creating wealth and she's met plenty of other people who are FIRE because of this thing. Again, I should mention that anytime I ask about how income is generated I'm told that it works, "by generating revenue on the back end of online distribution." When asked to clarify that, I get told that I'm not in the right mindset and it'd be over my head anyways. This whole time I'm extremely suspicious and skeptical of this whole thing, but she's totally convinced that it's real. Anyways, eventually a meeting is set up between the guy in the couple and I at a Starbucks. He gives me his whole story about how he graduated from UC Davis and was a few months away from starting medical school when he met this couple who retired before they were 30. He dropped everything he was doing, ditched going to medical school to be mentored by these people and now he's been retired for 2 years (at age 30). He says he can teach me how to do what my partner is doing but it requires me to be patient and have an open-mind. He frames it in the sense that there has to be a vetting process with me and I have to prove that I'm willing to relearn how to think about wealth and success in order to proceed. Once again, whenever I ask anything about how specifically I'm going to make money, he responds with the same line of, "by generating revenue on the back end of online distribution." Again, all 100% from the MLM scam script. He also asks me out of nowhere about pyramid schemes and then goes on to defend them and the MLM pyramid structure even though I didn't say a word about either of those things. I walk away from the meeting feeling terrible, and when I tell her about my feelings about the meeting, she comes back with, "there's so much you don't understand about this and he is the one who can explain things, so ask him." So I have another phone call with him and just hear more BS and misdirection whenever I ask about how to actually make money. One big tell was when I asked him to give me an example of how some dollar amount goes into my bank account and he said that it, "wouldn't make sense even if I explained it. You haven't run a successful business or have a formal business education so you wouldn't even know the first thing about it." I tell him that the whole thing makes no sense and that I can't continue taking a strangers word on blind faith, so I'm done. I tell her and she gets extremely upset saying that my lack of trust in him is a lack of trust in her and that we don't have the same values in regards to this thing. She accuses me of not being patient and open-minded like she thought, so we can't continue with the relationship. I confronted her with how this whole things follows directly the MLM scam script, and she got extremely angry about how I "believe internet blogs over her," and now she refuses to talk or listen to me. I'm feeling pretty emotionally devastated at the moment; just two days ago our relationship was totally great. So my question to this sub is, has anyone ever heard of a scam like this that doesn't rely on recruiting/buying anything until someone is already deep in the process? Obviously the whole things just screams MLM scam, but she says they haven't asked her to buy anything or recruit anyone, even after many months in the process. My fear is that they're encouraging her to work super hard and save a ton of money so that after a while they'll say she's "ready" and she can buy into the "business" with some huge lump of cash. Does that sound like a familiar scam to anyone here? Or is there any chance that it isn't a scam and I'm just crazy? I guess I'm just looking for more clarification on how this might work. I plan on contacting her friends and family about this so that hopefully we can help to undo the brainwashing to some extent and get her back to reality. TL;DR My partner is deep into what seems to me a long term scam from a FIRE couple, but I'm not sure how it works as after several months she claims she hasn't been asked to buy anything or recruit anyone. [link] [comments]  |
| Has FIRE forced anyone else to be handy? Posted: 01 Apr 2019 07:47 PM PDT So not wanting to pay plumbers, repair men, etc has forced me to become at least moderately handy. This past year, I've put a new motor in my dishwasher, drywalled my garage, and put in a kitchen tile backsplash. The one time I called a plumber, I'm sure I annoyed the piss out of him. I was looking over his shoulder the whole time and asking him exactly what he was doing, so I could learn something. I guess my mindset is I can at least try it myself first, before calling a pro. YouTube videos are also a huge help for pretty much any repair! Is this pretty standard for FIRE focused people? [link] [comments]  |
| Daily FI discussion thread - April 02, 2019 Posted: 02 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]  |
| Reminder: BaristaFI is closer than you think Posted: 01 Apr 2019 05:35 PM PDT Just hit 100K saved just under 4 years out of school and have been thinking about a career pivot. I was amazed to learn (remind myself) that 100K is just 40 years of coasting away from $1M. So as long as I don't have a negative savings rate, my little nest egg will guarantee leanFIRE at normal retirement age. TL;DR Save up money. Pursue your passions. [link] [comments]  |
| Question: Reasoning behind investing into Retirement Accounts? Posted: 02 Apr 2019 03:29 PM PDT Question for you guys: Why do you, personally, invest into retirement account? Do you max out on IRA/401K annually? What other high-return investments have you tried successfully? Background: Graduated from college in Dec 2017. Gf and I moved to LA Jan 2018. When budgeting and considering our FIRE targets, I look at our income and expenses together, since we've been dating for 4 years, started our own biz, and now engaged. Running our own biz was hard to sustain ourselves, so we work full-time jobs now. I want to retire in 10 years by continuing to save aggressively (projected $50K/yr in combined savings), using savings as down pmt in real estate, and continue to work on the side biz in hopes it can sustain its revenues in a couple years. I only put enough into 401K to get employer match so that I can keep the savings liquid in high-yield savings and get a real estate property soon. I'm wondering if this plan I have is certain enough for retiring early, based on the balance of risk and ROI of these 3 avenues (high-yield, real estate, side biz). [link] [comments]  |
| Does having two 401K/403b questions allow me to surpass the 19K yearly cap? Posted: 02 Apr 2019 10:25 AM PDT I feel my journey to FI is really a journey into learning about how to maximize tax advantaged savings. I recently learned it is possible to do this by having more than one 403b. I have a full time job where I am maxing out my 403b, and I have a teaching job at another school that also offers a 403b. Neither 403b has any matching. Whitecoat investor says you can contribute more than the 19K max if you are self employed because you get to put in the employer part too. Motely fool says "You can treat contributions to an individual 401(k) as nonelective (employer) contributions, so even if you've contributed the $18,000 maximum to an employer's 401(k), you could still contribute up to $53,000 to your individual 401(k) as a nonelective contribution. " If I start the a 403b at the second school, will I be able to contribute more than the max which I am already putting in at my full time job? [link] [comments]  |
| Graph: 10 years of spending and income Posted: 02 Apr 2019 09:24 AM PDT In 2009 I started tracking my spending. Even in college in the early 2000s I told friends I wanted to live frugally and retire young so I could focus on my hobbies. FIRE'd as a single guy in my mid-30's due to health reasons; otherwise I probably would have worked about 5 more years. (Keep in mind that my income taxes are for the income earned in the previous year. It's federal + state + FICA) [link] [comments]  |
| Posted: 02 Apr 2019 01:58 PM PDT Hi all, I believe that almost everybody there has a spreadsheet, where you track income, expenses, net worth, savings rate etc. My question is, which parameters do you track and which charts do you have in your sheet? If you could show pictures of your charts, that would be beneficial. I am looking for ideas to enrich my file and enhance my tracking process, in order to achieve FI faster. Thank you in advance! [link] [comments]  |
| What Would You Pay a Financial Advisor For? Posted: 02 Apr 2019 12:08 PM PDT I'm interested in working towards becoming a Financial Adviser (on the side, at least initially) specifically catering to the needs of the FIRE community (which I am a part of myself.) As first look, this probably seems like a bad idea since this is a group of people that are among the most skeptical of financial advisers, but I'd like to think that the right structure and expertise could get through, and provide a lot of value this niche. That said, I need some help knowing how this might work and what areas to specialize in:
[link] [comments]  |
| Posted: 01 Apr 2019 05:17 PM PDT Hello FIRE community- I'm a long time lurker and wanted to first thank everyone for the encouraging words and helpful advice throughout the years. One issue I keep running into while on this journey is reconciling how to FIRE with KIDS! Growing up I've always wanted to have a big family and kids are an important part of my long term plans. Would love to hear how you've planned for the cost of child care and education/enrichment programs knowing full well that having kids is almost like taking out a 2nd mortgage. Are there any tools/apps that you recommend? [link] [comments]  |
| Posted: 02 Apr 2019 12:17 PM PDT When computing your monthly or weekly withdrawal rate are you going with the simple 4%/12 (.3333%) and 4%/52 (0.7692%) or are you doing the more accurate (1+r)1/12-1 formula to convert APR to monthly/weekly rates? For example .327374% monthly and .075453% weekly withdrawal rates? [link] [comments]  |
| Posted: 02 Apr 2019 08:09 AM PDT I stupidly contributed after-tax money to my traditional IRA. My income is beyond the cutoff, so no benefit to my taxes this year (the point in this). I don't need to access this money before I'm 60, but would have preferred the flexibility and relative liquidity. I've researched my options and there are two:
Is is unclear to me why one option is better than the other for after-tax money that I won't touch until I'm 60. [link] [comments]  |
| Budget spreadsheets from net or gross income? Posted: 02 Apr 2019 07:51 AM PDT New here - first became aware of FIRE around 6 months ago, first thought pursuing it might be possible for me around 2 months ago. I've been using u/WhiskeySauer's budget spreadsheet that was shared through this forum. I'm paying into a pension (I put in 7.25% gross income, and my employer puts it 7.5%). FWIW I won't be vested for 2 more years, and I have another pension fund with some funds in it from my time as a public employee in a different position. Once I become vested, I'll be eligible to draw from both pensions in the form of a Combined Service Annuity. How should I account for these pension contributions when I'm thinking about my income and retirement savings? Do I work from gross income? Some other way I haven't thought of? [link] [comments]  |
| Only 403(b) option is with AXA Posted: 02 Apr 2019 04:57 AM PDT TLDR: Now girlfriend/potentially wife has shitty retirement accounts at work. What's the best strategy if we get married? Edit: Just to be clear, this is in the context of FIRE, I'm in my late 30s w/ and on track to be FI in ~15 years. I currently max out all my available tax advantaged accounts and put everything else in a low-cost brokerage. My girlfriend and I have been talking about getting married and as part of that discussion we reviewed our finances together last weekend. She's a teacher and has a pension plan through her union. She also has a 403(b) with AXA. Her school does not match contributions. The fees are just stupid high. There's a 1% management fee along with funds with expense rations ranging from 0,59% for index funds to 1.2% for bond funds. To make matters worse there's a 5% fee for funds withdrawn in the first 5 years. For those who aren't familiar with AXA there's a nice write up in the times: https://www.nytimes.com/2016/10/27/your-money/403-b-retirement-plans-teachers-brokers-fees.html I told her about Vanguard and Fidelity and how she can get the same funds there for a tenth of the cost and no yearly fee. Her income is low enough that she can make tax deductible contributions to a traditional IRA. Short term her plan is to stop contributing to the 403(b) and put the same dollar amount into a traditional IRA. If we get married my income and our overall savings rates are high enough that we can easily fully fund my employer sponsored accounts and max out a backdoor Roth. My question is what to do next? Is it worth it to put money into an expensive tax advantaged account once all the lower cost options have been exhausted? My thinking is that it's probably not if our retirement date is more than 10-15 years out. The additional fees will end up being more than then the dividend and capital gains taxes if we just put that money into a taxable account. [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