Financial Independence I have achieved poverty FIRE. |
- I have achieved poverty FIRE.
- I FIRED! at age 45. 1.5m
- [Discussion] Low Cost-of-Living Cities seems to have less things to do and be less 'fun'. How did you deal with this when making your move from a High Cost-of-Living City?
- State taxes for FIRE (updated for 2018)
- Daily FI discussion thread - April 23, 2019
- RE and FIRE
- Thank you all - $700k NW. 95% equities.
- Costs of healthcare for FIRE
- $2m to invest for retirement. Looking for feedback.
- Staying in HCOL after FIRE
- Married FIRE couples: Early withdrawal strategies and joint finances vs. separate finances
- Cost of raising a child?
- Can someone please explain SWR to me?!
- Is anyone doing this with children?
- Relationships where you're post-FIRE and SO is not
- Need help calculating my future social security benefit
- Reddit vs Discord vs Slack-Usage models
| Posted: 23 Apr 2019 07:23 AM PDT In 2018 the US the poverty level for a single individual was $12,140. With a 4% SWR that means if you have $303,500 in savings/investments then you're essentially set to live the rest of your life at the poverty level. I do not think it's realistic for anyone to actually "poverty FIRE" as you're very much at the mercy of the markets at that point and living at the poverty level can't be very fun. But I think it does make for an interesting "milestone" to reach/aim for. I'm not interested in providing specific numbers or details about myself because I thought of this as more of a discussion than an actual brag post. So has anyone else reached this milestone without realizing it? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 23 Apr 2019 08:13 AM PDT So lately work has been a bigger source of stress for me than normal. There are a lot of reasons for it, some of which may have been self inflicted. [ I have never been good at office politics. ] I don't have a 6 figure job, but I have invested small amounts for a long period of time and made the most of the windfalls that have come my way. I decided to take a vacation and during that time I did some math. My current NW is at about 1.5Mil. My expenses averaged out for the last five years have been about 24k a year. [I killed the mortgage a while back and that helped a ton!] My highest expense year was last year at 38k but I did a lot of work on the house and had some unusual and hopefully one time medical bills. I have no debt. So between my savings and my investments it looks like I should be able to support myself for the foreseeable future! When my vacation was over I went back and spoke to my manager and let them know I was going to retire early! They were a bit surprised but no hard feeling and I have turned in my resignation! I am officially FIRE! [edit for spelling correction] [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 23 Apr 2019 02:27 AM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| State taxes for FIRE (updated for 2018) Posted: 23 Apr 2019 04:09 AM PDT I did this a couple years ago and figured it was time for an update, particularly with the new federal tax law. Briefly, I used TurboTax 2018 to simulate the income tax situation for a typical FIRE couple, married filing jointly with no children. They realized $24,000 of Roth conversions plus $77,200 of long-term capital gains for an adjusted gross income of $101,200, but a federal tax liability of $0. I went through all 50 states plus D.C. and determined the state and local income tax liability. I also got property and general sales tax data from the Tax Foundation here. For property tax I multiplied the per capita amount by the average number of people per household in that state, so it should roughly give the average property tax paid per home. For sales tax I multiplied the per capita amount by 2 for a couple.
(a) no state income tax (b) $3,204 state income tax + $1,488 county income tax (using county rate of 1.5%, roughly population-weighted average) (c) $4,238 state income tax + $2,709 local income tax (using local rate of 3.0%, roughly population-weighted average) (d) would be $3,985, but Nebraska state income tax cannot exceed federal income tax ($0) (e) state income tax on interest and dividends only Keep in mind with the Affordable Care Act, realizing this amount of capital gains would put you well over 400% of the federal poverty line, and thus ineligible for health insurance premium subsidies. So for many this strategy won't make as much sense as it once did, but I think the results are still informative. EDIT: Map courtesy of /u/isucorvette. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Daily FI discussion thread - April 23, 2019 Posted: 23 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: 23 Apr 2019 03:10 PM PDT Having some fomo lately for not owning any rental property. Well, I do have an investment into a commercial property (4% of total invested) - but nothing besides that. What I'm reading online and acquaintances seem to suggest that I am being dumb for not owning properties. In terms of numbers, the amount I have invested today (mostly in a broad index but also includes REITs) is 30 times annual expenses. Am late 30s and plan to work for at least a couple more years. No kids yet but plan on having one in a year or two. What do you think? Part of me thinks I shouldn't bother with properties given I am already close to FIRE and don't need leverage to get there. Another part thinks I'm leaving a lot of wealth creation at the table. A relevant piece of information is that I have zero knowledge about how to select or manage properties. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Thank you all - $700k NW. 95% equities. Posted: 23 Apr 2019 05:19 AM PDT Started trolling this sub about a year ago and I've learned a shit ton. I pull numbers once a year or so and we just pulled them for 2019. My partner and I both 31 with a child. Rough Assets as followed Equity - $80,000 (conservative) Retirement- $460,000 Brokerage - $105,000 Cash - $50,000 We are about a quarter of the way to FI/fatFIRE. My question to the community would be, we have healthy retirement accounts but our brokerage accounts are rather light in comparison. And the brokerage accounts would be what we need to live on before retirement accounts are penalty free. Should we lower our retirement contributions and increase the brokerage accounts? Or should we continue to invest as we currently do in hopes that in 10 years our brokerage account will be sufficient? Currently weighted 95%+ equities. Thanks everyone for getting this goal in front of us. My partner hates when I share Reddits to them weekly about it. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 23 Apr 2019 01:11 PM PDT Hi, I've been following this sub with interest and have a question regarding healthcare costs. A lot of the advice mentions healthcare costs are quite a big burden after retirement and they increase as you get older. As I'm based in the UK this (currently!) won't affect me so wondered what proportion of your annual withdrawal % would this be? I'm trying to take this out of my calculations to see what my target should be but seems pointless if it's only something like 5% annually. Hopefully not a ridiculous question Cheers! [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $2m to invest for retirement. Looking for feedback. Posted: 23 Apr 2019 03:12 PM PDT I'm currently in the process of selling a business and the property it sits on which will net me around $2M post tax. This will be completed within a few weeks. In the meantime, I've been in contact with multiple financial advisors in different banks to get advice since I'm looking for places to invest at least 1.5-1.8m. My goal is to create a 'relatively' safe and passive income stream for early retirement. A lot of these advisors as well as my accountant were recommending real estate investments for my needs. I don't know much about real estate but they were basically telling me index funds and other safe funds wouldn't produce the income I am looking for. I contacted a few different real estate brokerages in my city, told them what I'm willing to invest and they got back to me with a couple of deals. They were all commercial real estate deals ranging in the $6-8 million range. I was most attracted to an apartment complex that was priced at $7,000,000 and required $1.57m for the downpayment. The complex would generate an annual net income of $480k NOI with a cashflow of $125k after all expenses, management, taxes, vacancy, capEX, Super etc... I have all the documents spanning back to 1998 when the owner bought the property. The building NOI as been increasing consistently, during 2008 it went down by a bit but still managed to be cashflow positive. The property is projected to be worth 11 million by the time the mortgage would be paid off. Another choice. If I put my $1.57 million in an index fund, I would have around $5-6m in 20 years?. A SWR of 4% would give me an annual income on $62,000 which will be taxed. The index fund is definitely a lot safer and no worries about a $5.5m debt, but the real estate investment also seems really safe and generates a much better income. I'd love to hear you're feedback on this plan. [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 23 Apr 2019 09:52 AM PDT Is this something anyone here is interested in? I've lived in a HCOL area my whole life and I'm not sure how I feel about moving in retirement. All of my family and my wife's family live here too. I like living here. What do you guys think? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Married FIRE couples: Early withdrawal strategies and joint finances vs. separate finances Posted: 23 Apr 2019 09:15 AM PDT So I was thinking about how marriage affects FIRE withdrawal strategies today. A couple questions came to mind that I'd like to get the hivemind's input on.
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| Posted: 23 Apr 2019 01:52 PM PDT Hi FI/RE folks, Been lurking on this subreddit a while and was curious what people's perspectives/estimates are on the cost of raising a child. According to this link: https://www.fidelity.com/viewpoints/personal-finance/managing-costs-raising-child The cost seems to be $233k for raising a child (in a medium income bracket) to $372k (in a high income bracket) to the age of 17 or about $13k-21k/year. Is this a reasonable estimate at all? Assuming I have a child, I'd maybe want to hit the middle of that number (giving them as many experiences/opportunities as possible). That would mean the cost of raising a child would be ~$17k/year raising my required SWR? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Can someone please explain SWR to me?! Posted: 23 Apr 2019 11:27 AM PDT Sorry for formatting I'm on mobile! I've been reading into financial independence a bit lately but there is something I still don't understand and I never get a real answer about. SWR (if I'm correct) stands for Safe Withdrawal Rate. I see people mentioning that they can withdraw at that rate for the rest of their lives but I'm having trouble understanding the idea. Does that mean if I am 25 years old and I have 1 million dollars, I can withdraw $40k a year for the rest of my life even if I live to be 95? Is it because investments are expected to return this 4% at a minimum? What if the market crashes? Do I just skip the withdrawal for a couple of years expecting a rebound? So much confusion behind this simple topic! Thanks in advance!! [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Is anyone doing this with children? Posted: 23 Apr 2019 09:16 AM PDT I'm wondering if anyone has planned to FIRE with children? How do children factor in to the math, do you normally have to add 500k to your bag for college, etc? (I know everybody is different, just looking for examples.) [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Relationships where you're post-FIRE and SO is not Posted: 23 Apr 2019 09:37 AM PDT I've seen a lot of threads about dating and financial independence, and most of them seem to be about people's impressions of you, and finding people with similar goals. But I'm experiencing a different issue. I'm 31, and retired, living off an easy rental property and investments. My recent girlfriend of 3 months, however, is not. She works 40 hours per week as a veterinary lab technician. And she works 4 days of 10 hours each, getting up at 5 AM on work days, so she feels really drained after them. It can be difficult when I just have way more free time and energy than her. There've been times when I wanted to see her and hang out, but she had to use her limited free time to get taxes down, and other chores. Just last night I was quite dissapointed when she canceled within the last hour on some swing dancing lessons we were going to. Traffic was bad for her, and she said she was just too tired and wasn't feeling it. I'd organized my whole afternoon around her coming over first, cooking a meal for two and all. Has anyone else had problems with this? Any advice? Should one person in a relationship be expected to sacrifice more time when they have way more of it, acting a bit like a house-wife/husband? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Need help calculating my future social security benefit Posted: 23 Apr 2019 07:27 AM PDT I have a long-term financial model built in Excel that projects the rest of my finances for each month of the rest of my life. My social security estimate is added in to my income at retirement. Problem is I'm getting vastly different numbers from the two calculators I'm using: 1) https://www.ssa.gov/planners/retire/AnypiaApplet.html 2) https://socialsecurity.tools/ Using the same inputs, socialsecurity.tools projects about $800 more per month for my social security benefit, which has a huge effect on my future projections. Anybody know how I can reconcile this? [link] [comments]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reddit vs Discord vs Slack-Usage models Posted: 23 Apr 2019 06:49 AM PDT I just found out there is a discord group and a slack channel that relate to FIRE. The communities seems to have a fair amount of user overlap. What do people use each platform for? Why be active on all 3? Am I missing something if I only use reddit? I've never used slack before and I just signed up for discord last week, because my sports subs moved. I don't know how to use either and wondering if I need to learn. Thoughts? [link] [comments]  |
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