Financial Independence UPDATE: I’m about to resign |
- UPDATE: I’m about to resign
- How are you teaching your kids to have a good understanding of money/savings/financial awareness?
- FI without RE (yet)
- Too much time and too much money
- Heath Kirchart's Guide to Life Post-Skateboarding (aka Retirement in Financial Independence)
- Crunched the numbers. I can retire in 8 years and have a regular income for the rest of my life, and will be living within my means.
- Daily FI discussion thread - April 25, 2019
- FIRE to Hawai'i, house-hack, rental unit in Midwest, $3MM -- would you do this?
- Getting a master's degree or join the family business
- FIRE "Starting from Turkey"
- Will I regret scaling back income while kids are young?
- Sidebar Calculator
- Tax Advantaged Savings for W-2 Earner and Self-Employed Spouse
- Backdoor Roth/ Non Deductible IRA question
- The Meaning of BaristaFIRE
| Posted: 25 Apr 2019 09:10 AM PDT Today was the big day. And it went significantly better than I had anticipated! I informed my line manager that I would like to leave the industry to pursue another career. He was incredibly supportive, and said it didn't come as a huge surprise to him (apparently I don't have a great poker face!). He's encouraged me to look for other roles, and is open to me remaining in my position until I find something else. He even gave me some helpful advice based on my interests & skillset. I haven't quite picked my jaw up off the floor yet, but suffice to say I'm a happy bunny. Now begins my search...! I'll update you all once I figure out my next steps, wish me luck :) [link] [comments]  |
| How are you teaching your kids to have a good understanding of money/savings/financial awareness? Posted: 25 Apr 2019 04:49 AM PDT Not strictly FIRE related maybe, but I figure this board is full of people who actively consider their finances on a regular basis and I want to bring up my kids to be aware of financial planning whilst they are young and teach them it's an important thing to bear in mind. Hopefully that way when they become adults money won't be a huge mystery to them that they have to learn to navigate. So about us - family where I have FIREd, my husband is able to RE but chooses to keep working as he enjoys it. Kids are 9 and 5. Financially we are now very comfortable and have zero money worries. Both kids have healthy savings accounts that we pay into monthly to cover the cost of university/first house deposit/early adult life. Kids don't really know about these accounts. Recently my 9 year old asked if she could get pocket money (as a lot of her friends get it) so we now give them both a set amount of money every week. We thought about it and decided we would give them more pocket money than their peers but on the understanding that we would no longer buy them toys/slime/trinkets - if they want a Lego set they have to buy it themselves. We also opened up kids bank accounts for them, that some of their pocket money has to go into every week and they get sent paper bank statements once a month where they can track their balance and (much to my daughter's delight) learn about interest paid on savings. Our rules are that they have to spend some, they have to save some and they have to give some away (I think charitable giving is a good habit to learn, plus I want them to be slightly aware that not everyone is necessarily as fortunate or privileged as they are.) My daughter is fascinated by watching her savings grow, my son is maybe a bit too young to understand money and has the impulse control of a 5 year old - although he's learning that if he saves some of his money regularly it means that he can buy new Transformers every couple of weeks. Is there anything you wished your parents had taught you about money, or other things we should also be considering? [link] [comments]  |
| Posted: 25 Apr 2019 10:54 AM PDT Long time reader first time poster... TLDR: Hit FI and just wanting to chat. My wife and I just technically hit FI (or close enough to it), sitting at 25x our current expenses saved (we spend ~$50k/year in a MCOL city if you're looking for an idea). Holy shit it feels liberating (we don't talk to anybody else about it in our day-to-day lives). We are dual income in our early 30s and have our first kid on the way. So with our own expenses covered, we do plan to keep working for the time being for a couple reasons:
I guess I'm posting since I just wanted to talk to some like-minded people about it... anybody doing option #2? I hear a lot more talk about "Barista FI" or something of that nature rather than what I'm proposing... I'm not sure why anybody would want to go work a minimum wage job until old age rather than spend a few more years in their high paying salaried position with presumably more engaging work to be doing. I didn't put specifics in since I'm not trying to share advice or anything, but if you're curious about anything feel free to ask. [link] [comments]  |
| Too much time and too much money Posted: 25 Apr 2019 03:40 PM PDT I FIREd three years ago and sharing my experience and thoughts anonymously. I was elated to retire in my mid-50s and felt myself lucky to do so. However, I enjoyed my job and found my work fulfilling. I did not like my bosses at a couple jobs but I left those jobs fairly quickly. The bad bosses micromanaged and were deceitful. The majority of my bosses were honest and trusted me to manage tasks and other employees after their clear explanations of goals and expectations. My last boss before I retired was among the better ones I've had. Anyway, due to several decades of contributions to 401Ks and IRAs and employer matches and mostly investing in index funds as well as making good decisions in real estate purchases I retired about 3 years ago. For the most part I am happy but I made the mistake of not planning for what I should do to find fulfilling in retirement. It is nice to have the freedom to basically do whatever I want and whenever I want to but I miss that now I am not contributing to improving the world as a member of the current economy. Living off income from stock investments is not improving the world IMHO. I can imagine that that last statement will offend some people. However, my jobs were all in technology and retirement is kind of boring compared to that. My advice is don't focus entirely on finances also plan on what you will find fulfilling in retirement. [link] [comments]  |
| Heath Kirchart's Guide to Life Post-Skateboarding (aka Retirement in Financial Independence) Posted: 25 Apr 2019 07:41 AM PDT I know the title sounds misleading but give it a read. The last "job" is what will make it click for you. Enjoy! https://www.vice.com/en_us/article/7xkpeb/heath-kircharts-guide-to-life-post-skateboarding [link] [comments]  |
| Posted: 25 Apr 2019 03:17 PM PDT I have 8 years remaining in my state job. When I retire at age 51, I will receive $4261.20 a month for the rest of my life. I have 80K in a Roth IRA and 35K in money market accounts, CDs, and savings. I expect to have 124K in the Roth IRA by my retirement date in 2027. I will owe less than 100K on my house when I retire. My house is the only debt I have. Therefore upon retirement, I can use $4261.20 to pay my mortgage and utilities and still have plenty left over. None of this FIRE plan includes my fiance's income. She is nearly half way through her doctoral studies. When she completes her Phd, she will contribute to the household bills and mortgage. Some days I really dislike my state job and the extent that I am frugal. Other days I look at how the numbers work out for me and I'm grateful for my discipline with money. Any suggestions on how I can get the money that's in money market accounts and savings to work harder for me? I've positioned myself in a secure place where I'm okay with having that much cushion and like to keep an emergency fund. The savings accounts are Capital One and Marcus so they're earning okay. [link] [comments]  |
| Daily FI discussion thread - April 25, 2019 Posted: 25 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]  |
| FIRE to Hawai'i, house-hack, rental unit in Midwest, $3MM -- would you do this? Posted: 25 Apr 2019 11:46 AM PDT Ladies & Gents -- our net worth recently eclipsed the $3MM mark thanks to the raging bull (& years of grinding away, of course). $2.9MM not counting small amount in townhome. Our FI number was $2.5MM but we have breezed past it & I haven't been able to tear myself away from the corporate grind. This resistance, I am happy to report, is on the verge of ending. Here's the scenario -- we love Hawai'i, specifically the Big Island. We would like to move there while we can enjoy the outdoor activities (hiking especially). We have visited many times and know this is the spot for us. Will it be forever? Likely not, as it isn't for many -- medical care leaves a lot to be desired. I am 46 and she is 37. We have no kids. Assets are split fairly evenly between taxable & tax advantaged -- taxable a little heavier. At 65 I will have a $19K, non-COLA, pension. I do not count on social security for either of us. Our annual spend is $85k (we like to travel) & it will rise to 90 or 95 in the islands. We have a townhome in the Midwest ($225K left on mortgage) which we can rent and it will cashflow $400/month. Here's the rub -- the Hawai'i home we have identified is $860K. I understand SOR risk. Thus, it is daunting to carry a new, fat mortgage into FIRE -- therefore, I am looking to put down $300-400k to lighten cashflow needs (& perhaps not fall off of the ACA cliff). The Hawai'i home has a self contained rental unit with its own lanai and ocean view. I believe it will rent for $1500 to $1700 a month -- or it could be an Air BnB juggernaut with some effort. Part of me, the ultra-conservative who diligently saved/invested for 25 years to amass what we have, believes we should stay in the Midwest and simply take extended trips (house sitting across the globe, RV trips across US, etc). The dreamer in me wants to experience the island lifestyle and make a go of it over there; my wife feels the same. *If the opportunity presents itself, I am totally open to working again in the right situation. It will not be within the confines of a corporation -- no way in hell. If I can control the hours and stress levels then working is still on the table. Thanks for any input or suggestions for our prospective plan. [link] [comments]  |
| Getting a master's degree or join the family business Posted: 25 Apr 2019 03:02 PM PDT Hi Y'all, first time poster long time lurker. So I'm about to graduate university with a Bachelors in computers and I got accepted into a top tier university to do a Master's degree in business management. The issue is that if I do the masters degree ,im sure i'll learn a lot, but it'll double my student loan (and asking my dad to pay for it is a hard no from my side) . Another thing is that I can see how stressed my dad is from work and I just feel like its my time to learn the ups and downs of the business, hopefully improve it and also take the stress off my dad's shoulders. I know that I can't just jump into the business and expect to do great and all, but I think that with time i'll better understand the business, help my dad and also pursue my own goals at the same time. From my parents' perspective, they both suggest that I should continue and do my master's degree, but to be honest Im lost right now and Im not sure how I can head in the right direction. So my question is what would be the best path? Is it to continue and do my Master's and double my student debt and then work with my family or should I just join the family business and not do a Master's degree? [link] [comments]  |
| Posted: 25 Apr 2019 03:10 AM PDT I don't know how it works outside of Turkey. But i hate retirement system in Turkey Minimum wage is is 2200~TL (350-400)USD but also your employer or You (assuming you are self-employed)put 500-600TL in your Retirement "account" so MINIMUM Wage is 2800~ They way it works people put that money each month as it counts to your days for money given. Basically people are paying Right now goes for Retired people And receives "money point" and "days" I hate it. Just because the money is un-cashable and you can't invest with it. It's illegal to not have an retirement plan like this and Work. (Banks or Government plan) I just want to put my money in a bank and Claim My FIRE that way. I plan on working in other countries as well. How does your 401k Works? I know While calculating your net worth it counts But is it Cashable at any point? (I'm not talking about difficulties of making money Cashable through bank) [link] [comments]  |
| Will I regret scaling back income while kids are young? Posted: 25 Apr 2019 10:09 AM PDT Specific Question(s): I am spilling my guts below hoping someone might be able to give me some deep thoughts. I am considering quitting my current job which is earning my close to $100K with all the fully-employed benefits and perks to take a part-time option where I would work remotely and seasonally. I would approximately cut my income in half to $50-60K and work half of the year. The intention is to 1) spend more time with my child 2) decrease commute of 2 hours/day, 3) decrease stress , 4) have more flexibility to grow family more, 5) still bring in some money and not do the total SAHM route. Hopefully this is a balance that will help me stay valuable to the workforce so I can leave my options open. The Cons are that I'd be dropping my income like a rock and I don't have a lot of levers to pull to decrease expenses ratably. Daycare would stay in play because with a seasonal job, I'd still need daycare. So we'd be able to cover all of our expenses, but Savings Rate would decrease and Retirement would be pushed out. Career-wise, it does suck to leave my job and take a step-back, but I'm kind of over that too and feel that when the time is right (school-age kids), I could easily ramp-up and get back in the game. My HEART wants to do it, go for it and take the risk. My BRAIN knows that I'm giving up a huge cashflow that I have gotten very used to. Mathematically I think that the difference in actual take-home pay would be about $20-25K annually after the decreases in income tax. Will I look back in 10 years and wish I had that extra $25K x 10 for College funds, etc etc or look back and think "wow I'm so glad I just chilled out and spent some quality time with my babies and family" ???? Life Situation: Early 30's, Married Couple, both working (1 spouse full-time, 1 spouse 80% which is really full-time), 1 child so far hoping for 1 or 2 more FIRE Progress: FIRE net worth if I remove the house and retirement assets is only $185K. Annual spend ~70K x 25 = 1.75M, so I guess only about 10% there? Gross Salary/Wages: About 100K each for total of 200K Yearly Savings Amounts: 2018 Savings rate was 49% calculated by total savings from 401K, Roth IRAs, Brokerage accounts and cash additions (75K) divided by gross income less all taxes withheld. Current expenses: 2018 Expenses were about $72K. $31K of this was our House. ($15K principal) We have 15 year loans and high property taxes ($10K/year on a $365K house). Only $5K of daycare because we get family help. Assets: Approximately $180K in liquid cash, stocks, etc. $300K in retirement accounts. $80K in home equity. Liabilities: Only liability is our home. Remaining $265K due. Started at 300K. Monthly payment is about $1,700. [link] [comments]  |
| Posted: 25 Apr 2019 03:29 PM PDT So i just used the FIRE calculator on the sidebar after posting about where to start. I input my numbers and it shows that i can retire in 16 years. I am 24 years old. With that being said, how can i retire at that age with those expenses (along with how muh i would be saving and the money i put into my investments) that i have put in? Will i have to take out a certain percentage from my investments each month to pay off my monthly expense? Edit 1: I apologize for sounding like a noob. I'm kind of new to this FIRE thing and any help or dadice is greatly appreciated. I am confused on the calculator showing i can retire at 40 with the given expense. s [link] [comments]  |
| Tax Advantaged Savings for W-2 Earner and Self-Employed Spouse Posted: 25 Apr 2019 01:04 PM PDT I'm 31 and my spouse is 30, no kids yet, but hopefully soon. I've been doing a W-2 job and earning ~$450K/year (pre-tax) while supporting my spouse through school. We just bought a house, so our savings rate isn't quite where we'd like it to be, but after mortgage and personal expenses we're saving about $200K per year. With our current situation and expected kids, I believe that we're on track to FI in ~10 years. I max out 401(k) and HSA each year and started contributing to IRA for 2018, but income disqualifies us from any tax deductions with the IRA. I'm looking for ways to increase our savings, and now that my spouse is starting to work I think we can find even more ways to save. My spouse just started a single-member LLC last month. There's no income currently, but we expect that there will be some, but not much, income by the end of the year. Are there any other tax-advantaged retirement accounts that my spouse can take advantage of? If so, does income have to come through the business in order to be eligible for the retirement accounts, or can we somehow combine with my W-2 income? Are there other strategies to get a tax advantage in our situation? [link] [comments]  |
| Backdoor Roth/ Non Deductible IRA question Posted: 25 Apr 2019 08:53 AM PDT I made a non deductible IRA contribution in 2018 and would like to convert it to a Roth IRA. My issue is that I have other IRAs and now have a mix of pre and post tax dollars. Should I still convert it and suffer the pro rata rule or is there any problem with leaving the money in my IRA and just letting it grow there knowing I screwed myself on the up front tax benefit? Contribution was 5500 and my other IRAs total about 50k [link] [comments]  |
| Posted: 25 Apr 2019 09:13 AM PDT What does baristaFIRE mean to you? Does it mean needing to work part time to live comfortably or does it mean just working part time because you're bored but are fully financially independent? [link] [comments]  |
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