Financial Independence With S&P500 at all time highs, it's good to revisit whether you should invest now or wait till the market cools

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• With S&P500 at all time highs, it's good to revisit whether you should invest now or wait till the market cools
• "You can't go back and change the beginning, but you can start where you are and change the ending" - C.S. Lewis
• Throwaway Account. Just hit $500k net worth. Don't talk to anyone about my finances so wanted to share my journey
• How has r/financialindependence changed your life?
• Daily FI discussion thread - April 30, 2019
• Making more money than ever but more anxious too
• Reverse Mortgage Thoughts?
• People that are already Fire, how do you account for a bear market and do you keep withdrawing the same amount even in a down market?
• Income Side Hustles Ideas
• How Does A Looming Recession Affect Your FIRE?

With S&P500 at all time highs, it's good to revisit whether you should invest now or wait till the market cools Posted: 30 Apr 2019 10:19 AM PDT The answer based on historical data is you should invest now. Here is an image to look at:https://imgur.com/PL9tyrP The above graph looks at the distribution of 5-year returns after the market has reached an all-time-high (using daily SP500 data from 1950 to 2019) and comparing that with 5-year returns for every single day in the market. The point of the graph is to show that the returns for all-time-highs are not significantly lower than average market returns (and in some cases, like the 5 year case) actually have a higher mean return than the average market day case. The takeaway is that you don't know what the market will do on a daily basis, but historically it's mostly gone up, and it doesn't really matter which day you start investing or put that lump sum into the market. (Of course you can pick out a specific case where that isn't true, but without knowing what that is before-hand, you should just invest). submitted by /u/EngagingData [link] [comments]

"You can't go back and change the beginning, but you can start where you are and change the ending" - C.S. Lewis Posted: 29 Apr 2019 11:21 PM PDT (edit) omg my first gold! Thank you!!! Made my day. submitted by /u/ScreamxWorks [link] [comments]

Throwaway Account. Just hit $500k net worth. Don't talk to anyone about my finances so wanted to share my journey Posted: 30 Apr 2019 01:07 PM PDT Like a lot of FIRE members, I track my finances and spending religiously, and have been keeping a detailed spreadsheet since I graduated college in May 2012. I don't talk to anyone about money for personal reasons, and after hitting this milestone, I wanted to share it with the community, half because I'm proud of the accomplishment, and half in case anyone benefits from my case. Feel free to ask me anything. ​ Below is my financial data. ​ A few things to note: I started out at an ad agency in June 2012 making $33k/year, and after a year left for a job in tech sales which significantly raised my income. I got married in 2016 but we keep our finances separate (at least to date). We do however file jointly so the income starting in 2016 reflects both incomes. My wife makes about $60k/year. I started a side e-commerce business in 2017 that generates an additional $40k/year now. This has helped my savings rate. I include "stuff" in my net worth. When I buy something that has a resale value, I immediately depreciate it to about 60% of what I bought it for, and then continue to depreciate it over time. Biggest "stuff" contributors are my wife's wedding ring and a drift boat. But I'll even list things like my GoPro7 for $150, which I know I could sell on Craigslist tomorrow for that price. ​ Learnings I realize this is complete common sense, but a high income is important. Because I didn't have the degree for a specialized role in Medicine/Law, etc, I quickly saw the light and went into sales, which provided the ability to make good money in commissions if I worked hard. I've saved money almost every month, which has kept my enthusiasm going over the long run. If I had a big purchase to make, I'd wait to do it in a month where I would get a big commission check, so it would still show green in the monthly change column. I've made a lot of mistakes but still have managed to do ok. Don't get down on yourself for not doing it perfectly by the book. I should have started contributing to my 401k WAY earlier. I should have invested my money WAY earlier and left it in there, instead of my checkings. I would also actively trade stocks, which I regret. Should have just bought and held. I tend to obsess over it though, so I've instead been looking more towards real-estate, which is less volatile and easier on my psyche. We spend a lot of money, about $9,500/month and have been for the last 3 years. It blows my mind. But we live in a very HCOL area, take vacations, eat out a few times per week, and enjoy ourselves. Instead of focusing on my spending, I try to focus on my savings. And as long as my savings is around 50% of my take home, I'm ok with the rest. ​ Monthly Finance Tracking (you have to enlarge the photo to see it for some reason): https://imgur.com/L3fatzc Income vs Spending over Time: https://imgur.com/W2FojM1 Net Worth and Cash on Hand over time: https://imgur.com/LIapQ4M ​ I've found this monthly tracking exercise to be very valuable. I'm now highly conscious with my financial decisions, look forward to the end of the month where I can compile the month's data, and become very intentional with trying to grow my net worth--which I view as a side effect of smart PF behavior and a vehicle to not have to work forever. submitted by /u/pf_throwaway_500k [link] [comments]

How has r/financialindependence changed your life? Posted: 30 Apr 2019 08:33 AM PDT This sub has been around for a few years now and has achieved many milestones along the way, one of which was recently surpassing 500k members. It won't be long until the sub reaches 1M members - wow! As I reflect on my time in this sub, I realized that this place has changed my life for the better. Prior to this sub, I was very tunnel visioned on achieving one specific goal (e.g. buying a home) while neglecting other aspects of achieving financial independence (e.g. maxing out retirement accounts, opening up and funding a brokerage account, etc.). Since being on this sub, I have maxed out my 2018 and 2019 Roth IRA accounts, I am working towards maxing out my 401k account for the first time this year, and I finally opened up a taxable brokerage account - all while continuing to save for my personal goal of buying a home. If it weren't for this sub, I'm very confident that I wouldn't be optimizing my potential to reach FI. But more than just this, one of the most beautiful and worthwhile things this community helped me realize on my path to pursuing FI is that I have options: Want to focus on retiring early by aggressively investing? sure, let's do it. Want to prioritize buying a home and momentarily neglect investing? sure, why not. Want to do a hybrid of both? okay! Want to take a 15% pay cut to explore a career field I'm highly interested in? let's try it. I could literally go on and on. But this sub has been instrumental in helping me realize my worth, potential, and what's achievable, and for that I'm VERY grateful. ​ So I turn the question to you guys, how has this sub changed your life? submitted by /u/EndlessEvolution [link] [comments]

Daily FI discussion thread - April 30, 2019 Posted: 30 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. submitted by /u/AutoModerator [link] [comments]

Making more money than ever but more anxious too Posted: 29 Apr 2019 06:25 PM PDT I'm 32 and have been thinking about the FIRE movement for a while, trying to save money and be frugal - but not to an extreme point. ​ We have saved around 500k CAD and I'm now making 150k a year but I'm more anxious about money than ever before and am wondering if/when I could just FIRE already and stop thinking about money. We have a 2 year old and another baby on the way which sets that back but I just want to live a simple life where very little is required. ​ Has anyone realized they were thinking about FIRE just because they were stressed about money? And realized it only got worse the more they were making? submitted by /u/SureStorm [link] [comments]

Reverse Mortgage Thoughts? Posted: 30 Apr 2019 02:43 PM PDT What is everyone's thoughts on reverse mortgages? Seems to me, once you make it to a certain age, and IF you don't have children, a reverse mortgage might make a lot of sense, but most of the things I read about this financial tool seem to be negative. My thought is, if you aren't passing your house on, then why not take the equity out of it to use toward the end of your life to advance your standard of living while you're here, because after you're gone, it dies with you. What am I missing? submitted by /u/critter2482 [link] [comments]

People that are already Fire, how do you account for a bear market and do you keep withdrawing the same amount even in a down market? Posted: 30 Apr 2019 11:38 AM PDT submitted by /u/sisonp [link] [comments]

Income Side Hustles Ideas Posted: 30 Apr 2019 01:53 PM PDT Hey guys, I'm 22years and have started investing for a year now. As I grow older I've been looking at ways to pour more money in my portfolio by flipping things such as buying stuff from China and selling it at a profit locally. I was just wondering what hustles do you guys do to increase your income? submitted by /u/Deku_115 [link] [comments]

How Does A Looming Recession Affect Your FIRE? Posted: 29 Apr 2019 06:47 PM PDT Been a lurker awhile here. Been on my FI journey for about 6 months. 27 yo with a house I bought a year ago. Put 5% (not my wisest decision), but the area is appreciating like no other. Because I've really just started making good money, I've been creeping up my Roth, 401k and regular brokerage contributions. Given that all signs historically are pointing to a looming recession (not 2008 bad based on my research) but still a downturn. Given my newness to FI, I know the trick is to never stop investing. The DCA will average the peaks and valleys over time. I'm also trying to stock up some extra cash reserves and improve my credit so that when the time comes I'm both educated and have cash to maybe dip into real estate. Are there any recommendations or tips to help prep for a recession other than the above that I'm missing? submitted by /u/Beer_Belly_Bill [link] [comments]

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