Financial Independence Daily FI discussion thread - May 29, 2019 |
- Daily FI discussion thread - May 29, 2019
- NYT article about "arrival fallacy" or the illusion that we will automatically be happy once we reach a goal or destination.
- I want to thank this collective subreddit for changing my life
- Is anybody else pursuing FIRE to have a high standard of living, and not to retire early?
- Dual citizenship: FIRE in Europe?
- What does it take to be an independent recruiter?
- Citations Needed podcast: "Frugality Fables and the Poor-Shaming Grift of the Financial Advice Journalism"
- Weekly Self-Promotion Thread - May 29, 2019
- Tactical question for someone near FIRE with an outsized portion of employer stock.
- A Good Dilemma To Have (or why I may be overweight in retirement money)
- Should I take that Job Offer?
- Is real estate investing a part of your FIRE plan? Why or why not?
- Which mortgage to pay off first?
- Want to purchase first rental property
- Roast my rental real estate plan
| Daily FI discussion thread - May 29, 2019 Posted: 29 May 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: 29 May 2019 09:31 AM PDT https://www.nytimes.com/2019/05/28/smarter-living/you-accomplished-something-great-so-now-what.html This article is a good reminder to create the life you want before you retire. Achievement doesn't necessarily equal long term happiness and the article quotes a psychologist as saying that "The No. 1 predictor of happiness . . . is the quality time we spend with people we care about and who care about us. In other words, relationships." [link] [comments]  |
| I want to thank this collective subreddit for changing my life Posted: 29 May 2019 12:32 PM PDT Before discovering this subreddit through a friend I was your typical mid 20's guy. 3 years into my first big boy job, saving money but also enjoying myself going on vacations an the like. Growing up my family was dirt poor (refugees), the only vacation we took was too see family every few years when we'd saved enough. Parents never earned much above minimum wage. So when I graduated from college with a STEM degree and started making decent money I didn't track my finances at all, I figured I deserved to spoil myself after suffering through college while working to pay loans and expenses. My employer didn't match my 401k until after a year so I didn't start contributing 10% until then, but I also bought into the stock purchase plan so I did have some semi decent retirement savings for my age. When I discovered this sub about a month ago i suddenly had a reason to care about my finances. I wasn't just going to autopilot until 65-70 like everyone else, holy shit, retiring early is actually possible! Suddenly I became obsessed. Downloaded mint and started being anal about budgeting and tracking every dollar spent. Loaded up fidelity and figured out exactly what my accounts were, what the numbers meant, and chatted with a few representatives to figure out how everything worked. 401k? Targeted funds? IRA? Expense ratios? Roth conversion ladders? Inflation and withdraw rates? I started consuming information nonstop through this subreddit and other sources, always learning something new and exciting and now I feel like.. why the hell doesn't everyone know about this?? This is amazing! I just sent 6k to my Roth IRA today after learning more about it, it's been empty all this time haha. I never used to give a shit about finances, but the dream of retiring at 45 or 50 had suddenly filled me with a fire. I still splurge sometimes. I financially support my elderly parents, I'm still going to go on vacations. But now.. I have a plan. I have financial goals. I have more investing research to look into. I have a community of like minded individuals I can learn from and contribute to. But most importantly, I'm not ignorant anymore. I'm in control of my finances and I'm aware of where I'm going and exactly what I'm doing. I'm an active participant in my own financial future. So, thank you. [link] [comments]  |
| Is anybody else pursuing FIRE to have a high standard of living, and not to retire early? Posted: 28 May 2019 06:39 PM PDT I know a lot of you guys want to retire in your thirties or forties, but I'm pursuing FIRE to maximize my standard of living. I want to go on opulent vacations to exotic places, have expensive hobbies, have a nice house built on some major acreage, and have kids. It doesn't matter to me if I retire in my mid fifties, I'm totally fine with working for 30 years to maintain a very high standard of living. I've done estimates on how long it'll take me to retire, and according to my spreadsheets, I should be able to retire with $125,000 per year by the time I'm 55. I figure that's enough for me to basically do what I want when I'm older, and even help my family if I need to. Do you guys feel the same way, about keeping a high standard of living? Or do you just want to retire early? [link] [comments]  |
| Dual citizenship: FIRE in Europe? Posted: 29 May 2019 11:17 AM PDT I have dual citizenship with the US and the Netherlands and currently live in the US. I know about /r/DutchFIRE but I don't speak dutch so I don't go there. What are the differences between pursuing FIRE in Europe, the US, or in other locations (South America?) Obviously, cheap healthcare is a huge plus of living in the Netherlands. Anything else I should know? [link] [comments]  |
| What does it take to be an independent recruiter? Posted: 29 May 2019 04:23 PM PDT |
| Posted: 29 May 2019 01:33 PM PDT The "Citations Needed" podcast discusses the trend of financial advice journalism and discusses possible political objective behind the media attention. Citations Needed is a podcast that discusses media, PR, etc. Check out their backlog of episodes, lots of good stuff. I haven't finished the episode left, but it seems focused on some of the more extreme fringes of the FIRE movement, the media attention they get, and the not-so-hidden message behind the reporting. [link] [comments]  |
| Weekly Self-Promotion Thread - May 29, 2019 Posted: 29 May 2019 01:08 AM PDT Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. [link] [comments]  |
| Tactical question for someone near FIRE with an outsized portion of employer stock. Posted: 29 May 2019 07:54 AM PDT Hi! I'm 34 with $800k invested, a paid-off house, $40k of annual expenses, and a savings rate of $100k. I'm trying to figure out where my realistic FIRE target is in the range of 1-5 years and, tactically, how to get my accounts in shape for it. My investments are:
Clearly, not a great mix for early retirement, and with huge risk from the 50% employer stock. I haven't changed that because I don't really understand the tax implications of selling / reinvesting stock, and I don't want to accidentally, say, tax myself on a $400k trade in a given year. My current plan is to configure future RSUs in E-Trade for "At-vest: Same-day sale," and then to re-invest the resulting cash into Vanguard each time some of my RSUs vest. That's a slow solution, though, so I'm tempted to sell half of my employer's stock immediately and reinvest it into Vanguard. Has anyone done anything similar? Did you encounter any surprises along the way? [link] [comments]  |
| A Good Dilemma To Have (or why I may be overweight in retirement money) Posted: 29 May 2019 11:04 AM PDT Had to create a throwaway for this one because I want to share real numbers to give a true sense of my situation. Sorry for formatting atrocities - on mobile TL;DR - 10 years to FIRE and all my money is in retirement accounts with more room to spare, but I have literally no money in taxable brokerage accounts. Seems like a bad play since I'll want to tap retirement account money as late as possible. Seeking advice. So without further adieu - let's jump into it!
Here's the breakdown, for sake of ease I'll just include my numbers but my fiancée's allocation is pretty similar to mine.
Here's the rub: My employer just began allowing in-plan Roth conversions which means I can stash away another ~$23k in after-tax, non-Roth contributions to grow tax protected. I don't have this much money to contribute yet, but this year I could prob put $5k or so in this acct. This is great news as I can do the Mega Backdoor Roth once I leave this job, but really has me questioning my overall allocation. You probably noticed I have no taxable brokerage account yet. EVERYTHING (minus some cash and the car) is locked away in retirement accounts. I know about the backdoor Roth to get funds from my 401k into my Roth IRA, but I'm honestly pretty nervous about not having any easily-accessible money. I know that I'll need this money to live off of when I first pull the trigger on FIRE, and I'll want to tap those retirement accounts as late as possible. So the question is: What would you do? Would you continue plowing as much money into tax-protected accounts as possible, or forego the growth potential and begin investing in taxable? The tax-protected growth is obviously very attractive and it seems stupid to throw it away if I have the option, but there are clear benefits to begin investing in a taxable brokerage acct. [link] [comments]  |
| Posted: 29 May 2019 11:46 AM PDT I've been working hard to FIRE by working my ass off to save, but also to increase my income as much as possible. Currently, I'm making about 25% more than "what I'm worth" in terms of just general jobs in my field. Now I have been offered a job with another company that is almost 50% above my current pay. My first instinct is "holy shit; I could save so much, retire earlier, etc..." The problem is; looking at the organization they have been super unstable within this particular unit and job position. The have had four people in the same role in just 5 MONTHS. Three of those people were fired, one quit after about a month. The company leadership swears they have "learned from their past mistakes" and want to make things work this time. They have offered a 6 month severance package as part of the deal. If it worked out this would be great for me financially, but this is raising some serious flags. If it doesn't work out and I have to find another job I would probably have to take something that pays less than what I'm making today. Feedback? [link] [comments]  |
| Is real estate investing a part of your FIRE plan? Why or why not? Posted: 29 May 2019 05:35 AM PDT I've been delving into the real estate world as a possible next step in my financial independence journey. I'd love to know how many of you have made it a part of yours. I want to know the good, bad and the ugly! [link] [comments]  |
| Which mortgage to pay off first? Posted: 29 May 2019 07:43 AM PDT Hi, I have two mortgages (one rental, one personal) and would like to know the best approach to paying these off quickly. Rental House, amount owed: $65,000 @ 3.75% interest Personal Home, amount owed: $280,000 @ 4.5% interest I have extra money to apply to the principal balances and am currently applying the additional principal ($700/month) to the smaller mortgage first to snowball and pay it off in <5 years. Once that is paid off, I will take that entire payment with additional principal and apply it to the larger home mortgage. Doing this will have both mortgages paid off in 15 years. My questions are: 1) Does this approach seem best to you or should I structure the extra payments differently? (I am already maxing savings contributions and am diversifying investment accounts.) 2) Should I not pay off the mortgages early so I can use the interest tax deduction at the end of the year? Let me know if you need any additional information. Thanks. [link] [comments]  |
| Want to purchase first rental property Posted: 29 May 2019 05:52 AM PDT Is it a wise decision to take out a HELOC for the down payment on a rental property? I have about $60,000 in equity in my primary residence. Looking at needing about $20,000 for down payment to avoid PMI on rental. I live in LCOL area so at purchase price of $120,000 with rental income of $1200-1400 depending on the property. [link] [comments]  |
| Roast my rental real estate plan Posted: 29 May 2019 08:03 AM PDT Me 30(M) / SO 29(F) Current NW: ~$170,000 with 50% SR Been digging pretty deep into our FI numbers for a few months. Our FI number is around $650,000 with a little flexibility built in. The last month or so I've been digging into rental real estate and put together this rough draft of a plan. I don't currently have any properties besides my own, so I'm definitely going to continue studying before pulling the trigger. Target amount of property owned free and clear: $500,000 If all properties are exactly at the 1% rule total annual profit will be: $30,000 This amount of cash flow would be more than the 4% rule would give us with our current target FI number. We currently live on ~$23,500 with a mortgage payment, so if we could FIRE without a mortgage, either the FI or RE number would be way more than enough to live comfortably. In 12-15 months, we will have a quasi-windfall amount of $90,000. I am getting paid out over the next year for selling a business, and I will be liquidating other business assets that weren't part of the deal. With some other liquid assets we have laying around, we will have around $110k to put into rental properties. I want to use almost all of that money to start building our portfolio. We have a really close family friend that is a contractor in a great rental market, and another friend who is an electrician in the same market. I'd like to use around 75-85k as down payments on houses (at 20% down that would get me around $400k in houses). Then use the remaining ~$35k for repairs and other miscellaneous costs. Is that ratio too aggressive? Should I do more around 50/50 for down payments and repairs? I would hire a PM for all of these properties, because we will not be living in this market, but I could spend a few months living here in order to set everything up. Ideally the plan would be to pay off all of those mortgages in the next 15 years by using a vast majority of our savings and any cash flow to snowball the mortgages off, and hopefully pick up another $100-200k in properties. If all else goes well, by that time we should have around $200-300k in our retirement accounts and other equities. I've been looking at setting up a bond tent, roth conversion ladder, and other contingencies for our drawdown strategy, but the longer I look at look real estate the more it makes sense to try to get passive income from real estate to assuage any problems we would encounter in our drawdown strategy. What am I missing in this plan? I know there are some deep concepts that I probably haven't encountered yet in all of my studies, but I probably wouldn't buy any properties for another 12 months or so. Any critiques or comments are greatly welcomed. Thanks so much! [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