Financial Independence Daily FI discussion thread - May 05, 2019 |
- Daily FI discussion thread - May 05, 2019
- The importance of exercise
- Hi Guys. I'm 51 and just retired. My girlfriend put me on her insurance. I have about
- When did the snowball effect start for you?
- I went to a Financial Advisor last week for the first time in my life
- Anyone else theoretically FI but can't RE because of kids?
- Just how important is income
- Is TRowePrice the wrong choice (compared to competitors) if I want to begin my FIRE journey?
- Bay Area - Buy a house again? FIRE?
- Budget of an USAF Student Pilot
- Will the IRS come after your estate/family if you don’t pay taxes the years leading up to your death?
- Any Point in a Side Hustle in High-Income Profession?
- Cushy job or start company/ies. What would you do?
- Those who are paying for homes, but not counting your primary residence in net worth
- Am I doing the right thing?
- Military retirement = fire? & Value of pension?
- Does the possibility of inflation or a financial crash scare anyone here?
- cfiresim question on "yearly spending" with other income
- Dilemma before FIRE
- Anyone who has FIRED and invested in zero-coupon bonds?
- FIRE goals before I knew about FIRE, seeking advice, from like minded strangers on the internet.
- I have ~1.8k EUR (2k USD) left after bills+savings. Save more or invest in something? I hate what I do for a living, love growing things(live in apt. though), have a lot of exp. with software engineering.
- Overlap with r/SecurityAnalysis
| Daily FI discussion thread - May 05, 2019 Posted: 05 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: 05 May 2019 11:01 AM PDT Like many of you I'm on my path to Financial Independence. One thing that always scares me is saving for all these years and never getting to enjoy the benefits. I decided 6 months ago to get healthier. I just finished a 10 mile race. I never though I'd accomplish that. Just a reminder to everyone to take care of your physical health not just financial health. [link] [comments]  |
| Hi Guys. I'm 51 and just retired. My girlfriend put me on her insurance. I have about Posted: 04 May 2019 06:07 PM PDT $950,000 in liquid assets and own my house and cars. I live in the South. I have a kidney issue that may be problematic in a few years. My question is simple - I grew up poor. My Dad died when I was 11 and it was tough growing up. I put myself through college, grad school and law school through work. After 21 years as a lawyer, I decided to enjoy my life and quit that BS. I've been retired since January but a buddy hired me on making a crazy amount of money for however many hours I want ( I chose around 15). I volunteer for several organizations. Here is my first problem. I feel like a loser since everyone I know is working and I'm just doing whatever day to day. Hiking, fishing and helping out around the neighborhood. How can I get over this feeling of worthlessness? It's not like I'm on disability like my neighbor who sits on his ass and gets his check and doesn't even want to contribute to society. I contribute to society every day with my volunteering and work my 15 hours but still feel kinda worthless. Second, I have never been able to spend money on myself. I can buy things for other people but can't spend it on myself. And I'm cheap as hell. I rarely go to dinner unless I go to half price sushi night up the street. How can I start spending my hard earned money on me instead of saving it for when I die and leave it to a relative? I travel to Colorado four times a year but take the redeye flight and sleep under the stars instead of spending $100 a night in a hotel. All comments are very appreciated. Edit 1: Thank you to everyone who responded to my posting. I appreciate the time and effort you put into your responses, and I am reading every post this afternoon. They have given me better insight into my retirement. I hope everybody has a great day. [link] [comments]  |
| When did the snowball effect start for you? Posted: 05 May 2019 09:54 AM PDT I'm in the beginning stage, but at some points it just feels like brute force principle savings. What dollar value in assets started snowballing for you (and what asset allocation did you have)? [link] [comments]  |
| I went to a Financial Advisor last week for the first time in my life Posted: 04 May 2019 05:59 PM PDT And it was... fun! I've always heard horror stories of fee based advisers and I would wager the majority of this sub leans away from using them. I had never intended to speak to one but when I was on the phone with fidelity trying to roll over old 401k's, I bit. I was rolling them over because my last company screwed up my term date resulting in me temporarily losing my vesting from the last 4 years of contributions ($30k+!) and I'm not dealing with that again. So while I'm at it, I'm rolling over 3 different old 401k's into my new company's 401k. Anyway, while I was on the phone, I was asking for a similar fund to what I had in Old company #1's 401k to keep a similar fund which had $40k in it. We got on the topic of types of funds in New company's offerings and he asked me "when are you planning to retire? 67?" As someone who has been tracking my progress for years down to the gnat's ass, I reflexively laughed and said no, 45. He very reasonably asked "uhhhh how are you planning on doing that on $40k, in 9 years?" I explained I had other accounts we hadn't gotten to yet and laid out the basics that we all know and love... save a ton, relatively low expenses, blah blah blah. He agreed that I was in pretty good shape. Still, he asked if I was interested in talking to one of their retirement planners. Now this is something I've never really had interest in doing but I was curious of what people who did this for a profession would think of my plan and after I asked 3 or 4 times if it was reeeeeally free (it is), I figured why not? I have to say, I'm glad I did. I went in with my spreadsheets, SS payout estimations, draw down strategy and an open mind. We went through the exercise of plugging it all in fidelity's online retirement planner. I didn't know the tool existed beyond those shitty website advertisements that don't let you replace less than 70% of your income. Honestly, I have to imagine most people here would actually like it (for the most part) because you can go really deep with it. What's funny is after putting majority of my stuff in, they give you a score. I scored a 74, or "fair" despite having a very solid savings rate and being in the dos comma club (lol?) so obviously they are selling fear to some degree. I believe their standard withdrawal rate is set to 3% and the market essentially stays flat for the rest of eternity. But the guy I spoke with was very realistic and admitted fidelity's tool is super super conservative so ignore the score and after he adjusted my market outlook, the score went up to 100 (I don't know what the max score is, I think to score higher you have to be growing well beyond your withdrawal rate). For my purposes, and I would imagine the purpose of the majority of individuals who frequent this sub, it was actually a worth while exercise. In reality, it's probably very similar to what you'd get using cFireSim but if you're a fan of having a second opinion, this seems like a great tool to try. In the end, I had a chance to validate my thoughts with a real person and had some good conversation around some very specific situations with my wife doing some low income freelance work and how to best try to shelter that type of income. I also got to get an outsider's perspective of my plan and enjoyed the conversation that came from it. I wasn't being sold anything, I learned about a MM fund that acts as a checking account and has a 2.38% return ($100k min) that I may look into, and I left feeling all the more confident about my plan. I'm guessing fidelity isn't the only company to offer this type of service so its worth seeing if whoever your company is offers something similar and get some additional peace of mind and maybe learn something you haven't picked up browsing this sub. I'll probably make it an annual thing, or maybe every couple of years. TL;DR - went to FA, assumed it was BS, actually thought it was worth while and would recommend to others. [link] [comments]  |
| Anyone else theoretically FI but can't RE because of kids? Posted: 05 May 2019 09:09 AM PDT I have three kids. My oldest will be starting college next year. The middle one the year after that. The youngest one is significantly younger and won't start college for 10 years. EDIT While I am FI and could transition to RE soon if it was just me and my wife, we don't really feel like we can RE as long as we have a kid in school. RE for us would involve downsizing and going to travel abroad and we don't really feel like we can do that easily with a kid. So my plan is to work and sock away money another 10 years, and retire when she goes to college. Anyone else this position? [link] [comments]  |
| Posted: 05 May 2019 02:45 PM PDT I'm considering two different jobs. One is very high stress with a pretty high salary and has a ton of opportunities to get jobs that'll pay 150k-200k The other is very laid back, at a university. Salary will be mid 60k for a few years and six figures in about 10 years but it has AMAZING benefits and few enough hours so I could have a side hustle. My question is, how significant is income to financial independence? [link] [comments]  |
| Is TRowePrice the wrong choice (compared to competitors) if I want to begin my FIRE journey? Posted: 05 May 2019 06:17 AM PDT Hello everybody, new to posting here. When I turned 18, I decided to open a Roth IRA with TRowePrice, and every year since have been putting money away into the Roth. (If anybody is familiar, it is specifically their blue chip growth fund). I am currently 21. Upon reading many comments and post in investing, personal finance, FIRE, and FatFIRE, it seems that nobody recommends TRowePrice for their mutual funds due to higher fees than their competitors. Compared to my peers I felt like I was way ahead of them. However, compared to the finance community of Reddit, it seems like I might have made the wrong choice. My question is this: Should I continue to use TRowePrice for my Roth moving forward? And if not, could somebody give me some insight into what the next step might be? A little background on me and my future financial goals. I graduate college December 2019 with an Engineering degree, and my long term girlfriend graduates when I do with a MAcc. We both have jobs lined up in the same city (Denver) for 67k and 57k respectively (we go to school in GA, my company is paying to relocate us so the move is not something to worry about) I will be contributing atleast 15% into my 401k and I get a 6% dollar on dollar match. I will also be maxing out my Roth IRA. My SO has ~50k of student loans (I have 0) so we would like get those paid off ASAP before going crazy investing. I would like to FIRE one day, and since I am young, I would like to start this process "right" (if there is such thing as a right way to do it). Any advice or recommendations would be greatly appreciated! Thank you all in advance! [link] [comments]  |
| Bay Area - Buy a house again? FIRE? Posted: 05 May 2019 01:50 PM PDT current situation:
About the next steps (struggling with planning):
A lot of rambling here but would love to hear the thoughts! [link] [comments]  |
| Budget of an USAF Student Pilot Posted: 05 May 2019 01:52 PM PDT Alcohol usually bleeds into Fun Money/Entertainment/Miscellaneous haha, but that doesn't stop me from pushing for retirement. [link] [comments]  |
| Posted: 05 May 2019 03:02 PM PDT I was thinking about this in the shower. I've heard the IRS isn't that aggressive if a person is dead(not sure if that's true). I've got an odd way of thinking and was curious if anyone has any experience. [link] [comments]  |
| Any Point in a Side Hustle in High-Income Profession? Posted: 04 May 2019 06:21 PM PDT I have spent the past few years trying to figure out a way to make my hobbies profitable. However, none of my hobbies are actually profitable. I feel like most of my downtime is spent reading and listening to podcasts about different entrepreneurial endeavors (personal finance, real estate investing, etc.). If I get down to the core of it, I like learning about new things and I like making money. The one hobby that I truly loved I cannot do anymore because of an injury (football). Thus, I feel like I could just spend some extra time making more money until my wife and I have children which will help with FIRE. I have tried out a bunch of different hobbies (some just for fun), but nothing that really sticks. I am fortunate to be in a high income profession. I am at the point that I suspect that I could probably just dedicate some time learning different skills to earn more money within my profession. There is an element of diminishing returns by working more. I also do fear a very real burnout factor. Any insight would be appreciated. [link] [comments]  |
| Cushy job or start company/ies. What would you do? Posted: 04 May 2019 04:52 PM PDT I am nearly 40. I have a PhD in an biotech field set to break open in the next 5 years. I own a low end house in an extremely HCL area (think top 5 in the country). I have two elementary age children and a wife who works in non-profits. I was recently recruited to a startup as an early employee—a job I turned down but used to negotiate a sweet deal at the private company I currently work for (more power, leadership team, more money—high 200ks after annual bonus), 20% free time, vacation time when I want, and a few other financial perks). I was feeling really good, except, a venture startup firm I've been flirting with, hoping to land on their advisory board, offered me 5 million in capital to start a company. The deal comes with a similar salary, and 6% founders stock that vests over the first 6 years. I would be an employee for the venture firm. We have 300k in home equity and another ~300k in retirement accounts. What would you do? [link] [comments]  |
| Those who are paying for homes, but not counting your primary residence in net worth Posted: 05 May 2019 01:30 PM PDT Do you make extra payments? Are you paying the minimum and investing instead? Trying to buy rental properties? [link] [comments]  |
| Posted: 05 May 2019 12:25 PM PDT I'm a 53, my husband is 47. Our income is 122k and 100k. We live near Sarasota, FL (mid COL). Wish I had learned about FIRE years ago but better late than never. When I think about all the money we've wasted over the years... well let's just say the regret is tremendous. We are very new to FIRE and are just now analyzing where we can save more in our budget. We are currently saving about 40% of our income. We have approx. 470k between our 401ks & IRAs. We own our home which is worth about 300k (mortgage balance is just under 100k at 4.25%). We have 3 cars (the third is our daughter's) with loans that total $30k (2.99%). No other debt. We are contributing 20% and 17% respectively of our salaries in our 401k. My employer does not match contributions to my 401k, husband's contributes 6% of his salary. I'm basically contributing as much as we can so that we won't pay more in taxes to Uncle Sam. A recent promotion has now enabled us to save $2100 per month which I plan on putting into our recently-opened Vanguard account. I've always had the goal of being completely out of debt - to the point where I was putting all our extra money on the car loans and mortgage and therefore don't have a lot of liquid savings (only 40k). My goal now is be able to retire early. I'd love to retire in 7 years but not sure that's do-able given what we've saved so far. My questions are: Should I be putting less into my 401k and more into an index fund (VTSAX)? Should I stop paying extra on the mortgage and cars and put that in an index fund? All advice is greatly appreciated! [link] [comments]  |
| Military retirement = fire? & Value of pension? Posted: 04 May 2019 09:41 PM PDT Does a full military retirement count as fire to you guys? I'll soon be retiring at age 45 with an annual pension of 54k that's adjusted annually for 2% inflation. I also have a paid off house and zero debt. Would you all consider that fire and if so what would the equivalent net worth value be needed to get the same in investments? I'll be working full time after in a job I love and with good pay but wanted to see what your thoughts are independent of that and of any other savings/investments. [link] [comments]  |
| Does the possibility of inflation or a financial crash scare anyone here? Posted: 05 May 2019 01:55 PM PDT If it does what measures have you take to mitigate the risk involved with the two? With inflation the value of your money could be minimized and we are due for another crash. Just curious on others peoples thoughts here. [link] [comments]  |
| cfiresim question on "yearly spending" with other income Posted: 05 May 2019 08:44 AM PDT Cfiresim let's you enter additional income/savings. So, for example, suppose you set aside a chunk of assets to fund non-discretionary spending until social security starts (like $500K, 3% interest, 2.5% inflation, withdrawn down to zero the year before social security). For the cfiresim spending plan, is that above and beyond the core spending covered by that chunk (and, later, social security)? Suppose, for example, you have $3M total, set aside $500K to fund core expenses of $30K/year until SS, and expect to spend a total of $60K/year. For cfiresim, would you enter $2.5M in assets, $60K in spending, and $30K in other income? Or would you enter $2.5M in assets, $30K in spending, and $30K in other income. The FAQ says, "Yearly Spending is your yearly default expenses that will be subtracted from your portfolio." which suggests you would enter $30K in spending (withdrawal) but I'm suspicious that by having $30K in other income and reducing the spend by $30K, I'm double counting. [link] [comments]  |
| Posted: 05 May 2019 09:13 AM PDT My current NW excluding the house that i live in is about 550K. House is fully paid and i am debt free. I earn about 12K tax free from my assets and my yearly expense is about 6K. I have recently come to the realization that i can RE if i want to and since than it has become very difficult to go on job everyday if i resign today i stand to loose about 50K in stocks that are about to vest in next 3 months. Wise thing to do would be to just wait for 3 more months but i am finding difficult to motivate myself. Any suggestions how to cope with it? [link] [comments]  |
| Anyone who has FIRED and invested in zero-coupon bonds? Posted: 05 May 2019 10:35 AM PDT What did you invest in? How did that work out for you? [link] [comments]  |
| FIRE goals before I knew about FIRE, seeking advice, from like minded strangers on the internet. Posted: 04 May 2019 07:02 PM PDT A little background, Im 32 my wife is 26, we have always wanted to retire early and worked towards it, only really finding the community in the last 12 months. We are sitting on some tough choices and would love to get some feedback from like minded strangers on the internet. Current net worth is approx 1mil, broke that barrier this year. Our portfolio consists of 550k in a balanced portfolio of stocks and index funds, 350k equity in our home and investment properties and 100k cash. We have a loan of 350k left on our mortgage and 400k on investment properties. The rental income services the current investment property expenses. I am retired on a military pension paying 50k a year and am eligible to receive this until I die. My wife earns approx 80k a year. The goal is to find a balance of enjoying life and living comfortably, whilst reaching a cash flow to replace my wifes income asap. We have decided on a safe withdrawal rate of 3%, for peace of mind during an economic downturn and we also would like to gradually increase our spending habits once my wife retires. Our goal is to have 2mil in shares to have an income of 60k a year to replace my wifes income (less our current min saving rate of 20k a year). The problem is we now have a baby on the way and we would like to upgrade our house, gain an extra bedroom and pool, which will hinder or at least slow down reaching these goals. We value the lifestyle of living close to the water and we have some family that live out of location and we would like to be able to provide the option for them to stay with us during visits. We have come up with 5 viable options.
Any questions or clarification please ask, I really would appreciate any guidance or perspective from people within this community. [link] [comments]  |
| Posted: 05 May 2019 06:46 AM PDT Hey guys. I live in a northern European country with my wife and we both have decent jobs. After paying all the bills and saving some money for the future I still have around 1.800 EUR left. I would really like to use this to do something I don't hate AND that would pay for itself monthly, with a possibility of profiting. The big plan would be to be able to quit my job in the far future if this side thing makes me ~60% of my current salary. I work with software engineering and I have a lot of experience with it. I recently started growing some peppers, tomatoes, herbs, etc indoors in my apartment and I really enjoy doing it. However I don't see any profitable future in it, as anything remotely serious would require a huge volume. Does anyone have suggestions for me? :) Any ideas or thoughts would be hugely appreciated. [link] [comments]  |
| Overlap with r/SecurityAnalysis Posted: 04 May 2019 11:42 PM PDT Are you sticking with passive investments (e.g., VTSAX, VFIAX) or have you tried to FIRE sooner through value investing/security analysis? How has it turned out so far? Personally, I've put ~90% of my investments in passive financial vehicles through Vanguard. But I can't resist the temptation of stock picking. [link] [comments]  |
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