Financial Independence Daily FI discussion thread - June 11, 2019 |
- Daily FI discussion thread - June 11, 2019
- Story for lower income earners
- Understanding and Visualizing the 4% rule and safe withdrawal rates - interactive web calculator
- CBS this morning covered the FIRE movement.
- Should I quit on payday?
- Any academics here?
- Who actually has claimed disability insurance?
- FI --- but RE with kids?
- Keep it or cash it? life insurance policy
- What did it cost you to stay at your high-income job despite not enjoying the work?
- Buying a house after RE?
- My parents won't allow this, but I want to make my own credit card
- Reasonable?
- Going back to school, sell or rent my home?
- Looking for a new way to make an extra income of $200-$500 per month?
- Gambling Addict- Beginning Recovery
- Social security when you're older and early retirement
| Daily FI discussion thread - June 11, 2019 Posted: 11 Jun 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]  |
| Story for lower income earners Posted: 11 Jun 2019 07:07 AM PDT I love reading the stories on here because they are so inspiring. I'm in my early 40s and I just discovered this sub this last year. I would love to retire early however my reality is that it probably won't happen. If I could at least retire when I'm 65 I'll be happy. Here's my story for people who have fairly low income and/or start saving later in life. Annually, I gross $58,000-$59,000 a year and I live in a high cost living area. Luckily I was able to buy a condo when the market was extremely low in 2010 so my mortgage is lower then if I was renting. I am debt-free except for my mortgage so I'm able to save 25-26% of my salary for retirement, vacation etc. i'm trying to be a little bit more aggressive at putting extra money towards my mortgage so hopefully I can pay it off when I am 55 years old. I started saving for retirement a little bit in my 20s but didn't really get aggressive about it until about mid 30s. I put 15% of my salary towards my retirement and hopefully I'll have a nice chunk of change when I'm 65. Edit: Thanks for all the comments. I realize $59,000 annual salary isn't considered low income in many areas. However I live on California and it's on the lower side. I'm inspired to keep learning about finances and wanted to inspire people who might be in a similar position as myself. [link] [comments]  |
| Understanding and Visualizing the 4% rule and safe withdrawal rates - interactive web calculator Posted: 11 Jun 2019 10:23 AM PDT I'd been thinking about developing something like this app for awhile, which is designed to help people better understand the 4% rule or any safe withdrawal rate analysis. and a screenshot: https://imgur.com/gallery/KYDupKl The idea is that if you play with and interact with a tool you'll gain a better intuition about how it actually works than if you simply are told how it works. The goal of the app is to help you understand the mechanics of the FIRE'ing with a certain amount of money and understand the process by which the simulation of historical stock/bond returns and inflation and spending impacts the amount you have saved up in retirement and whether your money will last the full retirement. It's a bit of a variation on my Rich, Broke or Dead calculator but shows the individual cycles and data about those cycles in a more detailed way. It is best used on a tablet or computer rather than a phone but will work okay on a small mobile device. Please "play" with the tool, changing inputs (withdrawal rates, time periods), clicking/hovering over the years in the legend to see the individual historical cycles, in order to help gain a feel how "safe" a withdrawal rate is. The app is still a work in progress so any feedback or suggestions or comments you might have are much appreciated. I hope it can improve to the point where it is a useful educational tool for the FIRE community. thanks! [link] [comments]  |
| CBS this morning covered the FIRE movement. Posted: 11 Jun 2019 10:33 AM PDT CBS morning show had a fair story on the FIRE movement this morning. Here's a link. [link] [comments]  |
| Posted: 10 Jun 2019 11:00 PM PDT I have started a business outside work and it is going quite well. I plan to leave on July 1st to go full time. Should I give notice or just announce it after I have been paid? The company is pretty garbage, no employment contract, commission doesn't get paid after you have left, promised pay rise and changes to weekend work not given despite me gaining qualifications required etc. The owner of the company is a prick but the team I work with aren't. If I leave on the day then I'm going to be leaving them high and dry which I don't really want to do but I'm fairly certain the owner won't pay me what I'm owed if I try to give them notice. I also work with a woman who is pregnant and she will be the only member of staff in when I quit. It's a pretty stressful sales position so I feel bad leaving her to deal with it. At the same time, the company has chosen to get rid of half the work force to 'future proof the business'. Any advice? [link] [comments]  |
| Posted: 11 Jun 2019 06:20 AM PDT Right now I'm working as a research assistant in economics. I'm going to be applying for PhD programs in the fall for Finance/Econ. I'm not that interested in the RE part of FIRE, but I've been interested in the FI part for a while now. I was wondering if there are anyone in academia who can share their stories. [link] [comments]  |
| Who actually has claimed disability insurance? Posted: 11 Jun 2019 03:44 AM PDT Hi I am 35 year old in a stable job that makes about 100k/year. After someone advised me to get disability insurance I've been looking at different options. I'm seeing a lot of good discussions here on the disability insurance, but searching on Google/Reddit, I've found no forums related to people's experience in claiming disability insurance payout or the hurdles they face or how trustworthy the insurance companies are in paying out valid, non-frivolous, non-fraud claims. I want to buy disability insurance because I am trying to achieve FI by saving my income. However, if an accident occurs, and not able to work, I would be burning through my savings instead. I am just wondering if I would be purchasing a product that I think would protect me, ending up paying the premiums but getting the claim rejected when I count on it to kick in. Anybody have any experience with that? Edit: Thanks for the comments. That made up my mind to purchase DI. [link] [comments]  |
| Posted: 11 Jun 2019 11:04 AM PDT I'm at a crossroads. I turn 40 in a couple weeks. I hit my FI number more than a year ago, and quit my high stress job (where I was earning ~500k/year, but was also stuck in middle management without any real hope of reaching the top rungs, yet still working every weekend and well past midnight during the week). I have two young kids, and a wife who still wants to work, so I'm now essentially Barista-FI, working roughly 30 hours a week while the kids are in school. These are my thoughts: 1) Barista-FI is dull and offers minimal self-respect. I used to have a corner office and managed a large staff; now I sit in a windowless office just collecting a paycheck. The problems that come across my desk can usually be solved in a few minutes by typing a couple emails or having a 15 minute conference call. It's easy, but like most things that are easy, it's not satisfying. 2) RE seems daunting. I don't know what to do with my time when my family is at school/work; my kids need me to drive them around; my wife relies on me to run errands; this state will continue for another 15 years. I used to work 80-100 hours/week, and I honestly don't even know how to fill the extra 50+ additional hours of free time I have most weeks. Obviously I spend a lot more time with my kids, but where I was initially excited to, e.g., watch more Netflix, catch up on all the movies I've missed in the last 15 years, read more, etc., that's lost its appeal. I love to travel, and can finally travel a lot more when the rest of my family is free, but as soon as I'm back, it's dull. I would love to, e.g., disappear into the Andes to hike for a month---but I can't disappear for a month with two kids in preschool; I'm not even sure that will make sense with two kids in high school. I see friends more, but most of my friends are still deep in the meat grinder, and plan to stay there indefinitely, so if we're hanging out, it's at 9 pm after they get out of work. 3) Working for another 10-15 years, even if it's dull, would leave not just my wife and I financially independent, but I could also set my kids up for life. I wouldn't let them know this immediately, but I should be able to hand them both ~$2M when they turn 25 or 30. I've started a trust for each of them, and so my inclination is to toil on, and save them from capitalism and forced labor altogether. For a number of reasons, I also think the world will be a much harsher place by the 2040s, and I'd like to give them any advantage I can. Thoughts? [link] [comments]  |
| Keep it or cash it? life insurance policy Posted: 11 Jun 2019 03:28 PM PDT Hi, I'm trying to decide what to do with my life insurance that was just passed down to me. I am 22, and have no debt besides my mortage (single too). The life insurance is through NWM (90 life policy). It has 80k face value and 24k cash value with a $500 annual premium. I keep hearing/seeing people bash these types of policies but the cash value compared to the annual premium seems advantageous. I was thinking of trying to cash it and maybe use the money on home improvement for selling (great market) or putting into a mutual fund. The only other thing is I need to pay 2.9k on the policy because it hasnt been paid in a while im guessing. Any help would be appreciated! Thank you. [link] [comments]  |
| What did it cost you to stay at your high-income job despite not enjoying the work? Posted: 11 Jun 2019 09:53 AM PDT I admire the concept of FIRE and definitely want to look into it further. To further elaborate my question, is it worth the personal cost of working a job you don't enjoy if it will ensure the delayed gratification of early retirement? I understand this is a very subjective question but I'd love to hear from those who have been/are going through this. [link] [comments]  |
| Posted: 11 Jun 2019 01:14 PM PDT Does anyone have experience buying a house after Retiring Early? The FIRE TODO list posted recently made me wonder how difficult it would be to buy a house w/o income. From some cursory research, it looks like there are two ways to qualify:
I wonder about interest rates, difficult qualifying, additional closing cost, etc. I'd love first hand advice from anyone familiar with the process! [link] [comments]  |
| My parents won't allow this, but I want to make my own credit card Posted: 11 Jun 2019 03:49 PM PDT I live with very abusive parents and I will be turning 18 soon. I wanted to make a credit card but my mom told me that I need to share a joint account with her so that she could see my earnings and manage my spendings at college. Can someone please tell me how I could make a card without my parents knowing? I hate that I'm turning 18 and doing something legally while feeling like a criminal. Do I just walk into any bank and ask for a card? Could anyone tell me a little more about the process and recommend a bank or credit card type to me? I know that there are so many different types. When I make a card, does the bank notify my parents even though I'm over 18? Thank you very much [link] [comments]  |
| Posted: 11 Jun 2019 03:21 PM PDT Looking to get a sanity check. $1.2m condo, would be just over 6k monthly w/ everything included. No debts. Can put 10% down and finance the rest. 400k all in annual salary. Is this reasonable? [link] [comments]  |
| Going back to school, sell or rent my home? Posted: 11 Jun 2019 01:17 PM PDT Edit: HCOL area in western canada I am 25 years old, married, and have a 1 year old daughter. I am a licensed electrician but have decided to go back to school for 4 years to become an accountant. We bought a brand new townhome for $414,900.00 a year ago in August. We can't afford to pay our bills and stay in the home while I am back in school full time so we worked out a deal with my father in law to move in to his house while I complete my schooling. The idea is that we would rent out our home for $2200/month + utilities and that would cover our mortgage, strata fees, insurance, and property tax. Our home has appreciated in value to the $440k-$450k range since purchasing it. I am hesitant to renting out our place though as it seems like a giant headache and will cause us stress. What would you guys do in my position? Rent or sell? We had a 150k down payment and another $35k in the bank that I'm going to invest. [link] [comments]  |
| Looking for a new way to make an extra income of $200-$500 per month? Posted: 11 Jun 2019 09:52 AM PDT Hey Everyone! I'm a CPA in the US, and I'm in full on save mode to by my first home with the eventual goal of attaining several rental properties on my path to better financial independence and retiring early. That being said, I recently moved back home to bank as much cash as possible to speed this process up. I recently left my second job where I worked as a line cook on the weekends pursuing one of my passions/hobbies, which made me an extra $600-$800/month. I left because I was working long hours at the office, and I just got burnt out from working 7 days a week for about a year, and never having a day off. That being said, I got a new job in the business world that pays well and I rarely work more than 40 hours a week, and now that I'm living back at home, I have all this free time that used to earn me some extra income through my side hustle. Now that I've reset, I'm looking for a new side hustle to fill that void. However, I'm looking for something that's going to be convenient, easy, flexible, sustainable, and that's not going to feel like work. People have mentioned that I could do some simple bookkeeping on the side through Fiverr, but the last thing I want to do after work is come home, open my personal laptop, and do more accounting type work. That's going to be more of the same, feel like work, and I want some variety in my life - after all variety's the spice of life. That being said, I've thought about (1) Rover, (2) Online Surveys, and (3) Task Rabbit. I love the idea of Rover because I really want a dog or a cat, but not the responsibility, and this would be a great middle ground. However, since I'm staying at home right now, that would probably put the burden on my folks' more than me, unless it's the other way around where I stay at the pet owner's house. I could walk dogs during my lunch hour, if that's possible? If so, where? I also like the idea of online survey's because they're simple, monotonous, won't feel like work, and I can do them from home at my own time for as many hours, or as few, as I want. Anyway, that gives you an idea of where my head's at, and what I'm looking for. Any thoughts and or recommendations would be greatly appreciated!!! [link] [comments]  |
| Gambling Addict- Beginning Recovery Posted: 11 Jun 2019 10:45 AM PDT Hi, I (34m) revealed to my wife (33f) this week that I have a gambling problem this week. This is something I have been dealing with for more than a decade. I have clearly broken a lot of trust and absolutely need to get professional help to address my issue. I am currently going back over the last year or so and trying to determine the damage I have done. All-in-all it will probably total somewhere in the mid 5 figures. That is a bit of backstory. As I address some of my underlying issues my wife and I are taking stock of our current financial situation. I will be turning over all PWs and whatnot to her and I believe we will begin rigidly budgeting on a weekly basis. A few questions:
I am happy to answer any questions this sub has. I am on somewhat of a mission to be as open and transparent as possible as I try to repair the damage I have caused and address the underlying defects in my character that brought me to this point. [link] [comments]  |
| Social security when you're older and early retirement Posted: 10 Jun 2019 08:58 PM PDT So obviously the answer to this question could be altered by whatever happens the next couple decades but in its current form, but how would it impact your social security when you reach retirement age if you retire at say 40 or 45 instead of 67? Will you collect much if anything if you live that long? [link] [comments]  |
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