Financial Independence Daily FI discussion thread - June 02, 2019 |
- Daily FI discussion thread - June 02, 2019
- What's your side hustle?
- What makes your portfolio unique?
- VTSAX vs VTI
- Can I FIRE now?
- FIREing on a cloudy beach town with mountains
- Anyone here who fired on exactly one million NW?
- School teachers who FIRE’d , how was the journey?
- 22F, recent college grad, 20K in debt, confused about pursuing medical school or entrepreneurship.
- Bonds vs. Bond ETF's ??
- Help aligning things
- Do you have any goals in life that conflict with FIRE, or make you question if FI is worth pursuing?
- Advice on Investments - FI (2027) INR 1 Lac PM
- Morals behind Financial Independence
| Daily FI discussion thread - June 02, 2019 Posted: 02 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]  |
| Posted: 02 Jun 2019 08:21 AM PDT Many people living the FIRE lifestyle have some sort of passive income or side hustle that brings in additional revenue beyond the 9 to 5. What do you do to bring in extra cash? How did you get started with that side hustle? Would you recommend others take up the gig? Edit: a side hustle isn't key FIRE but a lot of people partake in something to bring in additional revenue, so I just want to learn about what people are doing to bring that in. Not everyone makes $100k+ from their day job. [link] [comments]  |
| What makes your portfolio unique? Posted: 02 Jun 2019 04:47 AM PDT My curiosity gets the better of me on a daily basis. I'm wondering what makes your portfolio unique? What is something you are doing differently than the others who have a similar goal and why did you decide to do it in this way? Thanks a lot! [link] [comments]  |
| Posted: 02 Jun 2019 12:10 PM PDT As far as I can tell VTI is the ETF equivalent of VTSAX. Instead of paying the minimum $3k to invest in VTSAX can I just invest in VTI instead? Also if I open a Roth IRA with Vanguard can I invest in VTSAX and avoid the minimum investment? [link] [comments]  |
| Posted: 02 Jun 2019 01:37 PM PDT Throwaway account. I have been on the FIRE journey for a while. Recently, I have been toying with the idea to go fuck myself after I consolidated my RE investments. My plan for generating post-FIRE income is not through the traditional index fund route. I would like to solicit the community's opinions if I am ready to cross this long awaited finish line. I am a 42 year old single parent. I make $175k-$200k depending on my bonuses as a mid tier manager in a large Engineering firm. Aside from my paycheck, I also make about $160k profit from an office building I recently acquired. Therefore, this income is relatively new. To answer some questions about owning an office building. It's typical in commercial RE to have long term net lease. Meaning, landlords have minimum responsibilities and the leases are drafted to have 5+year term with options built in for renew. This is the reason why I switched from multi family to commercial RE. All my tenants are medical offices. I am the only owner. I noticed people would like to see more numbers.Here they are: Building is worth $4.4 m. I owe $2.5m. I put in $1.2m cash to buy the building. The money came from old fashioned high saving rate since my first job, index funds and house hacking for a long time. I collect $481k rent roll annually. After paying tax, expenses and the bank, I have $160k left. My other assets: $200k in Vanguard money market $150k all stocks including S&P 500 index fund in taxable accounts Retirement accounts:$850k ,70/30 split between stocks and bonds. All Vanguard $500k equity -primary home. I won't count this money as part of FIRE, nor do I have plan to pay it off. I owe $220k. Current expenses: Mortgage: $1800 Live in nanny:$3500 (This expense will be the first to go post FIRE) 529 plan:$800 Medical insurance:$160 with my employer, must seek alternatives post FIRE Other insurances :$350 Kids school and activities:$1000 Other discretionary spending including food :$2400 Total current expenses: $10,000 ish. Looking to cut it down to $7000 post FIRE. I also set aside $20000 for annual travel budget,however, this is highly discretionary. Given the tax law, I can write off most of my passive income and keep the taxable income relatively low. I am currently paying a higher rate of tax due to my large W2 income. My plan is to live off my office building and let my retirement account coast while having my taxable accounts providing a safety net. Obviously the risk is that if the real estate market tanks or the economy takes a huge hit, I will have to fall back to my $200k cash safety net. Although I highly doubt that all of my tenants would vacate at the same time given the long term lease contracts they signed. Anyway, do you think I am safe to pull the trigger? [link] [comments]  |
| FIREing on a cloudy beach town with mountains Posted: 02 Jun 2019 09:58 AM PDT I love the ocean and mountains but hate the Sun. Don't mind rain as long as there's both mountains and the ocean. Ideally in the US. Next preference Canada. Next preference Northern Europe. Next preference Aus/NZ. Next preference elsewhere in Europe. Finally I suppose anywhere else in the world would be fine too, although I am worried about quality hospitalization care in an emergency. Any suggestions? [link] [comments]  |
| Anyone here who fired on exactly one million NW? Posted: 02 Jun 2019 10:16 AM PDT I'm right there myself, and I'm looking for feedback from people who did this. I always set that number as the "goal", but the sense of whether or not it's a realistic number is creeping up on me. I'm 40, just shy of a million NW. Wondering if I should climb a bit more or take my money and run. [link] [comments]  |
| School teachers who FIRE’d , how was the journey? Posted: 02 Jun 2019 01:22 PM PDT I'm currently in the military and preparing to become an overseas DOD teacher in the next 3 years. Curious to know about teachers who have become FI as an educator. [link] [comments]  |
| 22F, recent college grad, 20K in debt, confused about pursuing medical school or entrepreneurship. Posted: 02 Jun 2019 07:30 AM PDT Hello, I made an account here specifically for some advice. I have been pre-Med for as long as I can remember. It wasn't really pushed down my throat, I just fell in love with the idea of joining a profession where I can help others in ways most people can't. I thought it would be a tough road academically, however, I've been struggling the most financially. In all honesty, I can see why medical school is often filled with students from affluent backgrounds. So far, I've paid up to 3000 in pre-Med expenses such as MCAT preparations and applications, this is expected to go up to 7000 soon. I hate taking out loans, especially ones with interest, I feel shackled. I hate seeing my paycheck go to payments. I've been lucky to have my dad pay for my first two of three years of my state university tuition. I worked 3 part time jobs during my last year to minimize my loans and pay for expenses. I am still working 3 part-time jobs and I have been on the debt snowball plan. Overall, I hate my financial situation and can't imagine doing 4 more years of loans plus working/studying for insane hours. Yes, I could ask my dad for help, but I'm a healthy young adult and I can clean my mess in a year (my current debt snowball plan). The reason why I posted here is because I have yet to hear of a doctor who has reached financial independence by 35-40. Medical school is appealing to me because the knowledge is priceless. It's a gift to be able to help people during their worst days. The job demand is also high and the pay is decent. However, I'm not happy about the large amount of loans and crazy schedules. Yeah it sounds nice to earn 200k when I'm 32, but I would have to debt snowball till 36 then start saving for retirement. I'll also not be able to invest when time is on my side, my twenties. My dad, who is an entrepreneur and is approaching retirement, offered to help me take over one of his businesses. I've shown the most potential out of all my siblings (first to graduate college and did it in three years, working 3 jobs and rarely ask him for money). I can tell he would actually be very happy if I were to keep the assets in the family as he will sell them otherwise. I've always been a leader, even in college. So this feat is more of an opportunity than a challenge to me. I've been looking up ways to retire early and I want to start investing in a Roth IRA and also real estate. I believe I have the potential to reach a million or more by 32 if I grind hard and have my father as a mentor. I realize that I'm extremely blessed to have two great paths stretched ahead of me. I want to make the right decision for my future and I kind of know which one I should take, but the extra advice/wisdom out there would be helpful! Thank you for taking the time to read this. [link] [comments]  |
| Posted: 02 Jun 2019 04:03 PM PDT Hi All! I am looking to re create my portfolio using Ray Dalio's all seasons approach. The approach calls 40% bonds to offset the risk inherent in the S&P 500. I have looked at a few bond ETF's which offer quite a high return, and are more tradeable than traditional bonds. But what are the potential drawbacks? Also, would it be viable to incorporate corporate bonds as well, or are US government bonds the way to go?? Thanks! [link] [comments]  |
| Posted: 02 Jun 2019 04:03 PM PDT I have $250k in 401k. 18k year contributed. I have another $50k in wife's funds (Roth etc) Own a home in a hcol area which I owe 270k, valued at 650k+. Owe 18k in heloc no other debt. I am 45 and married. Would the next best thing be to put all I can in a SnP 500 type fund? [link] [comments]  |
| Do you have any goals in life that conflict with FIRE, or make you question if FI is worth pursuing? Posted: 01 Jun 2019 05:37 PM PDT Hello everyone, longtime lurker on a throwaway account. Posting because I'm at a crossroads in life and reaching out for perspective & support from like-minded people. FIRE has been a goal of mine since before I knew the term existed. I've had a fairly mapped out life plan for a long time: I have a degree in finance and I work as a commercial diver. Like a lot of you, financial planning is a way for me to make the most out of my life, not an end in itself. My goal has always been to have an exciting career while I'm young, and either A) work my way up the ranks to a high income or B) transition to a career in consulting and rake in the dough, then baristaFIRE working as a dive instructor or tour guide . The problem is, after something of a quarter (one third?) life crisis, I think I want more from my life than this. I've been struggling with this for years, and I have finally made up my mind on the path I want to take. As a diver, I have always had a passion for science (we have to understand a bit of biology and rudimentary physics). I want to create and invent, and I'm thinking of going back to school to study engineering. I have the GI bill from my military days, which would offset some of the costs of school, but not the opportunity cost of the years away from work. I'm currently married with no kids living in a MCOL area. My partner and I are in our late 20s making just over $250k combined between income and two rental properties. I've run the numbers and we could make it work financially, and she said she supports whatever decision I choose (she is not as interested in FIRE, and has always been content with a more conventional life-timeline). I have tried to compromise by taking a class at the local community college, but it doesn't scratch the itch for me. I think I could eventually still reach FI (assuming I can achieve modest success in a drastically different career field), but the time it would take to pursue my new career goals would take RE off the table. I'm wondering if any of you have ever had an ambition that would require you to abandon (or drastically modify) your FIRE plans, and if any of you have kept on the FIRE path after a major financial setback such as going back to school? [link] [comments]  |
| Advice on Investments - FI (2027) INR 1 Lac PM Posted: 02 Jun 2019 03:10 AM PDT Advice on Investments - Goal Years (2027) 1 Lac PM📷 Background : I would like to be anonymous. I am an NRI 32 years old, coming from humble family background done education by studying & working. supported brother for education & sister for marriage in my own humble financial contribution till 2015, so got real independent savings 2015 post my own marriage. Parents are now financially self dependent no loans/debt..with a decent pension coming post retirement (after 3 years) of 30K + 12K Rent from own house in my home town. Brother is also started working since last 3 years & now financially independent. Income in savings post expense/tax- Single Income INR 30 Lac PA Current Savings % = 70% of 100% Income pushing for 75% Financial Dependents - Wife, Myself & 1 Year Old Son Loans/Debt - Nil Life & Medical Insurance - Self Term Plan 1 CR & Medical is currently by Employer covering (Self, wife & 1 child) Immediate Goals (Rethinking now) - Buying 2 BHK worth 60 lacs savings by 33 Years no emi (already achieved) however budget increased to 80 lacs. Rethinking now to postpone my decision to buy 2bhk & invest aggressively in 60% equity & 40% Dept/Money fund/FD since I am looking to stay out of India for at least next 5 years. Total Net worth- 71 lacs (Almost all will be liquid since FDs are maturing by Dec 2019) FD - 42 Lacs Mutual Fund (2.5 Lac ELSS ) & Money/Liquid Fund - 7.5 Lac = 10 Lac Gold - 1.86 lacs Physical Gold Investment Cash - 15.50 Lac Investments - Retirement - Equity for Retirement every month 15 to 20K large Caps stocks only since last 2.5 years - Current Portfolio 5.11 lacs (not considered in Total net worth since this is pure play for retirement since no NPS/PF or retirement policy) 1 Child Education - Yet to plan (Considering Index Nifty 50 Every Month 20K INR till he turns 18 Years) I am planning to settle down in India in Tier 2 Cities like Pune, Thane, Navi-Mumbai with 1 lac as monthly income. Considering current lifestyle as of now i would be needing 50K Per Month after owning 2BHK so by 2027 including inflation 85 to 86K (1 lac approx) Need your suggestions for my decision to postpone buying 2bhk & investment options. [link] [comments]  |
| Morals behind Financial Independence Posted: 01 Jun 2019 04:47 PM PDT My friend shared with me an interesting article that essentially says its immoral to be rich and accumulate wealth: I was wondering what you guys think of this in releation to FI, and any rebuttals you guys have in response. Cheers! [link] [comments]  |
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