Financial Independence Daily FI discussion thread - June 28, 2019 |
- Daily FI discussion thread - June 28, 2019
- Investment advice from those who are living the FIRE life, in their 50’s/60’s?
- Lots of people have a FIRE number. Do you have more than one?
- Went BohemianFI today!
- Home ownership in southern CA vs. FIRE years earlier
- Where are you looking to retire if you retire early?
- Weekly FI Frugal Friday thread - June 28, 2019
- Hobbies?
- FIRE advice for retirement abroad
- Upcoming Appointment with Financial Planner
- 4% SWR only applies to what you have in market and high interest holdings (NOT total nw)
| Daily FI discussion thread - June 28, 2019 Posted: 28 Jun 2019 01:11 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]  |
| Investment advice from those who are living the FIRE life, in their 50’s/60’s? Posted: 28 Jun 2019 05:20 AM PDT I'm curious to learn from those who have been successful (nothing against those on the path like I am!), just ahead of where I am, who saved and saved, invested that 'egg's nest' and are now living off of that + maybe social security now. In the years leading up to when you wanted to quit your full time job, how did you invest that egg's nest? I've currently been in a managed eTrade account (rebalanced, etc.) for 2 years and when I run a comparison report on how it performed, it literally follows the graph line of the S&P500 (I wish I could post a screen shot) but with lower return. My fund did 9.85% over the topsy turvey past 2.5 years VS. S&P500 that did 15.87%. Is that "proof right there?" And I've paid a few $k for the fees. My profile: 51 yo, would love to "retire" (quit full time job) at 57 Married Any advice? Is the VTSAX the right approach? Put 10% into some sort of bonds? I've been playing/reading earlyretirementnow.com which has some great advice and some planning worksheets which have been helpful, but a bit rather complicated. Thanks everyone! [link] [comments]  |
| Lots of people have a FIRE number. Do you have more than one? Posted: 28 Jun 2019 07:08 AM PDT I was messing with my spreadsheet and realized I have enough saved that my nestegg should grow to my FIRE number in 10 years or so, even if I don't put any more money in. I plan on continuing to work and adding to my nestegg until my youngest goes to college, but theoretically I could stop adding to the nestegg and choose to work less as long as I am bringing in enough for my current expenses. I think I may have achieved my COASTFIRE number. This was a surprise to me because while I had a FIRE number figured out, I didn't have a COASTFIRE number. Many people know their FIRE number, but do people also know their COASTFIRE number, or LEANFIRE or BARISTAFIRE or whatever? [link] [comments]  |
| Posted: 28 Jun 2019 06:30 AM PDT I just hit BohemianFI! I just wanna say thanks to everyone in this sub, I've been lurking off and on for a few years and the seeing the community spirit has always been energizing for me. I also wanna brag—I'm pretty sure it will backfire and ppl are gonna say I'm going too lean, I'm a trust fund hippy, etc. They're probably right on both counts (i got a lot of help and a lot of luck!) but I'm gonna brag anyway. FI journey- saved birthday/Xmas money every year as a kid (thanks for teaching the habit mom and dad!) and think I got up to $700 in the bank from $20-$25 checks. When I was in middle school I inherited $25k and invested 100% of it in mutual funds. I bought Intl and Tech funds because I heard the PlayStation 2 was coming out and i thought it was going to be big. Learned a lot about the stock market, index funds, etc. pretty early on. Worked a few $6.00-7.50/hr jobs in high school, saved around $5k total in a Roth IRA. Got a full college scholarship. Worked summers in college, netting between $0-$5k in summer savings. Inherited another $25k, this time to a 529 plan. Worked a few years in a LCOL area, netting $20k-ish in savings. Bought NFLX, made money, thought it was getting overpriced at $90 (it's now $360) switched to AAPL. Decided to go to grad school. Got a full ride to a great school, someone in my life convinced me to pay full price at a fancier school instead (terrible financial decision, but I eventually agreed it was the right decision). My family covered grad school tuition (!!!!!). I sold AAPL stock and bought cryptocurrency and made close to $100k trading while in school. (Much less after taxes). Swapped crypto for index funds at a good time. Got a high paying job after graduation. Swapped index funds for cash, fearing a recession. Could have bought back in for a large profit during the December stock dip, but thought it was going deeper. Lost about $8k trading crypto in the bear market, then made about $5k of it back in the recent bull (fingers crossed) market. Saved about 80% of each paycheck. Now I'm BohemianFI at 29 with $300k NW, planning to bounce around LCOL countries learning languages, making art, and maybe eventually starting an online business. $300k has been my goal for several years, $1k/month (@4%) just seems like a nice number that can cover costs in a lot of countries. I'm still working my normal job for a few more months for a variety of reasons, but it feels good to hit the big 300! Luck has obviously played a big role, both in terms of what my family did for my financial situation and my financial education. (Not to mention the fact that the markets have been very nice to me). I'm frugal in a bit of a weird way, sometimes it feels a little OCD or something. A few random examples: I used to leave my phone on airplane mode a lot to save data (this was stupid and not good for relationships); at liquor stores I would buy stuff that homeless people drink and then smuggle it into bars where my friends were (this has to be illegal); and I definitely put off going to the doctor when I shouldn't have, and prioritized food prices over nutrition (not healthy). But now, I'm free as a bird and I just went to the doctor the other day and they said I'm good. Tonight I'm considering buying the expensive kind of apples that cost 1.99/lb instead of 1.49/lb. I may even replace my old shoes! (Not today, but like in a few months). Thanks for reading this far! [link] [comments]  |
| Home ownership in southern CA vs. FIRE years earlier Posted: 28 Jun 2019 08:46 AM PDT 27 year old here earning a decent living (~$160K) in Orange County SoCal. I just went on a weekend vacation to visit with my girlfriend's family in Portland. It is beautiful there, and the median home price is $419K compared to $861k in the city I live and work in. I know I live in a HCOL area, but this hit me like a wall of bricks. I don't need to buy a place right now, but when I have kids it is definitely something I want to consider. I could slice several years off of my working career by moving to Portland, or even lower COL areas, that aren't THAT far away from my home base where I group up (family, friends, etc.). For those who have FIRED, have any of you contemplated doing this? If you did/didn't do it, did you have regrets? What was your experience like? [link] [comments]  |
| Where are you looking to retire if you retire early? Posted: 28 Jun 2019 03:03 PM PDT So it's hard to compare places without being highly broad and subjective, but does any specific place come to mind? If you live in the US in the mid-atlantic, northeast, or west coast, you know there are other places with far lower costs of living allowing you to retire earlier (e.g. the midwest or parts of the southwest). Big climate and cultural differences as well. Also different things to do depending what you're into. [link] [comments]  |
| Weekly FI Frugal Friday thread - June 28, 2019 Posted: 28 Jun 2019 01:11 AM PDT Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! 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: 28 Jun 2019 09:30 AM PDT So a lot of what I see in this sub is about living cheaply and saving as much as possible but do you people not have hobbies? I understand not always having to have a new car but what if your hobby is cars or guns or anything that might cost a little bit. Anyone here have a hobby that takes up at least part of your budget? [link] [comments]  |
| FIRE advice for retirement abroad Posted: 28 Jun 2019 11:12 AM PDT Here's my situation:
I'm 31, and a non-American who is working in the US after my company transferred me over in 2017 when I was 29. Right now I make about $83K a year, with allowances and bonuses bumping that up to about $100K. Before moving, I was working in a relatively poor country with low wages so saving and investing was slow going. To give you an idea, I was maybe making the equivalent of $20K, so I consider myself extremely fortunate to be in my current position. On the other hand, due to the aforementioned low wages I don't have much to show in savings from my earlier career, so I essentially started my FIRE journey on the cusp of 30, albeit from a great position. On the other other hand, I intend to retire in my home country, so my COL will be much lower than it would be if I were to retire in the US, for example. To start off, the apartment is one of my major regrets so far in life. I was pressured by family into purchasing property in a high market, with a 35 year 90% mortgage which is absolutely insane to present day me. The bright side is that I have been able to rent it out, which while not completely covering my monthly repayments puts a significant dent into it. I have been thinking about either selling it, making minimal if any profit and purchasing something more reasonable or paying it off as soon as I am able at the expense of my investments. Other than the small matter of my apartment my financial situation is comfortable. My liquid savings are so high because I've been conflicted on how best to invest it. I have been conservative with my 401k approach due to my intention to retire outside the US so I've not been quite sure how both to access it from abroad and at an earlier than normal retirement age. That goes for other basic retirement accounts as well such as Roth IRA. To offset that I opened a Vanguard account in which I'm putting in some cash monthly. Judging from my growing liquid savings, I can afford to be more aggressive with my investments. So my question is, what should I do to best prepare myself for retirement? Where should the rest of my savings be going? I absolutely hate the idea of having almost $30K (and growing!) sitting around doing nothing. Any advice from early retirement folks who've retired abroad on how to access funds and continuing US investments? [link] [comments]  |
| Upcoming Appointment with Financial Planner Posted: 28 Jun 2019 06:47 AM PDT My company offers a lot of continuing education, and one of the areas they focus on is financial planning. The company that provides the financial seminars also offers employees "free" financial, investment, and retirement planning. A few months back I scheduled an appointment with one of their CFP's, just because. After that initial meeting I sent him all of my financial information, and within the next few weeks I'll be sitting down with him. My question is, how can I best take advantage of this meeting through the lens of FIRE? I'm new to all of this, and still lack a lot of confidence in my path, but I realize his advice might be biased with his desire to manage my investments, and tack on a fee. Should I just play dumb, listen to all his advice, and then continue my plan to sink my investments into low cost index funds? Or should I be honest, lay out my whole plan to him, and see what he thinks? Have you had any meetings with financial planners that were helpful? I'm looking at this as an opportunity to learn more, but am afraid he's going to think my plan is crazy. [link] [comments]  |
| 4% SWR only applies to what you have in market and high interest holdings (NOT total nw) Posted: 28 Jun 2019 06:49 AM PDT I see a lot of posts where people talk about their total NW, and they'll say something like "2M NW of which 700k is home equity, 200k cash, 100k bonds, and 1M VTSAX", which is all well and good, but then they want to use 80k/yr as their 4%SWR. Just to be clear, the logic is that at 8-9% interest, 2-3% inflation, you can safely withdraw 4% without cutting into your principal. It only works if you're making 8-9% on the assets. Your cash, bonds, and home equity are not growing that quickly. [link] [comments]  |
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