Financial Independence Daily FI discussion thread - June 06, 2019 |
- Daily FI discussion thread - June 06, 2019
- Lunch with a recently FIREd Friend
- The Top Regrets of the Dying - A FIRE Perspective
- Minimalism and FIRE
- RE-BnB: Anyone “retire” early to move abroad and run a bed and breakfast or small hotel? Please share your story!
- I'm lost, and I'm not sure what to do next. I could really use some insight.
- Positive net worth!
- What was it like to quit your job?
- What COMMUNITIES do you want to be a part of post-FI, or right now?
- FIRE - US Health Care & Multi-state travel
- Anyone FIRE'd or trying to get FIRE'd while living overseas?
- Plan to be mortgage free in two years, with a catch
- Maxed out my 457 and created a side hustle. early FIRE ideas and recommendations?
- Adding a second major (comp sci) to supplement my passion
- Work then retire, then work again?
- CFIREsim questions
- Downsides to moving back in with the parents?
- Wealth is....
| Daily FI discussion thread - June 06, 2019 Posted: 06 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]  |
| Lunch with a recently FIREd Friend Posted: 06 Jun 2019 07:04 AM PDT I'm having lunch today with a friend who retired about 2 weeks ago at 51. What burning questions do you have? Edit post-lunch answers. Tried to capture them all: Insurance? currently on spouse's insurance and trying to figure out what to do once she retires. Has savings put aside for this. Regrets? None. Has been frugal but not miserly. Spend time? golf, volunteering. Access cash? savings and spouse income. When did he start? In his early 20's. Asset allocation/bond tent? said he knows next to nothing about bonds. Mutual fund investments and real estate. He did not give me a solid percentage of each. SS considerations? Did not mention this at all. Family/social life? Adult kids on their own. Social life is pretty good. Again - frugal, but he's not a tightwad. Had beers with him Friday night. Duck/horse question - didn't get around to this, sorry. Bored? Initially but weather has cleared up and he's all good. Financial advisor? Yes, meeting with them today. Kids? Adults and out of the house. Sacrifices made? None that he could think of. He's traveled internationally since I've known him and enjoys going out for dinner/drinks. Real estate? Yes - several rental properties that he started investing in during the downturn and this has helped. Long-term living? Moving from the Midwest to a southern state. Has he told anyone else? Yes, a few people knew before and he enjoys talking about it to anyone who will listen. [link] [comments]  |
| The Top Regrets of the Dying - A FIRE Perspective Posted: 06 Jun 2019 01:54 PM PDT In 2012, a palliative care nurse wrote a book about her experiences spending time with folks who were in their last 3-12 weeks of life. She would periodically ask them about their regrets and over time had enough material to compile it into a book. I won't share a link in the interest of avoiding supposed "self promotion" or "advertisement" but the author's website is just an easy Google search away. Anyway, the top 2 of the 5 really stand out from a FIRE perspective: 1. I wish I'd had the courage to live a life true to myself, not the life others expected of me. "This was the most common regret of all. When people realize that their life is almost over and look back clearly on it, it is easy to see how many dreams have gone unfulfilled. Most people had not honored even a half of their dreams and had to die knowing that it was due to choices they had made, or not made." Many of the folks interviewed at this time likely grew up in the 1950s or 60s, where the general template for life was graduate college --> marry your college sweetheart --> have 2.5 kids, a house, a car --> wife stays home with kids, husband works 35 years at one company and collects pension --> enjoy your 10 year retirement if you're lucky. FIRE helps free up the time and financial resources required to pursue one's dreams, and unshackles you from the "standard life template." 2. I wish I hadn't worked so hard. "This came from every male patient that I nursed. They missed their children's youth and their partner's companionship. Women also spoke of this regret. But as most were from an older generation, many of the female patients had not been breadwinners. All of the men I nursed deeply regretted spending so much of their lives on the treadmill of a work existence." This one's pretty self explanatory. I'd expect over time the responses from working women will be the same, and for the same reasons. I actually think this would be #1 if a generation with more working women was interviewed. Thoughts? [link] [comments]  |
| Posted: 06 Jun 2019 10:23 AM PDT So, I've recently gotten interested in both FIRE and minimalism and I see a lot of overlap in the mindset behind both concepts. One of the most striking similarities in result I've noticed is that both have helped me really pay attention to what choices I'm making and helped me realize what actually matters to me. Anyone else interested in both concepts or have thoughts on how they can be used together? Do you try to minimize any aspects of your finances? [link] [comments]  |
| Posted: 06 Jun 2019 08:10 AM PDT When asking ourselves what would we do if we could retire tomorrow, the wife and I can't help but think back to our traveling days and the wonderful owners of various family-run BnBs, cabañas, pousadas, etc. that we've had the joy of meeting. We think it would be amazing to own and operate a small BnB on a beach in the Mediterranean or a vineyard in South America. Has anyone done this? Done it with kids? [link] [comments]  |
| I'm lost, and I'm not sure what to do next. I could really use some insight. Posted: 05 Jun 2019 09:01 PM PDT I've been part of this community for a while now, and it can get overwhelming at times. I graduated with my business degree last January, and was hired right out of school by a major Canadian eCommerce company called Shopify. I work remote enterprise support, which puts me somewhere in between a cushy call center agent and an account manager. It pays a decent salary, allows me to work from home, and offers a world of opportunity in terms of internal growth. Here's the catch- My dream has always been to move to a little loft somewhere in downtown Toronto. Right now, rent would take up over half of my monthly income. I don't want to wake up in my late twenties in the same place I started, y'know? There's too much potential at this company to leave, but every day I get closer to quitting my job, moving out, and starting some ocean conservation charity or something else I care about. I've got complacent- the one trap I promised myself I'd never fall into. I have half a condo downpayment saved, no debt, I live with my parents rent free, and my job (as miserable as it can be sometimes) is easier than that of most of my friends. I've got nothing to complain about- but I'm not happy. In college I would stay up late every night working on new ideas and strategies to build the life I wanted to live. Now, I hardly know where to start. I'm having a hard time finding the motivation to keep trying. I'm not asking for a solution, but I've just gotta make sure I'm not alone in this. Those of you who have felt the same- where on earth do I go from here? [link] [comments]  |
| Posted: 06 Jun 2019 03:31 PM PDT Just calculated our net worth for the first time in a few months, up to about +$1000 this month. We were about -$38,000 four years ago. I know this forum is usually filled with a lot of 100k+ net worth people, but we feel good about this! Student loans, graduate school, medical bills, and living internationally set us back for a while. [link] [comments]  |
| What was it like to quit your job? Posted: 06 Jun 2019 02:10 PM PDT People of reddit who have already FIRE'd, what was it like walking into your boss's office and quitting? Did it feel good? What did you say? Did you reveal you're retiring? [link] [comments]  |
| What COMMUNITIES do you want to be a part of post-FI, or right now? Posted: 06 Jun 2019 10:03 AM PDT Hi all, I've been reading a lot of posts about people's struggles and challenges post-FI - how to keep busy, find meaning, deal with depression, etc. Based on my own experiences and what others have said, I'm beginning to approach dealing with this problem from a different angle and wonder if others have been, too. Within the last three months, I've gone from working full-time to ~25 hours a week while actually making more money (the American dream, right?). I find I have plenty of things to do, but there's a cap on the amount of things I can do in a given day and feel good about doing them; in other words, I've found there's a point of diminishing returns the more I add to my schedule. For me, I'm just not going to work myself happy. Having said that, I'm trying to approach my greater freedom not so much as a call to get more stuff done, but more time to join - or be a greater part of - communities and groups. I've already joined a new workout group in the last month, am considering putting in more hours at an animal shelter I already volunteer, my church, and volunteering at a school. What are some communities you want to become a (greater) part of post-FI, or right now? [link] [comments]  |
| FIRE - US Health Care & Multi-state travel Posted: 06 Jun 2019 11:32 AM PDT My wife and I have gone in and out of semi-retirement for the last 10 years. Health insurance has been a barrier for us, so one of us continued to stayed employed to get corporate coverage. We have a home in Texas but travel around the USA biking, hiking, skiing and other outdoor activities during the year. Although we are very healthy, we are very active and reasonably high risk that one of us will eventually get hurt in the outdoors. Multi-state health insurance coverage has been a big concern with our travel and active lifestyle. One of the couples we travel with from Florida got ACA insurance by keeping their income below, I think ~$47k, and they got insurance through Kaiser. (They retired late 40s) Has anyone done an analysis by State on which state offers the best ACA plan coverage, low premiums and the insurance provides good coverage anywhere in the USA? We are OK with relocating our home state but will continue our active travel lifestyle around the US. We can also scale our income accordingly to fit under ACA. [link] [comments]  |
| Anyone FIRE'd or trying to get FIRE'd while living overseas? Posted: 06 Jun 2019 02:31 PM PDT Feel free to share experiences and advice.
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| Plan to be mortgage free in two years, with a catch Posted: 06 Jun 2019 08:03 AM PDT Hey all, I've been part of this community for years now, but I'm using a throwaway because I don't want to give away any unique details inadvertently. I think I have a pretty decent plan on how to eliminate my mortgage within two to three years and jumpstart my FIRE goals. First of all, I live on the coast in south Florida and already see signs of climate change. Parts of my city flood almost every high tide now, and without the existing sea walls some roads would be perpetually flooded. I can see the writing on the wall and would like to get out of here before everyone else notices too. The problems aren't going to get any better, from what I can tell. Right now I own a house about a mile from the coast, with a $1500 mortgage and potentially a conservative $100k in equity if the estimates on the real estate sites are even close to accurate. What I am planning is to buy a 10+ acre rural property in my home state in the Appalachia region using a loan from my 401k and some cash savings to purchase the land, which can be had for $4k-6k per acre. I will pay it off aggressively while continuing to work my corporate job in Florida. Once the land is paid off (I'm estimating 2 years), I will move up to the area, potentially renting an apartment and finding another job, while I use the proceeds from my house sale to fund the construction of a modest house on the property I will own outright by then. At the end of construction, assuming I stay within my budget, I will own everything free and clear. I currently max out my 401k and have a ~$200k balance, but my partner is about to pay off her student loans (we've been putting about $2k/month to get them paid off) and we'd simply divert this income to help pay off my 401k loan, so I wouldn't have to reduce contributions to maintain my current standard of living. I have no other debts besides mortgage debt right now. My goals are to get out of Florida ASAP due to the pending disaster I see coming, and what I'm looking for here is any flaws in my plan I haven't considered. I understand I will lose some growth potential in my 401k by using a loan, but I am willing to take that risk for the reward of not having to worry about a mortgage anymore, and for being in the place I want to spend the rest of my life. I understand that I could save up for 5-10 years and buy it outright in cash, but that timeline is too risky in my opinion. I know that if I lose my job or quit before the loan is repayed, I have to pay income tax on the distribution and a 10% penalty. I also understand that there's a risk the property values here could collapse in the next two years, leaving me without money to fund the house construction, but I suppose that will have to be taken one step at a time, and I will still own the land up north at least. I do work in a relatively lucrative field (engineering) and there are opportunities where I am planning on moving. However, part of the upside of my plan is that this would free me from needing and engineering job, and I would be able to get by with much less without having to make the mortgage payment. Let me know what you all think, I have found this sub to be a wealth of knowledge over the years with an appreciable amount of nuance, so I am interested to see how it goes. [link] [comments]  |
| Maxed out my 457 and created a side hustle. early FIRE ideas and recommendations? Posted: 06 Jun 2019 07:10 AM PDT I'm 31 years old. Live in the USA. I've been with my company 12 years and investing in the offered 457 deferred comp for 4 or 5 years (no company match) I've been an idiot up to this point and only contributing less than 100$ a month and have 6k total in the account. A few weeks ago I decided to get smart finally and maxed out my 19k yearly contribution. I make about 70k yearly. Due to the fact my 457 is pre tax it's only costing my take home pay about 1100 a month 13k a year. With this contribution I'm going negative with my earning to spendings a few hundred a month but I have about 25k in the bank. Because of going negative I created an eBay side hustle and in the first month I profited about $80. By the rate of growth in the first month I can see the eBay side hustle easily bringing in around $800 a month in the short term. I own a home with about 160-180k in equity. I will have 30 years in and be 49 years old when I plan to retire from my company and a pension that pays 70% of my highest 3 earning years at that point with almost free healthcare provided. Currently my investments in my 457 are simulated to mimic the vanguard total US stock market. My investments are 81.06% vanguard 500, 4.04% vanguard mid cap, 14.9% vanguard small cap (100% stocks) How's this looking to you guys for retiring at 49 years old ? And any ideas or tips to get to FIRE earlier than that? I don't want to change my quality of life or my current spending/lifestyle. I have a wife and kid and we like enjoying some nice things now and not waiting for later. I also can expect a likely 6% pay raise year after year. How do you guys like my investment choices? [link] [comments]  |
| Adding a second major (comp sci) to supplement my passion Posted: 06 Jun 2019 11:58 AM PDT Hello FIREers. Here's where I'm at: I'm a music major and I absolutely love it. It's incredibly rewarding to push my creativity to the next level every day. I plan on continuing it because it's something I want to do my whole life. I'm lucky in that my tuition checks are paid for. I might run into some issues if I need to take some more time but for the most part my education won't hit me with more than $10k in debt. I'm not someone who needs a lot to live, and I certainly have the capacity to learn everything I can about finance to get where I want to be as long as I have the income. Here's what I'm considering: Music isn't exactly the most lucrative lifestyle, and as much as I love it I think I should consider something that will help me pay the bills and get me to FI while I continue to hone my craft. If I find musicians to play with and students to teach, I'll be happy, and it might even have the way for a comfortable teaching job in retirement, which would make me extremely happy. Not exactly FI, but I absolutely love to teach and I probably wouldn't consider it work if it wasn't my primary mode of moneymaking. My specific degree is in music technology, and I'm thinking I should try to get a computer science degree to add to my career options in and outside of music. I chose comp sci because it's pretty creative, lucrative and I've always been interested in it but never understood it on a deep level, but I'm currently taking an intro course and it's pretty great. I'm lucky that I'm already a BA major and my college offers both a BS and BA in comp sci. Of course I'm scared that the work load will be much, but part of me knows I'd be letting my passions go to quit studying music and my mental health would suffer if I was living paycheck to paycheck. TL:DR: Do you think it's worth it to basically kill mayself academically for four years going forward for the possibility of a better paying career I'm interested in, or should I be following my passions? Really hoping any comp sci majors or music double majors could weigh in :) [link] [comments]  |
| Work then retire, then work again? Posted: 06 Jun 2019 04:09 AM PDT Lately I've been getting paranoid on my FIRE journey that I will eventually retire only to have some major health problem that will prevent me from enjoying retirement. I am 40, married with elementary aged children, and my spouse and I both make comfortable salaries. Currently on track to retire around 50-52. With a little extra work, I could stop working now and theoretically restart my profession whenever I wanted. Would it make any sense to "retire" now, spend time with my children when they're at an age they still want to, and do all the fun things that perhaps I won't be able to enjoy as much when I'm older and current nagging health problems (sore joints/back) become somewhat limiting? Maybe take 10 years off, then go back to work? Am I missing some important negatives to this plan? How would you adjust FIRE calculations / SWR, etc? Thanks! [link] [comments]  |
| Posted: 06 Jun 2019 09:49 AM PDT I'm having a hard time understanding what the calculator is adjusting for inflation/interest. Lets say I put in that I plan to retire in 2025. Am I putting in my portfolio amount that I project to have in 2025? Today's portfolio? Or do I use the amount I project to have, adjusted down for inflation? Like when I'm projecting my portfolio for 2025, should I use a compound interest rate that gives me the real number, or the number thats adjusted down for inflation? I have a (small) pension that starts in 2035. Do I enter the projected value in todays dollars? With inflation it'll be "worth" half of what it seems like it is today. [link] [comments]  |
| Downsides to moving back in with the parents? Posted: 06 Jun 2019 09:23 AM PDT Hi everyone, I was just curious if there were any potential financial downsides to moving back in with my parents? Obviously I'm going to save hundreds/month on rent, food, utilities(I'm helping still, trying not to leech) Besides things like privacy (girlfriend is in grad school at the moment, this isn't super important to me right now), are there any negative financial consequences like this affecting my credit, or taxes? Edit: I'm curious what your guys' views on multiple generations of family living under one roof, such as in asian and hispanic cultures [link] [comments]  |
| Posted: 05 Jun 2019 06:08 PM PDT I like this from Alan Weiss: "You can always create more money, but you can never create more time. The key to real wealth is the ability to create and allocate discretionary time. The freedom to work or play, laugh or sing, rejoice or grieve, as we see fit when we see fit, is the real indicator of true wealth. Money is merely a means to an end." He's a consultant with a solid philosophy: "I could make more money, if I chose, but at a cost that would decrease my wealth." [link] [comments]  |
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