Financial Independence Daily FI discussion thread - June 09, 2019 |
- Daily FI discussion thread - June 09, 2019
- Rent vs Buy Calculator For Investors And FIRE - v.2, improved and redesigned based on community feedback
- Millennials are going through extreme cases of renting
- UPDATE 2: I’m about to resign
- Having no pay-check is strange.
- Should I accept equity share as a payment method instead of monthly fee(digital marketing)?
- What was the most important decision you made that kickstarted your FIRE journey?
- Going from 40% Savings rate to 10% in order to change career. Advice?
- One of the most profound thoughts about retirement that I thought was super relevant to this community.
- Creating a Will / Trust
- Regular Income Fire Road
- FIRE for our Children
| Daily FI discussion thread - June 09, 2019 Posted: 09 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: 09 Jun 2019 05:26 AM PDT Hi guys, two weeks I ago I've published a simple, buggy version of the Rent vs Buy Calculator that I've developed after spending 3 weeks conducting my own research, crunching numbers and doing an analysis of the question "Should I Buy or Rent While Continue to Invest My Spare Money?". The app is based on the idea of ROI comparison for both of these investment scenarios on the same time horizon (say 10-15-25 years). The feedback from the community was overwhelming (284 upvotes) and your suggestions were super helpful! Today I'm glad to present a second version of the tool, with redesigned UI and functionally improved purely based on your comments. I would be glad to hear your thoughts on the new version and hope it would serve the community members well and help you to run your own "Rent or Buy" numbers on your journey to FIRE. P.S. Please use Desktop for better user and reporting experience ;) [link] [comments]  | ||||||||||||||||||||
| Millennials are going through extreme cases of renting Posted: 09 Jun 2019 05:41 AM PDT https://www.nytimes.com/2019/06/08/style/rent-subscription-clothing-furniture.html Saw this nytimes article about how some millennials are renting absolutely everything they have. In a context it makes sense. People nowadays change jobs every couple of years and if relocation is needed then it becomes such a hassle to sell, pack and move. But at the same time, to go to such extreme to rent everything including clothes, I can't help but think it's such a waste of money, and they will be working their whole life just to pay down their rents so they can continue their lifestyle. And I assume these are the ones making good money too. [link] [comments]  | ||||||||||||||||||||
| Posted: 09 Jun 2019 09:26 AM PDT Hi all Wanted to prove an update as it's been a roller coaster few months. Per the previous two posts, I had been suffering burnout at work, and had spoken to my Boss about leaving my company/industry. Well, I was full swing into interviewing for a new role, up until a month ago when I attended a 3 day personal development course. I had a few big personal break throughs on this course. They include: * Realizing that I've been stressed at my job because I don't feel like I'm good enough at it *Believing that all my colleagues think I'm rubbish at my job *Feeling like it's impossible to keep up my work performance because I've been fooling everyone up to this point in to believing that I'm good *General sense of foreboding and doom about the future of my career Suffice to say these break throughs were pretty big, as I've genuinely believed all of the above to be true. I now no longer do. For the past month work has been a pleasure. I feel like a massive burden has been lifted, and I feel confident and comfortable in my work performance. I've spoken with my Boss about this change in my mental state, and I'm going to continue in my current role for the foreseeable future. I think my story touches upon the intersection between FIRE and mental health quite well. Up until my break throughs I had been working solely to reach my financial objectives. I felt like I had to earn a high amount of money 'to be happy' and feel truly financially comfortable. By freeing myself from this through speaking with my Boss about resigning, combined with my break throughs on the course, I feel like I can keep working and earning my high level of income while being happy. Work is no longer about the money for me, but about enjoying what I do. As a side, I've also been getting more involved with charitable causes in my personal time, which has boosted my sense of personal fulfilment. Will post again in a few months to let you know how I've gotten on. Happy to answer any questions via direct messages (though responses will be delayed as I'm travelling currently). Thank you all for the support to date. [link] [comments]  | ||||||||||||||||||||
| Having no pay-check is strange. Posted: 09 Jun 2019 08:46 AM PDT So I got laid off and got a very generous 6 month settlement, I decided that I would not look for another job and pull the trigger on ER. I am well set up so no real questions about the finance side but now the settlement payments are over I feel a deep sense unease almost foreboding not to have any income. Did anyone else feel this way and if so when does it go away? I am living on savings and brokerage, later when I am old enough I will take an 'income' from my retirement funds and start my pension payments and SS, but for now there is no incoming money. [link] [comments]  | ||||||||||||||||||||
| Should I accept equity share as a payment method instead of monthly fee(digital marketing)? Posted: 09 Jun 2019 03:20 PM PDT Hey guys, After recent success with running social media and search engine ads (Facebook, Instagram and Google ads), I'm thinking about accepting an offer my client gave me before we started. He owns a startup that's increasing rapidly due to advertising (I think I've hit a sweetspot in terms of targeting) and so far I was on a retainer, but now, I'm thinking equity share would be A LOT more profitable. It would be risky to give up on a monthly retainer but the way it looks now, I think I would be able to FIRE in a couple of years if I switch to an equity offer. What would you guys do if you were in my position? [link] [comments]  | ||||||||||||||||||||
| What was the most important decision you made that kickstarted your FIRE journey? Posted: 09 Jun 2019 02:17 PM PDT | ||||||||||||||||||||
| Going from 40% Savings rate to 10% in order to change career. Advice? Posted: 09 Jun 2019 02:30 PM PDT Think I really might bite the bullet. Currently feel pretty under paid in a job that doesn't have much earning potential anyway. I'd probably be earning somewhere between $18/hr-$25/hr until I can complete my degree in 4-6 years. Looking to become an electrician where a.) I would enjoy the work much much more, b.) The earning potential scales much faster, c.) I learn a marketable skill that earns and saves a shit ton of money. Just having a hard time grasping the idea that I probably won't even be able to save $100 a week for the first year or so. Advice? [link] [comments]  | ||||||||||||||||||||
| Posted: 09 Jun 2019 11:14 AM PDT
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| Posted: 08 Jun 2019 05:39 PM PDT For context, I am a 24m, finishing a college job and moving into a professional role in august. I have saved about 70k (ROTH IRA and brokerage), own a boat, motorcycle, and two cars. I live with my parents and goal is to buy some land by year end to eventually build on in the next year or 2. I have set up beneficiaries on my online accounts, but I want to know more about wills and trusts. I know the difference between the two, but I am trying to decide what is right for me. I know I am young and probably don't have anything to worry about, but I have seen a few classmates of mine pass since graduating high school, and I don't want my dramatic family causing issues if something happens to me. I would feel a lot better if I had something that they won't fight each other over. I know wills can be contested in court, but how often does it happen to the average Joe's estate? Thanks for your input. EDIT: My family does know that I have saved this meager sum at my age, and some of them might be willing to fight each other over it. If I pass soon, I currently have my younger cousins as my benefiters for their college funds. I also have a smaller account set aside listing my mother as beneficiary for funeral expenses. ( she is not hurting for money, but who wants to loose a child and then pay to bury them?) [link] [comments]  | ||||||||||||||||||||
| Posted: 08 Jun 2019 04:31 PM PDT Hey all, I wanted to make a post like @MongollianBBQ mentioned about a normal salary, saving, and FIRE with a few numbers. I am currently in the military, but am not planning on lasting for 20 years so I'm not considering a future pension in my plans. Below is based on data I collected ending mid-April. I am in great financial shape because I didn't have any student loans and the military has been paying for my housing and healthcare since I joined (plus the chow hall is subsidized). While I regularly had to buy supplies (like IR chem lights or rite-in-the-rains) I had very few necessary expenses. All salary numbers are pre-tax. I am a 26 yo O-1 (2ndLt) in the Marine Corps. During OCS I was paid as an E-5 for 70 days ($5,239.86). Since OCS I have been receiving 2ndLt pay for almost a year and a half, 516 days ($53, 014.24). This is a total of $58,245.10 over 586 days. A year of 2ndLt pay was just under $37,800 a year. I do know the pay amount is misleading because housing costs are covered separately by the government. With my entitlements (unmarried) my total became $60,070.53. Out of that, I contributed $16,586.02 to a Roth TSP account. I was unable to contribute the TSP during OCS, so that contribution is solely from the 2ndLt pay. Additionally, I received $2187.55 into my traditional TSP from matching funds. I was able to max out my Roth IRA ($5,500 and $6,000) for both 2018 and 2019 on top of this. Separately, I have been saving $200/mo for a new car since I bought my current (used) car outright in 2015. I go out with friends regularly, and have a general budget in mind but do not count pennies. For example, during my MOS school I spent about $200 a month on food (no kitchen). I currently use Personal Capital to track overall expenses. Figuring my FI goal has been difficult because without housing or medical costs I'm not sure how to determine what my actual monthly expenses will be when I get out. So I'm not sure what milestones to aim for. Instead I just have a general goal for this year, which is to max all my tax-advantaged accounts. I think I'll hit that goal. I hope that this is inspiring to someone, or helps someone think about their finances in a different way. If you have any advice I'd be happy to hear it. [link] [comments]  | ||||||||||||||||||||
| Posted: 09 Jun 2019 02:55 AM PDT Hi All, Firstly thanks all for all the advice and openness on how each of you are tackling your FIRE journey. It's a tough gig and requires significant discipline from earning more, to spending less which in turn increases the NET savings plus a bit of luck I guess. Secondly, I am looking to build my son and daughter's savings and encourage them to join the FIRE journey or at least give them a helping hand. Fundamentally, it is their own choice to choose what they want to do with their lives which is the reason is to provide them with more freedom of choice. Initially, I was saving for their pensions to provide them some kind of assistance in life but after much research decided to switch to putting money aside within a savings account instead. Main reason is that they will have access to the money much sooner. I do understand that this does present other risks which I am willing to take. Hopefully this choice will allow them to choose a career which is not the highest paying and most stressful which is the current FIRE journey. I'm on. I'm hoping that their upbringing and education of financial management will provide them a good understanding on the importance of having savings and the impact of compound growth etc... I have been calculating what NET savings they / I / we would need to save for each year before they could earn £20k / $25.5k per year. Converted to $ as most of the fellow FIRE Redditers are from the US. :-) Here are some assumptions:- 4% yield from savings per year and starting from 18 years with the same amount each year, just to make the math easier to understand. Each year the passive income will be reinvested and savings will be added once a year at the very earliest opportunity. I would expect this may vary but gives me an idea on how much needed to pump in. Also they are young at the moment, (under 12 each) so I am advancing this strategy now and hoping to accelerate the strategy whilst I have the residual cash. The idea is to save more that £5k per year for each child so in theory they would have the option to retire on £20k / $25.5k per year which equates to roughly 42 years worth of saving / working and provides them a regular income for when they retire. Savings is within a Stocks & Shares Investment Savings Account with the benefit of no tax implications when taking profits. I have chosen an ISHARES PLC FTSE UK DIVIDEND (IUKD) which is currently paying 6.84% and doesn't require significant management as it is an Exchange Traded Fund with multiple companies within it to spread the risk profile although based in UK only. I may diversify the account as the saving grows - maybe some bonds and cash but will evaluate this based on macro economics etc... Is there anything else I should be considering:-
Thanks again all!! [link] [comments]  |
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