Financial Independence Daily FI discussion thread - July 31, 2019 |
- Daily FI discussion thread - July 31, 2019
- Out of interest what is everyone’s job that is making the 100k plus salaries ?
- Monthly Budget Breakdown from a retired real estate investor
- Weekly Self-Promotion Thread - July 31, 2019
- Question about vacations $$$
- Generally speaking, what should your networth be in various financial sub-reddits?
- Yet another FI/RE calculator.
- How to withdraw from retirement accounts early without penalty
- What is the YIELD target for your portfolio?
| Daily FI discussion thread - July 31, 2019 Posted: 31 Jul 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]  |
| Out of interest what is everyone’s job that is making the 100k plus salaries ? Posted: 31 Jul 2019 12:30 AM PDT Just seems to be a lot of high salary earners on here interested in what your careers are? I am making a terrible wage and I'm 30 and wish I could get out of hole that I am in currently. Just want a career change and some stability in my life I currently work in the healthcare sector in the UK which is badly underpaid and undervalued. [link] [comments]  |
| Monthly Budget Breakdown from a retired real estate investor Posted: 31 Jul 2019 07:41 AM PDT First, I would like to thank u/TNVET for the idea of these updates. He is active in the leanfire community, and post his monthly breakdown. I thought not only would this be a great way to track my own retirement monthly, but some of you might find real life numbers from an actual retired investor interesting or helpful. This will be posted monthly on the last day of the month or the first of the next month. Some might want to argue whether or not I am actually retired. I do no day to day work on the business. I have a property manager that handles everything, including handyman duties. I do still look for new investment opportunities, and decide on the game plan when I find one. This is the aspect of the business I find enjoyable, so don't really consider it work, but if you want to count that it will average out to maybe 5 - 10 hours each month. Okay, now for the numbers. Business Income, Investments, and Expenses 1)Real Estate Gross Rental income - $11,695 (no vacancies, 2 were filled at the beginning of the month) Net rental income - $10,455 (this includes property manager fee and a few minor repairs...taxes will be accounted for when paid at the end of the year) No new purchases, No sales Hard money loan outstanding on a flip project in Los Angeles - $50,000 (project is complete, just waiting for it to sell). There was some confusion on this last month. This is loan I made to some flippers in LA. This is NOT a loan I received. 2) Investments Monthly investment into Fundrise $2,000 (all returns are being reinvested) total return since opening account January 2018 is now 19.5% at end of quarter 2 2019 Monthly investment into Dividend Stock account $2000 opened in January 2018, total Money weighted return 15.13% Monthly investment into Leveraged Stock account $2000 opened in July 2018, total money weighted return 7.06% (this account was restructured, which had a negative effect on its money weighted return, but that should be a temporary blip) Monthly investment into Money Market account $3000. Currently getting 2% interest. The balance will stay in the checking account. 3) Possible deal on the table for upcoming month The deal I had on the table last month fell through, unfortunately. Possible new investments I currently have one outstanding offer as outlined in this post. https://www.reddit.com/r/realestateinvesting/comments/cjvlr5/new_deal_offer_breakdown_on_trenton/ PERSONAL EXPENSES Personal expenses for the month (everything except property taxes, which will be a one time expense when paid) I'm sure this is confusing for some people, but I'll explain the low numbers on personal spending. 1) I own my house outright 2) I own my cars outright and only carry liability insurance 3) I self insure for all other insurance 4) I'm just really frugal by nature which includes cooking at home, walking most places within a 3 mile radius, not going out often, etc The goal here is to spend less than $800 a month. $790 total Breakdown:(all cost rounded up to nearest $5) Car insurance $60 Gasoline for cars $15 Cable $70 Water/sewer/trash $60 Gas (heat) $30 Electric $45 Cell phone $35 Food $85 Entertainment $15 License fees/taxes for the new truck $175 Averaged 6 month truck purchase cost $200 Of course the major expense that ran up this month to the limit was truck purchase and licensing. See the details in the grey area, but the total between the averaged 6 month cost of purchase, and the full license fees amounted to almost $400 out of this months personal budget. OTHER INCOME Misc. income Sold old BMW for $3000 Salvaged a parts car for the BMW for $250 Casino Free roll for people over 50 $75 Recycled some cans $5 Total $3330 Grey area accounting. As mentioned last month I was in the process of selling an old 96 BMW 740il for $3000. I also bought a work truck for hauling things for $1200. It is a 99 Chevy Silverado LS that the guy had literally bought less than two months ago for $3500. He didn't have the money to license it, and seemed desperate to sell. I told him he could get more money if he just posted it on facebook or craigslist, but he insisted he needed to sell it right then. I told him I didn't really "want" a truck, but I would give him $1200 right then for it if he really needed the money that bad. So he agreed to that and the deal happened. My guess is the guy was a drug addict or something based on his desperation to sell it immediately for way below what it was worth. My handyman/property manager had his truck have a computer problem, so he asked if he could buy the truck from me. So we agreed on a total price of $2000. He is going to pay me $100 a month until he gets his tax returns next year, then will pay off the balance. This is a win/win situation. He gets an affordable truck, I keep my handyman mobile and make a small profit. I wasn't sure of the best way to account for the up front truck expense, but I decided to cut the budget to $600 for the next 6 months to account for it in the personal spending average, while also accounting for the full amount here in the grey area as a one time expense. His payments to me will be in future Misc. Income. Also had a one time medical expense of $270. That will also be averaged over the next 3 months putting me on a very tight $500 budget for 3 months! Yikes! That is gonna be tough. Details in this post. https://www.reddit.com/r/financialindependence/comments/cgtn11/tales_from_the_land_of_the_fired_self_insured/ Okay, that it is. Let me know if you have any questions about any of this. I know this covers more than just real estate or personal finance, but hopefully members of multiple communities will find it useful. [link] [comments]  |
| Weekly Self-Promotion Thread - July 31, 2019 Posted: 31 Jul 2019 01:08 AM PDT Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. [link] [comments]  |
| Posted: 31 Jul 2019 07:39 AM PDT So as you attempt to FIRE and are living frugally - do you take vacations? If so, are they cheap local vacations or more lavish? I'm 27 and I have never taken a real vacation as an adult (I've gone to visit my friends in other cities and stayed with them and taken free trips to Miami and etc. But I've never vacationed to another country where I had to pay for hotels and travel expenses and everything). Anyways my BF and I are talking about going to Thailand for my birthday. I estimated that I would have to pay somewhere between ~1.5K and ~2K for the whole trip (this includes airplane tickets, housing, food, travel insurance, etc.). And I don't know if this is worth it. I am only in the beginning of my FIRE journey and I am trying to save and invest. I have lots of students loans to pay off (around ~45K) but no CC debt. I make a decent salary in a HCOL area (but I am planning on moving). Should I go? Spending 2K on a vacation kind of makes me want to throw up. What would you guys do? [link] [comments]  |
| Generally speaking, what should your networth be in various financial sub-reddits? Posted: 31 Jul 2019 07:00 AM PDT (Disclaimer) I know that virtually anyone with any networth can participate in any subreddit. But I do notice that if you create a thread, "hey, I have $7 million after selling my company, feel like im drifting and lost right now" and post that in the Personal Finance forum, it will probably be downvoted into oblivion and disregarded as a troll post. Whereas if you post that same thread in FatFire, it will garner much attention, upvotes, and comments. So, in your opinion, what networth should you be to participate in various subreddits? Or better yet, what range of networth of the various subreddits would help you out the most? Personal Finance Financial Independence FatFire LeanFire PovertyFire [link] [comments]  |
| Posted: 30 Jul 2019 05:41 PM PDT |
| How to withdraw from retirement accounts early without penalty Posted: 30 Jul 2019 08:41 AM PDT I recently did some calculations and found that I'm on track to retire in my 40s. I was curious how those of you that have reached financial independence or are planning to do so before the typical retirement age of 65 can access the money in your retirement accounts without facing a penalty or having to claim a hardship withdrawal. Is there a preferred investment strategy for your money when you plan on retiring before 59 1/2? Do you roll over all of your 401k into an IRA and just live off the contributions until you reach the allowed age to pull from your gains? Do you maximize investments in non tax advantaged accounts instead and just withdraw from those funds and pay the capital gains tax? Is there some other way to take advantage of your tax advantaged accounts and withdraw from them early? Apologies if this question has been answered before. I tried searching for a sidebar or previous posts that might provide answers to this question but couldn't find anything. TL;DR Which types of accounts should be maximized for those planning to reach financial independence earlier than 59 1/2? [link] [comments]  |
| What is the YIELD target for your portfolio? Posted: 29 Jul 2019 07:32 AM PDT If the majority of your assets are in, say, VTSAX, the SEC Yield of that is only 1.84%. If you have a US/intl/bond index mix - like Vanguard Target 2030 retirement VTHRX - then the yield is still only 2.22%. But some people say that say your portfolio should have a higher yield so you can simply live off the dividends for all your expenses without digging into principal. For example, if you wanted an annual income of $80,000 you'd need $4.2 million in a portfolio yielding 1.9%. But you'd only need $842,105 from a portfolio yielding 9.5%. The question is which scenario is more achievable for less risk? Of course, to do this you need high yield stocks. Have people here considered this? This article on "How Much Money You Really Need to Retire" got me thinking about it: https://seekingalpha.com/article/4278558-much-money-really-need-retire [link] [comments]  |
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