Financial Independence Daily FI discussion thread - August 27, 2019 |
- Daily FI discussion thread - August 27, 2019
- It's all about the vantage point...
- Anyone currently pursuing or planning to pursue a creative career post-FIRE?
- Do you alter retirement plans based on an assumption of higher future tax rates?
- How do you start building wealth after finally getting out of debt?
| Daily FI discussion thread - August 27, 2019 Posted: 27 Aug 2019 01:10 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]  |
| It's all about the vantage point... Posted: 27 Aug 2019 12:18 PM PDT So earlier this week I had an "aha!" moment thanks to a user who posted in the weekly "Help Me Fire!" thread. The user identified their ideal net worth for their ideal retirement age with an emphasis on the projected contributions over the coming years to reach that goal. They projected their annual contributions towards their investments which prompted me to do the same. Ever since I started FIRE a few years ago, I never tracked my annual contributions -- I just made sure I was saving one paycheck per month and contributed to my retirement accounts and just watched my net worth grow. I never actually knew how much I was actually contributing across everything. A couple of days ago, for the first time ever, I projected my annual contributions, over the coming years, towards my investments (retirement + non-retirement) and it blew my mind how much I'd be able to contribute on an annual basis by the time I reach 30 (assuming everything goes business as usual). It then hit me that regularly tracking my projected annual contributions vs. my net worth is less anxiety-driving because of control. I can't control what happens with the markets or if we reach new highs by a certain date or if I hit a specific NW by a specific age. For example, if I'm on track to reach $300k NW by 30 and then when I'm 29 a recession hits, I clearly won't be reaching that milestone. However, that's outside of my control -- I just know that, in the end, everything will work itself out and there will be gains on my investments. However, what I CAN control is how much I contribute to my investments and making sure I'm really optimizing every channel -- both retirement and non-retirement. This is definitely not something that is groundbreaking or revolutionary, but as someone who was compulsively logging into my investment accounts multiple times per week to view my net worth - and never tracked how much I was actually contributing - now reorienting my mind to focus on optimizing contributions vs. checking my net worth every day like a mad man is immensely more invigorating and brings stronger peace of mind. I do plan to check my NW perhaps a handful of times per year, particularly around the time of the year when I need to reset automatic investments or set up ad hoc contributions (e.g. bonus payouts). [link] [comments]  |
| Anyone currently pursuing or planning to pursue a creative career post-FIRE? Posted: 27 Aug 2019 03:12 PM PDT I was that geeky art kid growing up, did show choir and rock band, minored in painting and art history. Majored in engineering, though, and that's what I do now--no regrets because I make very good money and the work life balance is great, but a large part of pursuing FIRE for me is the ability to pursue these hobbies seriously at some point in my life. That being said, trying to be an artist or musician has always seemed like a young person's game, and I'm curious what it's like getting into them when you're older (say 40s-50s). Anyone have thoughts or insights? [link] [comments]  |
| Do you alter retirement plans based on an assumption of higher future tax rates? Posted: 27 Aug 2019 03:36 PM PDT Without getting too political, it seems like the US is on an inevitable path toward more socialist policies. The 1% don't make enough money to pay for everything and the rest of us will end up paying more, possibly much more. It does not seem unrealistic to me that the middle class could have a tax rate of 50% or more. For comparison purposes see European and Scandinavian rates https://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_to_GDP_ratio So the question is, if one wishes to plan for future rates being much higher what is the "best" plan? For example: tax deferred investments could get taxed at higher rates than current rates. Future capital gains could be taxed at marginal income rates. [link] [comments]  |
| How do you start building wealth after finally getting out of debt? Posted: 27 Aug 2019 03:55 PM PDT What should change in your budget/lifestyle/mentality when you actually get out of the red? I have enough saved to pay off my student loan, which I'm planning to do soon. My NW is zero, but I have great credit and lots of credit to lean on. I feel like I don't know what to do next! For those of you ahead of the game, what did your life look like when you transitioned from indebtedness to having $0. [link] [comments]  |
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