Financial Independence Daily FI discussion thread - August 30, 2019

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• Daily FI discussion thread - August 30, 2019
• Weekly FI Frugal Friday thread - August 30, 2019
• Yet another OpEd critical of FIRE while not even understanding what it is

Daily FI discussion thread - August 30, 2019 Posted: 30 Aug 2019 01:09 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. submitted by /u/AutoModerator [link] [comments]

Weekly FI Frugal Friday thread - August 30, 2019 Posted: 30 Aug 2019 01:09 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. submitted by /u/AutoModerator [link] [comments]

Yet another OpEd critical of FIRE while not even understanding what it is Posted: 30 Aug 2019 12:31 PM PDT https://www.ft.com/content/f4283596-c967-11e9-a1f4-3669401ba76f Some quotes from the article that show how bad the author misses the point: The first problem is property. Most young people I know would struggle to save even 20 per cent of their annual income, as they spend more than 50 per cent of it on rent. Others manage to save — plenty still live with their parents — but intend to use their pot as a property deposit, rather than a retirement fund. We've seen countless examples on this sub of people with average incomes saving large fractions of their income just fine, but just because some people can't means that the whole concept is flawed? And the longer-term worry is the maths. Catchy concepts such as the "4 per cent rule" look increasingly optimistic as global growth stutters, and bond yields turn negative. I'm a fan of investing in low-cost trackers, which have served my portfolio very well over the past decade, but I'm not expecting this performance to be repeated over the next 10 years. I don't think she understands the math enough to criticize it if she can't even offer any reasoning other than 'past market performance does not guarantee future results'. Maybe the 4% rule won't hold for some periods in the future, but the same is true for pretty much every other rule-of-thumb... My final beef is the frugality. If you take money saving to the extremes that some Fire devotees claim to, then the whole thing becomes self-defeating. FatFIRE anyone? In the old days, we may have tried to hide our penny pinching ways. Today, virtue signalling has made being thrifty fashionable. You're just a bunch of hipsters here not getting any real benefit. Author info Claer Barrett is the editor of FT Money, and presents a daily financial news bulletin on Eddie Mair's LBC drive-time show at 5.30pm submitted by /u/ineffablepwnage [link] [comments]

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