Financial Independence Daily FI discussion thread - September 04, 2019 |
- Daily FI discussion thread - September 04, 2019
- An interesting thread about the realization that having to work forever sucks.
- Environmentalism and FIRE
- Mini-Retirements (Good or Bad?)
- Re: removal of the Michael Burry index fund article.
- Index Funds vs Real Estate
- Weekly Self-Promotion Thread - September 04, 2019
- Raising kids with FIRE values
- GeoArbitrage & Fi
| Daily FI discussion thread - September 04, 2019 Posted: 04 Sep 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]  |
| An interesting thread about the realization that having to work forever sucks. Posted: 04 Sep 2019 04:29 AM PDT |
| Posted: 03 Sep 2019 05:36 PM PDT Lately our family has been considering installing a residential solar system to cover most of our home electricity needs, and it got me thinking about the relationship between being financially responsible and environmentally responsible. After buying a Chevy Volt and adding 1,000 square feet to our house, we suddenly find ourselves paying a lot more in electricity than we were before, and then realized that we could both lower that bill and significantly reduce our carbon footprint by going solar. Back of the envelope calculations: current cost to install solar is ~$3.00/watt, so 10kW system would be $30k. The 30% ITC tax credit reduces initial cost to $21k. Payback period given average production of a 10kW system with ~$.11/kW utility pricing is ~12 years; your mileage may vary depending on your location and local tax incentives. Over 30 years, such a system would produce ~$50k of power, or about $30k net after installation costs. If you have to finance it (we're considering a cash out refinance on our mortgage), then given today's low interest rates, basically cut that in half. Admittedly, those returns over 30 years are...well, better than wasting it on avocado toast, but obviously nothing compared to an index fund. You should still invest in both tax advantaged and taxable accounts to build up a nest egg - but I think it's worth considering (especially for privileged folks like us) a few little projects like this that can both save a little money and help mitigate the effects of climate change. Of course, some people take this too far, in my opinion, to the point of sacrificing their financial security in order to be on the bleeding edge of environmental tech. I've got friends with multiple Teslas and solar installations in houses they don't live in for the long-term; I admire their principles because they view climate change as a bigger threat than their pocketbook, but I just personally can't help but try to make some kind of financial sense out of the decisions I make. Where do y'all land on balancing FIRE and environmental principles? Do you see them as working together, or opposed in some cases? [link] [comments]  |
| Mini-Retirements (Good or Bad?) Posted: 04 Sep 2019 08:58 AM PDT I recently finished reading Tim Ferris's The Four Hour Work Week and one of the main ideas that struck me was the idea of taking mini retirements sprinkled throughout your career every 5-10 years. Was wondering if anyone on the sub has implemented this or a similar system and what were the results you got from it? How did taking a hiatus or year off affect your financial life and career? While it sounds great on paper I am curious how that would affect someone's savings rate, financial independence timeline, and everything else that goes along with it. I am a college student going into engineering so I don't plan to do this anytime soon but would love to hear everyone's thoughts! [link] [comments]  |
| Re: removal of the Michael Burry index fund article. Posted: 04 Sep 2019 11:59 AM PDT Hi, everybody. Stand-alone posts about this article keep getting removed by both the mod team and the automod primarily because the article's about the viability of an investment vehicle and therefore falls into the same category as real estate and crypto and individual stocks and such. (Granted, though, it's an investment vehicle of great importance to the sub. More on that in a second.) Also, please bear in mind that stand-alone links to articles, any articles, oughtta be accompanied by illuminating commentary that clearly ties the article's subject to FIRE. Yes, the tie-in may be implicit in the subject matter, but it's never enough to just post a vague title and the link and then "Thoughts?" That's what keeps happening here. Please remember that these connections may not be apparent to everyone, especially newcomers. OK, the operative word above has been "stand-alone." Discussion of investing in index funds and other vehicles is fair game in the daily thread. Somebody please post this article there for discussion ASAP? Also--and without trying to be dismissive in the slightest--there's a big discussion about this article going on over in /r/investing you may want to check out. Hope that helps clarify. Thanks as always! [link] [comments]  |
| Posted: 04 Sep 2019 01:34 PM PDT Just curious to see what some of your thoughts are on each and what might be the best option. I know many variables go into deciding which to put most of your money into, but I'm trying to decide which is ideal. Putting some into both would obviously be the best option, but in terms of getting to FI quickly, wouldn't putting more into real estate make the most sense? Since my income currently sits at only around 50,000 I figure that'd be the case. What would/do you do? In your opinion, save up for down-payments on rental properties or keep throwing most of it into Index Funds? [link] [comments]  |
| Weekly Self-Promotion Thread - September 04, 2019 Posted: 04 Sep 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: 03 Sep 2019 08:46 PM PDT We are a family of four living in silicon valley california. I am naturally frugal and have worked hard and saved money. I am not yet FI but will be there in 4 years or so. I ideally want to work for 8 years so that I can leave enough money for my kids as well. My elder daughter is 11 years and recently I am noticing a tendency where she is behaving in more of an entitled manner where she feels parents have the responsibility to entertain her, buy toys and keep her happy. She makes statements like "You are the most boring parents ever", "I will pester you till you buy me that toy", "You got me icecream, we ate lunch outside and now what I am bored again" I am worried all the money that I earned the hard way will be spent away if she grows up to be irresponsible. I have a feeling this is party being caused by the place we are in. All rich kids live here and going to school with them, she may be picking up all this stuff. I am an immigrant and I feel sometimes it is better to go back to our country and raise kids there and come back when they are adults. Not sure if that's a good idea. Are there good cities in US where kids can be raised with better values? Is there a difference between kids raised in small town vs big cities? Or is it a parenting issue. I want to raise my kids so that they know the value of money, live frugally and not squander the money they get. Appreciate any suggestions [link] [comments]  |
| Posted: 03 Sep 2019 02:34 PM PDT I posted this on yesterday's chat but I thought it'd be an interesting topic Anyone ever take a salary cut but move somewhere cheaper in order to expedite their FI (inside or outside country)? I moved to Mexico a year ago, took 60% cut in salary and about a 200% standard of living increase. No joke and it's well calculated. I own two pieces of real estate in the US that help finance my investment accounts and while earning less last year that any of the last 7 years, my Net worth saw by far the greatest growth. I don't touch this money for spending in Mexico. I'm 29, married and wife (26) also works. We are teachers at a prestigious international School in Cancun. We took a 60k hit but life is good and super cheap. We also both speak Spanish so that helps :) We have above a 50% saving rate here as well. Sometimes its a slap at my pride making a lot less, I have to admit. MBA + perfectly trilingual (French/Spanish/English) but we're both muuuuch happier. A little worried about long term knowing friends are continuing to see massive raises in US/Europe (a bit less in EU) but we'll be spending our 30s making peanuts if we stay here, with nice local raises but not much in an international economy. We could see ourselves staying here long-term though (potentially forever) culturally. What are your thoughts? Too young to trade in salary for Standard of living or not worry too much? I'm originally from Washington DC & Paris (two sides of family). Our FI in Cancun could potentially be expedited by decades here. Thanks! [link] [comments]  |
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