Financial Independence Daily FI discussion thread - October 10, 2019 |
- Daily FI discussion thread - October 10, 2019
- TSP now allows unlimited partial withdrawals
- We made it
- Short Term FIRE! Take a year off and use investments to pay expenses.
| Daily FI discussion thread - October 10, 2019 Posted: 10 Oct 2019 01:06 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]  |
| TSP now allows unlimited partial withdrawals Posted: 10 Oct 2019 02:05 PM PDT For government FIers, we're now able to make multiple partial withdrawals. It used to be allowed only once. "there is no limit of the number of partial withdrawals you can take after separating from federal service (except that you won't be able to take more than one every 30 calendar days)." You can also now select which account (traditional vs roth) to withdraw from. "It used to be that when you took a withdrawal, the money came from your traditional and Roth balances on a pro rata basis. For example, if 80% of your account was in your traditional balance and 20% was in Roth, any withdrawal you took was 80% traditional and 20% Roth. Under the current rules, you can still use this method, but you also have the option to take your withdrawal only from your Roth balance or only from your traditional balance. These options are available for all types of withdrawals." How do these changes affect your FI strategy? [link] [comments]  |
| Posted: 09 Oct 2019 09:27 PM PDT For a few years my wife and I have been considering leaving our jobs for some other experiences. And it comes out the company has offered both of us a neat early retirement package. Although we don't need it, it looks like a good exit point. I told her that we have more than enough -our current yearly expenses are 1.5% of our savings-, but she is a cautious person. She was leaning towards having one of us continue working. So we went to check with a financial adviser. He put the numbers in the magic program that gave us a 99% chance of having enough money, even doubling the expenses. I was not very surprised. My wife reaction was: "I retire, you do whatever you want". I'm a little torn myself. Thanks to financial independence my job has become more comfortable because I work on my terms, and I have chosen some interesting assignments because I could take risks. On the other hand it looks like my job could disappear soon, and a few years of work will make no difference on the quality of the rest of my life. We want to find some other jobs though, which at 50 years old will not be easy. We will see. We have done nothing exceptional. We have jobs that pay well (but not crazy well), we spend only on stuff that is important for us, and we like to get value for money. [link] [comments]  |
| Short Term FIRE! Take a year off and use investments to pay expenses. Posted: 10 Oct 2019 11:48 AM PDT Most of the questions and comments about FIRE involves people who live frugally for 15-25 years, work like a dog and invest a large percentage of their income to pay for a lifestyle when they are 45+ years old. Sounds good but for many people in their 30s and early 40s, they want to enjoy the fruits of their hard work and investing success starting next month, not in 10 years. A couple we know who is in their late 30s have been saving and investing their money in anticipation of early retirement at age 50. But they are getting frustrated because that seems too far away. Instead, they want to reward themselves for all their savings and investing success and travel the world for a year starting in January 2020. Their goal would be to buy a Round The World Airline Ticket and stay at short term apartments in 12 different cities all over the world and live like a local. This would reward them for their success at savings and investing and allow them to be able to travel while they are still relatively young and have lots of energy. FIRE COMMUNITY: Would something like this break the rules of FIRE by not earning an income and spending lots of money in the year of traveling that could be invested and used for early retirement? [link] [comments]  |
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