Financial Independence Daily FI discussion thread - October 12, 2019 |
- Daily FI discussion thread - October 12, 2019
- 350k 25M from humble beginnings
- What are some things you want to learn after FIRE?
- 33M late bloomer about to cross $200k, prepare to be unimpressed
- How potential future changes affect your path to FIRE
| Daily FI discussion thread - October 12, 2019 Posted: 12 Oct 2019 01:07 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]  |
| 350k 25M from humble beginnings Posted: 11 Oct 2019 08:57 PM PDT I grew up with a single mom in a HCOL area and had felt financially insecure growing up because I was always the poorest kid among my friend groups. I learned to never ask for any toys or any luxuries because I didn't want my mom to feel bad about not being able to afford them. My mom lived frugally in order to pay for my college in full but I also got a significant scholarship at the time. I found out about FI as soon as I got my first job. My mom's frugality has definitely had an impact on me. Ever since graduation I spent about 20k-35k per year. I don't budget or track my spending because it is too meticulous for me (I did do it for several months but stopped). I don't own a car and most of my money seems to go towards rent and eating out. My starting salary at age 22 was around 120k. It is now at 190k. My starting salary was more than twice my mom's salary in her peak earning years, which to me is still crazy to think about. NW by age:
Current allocation:
I am unsure what the future holds but it would be nice to be able to work for myself one day. I think after I reach my FI number, I will seriously consider this transition. Or maybe I will decide to keep working or decide to just be a bum. Who knows, but I'm keeping my future flexible in the likely case I change my mind. Some thoughts and lessons learned from my journey: - I lost 15k from trading crypto. At the time I was obsessed with learning about economics so I knew what most expert economists thought about crypto: it is a deflationary, will never replace currency, and it stems from speculation. My friend who had told me about crypto was up more than 800k from it, so my greedy ass decided to ignore what I knew about crypto and buy into it anyways. I put 16k in and took out 1k about 1 year later. Oops, A Random Walk On Wallstreet was right, I'll stick with index funds from now on. - Spend money on what you like personally. Seeing as most of my friends love to travel, I thought I would enjoy it just as much as them. It turns out when I'm traveling for too long, I start to feel anxious. At first I thought maybe something was wrong with me: why didn't like I like traveling as much as other people? But then I learned that it doesn't matter what other people value, just spend time and money on what you personally value the most. - Privilege is not binary, but a scale. I definitely didn't have as much resources as other kids have growing up who may have not gotten as far as me, but also it would be wrong to not acknowledge the privileges I do have: growing up in a first world country, being able bodied, not ever worrying about going hungry, and my mom's sacrifices to pay for my college. - Taking care of my mental health. As an introvert I underestimated the amount of friends I needed to survive. However after my last break up with my ex gf about 1.5 years ago, I started spiraling into deep loneliness and depression from lack of social support. I've been able to climb out of that mental state since and now I make sure to always devote some time to taking care of my social needs, physical needs (exercising) and mental health in addition to whatever I'm working on. Sorry for the ramble, this post ended up being longer than I thought. Hope you enjoyed it! [link] [comments]  |
| What are some things you want to learn after FIRE? Posted: 12 Oct 2019 03:20 AM PDT For me, another language would be nice. I speak two pretty well, one intermediate. I'd like to also drive a manual transmisson. First car was auto, and never got around to it. What are some things like this that you hope will occupy your time? [link] [comments]  |
| 33M late bloomer about to cross $200k, prepare to be unimpressed Posted: 12 Oct 2019 09:52 AM PDT Me - 33 $130k/yr, Wife - $75k/yr (independent contractor at a school district), and $24k/yr rental property LCOL east coast Savings ($192k): $25k Roth $75k 401k's $65k IRA's $15k brokerage $12k cash. 90% in Vanguard total stock market index funds, 5-7% in company stock, <5% in a company I think has some real growth potential and yes I'm aware I may lose it all. Equity ($85k): 4-plex I used to owner occupy in another State, closing on new home early Nov. Debt ($490k): 1st mortgage -$190k, 2nd (new home) - $300k, CC paid in full each month Savings Rate: $80k/yr, max all available accounts, remaining in brokerage Expenses: ~currently $65k/yr, we're working on it FIRE goal- mid 40's with ~$1.5m or when properties are paid off, Here's my salary and savings timeline. Most of this is by memory. I don't have a fancy spreadsheet to share. I didn't track my total savings or my gains I just saved like I thought I should. This probably doesn't all add up perfectly to what's above. Again it's by memory. 2010- 62.5k salary new grad, new job, small company, no bennies, 5k into Roth, -38k student loan 11'- 69k salary, no bennies, same company, 5k roth, debt -36k 12'- 72k, no bennies, same company, 5k roth, debt -34k 13'- 78k, no bennies, same company, 5k roth, debt -32k 14'- 72k, new job, health insurance yay!, 10k 401, 5k roth, debt -30k 15'- me 75k wife 65k, bought 4 Plex, got married, 12k 401, -$15k roth (fuckin stupid), wife $5k into 403b, debt -85k (wife student loan added), mortgage -212k 16'- me 82k wife 68k, FIRE...engage, 27k 401&403, 11k roths, -55k debt, mortgage -208k 17'- me 92k wife 68k, 30k retention bonus with company sale, 25k into 401&403, 11k roths, -45k debt, mortgage -204k 18'- me 102k new job, wife 70k with her now self employed, max all accounts, no debt, mortgage -200k, moved across the country for my job 19' start- me 105k wife 70k self employed, planned to max all accounts, mortgage -196k 19' current- me 130k, boss quit and I was promoted, 48% bonus potential but not yet realized, wife $70k, buying new to us house, all accounts will be maxed soon, finally feel stable That's it. I told you it wasn't impressive. [link] [comments]  |
| How potential future changes affect your path to FIRE Posted: 12 Oct 2019 05:39 AM PDT So much of the FIRE movement is about the path towards it. Albeit, the overall consensus is that passive consistency in your savings and investing yields better results down the line than "get rich quick" schemes. However, so much of the gospel has been to maximize tax-advantaged accounts. What happens if the tax code changes and the once viable options of backdoor Roths, mega-backdoor Roths, 401ks, no timeline on HSA reimbursements, or Roth conversion ladders become obsolete? I would hope that no matter the administration or congress retirement saving methods and vehicles would only be improved, but at the end of the day money rules and movements such as FIRE could be viewed as a way to not pay your "dues" in the school-work 'till your 67 1/2-die a few years after that life cycle of the average person. I'm interested to hear everyone's thoughts. What would you do if your plan to FIRE becomes obsolete in the future? How would you adjust? [link] [comments]  |
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