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    Financial Independence Daily FI discussion thread - October 20, 2019

    October 20, 2019

    Financial Independence Daily FI discussion thread - October 20, 2019

    Daily FI discussion thread - October 20, 2019

    Posted: 20 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.

    submitted by /u/AutoModerator
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    How many here hope to leave their children a sizable inheritance? Is that justification to keep working?

    Posted: 19 Oct 2019 08:18 PM PDT

    My [42] husband and I [42] are both doing well - we live below our means, have no mortgage on our primary home and have an income property that is cash flow positive, although it does still have a mortgage.

    In theory, we could be in our way to FIRE.

    But one of the things I'm hoping for is to end up quite rich, so that we can help set up our children (and maybe even grandchildren) for an easier life. Nothing insane, but I'd love if we could leave an inheritance in the couple of million dollar range total.

    Do you think that's a crazy reason not to FIRE?

    submitted by /u/THE_susie_derkins
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    Daily FI discussion thread - October 19, 2019

    Posted: 19 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.

    submitted by /u/AutoModerator
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    Do you guys spend any time thinking about long tail risk ?

    Posted: 19 Oct 2019 12:42 AM PDT

    Edit: Thank you everyone for your answers and rebutals, due to the volume of posts and the fact that I have to run from my computer soon, I will have to stop answering any new answers. Still, if you have a particularly good one I'll read through it at some point when I have time :)

    What I mean by that is:

    • More people switch to crypto, creating a "communist" style market where transaction is almost free and saving is almost impossible

    • Remote work reaches critical mass, resulting in tech and finance companies fleeing the big cities, resulting in severe propert devaluation

    • Stock market has a huge downturn and doesn't recover to pre-downturn level

    • You or a loved one that made your life worth living dies

    • War breaks out, you have to choose between being drafted or fleeing and lossing most assets

    • Political candidate with a punitive wealth tax upon the middle class is voted into power

    • 1/10000 year Natural calamity (9.x earthquake in California, Yellowstone errupts, very strong hurricane reaches NYC)

    • Biggest one, your body will deteriorate soo much with age and disease, it won't matter that you have all the money in the world, you'd trade it all for not having to wear adult diapers... And this seems more like a question of when, not of if.

    Basically, events which are unlikely, but which are ultimately not predictable and would destroy most modern retirement plans.

    To me, these have always made me stay away from FIER. I'm in a paradigm where I'd rather spend every penny I earn traveling the world, working jobs I enjoy and that allow me to do so (essentially taking losses by not getting the most profitable job) and overall enjoying myself and helping others whilst the world is all rosey.

    Now, if I end up with spare change ? Sure, invest it away. But it seems like the wrong approach to life in general.

    It seems it's neither maximising for utility (donating to good causes) nor maximising for hedonism. Instead it's some sort of weird maximising for more options once you hit the age of 40/50/60, which doesn't seem all that appealing.

    Thoughts ? Do you guys ever think about FIER from a perspective where future risk exists ? What about it makes it seems worthwhile in the face of said risk ?

    submitted by /u/elcric_krej
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