Financial Independence Daily FI discussion thread - November 24, 2019 |
- Daily FI discussion thread - November 24, 2019
- Do we need to shift our timeframes?
- How do you deal with the regret of missed investment opportunities?
- Thoughts on this architecture? Checking, TIPS, and S&P in 401k, HSA, and brokerage
- Does 'Millionaire Next Door' need a re-write to stay relevant?
- I'm in my late 20's and FI, but I prefer to keep grinding.
| Daily FI discussion thread - November 24, 2019 Posted: 24 Nov 2019 12:07 AM PST 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]  |
| Do we need to shift our timeframes? Posted: 24 Nov 2019 06:26 AM PST I see a lot of people in here pursuing the same goal as me (obviously), but a lot of them seem to be setting 10-15 year timeframes, and then missing out on SO's, kids, social gatherings with friends and family, and generally getting burnt out and miserable, while living like a poor person. Surely it makes far more sense to achieve FIRE with a timeframe of say 20-25 years, so that you can still participate with your friends and family, enjoy pre RE life, and let compounding do some of the heavy work? If you have a huge income, great, but otherwise, surely a fulfilling working life and RE in your early or mid 40's is preferable to stressed out misery and social exclusion, to retire in your 30's? Obviously if you didn't start until later then most of this is a moot point, but for the people that did start early. [link] [comments]  |
| How do you deal with the regret of missed investment opportunities? Posted: 24 Nov 2019 10:23 AM PST I would have been MUCH better off in my FIRE journey if I had some some BASIC things earlier in my career. I'm talking basic things such as contributing to my 401K at least to get the company match, when I could easily do it. Having done this simple thing would have let me be hundreds of thousands of dollars ahead (over the course of 8 years) as I missed out on one of the greatest bull markets. I was completely investment illiterate. Regretting this opportunity has had me down recently. How do you all deal with regret? Any practical steps besides "look forward, not backward"? [link] [comments]  |
| Thoughts on this architecture? Checking, TIPS, and S&P in 401k, HSA, and brokerage Posted: 24 Nov 2019 06:54 AM PST My goal is FIRE, and in order to achieve that I believe I need mainly 2 things: an aggressively stock-heavy portfolio, and an emergency fund (both for emergencies and to protect against the sequence of returns risk) Accumulation: - 1 month expenses in checking (paycheck to paycheck) - 3 months expenses in brokerage TIPS (emergency) - Max pre-tax 401k contribution in S&P index - Max pre-tax HSA contribution in S&P index (keep invested, unless really needed beforehand) - Remaining in brokerage S&P index Retirement - 1 month expenses in checking (withdrawn from TIPS during downturn, brokerage otherwise) - 12 months expenses in brokerage TIPS (for expenses + buying stock during downturn) - 401k accessed after 59 - HSA accessed after 65 (unless really needed beforehand) - Remaining in brokerage S&P index What do you think? [link] [comments]  |
| Does 'Millionaire Next Door' need a re-write to stay relevant? Posted: 23 Nov 2019 03:53 PM PST EDIT: Thank you to the (much wiser) people who recommended The Next Millionaire Next Door and other similar books! It seems I was too busy reading to get searching! I finished The Millionaire Next Door today and felt a little let down: while the core message is powerful and pleasantly at odds with the r/wallstreetbets attitude some other personal finance books espouse, it felt severely dated in sections and laboured on points that don't apply to many of us. I'd love to know whether their findings on jobs and levels of self-employment still hold true 25 years later: although the list of jobs held by affluent people provided in the appendix is diverse, the majority of anecdotes seemed to be from either white-collar professionals like attorneys and doctors, or owners of manufacturing or transport businesses. Almost no women were profiled, apart from one real estate agent; the number of comments on "women employed in the home" felt questionably relevant now, 25 years on. Doe anyone know of any similar studies conducted more recently (particularly post-GFC)? The chapter on Economic Outpatient Care was particularly disappointing. For someone with no children yet and a long way to FI, dire warnings about giving my adult children cash-handouts seem premature and chiding. Stanley and Danko's findings could have easily been contained to a short chapter with a heart-warming anecdote about children of PAWs who become independently wealthy, it felt scathing of both children and reckless parents to the point of bitterness. I'm still confused about the purpose of the "find your niche" chapter, which made suggestion as to what services affluent people provide. Accountants, attorneys, cosmetic dentistry - ok, but what does this mean for me as a reader? Stanley and Danko make it clear in early chapters the value of good financial advice (and that 'cheaper is rarely better'), but what am I supposed to do with the knowledge that wealthy people might need the services of an array of (mostly) highly-trained professionals? I'm not about to go become an estate lawyer "just in case." It's clear why Millionaire Next Door has had such steady popularity: there is some really clear advice in early chapters about frugality and the data is presented really clearly, but I'm left wondering what's different about today's millionaire next door - What do their investments look like today? How much do they spend on mobile phones and streaming services, for example? How have changing families - different divorce rates, increased presence of women in the workforce, a rising gig economy - changed the advice given? [link] [comments]  |
| I'm in my late 20's and FI, but I prefer to keep grinding. Posted: 24 Nov 2019 09:15 AM PST Title. I currently have enough saved to buy a house in the place I want to live, and enough passive income to live there indefinitely. If I wanted to, I could move there tomorrow and never work another day in my life. However, there's a part of me that wants to continue grinding, accumulating, and most importantly - learning. I recently moved to a HCOL city, and even though I don't like the rushed pace and culture of the city, I like the fact that I am still moving forward. The idea of retiring to a cheaper city and never working again, though it has been the driving force pushing me to FI, now seems less appealing that it is within reach. I'm thinking that this is a normal response, and that the FI number really is a moving target. At this point, I am blessed to be free from the need to work for survival, and I can see life as a challenge, as a game where I'm pushing to get the highest score possible. Assuming the dollar doesn't collapse in the next few decades, the option to RE will still be there if and when I change my mind. But for now, I'm going to see how far I can go. [link] [comments]  |
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