Financial Independence Daily FI discussion thread - November 27, 2019 |
- Daily FI discussion thread - November 27, 2019
- Update on Downsizing to Accelerate FIRE
- What does "living off your investments" mean to you?
- Weekly Self-Promotion Thread - November 27, 2019
- Are individual company stocks a part of your FIRE investment portfolio?
- To the Business Owners...
| Daily FI discussion thread - November 27, 2019 Posted: 27 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]  |
| Update on Downsizing to Accelerate FIRE Posted: 27 Nov 2019 05:36 AM PST I posted previously, asking what people's experiences were in downsizing and thought I'd give my own update. As in the post, we sold our circa $600K house (took a small loss on it after living in it for 10+ years, but that's another story) in one MCOL and bought a ~$350K house in another MCOL (to be closer to family). We went from ~3200 sq ft to ~2400 sq ft. We went from 5 bedrooms to 3. We are empty nesting. We netted about $180K from the sale of the first house. We traveled for 4 months (~$5K in costs which was easily covered by not having a mortgage, points and staying with family at times) or so in between the sale of the house and the purchase of the new one. That was mostly good, although I probably enjoyed it more than my spouse, as she got tired of living out of suitcases. We put almost all of our possessions in storage during this time. Despite getting rid of a lot of stuff, we still needed a fair bit of storage. We're not hoarders by any stretch, but it's amazing/sad how much stuff still piles up even when you are diligent about it, or at least thought you were diligent. Post moving in, we've continued to evaluate and get rid of stuff. We're a few months in to the new place and the new budget picture is emerging. Some details: We set aside $30K from the house sale (we put $100K down and invested the rest) to make upgrades to the new house, including new furniture, as we sold a fair bit of our older furniture and part of the downsizing deal with my spouse was new furniture and some house upgrades, as she wasn't as into the downsizing and so this was our compromise. Total costs will probably land around $25K, most of which I'd consider to be beneficial to the future sale of the house (updated kitchen, bath, landscaping, etc.) I'd also say we compromised on the size of the house. I think we'd be just as happy in an even smaller place, but it's not worth the fight. Storage for 4 months cost ~$3200. This was a surprise and well above what we thought we needed and were told by the storage facility due to us needing more units than originally thought. We moved ourselves, with some help loading and unloading. I'd say that cost ~$1.2K (truck rentals, mileage and labor) as compared to the $5k we were quoted from movers. The old house was in the country on well and septic. The new one is not. Thus, we picked up some new monthly costs like water/sewage to the tune of about $70/month. Our HOA is more, but it includes a lot of things we were paying for a la carte before (community pool, garbage, tv/internet) or had to do ourselves (yard), so it all is about $70/month more than before. The new house has cheaper home insurance and taxes. I'm not sure at the full cost there yet, but let's call it $100/month less. On the mental front, I'm loving it for the most part. The old place was a lot of work to maintain and even though I gave up the serenity of the country for the 'burbs, it feels right. We're closer to people we care about and we have way more flexibility in our finances to go do slow travel. Since the new home requires less care, we feel we can go away for longer without worrying. The layout of the home also makes it a lot easier to clean. My wife has been mostly good about the move, although she is still adjusting to being in a smaller place and not being able to decorate as much, which she truly values. Only thing I really miss so far is my old garage, as it had higher ceilings to get things out of the way like bikes and was a bit wider so it didn't feel as cramped with both cars in it. Our total costs are down about $1400/month. The picture is still a bit murky, so we'll see for sure in a few months. I'd say overall our goal is "slightly obese" FIRE and so in the long run this will make a good dent. We're about 5-7 years out, but effectively have FU net worth at this point if need be. I really like what I do, so my RE plan is to simply do it on different terms (consulting, PT, project-based.) On the empty nesting front, we're spending less on car insurance, groceries and other basic commodities since there are only two of us now. Not that I really believe in reading into coincidences, but I feel like we're being rewarded for it all, as I also got a raise at work during this time! [link] [comments]  |
| What does "living off your investments" mean to you? Posted: 26 Nov 2019 03:55 PM PST The financial goal of FI and/or retirement is to be able to live off your investments. But what does that mean to you? Is it simply living off of dividends and interest? Planning to sell assets as they grow in value to fund life? A combo of both? [link] [comments]  |
| Weekly Self-Promotion Thread - November 27, 2019 Posted: 27 Nov 2019 12:07 AM PST 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]  |
| Are individual company stocks a part of your FIRE investment portfolio? Posted: 26 Nov 2019 04:47 PM PST If yes:
Just curious how many folks in the FIRE community invest in individual stocks! :) Edit: thanks for the input so far. Judging by the downvotes, seems like people here hate stocks! Which I understand. I was just curious what it's like out there and am not advocating for anything. [link] [comments]  |
| Posted: 26 Nov 2019 09:59 AM PST After lurking and hitting the search bar, I don't see too many posts about business owners (excluding rental properties) in the FIRE community. I would like to hear from the Business owners who have purchased or started their own Company to achieve FIRE. What did you do to make yourself successful, what industry is it in, what suggestions do you have? [link] [comments]  |
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