Financial Independence Daily FI discussion thread - November 28, 2019 |
- Daily FI discussion thread - November 28, 2019
- If you never achieve FIRE, what do you think will be the reason?
- Do I need bonds if I have an investment property
- 10 Month FI/RE Update
- Country collapsed
- Thanksgiving FI Style
- Should I be making more "risky" investments?
- 401k Roth ladder requires no existing money in traditional IRA?
- No more than 40% savings rate?
- How does your marriage/relationship develop post fire?
| Daily FI discussion thread - November 28, 2019 Posted: 28 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]  |
| If you never achieve FIRE, what do you think will be the reason? Posted: 28 Nov 2019 09:35 AM PST I think it's a pretty safe bet to say that the majority of the users in this sub will never truly achieve FIRE as per the definition in the sidebar. While almost everyone will undoubtedly be far better off financially in the long run than the Average Joe, I think that most will find themselves sidetracked for one reason or another before reaching the point where they have sufficient assets to never have to work again for the rest of their lives. This is neither a good thing nor bad thing nor a positive thing nor a negative thing, it just is. Some people are young and single and don't really know what they want out of life and will chart a new course when they find a partner and perhaps start a family. Others will find that they no longer hate their job once they're 10 years in and now have more autonomy and can work on projects they find interesting. Some will tire of living an ultra frugal lifestyle. Others will decide they prefer a lower paying job that they enjoy rather than grinding at something they hate in their quest for FIRE. Some will get fucked by a poor investment choice. Others will lose enthusiasm during a recession. Others still will lose their highly lucrative job and never find another one. And so on. And many will just realize that in the end they prefer a life of reasonable spending & saving where they can retire comfortably on time while not having to sustain the cuts required to maintain a high savings rate. So if you do wind up 5 years from now looking at FIRE as a dream you used to have, what do you think will have been the impetus for the shift in ideology/life plan? [link] [comments]  |
| Do I need bonds if I have an investment property Posted: 28 Nov 2019 04:12 PM PST Me and my wife are still in the accumulation phase - FIRE target is maybe anywhere from 5-10 years (shorter if Bitcoin for some reason skyrockets :) ).. anyway, let's forget about Bitcoin and focus on my question. Given our target FIRE scenario (all amounts are approximate at the moment - let's ignore taxes/medical expenses/unexpected expenses): Target FIRE Amount per year = $65k Source of incomes at FIRE date:
The cash reserves are there in case the tenant leaves and there's no cashflow incoming until a new tenants comes in. It's a commercial property so theoretically it may stay vacant for months - but once a good tenant comes in - the tenancy agreement is usually like 5 years blocks. Do I need to allocate anything to Bonds at all given this scenario ? I know that if later on we decide to sell the property and go all-in to ETFs then yeah - I will probably allocate something to Bonds but what if we maintain the investment property - is there a reason why I would need bonds? [link] [comments]  |
| Posted: 28 Nov 2019 04:09 PM PST Two and half years ago, I attempted to quit but was persuaded to stay on at my job. Fast forward to Jan 31st, 2019, I finally called it quits. Here's a recap of what went on, as I promised to share with the community. Quick stats: single male, mid-40's, no kids, 2.5% SWR. 24 years rat race in IT now in the back view mirror. The 2017 mis-FI/RE The 2017 decision to postpone my initial FI/RE attempt resulted in one and half year of staying on at the job. At the time I questioned if it was wise to trade time and stress for additional financial cushioning. On balance, it was not a bad decision. I'm now estimating a reduction of 0.5% in SWR (from ~3% to 2.5%). In another word, including market gains and additional savings, NW went up 20%. The not so good side is the toll on health. At the end I was quite determined that that was it and no more. I should note that quitting this time around was less painful. I did not disclose my FI/RE intentions, but let my employer know of my decision about 2 months in advance. FI/REd, since 2/2019 Since FI/RE, the most significant improvement was health. Losing weight was quite easy as exercise became a routine. I'm almost back down to my ideal weight at this point. I started sleeping thru the entire night again. Being stress-free was rewarded with noticeable lowering of resting heart rate, as I accidentally discovered in my iPhone's Health app: 2018 vs 2019 Resting Heart Rate Keeping busy was also an important aspect in retirement. After three months of winding down, I set out on a 5-month around the world trip zigzagging thru Europe, Russia, Mongolia, and China. This has been something I always wanted, but never was able to do until now. The trip also included an epic train ride from Moscow-Ulaanbaatar-Beijing, which was always at the top of my "bucket-list". For next year, photography and off-road trips to many national parks are planned. Financially, I'm well under-budget even with all that traveling. I'm going to seriously look at Roth IRA laddering or tax-gain harvesting for 2020 since I will no longer have earned income. All in all, so far, I can say this FI/RE thing has worked out well for me. I am especially grateful for all the support from this community and would be happy to answer any questions. And to those in the US, happy thanksgiving! Comment [link] [comments]  |
| Posted: 28 Nov 2019 03:49 PM PST Country collapsed Hey guys, so basically I live in Chile and I had been saving up for 2 years, on a salary of basically 24k a year as a civil engineer (yes, that's how much an engineer gets paid here). Long story short, thanks to investments and saving pretty much 90%+ of income, i had managed to get to 90k networth. I've been on the path to FIRE, while opting for not going for an MBA in the US, as they are too expensive, and prefered to just keep investing the money and not stop working for 2 years. As you may know, my country went to shit recently, and we became a lawless country, with riots everyday, a non existent police force, and a weak government that can't handle the crisis. Basically we are on an incredible (literally) path to becoming an Argentina 2.0, or even a Venezuela if things get worse (economically speaking) My networth has been reduced to 70k because of the chilean peso going to shit, and my income is no longer 24k, but 20% less. I've lost hope in my country and was thinking if actually going for an MBA, for the sole reason of escaping this country, while improving my career and job opportunities. I would set my FIRE much more back, but I don't see a good long term prospect of Chile right now. Opinions or advices? Sorry for english [link] [comments]  |
| Posted: 28 Nov 2019 04:53 AM PST What are some of the things you are grateful for this day that help you on your path to FI. Today I checked my pay slip and saw that, after being notified four months ago, they finally applied my promotion pay, which will be in next week's check. The extra money will def help along the journey. Also, while working on my monthly reconciliation I see I am at least a year ahead of where I planned to be with savings. I should also be ok on the tax front. This makes it easier to plan a small vacation next month without too much worry. What are some of the things you are thankful for? [link] [comments]  |
| Should I be making more "risky" investments? Posted: 28 Nov 2019 10:24 AM PST I'm in my early 30's working for a school board . So far, I've been heavily into passive investments. 70% of my net worth is in S&P500 and VTSAX. The rest is in a pension and mutual funds. but feeling discouraged when comparing my results to people around me. Particularly a family member who is near the same age as me who is already multi-millionaire from leveraged real estate investments and buying a company with his partners. He's tried to get me into deals with him but I declined due to stress at work. Desperate to get out of the rat race, I'm inclined to take the more riskier approach than sticking to my job and passive investing for another 20-30 years. Problem I have with real estate is the leveraging aspect. With passive investments, if the market drops, that sucks but I'm not worried about losing everything because I can't pay the mortgage. With owning a private company or part of it, it's even easier to lose your entire investment if the market goes down. With a private company theres a chance that it won't come back up. [link] [comments]  |
| 401k Roth ladder requires no existing money in traditional IRA? Posted: 27 Nov 2019 05:28 PM PST Apologies if this is clearly answered somewhere but I couldn't find it. For a 401k -> Roth IRA conversion, the money goes from the 401k to a traditional IRA and then ultimately to a Roth IRA where it needs to sit for 5 years. My question is, due to the pro rata rule that applies to IRA > Roth IRA conversion, in order to avoid paying unnecessary taxes, you'd need to have no previous money sitting in any traditional IRA while doing the ladder, right? This seems kind of obvious but I've never actually heard this requirement or guideline mentioned in any 401k ladder guides explicitly so I wanted to confirm I'm not missing something. edit: A few good explanations below, I get it now. Thanks! [link] [comments]  |
| No more than 40% savings rate? Posted: 28 Nov 2019 09:54 AM PST I was messing with some online calculators and found this one on smartasset but when I put my income and savings amount in it will not let me put over 40%, says no more than 40% is recommended but does not seem to explain in the article why this is the case. I save over 50% due to being poor for a long time before finding a decent job, the lifestyle just stuck. Obviously FI followers advocate for as high a savings rate as possible but has anyone had experience with "experts" telling them they are saving TOO much? Any logic behind saving only 40%? [link] [comments]  |
| How does your marriage/relationship develop post fire? Posted: 28 Nov 2019 12:16 PM PST Hi, I am FI but not yet RE, male around 40. I am currently thinking about when to finally stop working. Unsure what this will do to my marriage. To all of you who have retired: What was the impact on your relationship? Especially in situation, where one partner is still working. I would love to read your experiences :-) Thanks! [link] [comments]  |
| You are subscribed to email updates from financial independence / early retirement. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment