Financial Independence best of 2019 - r/FinancialIndependence - Nominations |
- best of 2019 - r/FinancialIndependence - Nominations
- Can we take a moment to appreciate how fortunate we are to be financially literate?
- 30+ years plugging and chugging (with NW graph)
- If nest egg is split between pre/post tax, how to calculate SWR?
- Retirement spending ratios
- Is there a point in contributing to a Roth IRA when I can do a mega backdoor but don't have enough to max out both?
- Daily FI discussion thread - January 04, 2020
- Any financially independent doctors in this sub? (Specifically, what financial traps should I avoid throughout the process)
- how dumb is it to leave 500k uninvested?
- Top Online savings accounts with highest annual return percentage?
- Financial Independence Dating App
| best of 2019 - r/FinancialIndependence - Nominations Posted: 28 Dec 2019 05:19 PM PST Reddit has begun its annual Best Of Awards campaign for 2019 and we here at /r/financialindependence are participating. That means we have been given a ton of Reddit Awards and since we can't figure out how to convert this to VTSAX, we figured it be best to give it away. We encourage everyone to participate in the nominations. Categories with number of top posts to be awarded:
Ground rules:
How will winners be announced?Winners will be announced in a follow-up post after all the votes are tallied. Reddit awards will be sent out after that post goes live. What if I have questions?Message the moderators with any questions. Thank you for helping make /r/financialindependence such a great subreddit in 2019! Good luck to all the nominees and we look forward to what's in store for us in 2020![link] [comments]  |
| Can we take a moment to appreciate how fortunate we are to be financially literate? Posted: 04 Jan 2020 12:35 PM PST Everywhere else I look, besides this sub, I see people worrying about debt, complaining about cost of living, fighting for wage increases because they "don't get paid enough to survive," etc. And every time I look at the numbers they quote, I think to myself I make not much more than that and I live in a HCOL area and I was pulling a 70-80% savings rate before having a baby. Even now, when we can choose to coast, we are still pulling a 10% savings rate. And people get so defensive when I try to advise them on better financial decisions (e.g. living below their means). These situations used to enrage me but now I just feel sympathetic towards these financially illiterate people. If they refuse to make lifestyle changes and want to keep believing that they're being under-compensated, they will never achieve FI, and they will never be happy. TL;DR: we are a very fortunate people to have been educated in personal finance and to have a plan to achieve FI. Have a great 2020, everyone! [link] [comments]  |
| 30+ years plugging and chugging (with NW graph) Posted: 04 Jan 2020 12:50 PM PST I've seen similar posts in FI, and thought I'd share as well since I've kept pretty good records over the years. Hoping something here may be useful to those starting or out or already into their FI journey. I'm a "late boomer" at 58 and in the same career for well North of 30 years. I'm no financial wizard but have been in the market as an active investor since early 1990's. We've been planning (a bit more seriously) around where we are and where we hope to end up. Keeping fingers crossed that things keep chugging along as they have been for the next 5 years +/- and we should be able to enjoy a fairly comfortable retirement. Simulations at least are modeling a 100% success rate at $90k/yr starting with my retirement, with wife working another 3-5 years past that (we have >5 year age diff) which she's fine with! Background/milestones: - Both of us worked our way through college. Me during the 80's and she actually completed her degree via evening/weekend after we got married. Our parents just didn't have the money to fund. Upside is that we graduated debt free. I recall my public university being around $17-$20/credit hour! - 1990 was my first "good" earnings year due to a promotion. - Married in mid 90's. - Built a house in 2000. - Paid off house in 2018. Had a very affordable mortgage/rate and put an extra $500/mo towards principal. Current home value right around $300k in MCOL area. - Wised up a bit in the early 2000's and ramped up retirement savings rates for both. - Had a kid and fortunately had the foresight to immediately open a 529 plan and have been contributing monthly ever since. - Opened and started contributing to Roth accounts around 2013 +/-. Current plan for next 5 years: - Max 401k & Health Savings Acct. This year we have the Mega Backdoor Roth option in 401k available to pump additional $ into. - Try to stay healthy and minimize HDHP costs. - Let health savings acct grow and pay out of pocket for medical expenses. Keeping all receipts for later use. - Continue to save for college expenses - Bigger effort to cut down on discretionary expenses/amp up savings rate so I don't have to stress as much about future market returns. The time is NOW! "Retirement" plan: - Based on $50k savings/yr ($25k pretax, $25k Mega Backdoor Roth) and moderate investing style, median portfolio value should be around $1.6M when I pull the plug. Additional $19k/yr (401k/Roth) with wife continued work, and whatever I pull in part time, should be at $1.75M-$1.9M depending on when wife quits working full time. - Retire from my job, relocate (MCOL & warmer), and do something part time (that I'd enjoy!) to keep myself busy and some supplemental income for another 2-3 years (if needed/desired). Pushing 40 years in a high stress job is far longer than I had expected, but it's still hard imagining not working at all. - Wife plans to continue work for another 3-5 years for health insurance until I qualify for Medicare. - Wife quits full time and we fund her healthcare until she can get Medicare and draw SS. This of course will most likely be modified a bit based on CFP input (tax, SS planning etc.) as we haven't had those in depth discussions yet. Lessons learned (and musings): - Wish I had saved more earlier in my career. I regret not having the financial knowledge/resources available now back in the 1990's. Would I have used them? I like to think so. 401k's were still fairly new, no Google til 98', and the focus on retirement/FI/RE wasn't like it is now. $60k earnings back in 1990 for a single guy was pretty good, and I can only imagine what could be now if I saved more during that first 10 year span. Lots of good memories however (those I can remember lol). - Paying off house early- jury is still a bit out for me on this. It's nice having an additional $1k cash flow now (without mortgage) and the mental comfort of 100% ownership/equity, but I understand the investment argument and how much more retirement savings I could possibly have now. The way I look at it, the additional payment I was making on principal would most likely have been spent vs. invested anyway. So, I'm at peace with it. YMMV. - Wish I had investigated and started a Roth account much earlier (for both). I knew it existed, but never put much effort into understanding the benefit. - Found and have been using a CFP for the last three years who only charges by the hour. Used for initial "plan" and then just once a year check in for tune-ups on investments/life/work changes. I control all investments/accounts. I refuse to allow anyone to take control of my accounts and the fee involved with that. - I recommend Flexible Retirement Planner (https://www.flexibleretirementplanner.com/wp/) for modeling your plan. This allows for just about any scenario and the only one where I could accurately model ours (age differences, additional inputs for just about any income/expense event including start/stop years). I use this often and it serves as a supplement/sanity check vs. our CFP advice. Oh, and it's FREE. There are obviously lots of variables out there to disrupt things, loss of job, major health issues, economic issues etc. Wishing for the best and trying to plan for the worst. One of my goals is to educate/guide my tween on saving and investing now to build some good fundamental knowledge. Custodial trading account is already in place! Disclaimer: "should" = "past performance is no guarantee of future results" [link] [comments]  |
| If nest egg is split between pre/post tax, how to calculate SWR? Posted: 04 Jan 2020 07:40 AM PST For instance, if 1.5m nest egg is 1.1m pre-tax and 400k post-tax, how do you calculate a SWR? [link] [comments]  |
| Posted: 04 Jan 2020 07:53 AM PST Is there any data on relative spend as you age in retirement? I'm thinking broad level figures (as everyone will be different) showing that, for instance:
Or does inflation tend to even the figures out, so your spend at 55 tends to stay static as a cheaper, more sedentary old age is actually increased in cost by inflation? Thanks [link] [comments]  |
| Posted: 03 Jan 2020 11:51 PM PST My company offers a mega backdoor that I've been using and I didn't have a high enough income to max it out. I haven't put anything into my Roth IRA normally yet. Everything I put into my Roth IRA so far was via the mega backdoor. Would it have been better if I maxed out my non-mega backdoor Roth IRA first then put the rest into the mega backdoor vs putting just everything into the mega backdoor and nothing into my non-mega backdoor Roth IRA? [link] [comments]  |
| Daily FI discussion thread - January 04, 2020 Posted: 04 Jan 2020 12:08 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]  |
| Posted: 04 Jan 2020 03:36 PM PST I'm starting medical school this fall and wanted to know if anyone had tips/tricks to manage the insane tuition. I'd also love to hear any personal stories of how anybody suffering from college debt managed to get out of it! [link] [comments]  |
| how dumb is it to leave 500k uninvested? Posted: 04 Jan 2020 03:59 PM PST quick my story: 33/m single Im self employed, left a 35k/yr job when I was 24 to do my own thing. Ive averaged about 100k/yr the last 3 years, 75k before that. my industry is dying and I don't foresee an ability to maintain 100k beyond 4 years or so. I would not mind going back to my 35k/yr job the crux of my wealth came from a series of extremely risky/ concentrated bets in the stock market. most of them worked because I didn't use leverage and was able to buy in a massive secular bull market. bought low, sold high. so I've divested about 500k (post tax) and its just sitting in my account doing nothing but making about 8.5k/yr on interest. Ive also fully divested from "stock picking lol" and moved about 300k into an index fund. my overall NW is 1m (I have about 50k in my rothira and 20k in a sep ira, some gold, and some cash in my mattress). I've burned through a nominal amount of money recently structuring a short in the market. I've stopped that and don't foresee myself doing that again My parents are landlords and I have zero, zero, desire to ever be one. Ive helped them replace too many sinks, countertops, washer dryers, fix leaks, fix roofs, hire eviction lawyers, paint, etc. So I am keenly aware of how cap rate is affected by these things and the 3-4% cap rate is not worth the added stress in my opinion. Plus you are massively illiquid-- I would rather buy a REIT. I considered buying a house or condo but I don't see the value in it. while it would most certainly reduce my housing costs further but I recently moved across the country on a whim to a lower tax state. no family or kids or committments-- what the hell am I gonna do with a 2000sqft house?!?!? whatever I save in rent I will have spent in year 1 buying useless stuff to put in it. So I've settled on just letting the money collect dust in a savings account for now. 8.5k/yr risk free while maintaining full liquidity if a biz opportunity comes my way, or the market crashes and I can go Allin again. is this too conservative to just be so liquid at my age? I don't have any kind of fire goals or retirement goals at all, no spreadsheets or countdowns for me. the investing/trading was purely for fun at first and I've always been conservative with how I spend or how I structured my bets once I made my first 100k. [link] [comments]  |
| Top Online savings accounts with highest annual return percentage? Posted: 04 Jan 2020 03:47 PM PST VERY.. New investor, i'm not financially literate, YET, I want to make an investment into a bank with the high annual return percentages, if that makes sense? I don't know the right terminology, but I'm promoting my youtube and twitch channel on facebook for $1 a day, if i can get a return of atleast 365$ i would love that to cover that cost, so what are your top picks for highest return and top banks to start investing in, and how much would you recommend putting in and how often? [link] [comments]  |
| Financial Independence Dating App Posted: 04 Jan 2020 07:11 AM PST I wonder if there's a dating app specifically for people who are interested in FIRE, I hate the idea of getting to know someone and liking them but them eventually discovering they are stupid with money, if this doesn't exist it should! Since the biggest problem in marriage is money this makes so much sense! [link] [comments]  |
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