Financial Independence Daily FI discussion thread - March 22, 2020 |
- Daily FI discussion thread - March 22, 2020
- Update from someone who retired in Mid-2018
- Any lean fired people want to check in?
- Anyone else reconsidering RE now?
- The concept of retiring early ‘will disappear’ due to the coronavirus pandemic
- Thoughts on custodial brokerage accounts?
- Divorce and Impact on FIRE
- Financial unbiased advise
| Daily FI discussion thread - March 22, 2020 Posted: 22 Mar 2020 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. [link] [comments]  |
| Update from someone who retired in Mid-2018 Posted: 22 Mar 2020 12:22 PM PDT I see a lot of posts on here from people on their way to FIRE, but very few from people who have actually pulled the trigger on quitting their jobs, so I thought it would be worthwhile to give a little update on my situation. Since that post, I worked another year or so, and got a windfall from crypto which put my net worth at close to $2M. I bought a $400k condo in a ski town and quit my job in May 2018 at age 36. I've been feeling nauseous and losing sleep over the recent market drop. I took a look at my budget and think I am still ok, but if the market loses another 30-50%, I'm not sure what I'll do. Having been doing nothing but play video games and snowboarding the last two years, I doubt I could get another engineering job, even at a much lower salary. Before I retired, I said as long as there isn't another great depression, I'd be fine... Anyway, here are my numbers. Paid off condo - $400k, not included in WR calculations. A lot of people said it was smarter to get a mortgage at a low rate so I could keep more money invested, but I'm glad I went with buying my home outright. I know I just have to cover taxes and HOA and I'll have a place to live. Various investments - $1.35M. This was 1.85 just a few weeks ago. Fairly well diversified, but still stock heavy. Had about $100k left in crypto which got cut in half the last few weeks. So much for BTC being digital gold lol. Actual total spending in 2019 - $43,283. Income from renting out my condo on AirBNB and living with parents for ~5 weeks during peak ski and holiday season - $9k Using the $1.85M figure which I finished at last year, my WR was 1.8% for 2019. Using my current portfolio of 1.35M, WR jumps up to 2.5%. I think I can cut back to ~$35k spending this year by eliminating restaurants, travel, and some hobby related spending, which would put my WR at 2.0%, assuming I can rent my place again next winter for ~$9k again. That is a big assumption given the trajectory of the economy. I still have a little breathing room before I hit a 3.5% WR. At that point I'd have to start looking for any kind of work. Anyway, my advice is don't do leanFIRE. If I didn't have some cushion and low WR numbers, I'd be in a full blown panic. Give yourself a lot of room in case the unthinkable happens, e.g. a pandemic. [link] [comments]  |
| Any lean fired people want to check in? Posted: 22 Mar 2020 09:02 AM PDT Maybe too early to say —- but remember a few people who were talking about retiring on a lean budget through a mix of low cost of living areas / high withdraw rates / super frugal living. One I remember being specifically intrigued by was a guy who was living in the southeast, living off the land a lot, and had $500k with a 5% withdraw rate. Very interested in hearing how these people are planning on dealing with recent market developments. Thanks. [link] [comments]  |
| Anyone else reconsidering RE now? Posted: 21 Mar 2020 06:16 PM PDT I'm loosely working from home, that's super fortunate, and I know I wouldn't be stuck at home in retirement, but not having structure for the first time since my Sophmore summer break is extremely jarring. FI train all the way, even more so now, but... RE looks a lot less like "45 let's go" and more "eh... part time or something" [link] [comments]  |
| The concept of retiring early ‘will disappear’ due to the coronavirus pandemic Posted: 22 Mar 2020 03:44 PM PDT Not sure whether anyone agree with this article..As for me, it is the end of the road for RE.. I believe this unprecedented event will change the fortune and destroy the life of many people for decades to come.. https://www.cnbc.com/2020/03/20/why-the-concept-of-retiring-early-could-disappear-due-to-coronavirus.html Self-made millionaire says the concept of retiring early 'will disappear' due to the coronavirus pandemic Americans are starting to feel the effects of the coronavirus pandemic, which has left few industries untouched. Some employees are already out of work and millions could end up losing their jobs in a potential recession. The global pandemic could even wipe out what's become known as the FIRE (financial independence, retire early) movement, which embraces the concept of saving the majority of your income in your 20s or 30s so you can retire in your 30s or 40s. That's according to Grant Sabatier, Millennial Money founder and author of "Financial Freedom." "I think the whole idea of retiring early ... will disappear because of this," he tells CNBC Make It. "It's just not going to be as easy, even for people who have been saving up, and it's not going to be as attractive of an idea." Sabatier started his own financial independence journey in 2010, before the movement really took off. He saved over $1 million in five years by launching a bunch of side hustles and setting aside upwards of 80% of his income. Despite the movement's growth over the past decade, Sabatier says the concept of retiring early has already started to lose steam among younger generations. And the impact of the COVID-19 pandemic on the global economy and markets could be enough to eliminate the movement altogether, he says. But that wouldn't necessarily be a bad thing, he says. "I think that idea of retiring early is, thankfully, disintegrating — in the sense that, work is an important part of life. Work is healthy," he explains. "Doing something that you're passionate about is healthy. And money is often a byproduct of the things that we do to create value in the world." Sabatier, who became a millionaire before 30, didn't work a handful of side gigs and save an extreme percentage of his income to stop working and settle down. For him, it's been less about retiring and more about "having freedom and options and choices," he says. If you're intent on retiring early, use the extra time you may have right now to reflect on why, he suggests. "I often see people who want to retire early because it's something else to chase — it's another trophy to get. When, in reality, so much of what they want they already have. Or, they're much closer to what they want than they realize. "In this time when we're all quarantined and have a lot of time to think, think about why you really want to retire early. Do you still want that amidst the increasing uncertainty of our times?" Sabatier encourages people still interested in the movement to focus less on the "retire early" part of FIRE and more on the "financial independence" aspect: "At its core, it's always been about using money to build a life you love and being intentional about your spending so that you have more time and options in your life." [link] [comments]  |
| Thoughts on custodial brokerage accounts? Posted: 22 Mar 2020 02:02 PM PDT I'm considering starting custodial brokerage accounts for my kids. I'm having mixed emotions about the entire thing. A part of me knows how they can benefit from the growth of a brokerage account invested in FZROX long term, but I don't like the idea of them gaining full control of the account at 18 (California). I also don't want to just "give" them anything and create the sense of entitlement amongst my kids. I've been really struggling with this over the past few weeks. Any advice would be greatly appreciated. Thanks in advance. [link] [comments]  |
| Posted: 22 Mar 2020 03:37 PM PDT Hi all, I used to frequent this sub daily and loved watching my progress towards FIRE. It was a good life. Married, in my 30s, two young children, house, good job. Then one day, out of no where, I am in the middle of a high-conflict divorce. I was blind-sighted. Apparently women decide to leave a marriage one year before actually acting on it. And, I never thought it would happen to me despite reading many posts on divorce. Next thing you know, I'm paying lawyers $350/hr + tax just to be able to secure access to my children. In 6 months, I spent significant amount of money on lawyers, not to mention finding a new place to rent and buying new necessities. A lot of you simply hear "HALF" of your assets needs to be transferred to other spouse. What you don't hear is the financial doom before you even sign-off on the divorce and the amount you need to pay lawyers throughout the process. All the while I am paying nearly 70% of my salary to her for child-support. The remaining 30% is rent, food, car, phone. So why should you care?
I hope this post helps some of you. [link] [comments]  |
| Posted: 22 Mar 2020 01:59 PM PDT Hey everyone, I have sought after advice from wealth management company's and financial advisers. All seem to be leaning towards whatever their company invests in. I have been doing my own research and have read many books on the subject. Is there any person or company that gives unbiased advice? Maybe that will look at my lifestyle and current markets and give me options? Thank you:) Edit: I am Canadian if that helps:) [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