Financial Independence Daily FI discussion thread - May 06, 2020 |
- Daily FI discussion thread - May 06, 2020
- For those with a partner, how do you decide when to FIRE?
- Do most people plan to retire?
- Anyone struggling with discussion of FI with their parents?
- Weekly Self-Promotion Thread - May 06, 2020
- Withdrawal Strategy for those FIREd or close to FIRE
- Investing/Life Advice?
| Daily FI discussion thread - May 06, 2020 Posted: 06 May 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]  |
| For those with a partner, how do you decide when to FIRE? Posted: 06 May 2020 10:35 AM PDT I have been following this sub for a while but haven't seen anyone talk about this in depth, but if there has already been a post like this, please link it for me to read.
For those with a partner or significant other whom you theoretically have joint or split finances with, how do you decide when to FIRE, especially when you are likely not to retire at the same time?
Do you FIRE when you reach your joint number? When you reach your individual number? When your combined investments equal that number? When your individual investments equal that number?
My partner and I live on less than one income and save the rest (HHI 350k), so technically one of us could stop working and do fine. However, we like the idea of being FI and have "f*** you" money early in life so we can say no to work we don't want to do, but still work on what we want, improving our overall quality of life. I've fantasized about retiring when we reach our joint leanFIRE number, then indulge in passion projects for fun or take care of our future kids. My partner doesn't plan on RE, but would lose some respect for me if I quit my job, so maybe I'll eventually work part time. Anyone else trying to navigate the waters with an SO or FIREd at a different time than them and can share your experience? TIA [link] [comments]  |
| Do most people plan to retire? Posted: 06 May 2020 03:58 PM PDT Usually money is one of those taboo topics that just doesn't get brought up with friends/family, but I posed a question to my friends the other day: "If you could retire now, what would you do with your time? Would you volunteer, take on a venture you're passionate about, take up a hobby, etc" My friends, who are all career professionals in their late 30's -early 40's, surprised me with their answers. Not a single one had plans to retire, not just today but any day. One said he had never thought about retirement or what that looks like, two said they didn't think they'd be able to afford it and two said they couldn't imagine "not working." I get most of us here have a different view of working, but I'm shocked that of 5 people nearing the halfway mark of their career, not one is giving any long term thought about retirement. And while only two said they didn't think they'd ever be able to afford it, the cynic in me wonders if the others haven't thought about it or can't imagine it because of financial feasibility as well (I just can't imagine doing a 9-5 until I die). When I started hearing their responses, I didn't pursue the discussion further as it was not my intention to make anyone feel bad or uncertain about their financial security but its left me curious (and concerned). Is it really that rare of a feat to be able to retire in the US? [link] [comments]  |
| Anyone struggling with discussion of FI with their parents? Posted: 05 May 2020 11:12 PM PDT I have a close relationship with my parents, and a father who was very helpful in forming my fiscal responsibility habits, largely informed by his own life story of growing up extremely poor. I'm also very fortunate in that with part time work, augmented by scholarships and my parents covering room/board, I was able to start my career debt free. With his guidance, I've also been maxing out contributions and such since my first job bagging groceries. ~15 years of work and aggressive saving later, I reached my soft FI target in my mid-30's (at 30x yearly expenses and relocating to far lower COL area than currently). In broaching the idea of letting off the accelerator a bit, taking some time to relax and pursue hobbies, "RE doesn't mean I'm taking a knee in the 3rd quarter", etc., it went...poorly. He's an old school guy, strongly believes in your FT work being an important part of who you are, and that "the best investment is a steady paycheck". The thing is, the premise of his pushback wasn't entirely unfounded. It was almost eerie, the extent to which he cited former colleagues of his that had planned the same, yet faced some demise or another. Makes me wonder when FIRE was popularized, actually.. "You remember [name]? He said the same things. 'When I hit $4M I'm done. I can live off of 3% in dividends, expect long-term 5% returns, and not even touch my principal savings.' You know what happened to him, mmmfalafel? Brain cancer. Wasn't able to go back to work after he'd stopped, either." Ignoring that his case studies all involved surprise terminal illness (there were a few), his basic message of caution has validity. Of course these things are all factored into the modeling of what SWR entails, factoring in insurance coverage, ability to absorb unforeseen expenses, etc. but was nonetheless a tough response to field... A grown ass man obviously doesn't need permission to RE, but I guess I was hoping for a bit more mutual excitement that I'd achieved FI. Anyone else face similar struggles in these discussions with their family? [link] [comments]  |
| Weekly Self-Promotion Thread - May 06, 2020 Posted: 06 May 2020 01:07 AM PDT 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]  |
| Withdrawal Strategy for those FIREd or close to FIRE Posted: 06 May 2020 09:28 AM PDT Wondering what those of you have done for your withdrawal strategy - especially how it may have changed in light of the current situation. For those of who who sold a property that may have pushed you into FIRE territory, or maybe had a windfall, how did you managing pushing those funds into your porfolio? DCA it in? Lump sum? Seems many considering HCOL to LCOL moves which would possibly mean a chunk of money to deal with. There are many different strategies with tents and ladders and conversions and glide paths. Which have you chosen and have you been happy with it? [link] [comments]  |
| Posted: 06 May 2020 05:30 PM PDT I've been following the subreddit (amongst other similar ones) and I feel like I have very basic investing knowledge, but when I realized that I know almost nothing when it comes to all the possible strategies/techniques that are out there to maximize your potential net worth. I guess I just want some general life advice in this area from people who are more experienced/knowledgeable than I am so I hopefully don't make the same mistakes or other common ones. I don't want to make fatFIRE my life either, but I think it's smart to try to get at least the easy things in order and not make any major mistakes. Anyways, I'm a college student graduating this year (21) and have been able to fortunately secure a pretty well paying job, especially for right out of college (~250k+). I'm invested around 8k in the market like a year ago and it's worth 11.5k right now, which isn't that bad, although before this year the market has been performing well so I could have just gotten lucky. I'm mainly invested in tech because it's what I know best. A lot of it was newer SAAS products or tech tools (like MongoDB) that I picked up because I saw their value as someone familiar with the field before they blew up. I think I returned like 150% on both MDB and TWLO. The others generally returned from -20-30% to +30-60%. My worst investment was Wells Fargo that's down 55% right now and arguably it was a bad investment because I didn't know much about it and just wanted to diversify (along with following people who said it was undervalued). In a way I'm glad it wasn't successful though because at least now I know not to do that anymore and it hasn't been that costly and I probably would just think I'm super smart if worked out. I have a Roth IRA set up with around $1500 in it too (literally bought ZM stock with all of it when it first IPOed, again because I was familiar with the scene, but in terms of it blowing up, I would have never expected that). I have a traditional IRA set up too but nothing in it yet (or maybe the minimum? Either way it's not invested in anything yet if I have money there, I'd have to check). I know a lot of people mentioned HSA's being better than both too? I know the general advice is 401k match -> HSA -> Roth IRA -> rest of 401k/Traditional IRA right? What do you do after? I also know almost nothing about the housing market and how you would take advantage of opportunities to be successful there. Do you need a large starting capital? I know the general concept is you buy property when mortgage rates are low and rent it out (I think you have to pay a fee to some management company here?) to people who in turn pay if off for you. Then from there hopefully the property has gained value and you can keep renting it out or sell it. Also I know there's ways to minimize taxes in general, and right now I realize I'm paying (or will be paying) a ton of taxes, so any advice on learning more there? Overall, do you think there's a good chance I can fatFIRE or even FIRE in my situation and what would be the best path to get there from my situation. I know a lot of people here have started their own companies, created successful SAAS products. that they sell off, etc. but I guess my life just seems a lot more "normal." I suspect at best I can get around 300-350k comp by 25 and hopefully close in on 500k by 30, but I'm not sure I'll ever be able to increase beyond that (especially since I don't want to dedicate my whole life to just making money). This may all be delayed by Corona though or other events so for all I know it may take me to 40 to reach these numbers or I may never. [link] [comments]  |
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