Financial Independence Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - May 11, 2020

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• Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - May 11, 2020
• Daily FI discussion thread - May 11, 2020
• How to diversify income streams for lawyers?
• Weekly FI Monday Milestone thread - May 11, 2020
• A different mental-model of leanFIRE and extras on top of that

Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice. - May 11, 2020 Posted: 10 May 2020 11:09 PM PDT Need help applying broader FIRE principles to your own situation? We're here for you! Post your detailed personal "case study" and ask as many questions as you like, or help others who've done the same. Not sure if your questions pertain? Post them anyway…you might be surprised. It'll be helpful to use our suggested format. Simply copy/paste/fill in/etc. But since everybody's situation is different, feel free to tailor your layout to your needs. -Introduce yourself -Age / Industry / Location -General goals -Target FIRE Age / Amount / Withdrawal Rate / Location -Educational background and plans -Career situation and plans -Current and future income breakdown, including one-time events -Budget breakdown -Asset breakdown, including home, cars, etc. -Debt breakdown -Health concerns -Family: current situation / future plans / special needs / elderly parents -Other info -Questions? submitted by /u/AutoModerator [link] [comments]

Daily FI discussion thread - May 11, 2020 Posted: 11 May 2020 01:09 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. submitted by /u/AutoModerator [link] [comments]

How to diversify income streams for lawyers? Posted: 11 May 2020 08:18 AM PDT Guess we should have studied economics ;) How could we as (corporate) lawyers actually diversify our income streams? I get investment income (we do that, but it is lot a lot yet, especially not right now, and it is reinvested anyways), or rental income (but we rent ourselves because in the city where we live we could never buy (or at least pay off) a home as it is so expensive that even we as comparatively high income family cannot afford it). This leaves income from a side business (but as lawyer, having a side business is heavily heavily regulated where we live and it is also quite complicated to get a permission from our employers to have a side business (its the law here...). The only things not regulated would be stuff like working in education (teaching/science) and writing (scientific and non-scientific). We earn quite ok money here in the city, but we despise living in the city. However, we could not find (decent) employment in our field elsewhere (both on investment tax law & everything funds & tax & real estate). Any ideas how we could get ahead and not be stuck renting in a big city until we turn ca. 50 and can move to the countryside and live off what we have saved/invested by then? submitted by /u/privatethrowaway89 [link] [comments]

Weekly FI Monday Milestone thread - May 11, 2020 Posted: 11 May 2020 01:10 AM PDT Please use this thread to post your milestones, humblebrags and status updates 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! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

A different mental-model of leanFIRE and extras on top of that Posted: 11 May 2020 10:54 AM PDT First, definition of terms. To me, "leanFI" means a point at which withdrawals from the corpus can meet basic needs for the rest of one's life, but there is no space for extras. In my world, this means the leanFI corpus can cover food+clothing+shelter+utilities+healthcare+transport. But it wouldn't cover going to movies, going on vacations, buying extra gadgets, eating at restaurants etc. I was looking at a different way to break things down than I used to. I don't think this will change any numbers or any "net" results, as such. But it may give a more "relaxed" way to approach things. The usual (old) mental-model I approach it is, first reach leanFI, and then continue coasting, maybe at a lower income level than before, but try and delay withdrawal as long as possible, so that when withdrawal starts it can be a higher rate (because fewer retirement years). Example: leanFI at say 40, but don't withdraw till 50. Then at age 50, it won't be "lean" anymore because not only would the corpus have grown a little bit more than inflation, but also I can afford a higher withdrawal rate at that point, which will leave me a bit to cover non-luxuries in addition to basics. But... I was playing with a different mental model in my mind. Let's say: At leanFI, call it leanFIRE, start withdrawing (say 2% or whatever WR you do), at leanFI (say, age 40) and meet most monthly expenses (basics) from it. At the same time, work for luxuries! Do whatever job (barista or whatever floats your boat), and earn something. From this, I worked out that if I save 50% of that "luxury" earning, and keep reinvesting the difference, keep doing this for 20 years (say age 40 to age 60), then at the end of that 20 years this new "luxury corpus" would let me withdraw 50% of my usual withdrawal, for the rest of my life. Instead if I save 66% of my barista income or hobby-income, and spend only 33% on luxuries, then at the end of 20 years (say age 40 to age 60), the accumulated luxury-corpus will allow me to withdraw the same as my usual luxury withdrawal, for the rest of my life. Example with numbers: Let's say I leanFIRE at 40. My basics met with my corpus. Ok done, put that out of the way. For luxuries - let's say I earn Rs.20K per month, and spend Rs.10K on eating-out or movies or whatever. The remaining 10K, I invest it. I keep doing this year after year. Then after age 60, I can withdraw from this new accumulation, the inflation-adjusted equivalent of Rs.5K at age 40, for the rest of my life. Instead if I earn Rs.30K per month for my luxury budget, and spend Rs.10K, then after age 60, I can withdraw a luxury budget of inflation-adjusted equivalent of Rs.10K at age 40, for the rest of my life. Note: This calculation is keeping in mind that my net-post-tax-returns on investments, inflation, and yearly increase of income are all the same. In my example I used 7.5% per year (India number) for all three. In reality though, returns will probably beat inflation, so the withdrawal after 20 years will be even better. Pros with this mental model: This allows me to not stress about whether my "lean" corpus is enough. For anything it doesn't cover, that's why I still work This also allows me to demarcate essentials vs luxuries, as they will inherently come out of different spending accounts. The leanFI corpus will inherently limit my "basics" income, so there is no question of over-spending. Taking breaks and switching careers (or hobbies) would feel more "ok to do" emotionally, as the only thing that would impact is "extras". Ok so I take a break for a couple of months and don't eat out for a couple of months, watch Netflix and go to the beach instead of things and places that cost money - so what? There is hardly any impact from doing that. Thoughts? submitted by /u/sambarguy [link] [comments]

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