Financial Independence Daily FI discussion thread - August 02, 2020 |
- Daily FI discussion thread - August 02, 2020
- Thought on FI with a baby with a disability
- Getting the benefits of FIRE loing before FIRE
- Looking for FIRE Advice- purchasing a home
- "The End of Growth as a Given"
- New to FIRE. This seems.."easily" attainable for most? What am I missing?
- Should a House in a Beautiful Area be Sold so the Proceeds can Benefit the Seller's Children – or Should it Be Kept so the Family can Enjoy it in the Future?
| Daily FI discussion thread - August 02, 2020 Posted: 02 Aug 2020 01:08 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]  |
| Thought on FI with a baby with a disability Posted: 02 Aug 2020 05:58 AM PDT My husband and I are in our mid 30s and have always been interested in having financial independence (although it seemed far off with student debt and a recent mortgage). We just welcomed a beautiful baby. She has some medical surprises and with that we now need to factor her into our financial future. We both work in healthcare and have a stable job/income. We can save around $1500 a month after expenses. Although, now it is a lot of medical bills for our kid. We both started maxing out our 401k a couple years ago. He has a full and a part time job currently for some extra income and to pay down debt. Babysitting is thankfully free from my mom and I know how lucky we are to have that option. I know everyone has a different number they shoot for that makes them comfortable for FI. We thought we found ours. However, is seems even further off now and not sure it is obtainable. We don't hate our jobs or anything so if we worked until 65, it wouldn't be the worst thing in the world. It was just nice to have that option to retire early or go part time at least. Is any number ever going to be enough when the future seems that much more unknown in what to expect? [link] [comments]  |
| Getting the benefits of FIRE loing before FIRE Posted: 02 Aug 2020 11:49 AM PDT I have always thought that the freedom and autonomy you get from FIRE, the ability to form your life in a way that suits you best is a great goal to have. But instead of spending 20 years or so just grinding a job i may or may not like, and then figure out what I want to spend my freedom doing; I would rather try to put me in a position when I can get most of the freedom and autonomy I seek long before that. Most of us find pleasure in "working"; focused tasks that lead to something of value for others. Just see how people spend time helping others on reddit completely free of charge, because it is an inherently pleasureable feeling to posess some knowledge and use that to help others. What I want is basically this (similar to the points in this book):
An ideal day for me would be something like 4-5 hours of focused work every 4-5 days of the week. There would be little stress and few strict "deadlines". If I could manage to find such work (or make most likely create it myself), I would happily do that for the rest of my life without the need to retire. I would not mind grinding a few years to get in such a position. Have anyone here had similar thoughts, or perhaps taken the step to create work that suits your preferences? Do you have any thoughts on what would be required to achieve this goal? [link] [comments]  |
| Looking for FIRE Advice- purchasing a home Posted: 02 Aug 2020 03:08 PM PDT Hello, I am a 27 year old with a good savings plan, but I am needing guidance on whether I should buy a house or continue to rent. Here's my current background information: COH: $28,000 HSA: $2,000 Personal stock account: $93,000 401k: $88,000 (maxed out contributions) Credit card: -$1400 that is paid off every month. Total: Roughly $210,000 net worth. Located in South East US I make roughly $105,000 a year in salary minus taxes and pay around $1300 a month in rent with a roommate who contributes $550 a month. My monthly expenditures are about $1400 and I am saving roughly $1400 if my salary each month + contributions to my HSA and 401K. With my cash savings and investments performing well my network is increasing roughly $9,500 a month. Now for my question. I have been employed with my company for 5 years now and have always previously rented. My company likes us to move every 1 to 2 years for promotion but there is also the opportunity to stay in the current location. When we move the company will pay for our moving expenses, insure our homes up to a $50,000 loss, and gives us incentives if it sells quickly with a 3% bonus of the sales price. With my cash reserves growing quickly, I believe the best course of action would be to buy a $250,000 house and put roughly 5-10% down so I can reap the benefits of owning a home and letting it increase in value. In my opinion, owning a house will allow for my cash to be further leveraged to produce return while the downside risk is minimal since I am insured against a massive loss on my house if the market were to crash. With all that being said, I've never owned a home and there could be plenty of hidden costs that I am unaware of. Any advice would be appreciated. [link] [comments]  |
| "The End of Growth as a Given" Posted: 02 Aug 2020 01:11 PM PDT from this youtube video Cool channel I found recently Thought it was interesting that they specifically addressed fire and showed video of this sub, given that he was criticizing what I'm assuming is the investment strategy of a majority of this sub. What are your thoughts? [link] [comments]  |
| New to FIRE. This seems.."easily" attainable for most? What am I missing? Posted: 02 Aug 2020 01:43 PM PDT I've been lightly tracking this sub after we've gotten more interested in nailing down the budget. I've been trying to show my wife the importance of starting early and really committing to take advantage of compound returns. Except the numbers I'm pulling seem far too attainable. Am I missing something? Note, I'm using age 65 as retirement age, though it's purely for examples sake (I wanted to pump the numbers a bit for dramatic effect). We're both 26 and made the below assumptions based on current activity (just looking for broad 'what if' formulas - not striving for exactness (e.g. I know I'm calculating FVA annually on 401k amounts)):
All the above for a total of $4.45m by the time we were 65??! Some big assumptions going on (retirement age, asset allocation as we get older, etc), but is this rough sketch correct or am I way off base? And if this is correct, saving $1000/mo + 10-15% 401k contributions seems attainable for many Americans but it's always talked about as an impossibility. Is it exaggerated? TLDR - Household income of $110k gross/yr with $1000/mo savings and ~$10k annual 401k contribution shows grand total of $4.45m at age 65. Seems too good to be true? EDIT: Yes, $110k/yr is above household income, but in the context of normal careers (e.g. two nurses), this is a fair number and more realistic than many of the Tech salaries talked about in these threads. I just want to use these principals to show my nursing friends that retirement is possible as long as you don't give up on yourself while young. [link] [comments]  |
| Posted: 02 Aug 2020 02:11 PM PDT I grew up in a house on a lake in a very beautiful location that remains very dear to me (this is in New Hampshire). My two brothers and I have long since grown up and moved out but we still visit to enjoy the lake, the surrounding area of mountains and beauty, and so on. This is a lake house of course, but we didn't have any other houses - we lived in it year round and my parents continue to do so (which made us the rare year-rounders in our neighborhood of summer homes). Now my parents are getting older and my father would like to sell the house and downsize to a smaller dwelling closer to a city where he and my mom can live. His reasons for doing so include: downsizing as mentioned, the tough cold winters in NH, his desire to be closer to Boston to take advantage of the cultural and other opportunities of the city. Most importantly, he wants his 3 children and wife to get the substantial inheritance such a sale would offer - he spent something like 20+ years paying off the mortgage and now the house/property is valued around $700,000 or $800,000, perhaps more. It's his biggest asset by far and I am not positive how much the inheritance would be if the house is not sold. However, I can't get rid of the nagging feeling that despite the benefits that would accrue to us, we could be missing out on a treasure if we "lose" this house by selling it. This is my favorite place in the world (not the house structure itself necessarily - just its precise location on the lake (it's a lake + mountain view facing due west) and the access to the surrounding area). I like the idea of having it as a place our families can enjoy whenever we want in the years to come - but I also understand the value of an inheritance like this and the needs of my father and mother who have different considerations from mine and who after all still live in the house year round (I am only there perhaps 6 weeks out of the year now). The winters do get tough as mentioned, and the house structure and dock have not been renovated in many years - it's in fairly poor shape actually and the new owners will have to do a lot of renovation work, though it's still livable as is. I'm just worried that if the house is sold, I will regret not making an effort to persuade my father more earnestly about keeping the house, and that I will feel grief over losing the gem we could have kept. One option - the neighbor's house has been in his family for a few generations now (so they at least chose to go the route of keeping the house rather than selling it) – and they rent it in the summer - so perhaps my brothers and I could rent that house for a week or two at a time if our house gets sold? Though of course we wouldn't have that nice feeling of permanence (how long will the neighbors be renting out their place for after all?) and *ownership* that you get from being able to call your house your own. Any thoughts or advice from this community would be very much appreciated! Thanks for reading. tl;dr: father wants to sell house we grew up in. It's on a lake and has a high price. Is it better to keep it in perpetuity for family to enjoy, or sell it so family can enjoy the inheritance that results? [link] [comments]  |
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