Financial Independence Daily FI discussion thread - September 29, 2020 |
- Daily FI discussion thread - September 29, 2020
- 2019 Fed Net Worth Survey Is Out!
- Retiring Early With A Severance Package
- Nearing FIRE w/ $2.6M NW at age 33 – My journey & thoughts
| Daily FI discussion thread - September 29, 2020 Posted: 29 Sep 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]  |
| 2019 Fed Net Worth Survey Is Out! Posted: 29 Sep 2020 09:13 AM PDT I know a lot of us look at this to compare where we are in our FIRE journey. The latest 3 year survey has just been released. http://federalreserve.gov/econres/scfindex.htm Summary is at http://federalreserve.gov/publications/files/scf20.pdf [link] [comments]  |
| Retiring Early With A Severance Package Posted: 29 Sep 2020 01:47 PM PDT I going to go Fuck myself baby!!! My job's contract is ending this year, so I decided to retire in my mid 40's on Jan 2021. I have 2.8mil net worth, of which 2.5 mill is in investments. I plan to control my AGI to be 50k per year, but my family lives off of less than 40k normally. I'll be using a Roth conversion ladder to live off my IRA and taxable investments. I'm being offered a severance package of 100k all paid in 2021. Unfortunately, the company doesn't allow me to make any 401k contributions with the severance. I plan on putting 12k into deductible IRAs to lower my AGI, so with a family of 5 that leaves me owing 2.2k in Fed and 4.8k in State taxes. Since I don't need that whole 100k, is there any other strategy to lower that AGI that I may be missing? Would you finance wizards have any advice on dealing with the package? Also any advice on dealing with HR on this would be appreciated. Here's my investment values the last 10 years for those interested. I did not start tracking it well till recently: 2010 - $486k 2011 - $608k 2012 - $750k - $102k gains. 2013 - $1.021m - $205k gains. 2014 - $1.209m - $145k gains. 2015 - $1.312m - $42k gains. 2016 - $1.567m - $191k gains. 2017 - $1.885m - $297k gains. 2018 - $1.862m - $90k loss. 2019 - $2.392m - $506k gains. 2020 - $2.430m I made many mistakes this pandemic. Leave your money alone and let it ride lol. I have about 20% in cash but I plan to keep it that way. Healthcare is another concern. I plan on going with the cheapest bronze plan for $9 a month and roll the dice that no one gets sick year 1. Year 2 we'll be covered better. I hope you all go Fuck yourselves and thanks. [link] [comments]  |
| Nearing FIRE w/ $2.6M NW at age 33 – My journey & thoughts Posted: 28 Sep 2020 04:53 PM PDT TLDR: Here's goes my first ever post on Reddit: Just hit $2.6M net worth at age 33 after discovering I was working towards FIRE without knowing what it was until stumbling across it online last year. Wife doesn't care, but wanted to tell someone. My story, lessons learned, & how FIRE changed my strategy. Reasons for FIRE: I've worked from home for a tech company for 13 years (Support Delivery) Unlike many people on this sub, I actually love my job, and would do it forever, but know I got incredible lucky and don't know how I've lasted this long already with the BS corporate performance cycle, quotas, etc. My skillset is not transferrable, so if/when they fire me, I'd likely be starting at the ground-level at another company making little $, and probably not working from home, so I decided that when that days comes, I want to be ready. In a way I see it as being a "good steward" so to speak of the hand and luck that I was dealt, and I want to make sure I'm not squandering that by pissing it away on things that don't matter. Curious if anyone else is in the same boat with why they're pursuing FIRE? I'm a bit of a lone wolf with how I live life, so when I stumbled across the FIRE movement online last year, I was excited to find the formal framework for what I had been pursuing on my own for years. I had never heard of the 4% rule, and didn't even think about stocks as a viable option for early retirement, so my focus had been on buy-&-hold rentals, which after managing 7 myself, although almost no work when counted in hours, started becoming more stressful than I liked. This sub, along with the blogs like MMM, changed my approach and for the past year, I've been slowly changing my focus on simplifying my investments, stopped buying homes and started dumping excess income into VTI instead, and even sold my first rental this year. Income: Started at $48k in 2007, now $160k + $70k profit from 7 rentals mostly owned with cash. Spending: My current savings rate is 87%. I spend only $26k / year somehow but feel I live luxuriously. I own 2 cars, dirt bikes, ATVs (all Hondas), and spend plenty of time each year vacationing overseas. My #1 expense is travel, and some trips I figure out a way to get the owner of our side-gig (performing arts) to pay for as long as we perform or teach while there (while also making the trip partially tax deductible too). Link to my current spending / income / savings rate chart Investments: Link to my mint.com entire NW summary
Taxes: Federal taxes paid is $16k / year. Real estate helps a lot here, plus our side gig which turns many expenses, hobbies, & travel I'd pay anyway into deductions. Marriage: I'm married, but we keep our finances separate, so all these numbers are my own. We both contribute an equal amount into a small joint checking for things like groceries & utilities. She makes $30k / year "doing what she loves", but doesn't seem to care about money. We have a prenup (it was her idea). She found out I was a millionaire in the lawyer's office as we signed a prenup (disclosing my NW was required). I feel bad I make so much more and keep it separate, but tell myself 1) I live on about the same amount as her, so we have the same standard of living, and 2) assuming we stay together, hopefully I could support her quitting her job one day so we can travel together or do whatever we want. I've shared with her my net worth when I crossed $2.0 M, but she didn't seem to care much. I know she was listening though, cause every now and then I get a sassy comment like "so you're a multi-millionaire but X is too much for guacamole?" lol Family Life: No help from family, at all... I actually ran away from home as a minor and never went back. I learned to hitchhike at age 16 when my parents kicked me out of the car on my way to college classes. I took the GED and started college at age 15, graduated at 19. I think pushing the "youngest to graduate blah blah" narrative hard with the college recruiters definitely helped me land the tech job, not because I was particularly skilled. I've been working full time since age 16. Current Plan:
Thoughts & Reflections:
As you can see, I'm an open book, so I'm open to any thoughts, questions, or advice on anything I may be overlooking or doing wrong. [link] [comments]  |
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