Financial Independence Daily FI discussion thread - October 01, 2020 |
- Daily FI discussion thread - October 01, 2020
- I got FIRED today!
- Moderators: Is the r/fire sub closely related with r/financialindependence?
- FI Through Medical Retirement at 30
- Need direction
- My city/county/state is financially unlivable for a normal person to be independent. Should I move?
- Mom is retired. Question about what to do with an annuity
| Daily FI discussion thread - October 01, 2020 Posted: 01 Oct 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]  |
| Posted: 01 Oct 2020 10:43 AM PDT I have been doing barista FIRE for the last few years at a local college for insurance and a discount on tuition for my kids and first thing this morning I was fired do to cutbacks. I have a little over 2 mil in low risk investments/cash(I'm not a fan of the stock market), 220 k saved for kids college, 2 mil in real estate, 750k in my 401k, zero debt, and a high-low income of 75-100k a year from my rentals(no debt on rentals). They said I was the happiest person they have ever fired! My cash outflow is around 30k a year. I will probably sell one of my houses and some toys that have been sitting idle for too long in a downsizing effort. [link] [comments]  |
| Moderators: Is the r/fire sub closely related with r/financialindependence? Posted: 01 Oct 2020 06:22 AM PDT I ask because it isn't mentioned in the about section, it has less members as this sub but has the same theme. Are these both accepted subreddit communities within the FIRE movement? [link] [comments]  |
| FI Through Medical Retirement at 30 Posted: 01 Oct 2020 03:08 PM PDT I started saving for FI when I was 26, aiming for a 70% SR and setting 33 as a target date. I can't say that I was always consistent, but I was roughly on track. But after a wild few years, it looks like I might be achieving that at 30 through medical retirement from the US Army. I started navigating the medical retirement process in March when they determined that I wouldn't be able to continue serving. Today I got results from my medical board and found out that my disability pay should come out to almost $48k per year, tax free. That's a bit less than half what I make now, but almost twice what I spend in a year. The way I see it, I would be beyond thrilled to have investments that pay out that much per year. Using a 4% WR, I'd need $1.1 million. It won't be affected by fluctuations in the market. I don't have to worry about making rent or bills if I become unemployed. I can go back to school without having to work my way through. And I'll have Tricare to take care of medical expenses. They said I could opt into Social Security, but I think I'll pursue another career while I can. So, this wasn't at all what I saw happening a few years ago, and I wouldn't have ever considered it an option for pursuing FIRE. Fate just kind of dropped it in my lap. For now I think I'll focus on the GRE and grad school, or look at engineering jobs in the area. Knowing I don't have to rush my decision or sprint into my next job is immensely freeing. [link] [comments]  |
| Posted: 01 Oct 2020 04:33 PM PDT I'm in a unique situation based on Veteran Benefits. 36M married 2 kids 6 and 9. $1.1Million in realestate. $420k investments, $400k mortgages 3% interest. But here the kicker. I'm a veteran rated at 100% permanent and total meaning for life due to IED blasts in Iraq in 2007. I receive an inflation protected monthly stipend of $3400 I have free healthcare, my families is near free. Kids go to college for free with a housing stipend to offset their costs. How do I plan my exit from work. Do I wait to pay off the remaining debt. My wife will start working again here within a year and replace 75% of my current income of $100k. No matter what I will never have less than $3400 a month comming in due to the benefits. When should I call working? I have two rentals that pay a total of $3500 a month which covers all the bills. Do I pay off one more mortgage ($180k and $207k) and call it or do I pay off everything, even at such a low interest rate? [link] [comments]  |
| My city/county/state is financially unlivable for a normal person to be independent. Should I move? Posted: 01 Oct 2020 04:30 PM PDT So basically. I live in NY, The expensive part, 27m, currently living at home. Not by choice. I grew up here and is really the only place I know and my job is here. My job only earns around 1200-1300 biweekly, so that's me saying I make only a few dollars higher than minimum wage here. with over time I can push i to 1400-1500, but I can't depend on that always being an option. And the lowest rent I have ever seen in my area (good or bad) is around 1800 a month for a studio or 1 bedroom and that not including everything There are a few options to transfer but not many, Also I hate the job but I guess that's no important. I am not a very skilled person so I don't really have options. so I feel like my only recourse is to try and transfer to somewhere relatively cheaper to live. I would like to stay in the area but it seems there's no realistic option, its not just me either, almost every person I grew up with is in the same position and can't get a place of there own. the only exceptions have been people moving in with their SO's. I don't think there some magical piece of advice that will fix this issue and I am not even sure if this is the right place to ask this so if this should be moved elsewhere, i will. SO my question is basically, is moving my only option? [link] [comments]  |
| Mom is retired. Question about what to do with an annuity Posted: 01 Oct 2020 11:03 AM PDT My mom is 69.5 years old and retired from a state job. When she retired she purchased an annuity with a Guaranteed Minimum Income Benefit (GMIB) rider of 5%. She has put $110,759 into the annuity nearly 15 years ago and the cash surrender value is about $195,000. If she were to keep the annuity for income, the GMIB value is $260,000. The company that she purchased the annuity from no longer offers the GMIB rider because it costs them too much money. They are now offering her the chance to increase her cash surrender value to equal the GMIB value if she drops the GMIB rider. If she decides to keep the GMIB rider, the cost of it will increase from the current 0.65% to 1.50%. The paperwork says the plan type is Traditional IRA. She uses a financial adviser (who sold her this annuity) and we're meeting with him on Friday to hear his recommendations for this money. I believe the adviser is going to tell her to cancel the rider and accept the increased account value, and possibly advise her to remove her money from the annuity all together and do something else with it. My mom has a state pension and social security which cover her living expenses. This annuity is basically "extra" money that will either be used for a snow-bird house or one day be mine, but she is very risk averse by nature so putting the bulk of it into stocks would probably cause her more stress than its worth. I'm hoping this community can give me some ideas for what to do with this money and what I should watch out for from the financial adviser. My instinct is to tell her to roll it into a Vanguard IRA and invest in some low-cost bond funds. I don't know what the adviser will say but I'm sure he'll want her to keep it with his company or one of the ones he represents. Any ideas on what to do with the money or what I should watch out for and ask on Friday? [link] [comments]  |
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