Financial Independence Daily FI discussion thread - December 29, 2020 |
- Daily FI discussion thread - December 29, 2020
- What the pandemic taught us about personal savings
- Any studies on variable base at fixed % instead of inflation adjusted withdrawals?
- Delaying Marriage and Kids to Fire
- Relocating solely to FIRE earlier?
- After FIRE - 1040 Tools to calculate various scenarios for tax planning
- Is there any online job to make extra cash?
- What about a hybrid of leanFIRE, FIRE and fatFIRE?
| Daily FI discussion thread - December 29, 2020 Posted: 29 Dec 2020 12:08 AM PST 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]  |
| What the pandemic taught us about personal savings Posted: 28 Dec 2020 07:16 PM PST Statista Link: https://www.statista.com/statistics/246268/personal-savings-rate-in-the-united-states-by-month/ Obviously there are a number of reasons impacting peoples' ability to save money, but according to the Statista graph linked above, it seems like people have a lot more 'disposable' income than they think. If savings can skyrocket (nationally) 26% in a single month, clearly people can save more money all the time so they can actually make it for a few months on savings in case of an emergency. I'm not taking away from the suffering that countless people have been forced to endure, but a little bit of preparation likely could have saved (no pun intended) many from some of the tougher things they've had to go through during the pandemic. I also think this graph is pretty resounding evidence against the argument that most people don't have room in their budgets to put more towards savings. Pandemic or no pandemic, the ability to increase savings so drastically and so quickly says something about where most peoples' money goes. I guess this spike could have been due to the CARES stimulus, but I don't think this is likely the case since I find it hard to believe that an extra $600 could have caused such a large spike in savings for so many Americans (I might just not be in tune with who exactly the 'average' American is though). Hopefully this whole pandemic experience encourages people to re-examine their financial health! [link] [comments]  |
| Any studies on variable base at fixed % instead of inflation adjusted withdrawals? Posted: 29 Dec 2020 02:41 PM PST I'm curious if there have been studies/experience out there that show the long term impact of withdrawing x% of whatever base you have that year vs withdrawing x% in year one and then adjusting subsequent years based on inflation? E.g. if you have $1m year one, you take $30k out (at 3%), if year two the stock market goes up 10% you take $33k the following year, and if it goes back down to $900k the third year, you take $27k that year. Obviously this allows to never run out of net worth, and some years could be brutal, but how brutal, and could it actually be manageable? [link] [comments]  |
| Delaying Marriage and Kids to Fire Posted: 28 Dec 2020 06:50 PM PST Single 27M here. I'm worried that settling down and having kids too early will derail my fire plans. My goal is to have enough rental properties to give me 100K in rental income after taxes and expenses. I'm hoping to get there by age 35. I'm definitely not going to get there if I have to spend part of my paycheck on daycare and other childcare expenses. I'm committed to my plan but I am already starting to see people I went to high school and college with start to get married and have kids even though they're in my age range. I know that my strategy is going to give me a better life a decade from now but I am having to deal with that nagging sense of isolation as people around me seem to be choosing different paths. I just want to know if anyone else has been in the position of having to delay starting a family in order to first reach financial independence. [link] [comments]  |
| Relocating solely to FIRE earlier? Posted: 28 Dec 2020 09:30 PM PST Hi - would like to hear from people who have made the decision to move to a lower COL for the primary purpose of achieving FI. I've been offered the chance to relocate from NYC from Texas while keeping my same salary and having moving costs compensated. Net net I would actually be making more because of the lack of state income tax. I'm 32 and it's always been a dream of mine to achieve FI before 50 and this seems like the most pragmatic way to get there. I'm single but I do have close ties to NYC as that's where my family and the majority of my close friends are. I've also never really lived outside of NY for more than a few months so it'd be a big change overall. Anyone else took the plunge to make FI more possible? Did you believe it was the right choice? Edit: I'd be especially curious to hear from those that left their "roots" and pretty much all their connections behind [link] [comments]  |
| After FIRE - 1040 Tools to calculate various scenarios for tax planning Posted: 29 Dec 2020 01:20 PM PST Does anyone have any tools or spreadsheets they use to do scenario planning for year end taxes? I started to create my own spreadsheet as its not that difficult, but I assume there are online tools that would be easier and automatically updated with tax law changes. I am looking for something basic where i can enter my expected dividend income, capital gains, IRA distributions, IRA conversions, etc. I use Turbotax now in my pre-FIRE state; so I was thinking I could just sign up for an account with another online tax software to do my scenario planning trial and error. Anyone else have thoughts? Bonus if you have something that includes state tax calculations as well. [link] [comments]  |
| Is there any online job to make extra cash? Posted: 29 Dec 2020 04:10 PM PST Hi, I just got laid off because of covid. I am looking to make some extra cash online. A job that does not require SSN to get paid because I don't want to give out my SSN to someone online. Pandemic hit me very hard so I'm running very low on money. Any help would be great. I am very good with computer stuff so feel free to give me a variety of options. Thank you very much [link] [comments]  |
| What about a hybrid of leanFIRE, FIRE and fatFIRE? Posted: 29 Dec 2020 06:07 AM PST I feel like I just had a Eureka moment. My wife and I have about $1.6 million in our retirement accounts and about $250k equity in our home with no other debt and $100k in cash. I'm 48 and she is 39. I have always figured our safe FIRE number was $3 million. I would like us to retire at the end of this decade, when I'm 57 and she is 48. It's entirely possible we will hit $3 million in our investment accounts, as well as pay off the house and have a nice cash cushion by then. But the thought of continuing to work and invest for 10 years beyond that is pretty tempting. It would put us in fatFIRE territory, although without the "retire early" part for me. Here's where I had my epiphany. What if we did leanFIRE when I turn 57? And then shift into regular fire mode 5 or so years after that, and finally fatFIRE when I'm closer to 70 and our retirement savings has had that extra time to grow. I've always thought of FIRE as one thing but it doesn't have to be. In our early FIRE years our kids will be in high school still so we won't be able to travel a ton. With a paid off house and paid-for cars our expenses will be low. Is there any flawed thinking in my plan? Not saying we are going to do this but thinking about it. [link] [comments]  |
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