Financial Independence Daily FI discussion thread - Thursday, January 07, 2021 |
- Daily FI discussion thread - Thursday, January 07, 2021
- We should measure spending as % of MIT's Living Wage instead of % of Income
- Buying 2nd Passport/Citizenship
- Stock markets, ETFs, etc. on which the whole idea of FIRE relies on
| Daily FI discussion thread - Thursday, January 07, 2021 Posted: 07 Jan 2021 02:00 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]  |
| We should measure spending as % of MIT's Living Wage instead of % of Income Posted: 06 Jan 2021 10:44 PM PST I'm proposing the use of MIT's Living Wage to compare across people and their spending in the FI community. Too many people in this sub use % of Income, yet that isn't useful when for some people with very high salaries decreasing their spending means cutting back on only the most superfluous luxuries (fancy cars, boats, McMansions, etc.) while for others with more modest salaries it means cutting back on more typical luxuries such as eating out, vacations, spacious housing, etc. I think the living wage calculation is particularly good as it breaks down basic spending across all of the most significant spending categories, as well as taking into consideration the cost of living in any particular metro area/county, the number of dependents, and the number of income earning adults in the household. The fundamental idea behind living wage is that it is the amount of money necessary for someone to live a minimally comfortable life. Now I'm not saying that everyone should be aiming to be at or below this number, the documentation of the calculator even states that the values it provides are simply a "step-up" from poverty, but I think that these values would provide a good relative target, for example within 150%, to help people aim towards with their spending. [link] [comments]  |
| Buying 2nd Passport/Citizenship Posted: 07 Jan 2021 03:39 PM PST Anyone buy a 2nd passport once they hit a certain net worth? If so, what NW level, what country and why? Nevis and St. Kitts, New Zealand, Grand Cayman, Turks and Caicos, Grenada, the Golden Visa for Portugal and others all have programs but there's a trade off between quality of healthcare, tax laws, ability to travel etc. Anyone who did this I would be interested in hearing why they chose the country they did. Not interested in people who were born somewhere and then moved when young or had a grandfather in Ireland so just got 2nd citizenship there because it was easy. Looking for people who did this for a reason and were thoughtful, not for convenience. Thanks! [link] [comments]  |
| Stock markets, ETFs, etc. on which the whole idea of FIRE relies on Posted: 07 Jan 2021 03:10 PM PST Hi! Let me begin by saying that I have been in the FI mindset before I even knew of this was a thing. One thing that I have never done though was invest, and that's something that is seen as the most important thing if one wishes to retire early. The thing that stops me though is my understanding that all these funds assume infinite growth. I know nothing about economics and investing, to be honest, that's why I hope there is someone out there who can correct me, but as I understand this, the idea behind any investment is that it will grow over time due to increased economic activity: amount of people on the planet that use these services/goods/buy these stocks/etc. Yet I do not see how one can rely on this thing, especially with the climate change and all the destruction and suffering it is going to bring. Europeans know that there may not be a point when they can retire, because our population is aging and there may simply not be enough people who work to pay for all the pensions. So why should we assume that there will be enough economic activity to support these funds that everyone suggests we invest our spare money in? How is that any safer than just holding your cash in a bank? What do you think, should one still invest if they believe an "economic winter" is bound to happen, or is my assumption correct that it's too risky? Thanks. [link] [comments]  |
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