Financial Independence Daily FI discussion thread - Wednesday, April 28, 2021 |
- Daily FI discussion thread - Wednesday, April 28, 2021
- Maxing 529 before having kids or even having a partner to have kids with?
- Anyone here invested only in real estate or properties and achieve FI? Were you concerned about putting all eggs in one basket?
- 5 year Financial Milestone (Debt Free) 34 M
- Becoming financially independent advice
- Weekly Self-Promotion Thread - April 28, 2021
- Any opinions/advice or horror stories about using the app “Digit”?
- (Milestone) 30(m) $300k NW
| Daily FI discussion thread - Wednesday, April 28, 2021 Posted: 28 Apr 2021 02:00 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]  |
| Maxing 529 before having kids or even having a partner to have kids with? Posted: 28 Apr 2021 04:12 PM PDT A few financial facts about me:
I do want to have kids but not sure with when and when? However, today I learned that I can put up to $75k into a 529 as a way of sheltering my income from taxation using the 5 year gifting method. My income this year is going to be around $1.6M so anything removed from taxation is a benefit to me. However, it seems like a funny decision to start investing into a college fund for a kid that might never exist! What would you do if you were in my situation? I know these numbers are above average and you might ask me to ask snobby people at /r/fatFIRE but I feel people here are more welcoming. I grew up so poor that anything that my weekly allowance in school was $0.05. So please don't take this as a brag post. Thank you! [link] [comments]  |
| Posted: 28 Apr 2021 04:09 PM PDT |
| 5 year Financial Milestone (Debt Free) 34 M Posted: 27 Apr 2021 09:13 PM PDT I spent 2009-2016 INTENTIONALLY ignoring my student loan debt, some low interest personal debt, not saving for retirement , and always keeping a cool car to drive. This month, I reached a milestone of becoming debt-free In 2016, I set my intention to become financially independent (this is still in progress), with my mid-term milestones being:
This is a breakdown of my NW over time: June 2009 - (-$100k) - Due to mostly student loans April 2012 - (-$130k) - Decrease due to buying a new car April 2013- (-$180k) - Decrease due to no-interest personal debt February 2014 - (-$200k) - Decrease due to buying primary residence in high COL, with low down payment April 2016 - (-$120k) - Increase due to appreciation of primary residence. At this point, I get on a 5 year plan to pay down $90k in student loans. April 2018 - (-$100k)- Increase due to appreciation of primary residence, pay down of student loan debt and other debts, start saving for retirement and investing. (Savings and investment rate went from about 5-6% to 13% by this point). April 2019 - 180k - Increase due to appreciation of primary residence, acquisition of an appreciation rental property, continued to pay down debts, and increasing savings and investment rates (increase from about 13% to 25% savings and investment rate). April 2020 - $250k - Increase due to appreciation of primary residence, appreciation of rental property, continued to pay down debts, and increasing savings and investment rates (increase from about 25% to 34% savings and investment rate). April 2021 - $400k+ - Increase due to appreciation of primary residence, appreciation of rental property, paid off all bad debts (paid of $170k between June 2016 and April 2021). On April 1, 2021 my savings rate was 42%. Immediately after paying off my bad debts this month, that savings and investment rate has been bumped to 73%. Income growth also played a role in paying down debt. In 2009 I started at $28k/yr and now have an above average paying software job in Seattle. Here is my current balance sheet: Assets - Retirement: $60k Investments: $40k Other Liquid Assets:$80k Other Assets: $8k Real Estate Value: $592k Total Assets - $780k Liabilities- Mortgage Debt: $367k Total NW - ~410k Target financial independence year is 2029, through maxing out all retirement accounts moving forward, in addition to increasing savings rate from 42% to 73% [link] [comments]  |
| Becoming financially independent advice Posted: 28 Apr 2021 04:24 PM PDT Hello, I am interested in getting some opinions on different paths to retirement. I am 23, Annual income ~$84,000, $155,000 Mortgage w/$35,000 equity, $30,000 auto loan, no student debt (trades), and only about $5,000 in a retirement fund. I have been fixing up my house as a form of investment and recently started a retirement plan through my work where my company matches 4%, I am currently contributing 10%. I am looking for any advice for saving for future. I know that there are alot of options out there but I don't know many people who have achieved a debt free lifestyle that I can ask for advice. So what I'm really wondering is whats my best bang for my buck? Aggressive mortgage or auto payments? Home renovations? Starting a stock portfolio? Investing in silver? Thanks in advance! [link] [comments]  |
| Weekly Self-Promotion Thread - April 28, 2021 Posted: 28 Apr 2021 02:00 AM PDT Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. [link] [comments]  |
| Any opinions/advice or horror stories about using the app “Digit”? Posted: 28 Apr 2021 04:12 PM PDT Im (30m) not highly educated. I make a little over minimum wage, and have no retirement/401k or the like. I started to use Digit last year and its worked out for me so far. This year I started using their Retirement Investment feature. Its an IRA. I also have Acorns, I started both in January this year, so I will definitely look back at the end of the year and compare, but for now Im just wondering if anyone has any info on whether or not its good for this, or if I should use something else. Thanks for any advice! [link] [comments]  |
| Posted: 27 Apr 2021 11:42 PM PDT I've been following this community for a while now on some past reddit accounts and haven't really posted until now. I haven't really taken the FIRE path as strictly as some people here but am grateful from where I am currently. It's put some other goals into my vision for my future that I'm excited to hopefully reach. I wanted to share a bit about where I am currently and use this as a reflective piece and also for accountability. Maybe I'll start a blog for myself or something, who knows. About me: Goal: 800K by 45y/o History: With scholarships, some help from my parents for tuition and my summer job paying for most of my books/school fees, I was able to graduate University without debt. After graduating, my first job paid $40k in salary. My employer actually hired me on contract as it was a brand new company and they couldn't afford "employees" at the time, so it worked out better for them to have me as a contractor. I leased a new car (young and irresponsible lmao) so that ate up a lot of my income but I was able to at least write off some of the lease expense and mileage as an independent contractor. I wasn't able to save too much during this job to be honest and FIRE was definitely not even in my mind. Left this job due to burnout and got another job with $50k salary. Started to save a small portion of my income here but mostly went to my car payment and general spending. s a young person fresh out of University with big dreams, I tried to think about what my startup would be that would make be a billionaire (lmao). During this time, I started reading about financial markets in my spare time and started making investments with about $5k I had saved. Shit, I even tried to trade leveraged ETFs inside a registered account at market open (up at 5:00am to research and start trading at 6:30am local time) at one point (I know there's some of you reading who know this feel too well). Needless to say, I'm an idiot, but learned as much during this time. The point is, I took the whole "your risk tolerance should be high since you're young" thing pretty far... Ended up leaving my last job for my current company starting at $55k salary and the growth below: 2014: $55K FIRE mentality really started around 2017 and started to become actionable in 2018. I got married and expenses really became combined after getting married and we were able to actually save more even with the mortgage payment. I've maintained a savings rate of just under 50% and my wife saves a little less. NW does not include our home equity/mortgage. Current: Biggest lesson for me has been that to achieve what a lot of us here are trying to do, savings rate is WAY more important than anything else. In the method that FIRE takes, we have two sides to the equation – save+compound. The problem is that in FIRE, a lot of us are handicapped on the compound end of the equation due to the E part of FIRE and a lot of us aren't wired to start FIRE when we're early in our 20's or teens, obviously. This means the better we can be with the 'save' side of the equation, the better the output on that equation is going to be. Something else I'd like to add on the saving note; I've found a lot of happiness in being generous with my giving. Time and money. I've never regretted volunteering or being generous with my time even if every minute I spend doesn't bring in money for myself. It has helped me with overall happiness and not comparing myself or situation to others who might be better off financially. I've recently had a kid and I want to show them that there's other people in the world other than the ones within our walls and they all matter too. [link] [comments]  |
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