Financial Independence Daily FI discussion thread - Tuesday, May 04, 2021 |
- Daily FI discussion thread - Tuesday, May 04, 2021
- You May Snatch My Job From Under My Feet, But Still, Like Compound Interest, I’ll Rise
- For those of you who were already on the Path to FI before meeting your SO - how long did you wait to tell them the details?
- For those of you who are single, what does you will look like?
- Non-Qual Deferred Comp to generate ACA income?
- I may or may not give up my goal of FI, but I feel like I have to get out of my corporate job.
- Married 24(m) - Just Hit $200K!
| Daily FI discussion thread - Tuesday, May 04, 2021 Posted: 04 May 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]  | ||||||||||||
| You May Snatch My Job From Under My Feet, But Still, Like Compound Interest, I’ll Rise Posted: 04 May 2021 09:56 AM PDT It's been over a year since my first post [https://www.reddit.com/r/financialindependence/comments/emwhuo/27_black_female_raised_in_hood_just_crossed_100k/] and I have missed you all. Since then, I continued working at my 100k salary job until I was laid off in spring 2020. I was hurt by this. Not because I was unemployed, but because I would miss everyone I worked with over the course of 5 years. However, deep down I knew it was time for me to move on. I only received one promotion in a five year period and there was no indication I would receive another if I stayed. I also felt as if I learned as much as I could in that position. So sorrow quickly turned into optimism. Luckily, I received a severance package and stayed on my healthcare plan for 3 months. During that 3 month period I biked daily, played video games, read and became a better partner to my boyfriend all while applying to jobs. It was a stress free time (minus COVID) and I often miss it. Almost one week before my severance/healthcare was set to end, I received a job offer from a well-respected company for $175k (base: $150k) with a job title x2 higher than what I had previously. The funny thing is I never asked for that amount. I originally asked for $130k base after doing research for similar roles. The recruiter said he would ask for more on my behalf. I cried like a goddamn baby after that call. Life is strange. Despite getting laid off in 2020, my NW continued to rise during that time. I invested $63k in 2020 and am on track to invest even more this year. As of today, I am 28 y/o with a NW of $350k. If you include my partner, we total ~$710k NW combined. As an FYI, we still don't want kids and are talking about getting married in the next 3-4 years. We also have no interest in owning a house since we still don't know where we would like to live long term. We hope that when we travel in early retirement we'll get a better idea of where we want to be. Who knows, we may decide to rent forever. I never thought in a million years that I, a person who grew up in squalor, would be where I am today. The pandemic has reinforced my desire to retire early. Life is so fragile. While I'm incredibly lucky no one in my family died from COVID, I know that time is limited. While the company I currently work for is a dream come true and my job is surprisingly fun, I refuse to get too attached. The moment I reach my number, I will happily walk away. At the end of the day, my job doesn't define me and it shouldn't define you either. Until next time... [link] [comments]  | ||||||||||||
| Posted: 03 May 2021 07:54 PM PDT Curious, as I'm in the "beginning" stages of a long term relationship (I hope), and while we have spoken about money abstractly, we haven't gotten into the details of how much I actually have saved up. I don't plan on getting into them until we reach what I see as the next couple phases of the relationship, and we are taking our time, but I would like to know what others here have done, and whether they think that was the right choice. [link] [comments]  | ||||||||||||
| For those of you who are single, what does you will look like? Posted: 04 May 2021 03:27 PM PDT I've been fortunate enough to have a high net worth at a young age since I've been investing aggressively. I'm about to cross a milestone and it got me thinking about what would happen to my money if I somehow ended up dying tomorrow. I don't have a will currently and wanted to write one. I figure I would just donate all my money since my parents and my siblings are all doing just fine financially. I would have to add an amendment saying my will is void if I get married but I wanted to know what this subreddits wills look like for those who are single. [link] [comments]  | ||||||||||||
| Non-Qual Deferred Comp to generate ACA income? Posted: 03 May 2021 05:38 PM PDT I'm looking at a 5-year gap between RE and Medicare, with that gap starting in 9 years. I have a non-qualified deferred comp plan option. If I don't work during the gap years, would it be smart to designate my non-Qual plan distributions each year for heavier (taxable) payouts at age 60 and 61 and 62 to hit the ACA minimum Modified AGI threshold to qualify? Then I could take 401k withdrawls if needed to hit the ACA minimums for ages 63-64. I am fairly likely to have a shorter lifespan than normal, so depending on how the math works out, I am thinking of maybe taking Soc Security proceeds starting at 62. If so, then that Soc Security income could help me hit the MAGI threshold for ACI for years 63-64 instead of 401k withdrawls. I think the Soc Security income counts towards MAGI for ACA. I will have to understand the spouse 50% options, too. Does this sound somewhat reasonable? Thanks. [link] [comments]  | ||||||||||||
| I may or may not give up my goal of FI, but I feel like I have to get out of my corporate job. Posted: 02 May 2021 04:24 PM PDT Just on the front page I saw two posts at least somewhat related to the idea of mental health and FI. I almost wanted to just comment on those posts, but I feel like what I want to say is a little different. I have to start by saying that I am unbelievably privileged. I have a tech job that pays pretty well in a LCOL city with great work-life balance. Presumably, I have a job that many people would covet, and yet I'm still unhappy. Cliche, I know. Ungrateful? I know. But despite my best efforts to remind myself that I should be content with what I have, I find myself completely drained by the idea of going to work tomorrow morning. Is it really so much to ask to have a job that's fulfilling? It doesn't necessarily need to be this epicurean explosion of pleasure every single day of my life; my job could have days that are shitty as fuck. But without any meaning, purpose, or satisfaction with what I do, I just find it insanely hard to continue plodding away with my head down, hoping that one day I'll have enough money to do what I want. This is really kind of a rant that may or may not be received well, but I'm also curious to hear if anyone else in this forum has had sort of a "come to Jesus" moment that resulted in prioritizing current happiness with work over long-time financial freedom. What did you switch to? Do you regret it? [link] [comments]  | ||||||||||||
| Married 24(m) - Just Hit $200K! Posted: 02 May 2021 06:04 PM PDT So I got super excited this morning when I checked my personal capital, I just crossed the $200k mark! I am 24 years old, and just got married in April of 2020. First off, I wanted make clear that I was dealt a very fair hand in life and have been incredibly fortunate. So there is a component of that. But there are plenty of folks I know that have been dealt similar hands and were incredibly irresponsible with what they had. So I do take pride in that I have consciously tried to make responsible decisions from a very young age as it pertains to money. The world I was born into did play a large role in where I am today. Below is a list of the variables out of my control that really moved the needle for me. I do not say this to boast, but I do try to be honest with myself that I am incredibly fortunate:
I do think that without those things, I would be much farther behind than where I am now but still headed in a good direction. My wealth building journey really started in late middle school. My dad gave me a job making $200 a month caring for our 10 acres of land. I didn't even have access to the bank account so all I could do was save, but I did get monthly statements and saw my bank account slowly growing every year ever so slowly. I was hooked. I remember sitting in church sometime in early high school and heard some guy reading a quote out of a Dave Ramsey book. "If you have save $X every month into a Roth IRA invested at X%, you will have $2m by the time you retire". There was no way it could be true. Hearing that one phrase absolutely kickstarted my journey. I don't particularly love Dave, but I do give him credit for getting me hooked. Throughout highschool, I did not have typical jobs as a waiter, etc. But I did make decent money doing wedding videography. I would say on average I made $10-12k per year in highschool. Throughout college, I probably made more like $15k per year. Again, that is not a lot of money. But my expenses were paid for. By the time I graduated college in Dec 2018, I had roughly $60k saved up. I lived and worked from my parents home for about 16 months, and probably made $35k during that time. When I got married in April 2020, I had roughly $80k saved up. My wife had roughly $30k saved up, so when we joined forces, we instantly crossed the $100k mark! We live in a low cost of living area. I make $60k and she makes $30k. My job has great benefits and it contributes 20% of my salary to a 401k as well as $3,600 a year in HSA. We pretty much break even every month after I max out all of our tax-qualified accounts:
So we try to have as high of a savings rate as possible! By the way, my wife and I use YNAB and we absolutely love it. We love how it gets us on the same page about our money, we each have our own fun money, we can save monthly for vacations, trips, auto repair, etc. Such a game changer. Anyways, there is a chance my income can really accelerate over the next 12-24 months. I will likely make somewhere around $150k next year, and $200k thereafter. We have a kid on the way so my guess is my wife will continue to work for the next 3 years and then choose to stay at home. My previous goal was to hit $500k by 30 years old, but I'm thinking I will need to raise that to $1m if my income ends up growing how I'd like it to! I really appreciate the support and knowledge I have learned over the years from you all as a lurker, and finally wanted to share a bit of my FI journey! EDIT - Forgot to mention. We have a (surprise) baby on the way and is due on October!! [link] [comments]  |
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