Financial Independence Daily FI discussion thread - Tuesday, June 01, 2021 |
- Daily FI discussion thread - Tuesday, June 01, 2021
- I hate how money makes me desperate
- Road to 100K Net Worth (Canada)
- Alternatives to the Roth IRA ladder
- More FI than RE - Are there others out there?
| Daily FI discussion thread - Tuesday, June 01, 2021 Posted: 01 Jun 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]  |
| I hate how money makes me desperate Posted: 31 May 2021 09:22 PM PDT I had a job interview today and got the job but oh goodness... the bullcrap that you have to say just to get hired is just so cringey. An important value in my life is to be authentic, honest and down to earth, but when money and jobs are involved I start talking and acting the way they want me to...and honestly it makes me so sick. Money makes me desperate and I don't like it. I want freedom. Freedom from the rat race. Freedom from the bullshit they make you spew. Freedom to be myself in this scary world. I want to make money on my own terms. Today I started a little business of basically buying stuff at ridiculously low prices and flipping them for profit, but even after only one day I realized how hard it is to make any sort of money doing this. It was discouraging and slightly depressing. I'm not afraid of the grind and realize I have to work HARD for my freedom, but man, after today I'm feeling pretty hopeless. So this is kinda all over the place but here's my question (s): (TLDR): How did you get started? What was your epiphany? What can you do as someone who is trying to escape the rat race and improve his/her finances? [link] [comments]  |
| Road to 100K Net Worth (Canada) Posted: 01 Jun 2021 06:03 PM PDT Hi! I reached 100K in Net Worth this month and I want to share part of my journey since I started tracking it in November 2017. All numbers are in Canadian dollars (June 1st: 1 CAD = 0.83 USD). To note, I only started tracking in more details around mid 2020.
M, 24, Hi-COL, Canada
Prior to 2017: In high school and had limited knowledge on financial independence. However, my parents had always preached the importance of saving and encouraged me to place 50% of my summer jobs salary in a saving account. Those were all minimum wage positions (cashier, deck painting, etc). I entered business school at a large Canadian university and lived at home. University cost around 4K per year for residents of the province and was paid by a RESP set up by my grandparents (I believe the US equivalent is a 529 plan).
2017: Into my 2nd year of college, three things happened. A) I found a part-time sales job close to the school B) I opened a TFSA (the closest US equivalent would be a Roth IRA) and C) discovered the FIRE subreddit. On the job, it would pay between $18 to $25 when including the commission. I would work 2 days a week for around 12-18 hours. I also kept saving 50% of it. The job offered a stock option where you would put 5% of your pay and they add 2.4% (7.4%) which I started doing from day one. Around the same time, opened a TFSA where I invested 3/4 in market ETFs (S&P500, Nasdaq and TSX60) and kept 1/4 to invest in riskier stocks (mostly Canadian marijuana companies). Finally, I discovered the different FIRE and investment subreddits and decided to create an excel to track once a month the total value of my accounts. (at the time chequing account, saving account, TSFA and stock options). The first entry in November 2017 is $14,980.
December 2017 NW - $15,930
2018: 3rd year of college and not much change. Kept the same approach of saving 50% in my TSFA and also started contributing to a Defined Contribution Pension at work where I would put 5% of my salary and they would match 5%. This was invested in Global equity index funds. Decided to change my major from Finance to Business Technology Management which added a 4th year to my degree.
December 2018 NW – $29,870
2019: Started my final year of college and I accepted an 8-month full-time internship in project management for the same company that I worked at. It paid $24/hour and I was able to keep the same benefits (stock options + pension). This allowed me to work and save more while still living at home. I did start to contribute a couple hundred per month to my parents as rent. After a couple of very good low priced stock purchases (110% return in 3 months) and very bad ones (down 90% in a couple months), I decided to stop buying individual stock and went 100% in ETFs.
December 2019 NW - $45,600
2020: Outside of COVID many changes happened in 2020. I graduated in April and my manager from the internship offered me a full-time position as a product specialist starting in May. Base salary: $60,000
Next, I opened a RRSP (401k in the US) towards the end of the year as I had maxed out my TFSA contribution room. I also moved into an apartment with my gf. We were lucky that one of her family members owns rental properties and offered it at cost ($800). Finally, around midyear I created a proper tracker to keep track of each of my accounts.
December 2020 NW - $71,600
Saving account: $2,000
2020 Salary - $50,800. Bonus ended up being just over $5,000
2021: I received a promotion at the beginning of the year to a product manager role.
Current NW: $101,300
Saving account: $7,500
Looking ahead, short term we are looking at buying a used car (2016-2017) to be able to travel more with restrictions being lifted. The goal would be to buy a property in the area, but prices have been increasing relatively quickly and properties that we would want to buy are in $600K-$700K. We have not set a FI goal yet.
Summary: Salaries
Net Worth [link] [comments]  |
| Alternatives to the Roth IRA ladder Posted: 01 Jun 2021 02:16 PM PDT I have been following the Roth IRA ladder strategy for a couple of years now on my path to FIRE but have been recently rethinking fully retiring. More and more I envision myself continuing to work in retirement for either health care or just to keep myself busy. This work would likely be at reduced hours but will probably still bring in some income. This seems to conflict with the Roth IRA ladder when it comes time to start converting from traditional to Roth. So my question is where should the money go if I never plan to have zero income? Should I change retirement account contributions from traditional to Roth? Put the money in a taxable investment account? What other optimizations can be made like the Roth IRA ladder? [link] [comments]  |
| More FI than RE - Are there others out there? Posted: 01 Jun 2021 02:20 PM PDT Fellow FIRE Redditors, I was spending yet another afternoon combing through the numbers on my spreadsheet of when I will be able to hit my FI number and was curious if there is any other likeminded people here. I consider my FI number what it would take to open a small business from the ground up, or buy an existing one with enough runway to last me a year or two before I expect to earn the same of what I am in the corporate world today. Less of a "start-up" and more of a lifestyle business. My RE number is when I can sell said business and live off of this and the nest egg I have saved up. I can't stand working for someone else & the corporate world. Would rather brave it on my own and push off my RE a year or two if comes down to it. My FI number is a brokerage account value of ~$500k (Total NW ~$1M) which I should be able to hit by 35. My RE number is a total NW of ~$3.5M which I hope to hit by age 45. Any others on the same page or am I alone on this one? [link] [comments]  |
| You are subscribed to email updates from Financial Independence / Retire Early. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment