Financial Independence Daily FI discussion thread - Friday, September 10, 2021 |
- Daily FI discussion thread - Friday, September 10, 2021
- How did you get through your early career living paycheck to paycheck with a goal of FI?
- Weekly FI Frugal Friday thread - September 10, 2021
- Getting a mortgage as a non-US resident
- If FI, maybe you shouldn't use asset location strategies.
| Daily FI discussion thread - Friday, September 10, 2021 Posted: 10 Sep 2021 02:02 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]  |
| How did you get through your early career living paycheck to paycheck with a goal of FI? Posted: 10 Sep 2021 01:35 PM PDT I got my first job out of college paying 30k, less than minimum wage where I'll be living (job is not in the city limits), and while the work and title will be great for my resume/portfolio, even with extremely frugal living, I will have to live paycheck to paycheck. Even if I find a roommate (which is up in the air right now), I wouldn't even be able to max a Roth IRA. I still plan on doing some extra freelance work, but I'm not going to budget for money I don't know I'll have for sure, and that might be an extra 5k if anything. I am waiting on a decision from a job likely paying over 20k more (fingers crossed), but I'm sort of trying to mentally prepare myself for what my life will be like without a year of saving or working toward FI (and having to sacrifice a lot of my free time as well). I'm also not looking forward to having to look for jobs again in a year, but I can't sustain 30k long term, especially after the 7 months of grueling job search I just did, literally the most emotionally depressed I've ever been. I'm also a bit concerned about overworking myself to make extra money. This job is going to work a little overtime (sports environment), and working freelance on top of that, I'm concerned about sacrificing my hobbies (namely studying Japanese and exercising) that give me great energy and sense of agency over my life, as well as sacrificing time with friends, and work life balance is significantly important to me, and I am not about hustle culture if I don't have to be. Idk, it's a confusing mix of emotions I'm trying to figure out, because I am also very excited to start this, if the other job doesn't pull through. But yeah, it would be really reassuring to hear other stories and how you get through periods of low pay financially, but mostly mentally/emotionally. Also, just fyi, I have about 10k saved, between emergency fund, savings, roth, and checking, all basically just as a cushion for now. [link] [comments]  |
| Weekly FI Frugal Friday thread - September 10, 2021 Posted: 10 Sep 2021 02:00 AM PDT Please use this thread to discuss how amazingly cheap you are. How do you keep your costs low? How do become frugal without taking it to the extremes of frupidity? What costs have you realized could be cut from your life without pain? Use this weekly post to discuss Frugality in general. While the Rules for posting questions on the basics of personal finance/investing topics are more relaxed here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply! 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]  |
| Getting a mortgage as a non-US resident Posted: 10 Sep 2021 02:34 PM PDT I'd love to potentially purchase a property in the US. However I'm European and resident in Europe. Is there anyone who has any experience with getting a US mortgage as a non US resident? I'm sure most banks wouldn't do it, but perhaps there are a few that do? Thanks for the support [link] [comments]  |
| If FI, maybe you shouldn't use asset location strategies. Posted: 10 Sep 2021 07:08 AM PDT A lot of personal finance advice breaks down for the FIRE scenario. I think I may have found another I haven't seen mentioned. A piece of personal conventional financial wisdom is to think about all of your investment accounts (401K, IRAs, taxable) as one investment account for portfolio management purposes. So the composition of the individual accounts could vary widely from each other and from your overall portfolio strategy, which is fine because when taken together they do match your strategy. A lot of folks seem to have wide differences in investment compositions across accounts due to wanting to take advantage of having less tax efficient investments in tax deferred accounts, optimizing asset location, which is quite reasonable. However, this advice only works if you can access all the money at the same time for the sake of having a portfolio that behaves like your chosen strategy. For a conventional retire, they can access investments across accounts at any point when retired so they are working with a portfolio that conforms to the asset allocation strategy they selected. If you retire early at say 40, you can only access your taxable. So maybe that money is only in a tax efficient S&P 500 fund and doesn't have the other components you added in your portfolio. So for that chunk of time until you can access other monies, you are living off a portfolio less diversified than your overall strategy. Then when you retire and can access the other monies, maybe your portfolio is now disproportionately REITs and small cap stocks because that's what you put in your tax deferred account. So you are living out your golden years then also with a much different portfolio then your overall asset allocation that may not have the risk and return characteristics you desired. This implies the solution of just having all accounts have the same composition, or at least close to each other because 401Ks limit what you can invest in. So not thinking about asset location optimization. EDIT: Also side note but my boy Ben doesn't like asset location for anyone lol. So if there is this additional problem for FI folks I mention and its benefits are questionable as Ben says, I personally decide against it. [link] [comments]  |
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