Financial Independence Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice - September 06, 2021

---

• Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice - September 06, 2021
• Daily FI discussion thread - Monday, September 06, 2021
• Money isn’t the only thing that compounds
• Almost 4 Years Since FIRE!
• RMDs and Roth Retirement Accounts
• Weekly FI Monday Milestone thread - September 06, 2021
• Trying to win vs. trying not to lose with investments?
• Bridge Period Safe Withdrawal Rate

Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice - September 06, 2021 Posted: 06 Sep 2021 02:01 AM PDT Need help applying broader FIRE principles to your own situation? We're here for you! Post your detailed personal "case study" and ask as many questions as you like, or help others who've done the same. Not sure if your questions pertain? Post them anyway…you might be surprised. It'll be helpful to use our suggested format. Simply copy/paste/fill in/etc. But since everybody's situation is different, feel free to tailor your layout to your needs. -Introduce yourself -Age / Industry / Location -General goals -Target FIRE Age / Amount / Withdrawal Rate / Location -Educational background and plans -Career situation and plans -Current and future income breakdown, including one-time events -Budget breakdown -Asset breakdown, including home, cars, etc. -Debt breakdown -Health concerns -Family: current situation / future plans / special needs / elderly parents -Other info -Questions? submitted by /u/AutoModerator [link] [comments]

Daily FI discussion thread - Monday, September 06, 2021 Posted: 06 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. submitted by /u/AutoModerator [link] [comments]

Money isn’t the only thing that compounds Posted: 06 Sep 2021 12:48 PM PDT I've seen some people give up a lot in their 20s to increase income or savings. The justification is often that money saved early on is more valuable than money saved later in life, which is true. So get the money saved early, then ratchet it back and live a little more later in life. I've been reminding myself lately that other aspects of life compound as well. Personal relationships grow over time and open more doors to other relationships, earning opportunities, etc. Good health makes exercise and healthy habits easier (not to mention avoiding irreversible health issues). Etc, etc. Basically, it's true that anything done right in your 20s will have more impact on that aspect of your life than taking the same actions in your 30s or 40s. Something to keep in mind when striking the balance between pursuing financial independence and focusing on other aspects of your early adulthood. submitted by /u/spacemonkeyzoos [link] [comments]

Almost 4 Years Since FIRE! Posted: 06 Sep 2021 10:38 AM PDT This November will be 4 years since I retired (at age 56). Status: Single, no kids, homeowner, in the U.S. Why Retire: I got laid off (yay!) in 2017, and was happy to get out of corporate 'murica, after many decades of soul-sucking suckitude, working for many companies. Financials Then: In 2017, my investments were approximately $900K, equity in my home was about $145K, total net worth was $1.10M. Financials Now: Now in 2021, my investments are about $1.3M, equity in my home is approximately $290K, and my total net worth is about $1.6M. Accounts: Just retirement accounts (IRAs, Roth), after-tax savings, after-tax brokerage. No other investments, no real estate other than my house. Invested In: ETFs & mutual funds (Total Market, S&P500, Contrafund, Blue Chip, Growth, MidCap, Various bond funds, Technology, Healthcare, etc.). Nothing fancy, nothing complicated. Social Security: When I collect SS I expect to receive $33K/year in 2021 dollars. No other income, no pension. Mortgage: Amount remaining is $99K. No rush to pay it off. Health Insurance: On the ACA. I get a subsidy. Expense Budget: Total spending budget this year is $48k or less. Journey to FIRE: Mine was slow because I didn't hear about FIRE until my mid-50s. Fortunately, I was already following many of the FIRE principles. I didn't really think about retirement until around age 52, I didn't have a specific age or date in mind. Finally, I realized I was miserable & wanted the hell out and spent the last few years focused on that. Advice: you don't have to be perfect. Just be consistent in saving & contributing from every paycheck into retirement plans, and don't overthink it. Put the money in, and then let it grow over time. Favorite FIRE tool: Firecalc .com I used this a lot to help me determine, "Are we there yet?" Most Common Question: "So what do you do all day?" No. The real question is backatcha, "What will you do with your time when you retire?" It doesn't matter what I do, it only matters what you want to do, as that's what affects you, and that's what you really care about! submitted by /u/FinancialFloozie [link] [comments]

RMDs and Roth Retirement Accounts Posted: 05 Sep 2021 09:34 PM PDT Hi everyone, I recently stumbled upon the Required Minimum Distribution schedules from the IRS and was wondering if that affected anybody's Roth vs non-Roth decisions for retirement accounts. To my knowledge, the expected tax rate is a major driver of whether to use pre or post tax money for retirement. I'm leaving opportunity costs and the time value of money off the table for the sake of this question. If one expects a higher tax rate upon retirement then a Roth is a good option. However, if one has a substantial account balance then the RMD can push the income into an unexpectedly high marginal rate. To me this is one additional benefit to a Roth. Have any of you come across this line of thinking? If there is a factor that I'm missing please let me know. submitted by /u/sevent33nthFret [link] [comments]

Weekly FI Monday Milestone thread - September 06, 2021 Posted: 06 Sep 2021 02:00 AM PDT Please use this thread to post your milestones, humblebrags and status updates 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! Since this post does tend to get busy, consider sorting the comments by "new" (instead of "best" or "top") to see the newest posts. submitted by /u/AutoModerator [link] [comments]

Trying to win vs. trying not to lose with investments? Posted: 06 Sep 2021 12:55 PM PDT How do you view your investments? Are they a way to maintain and slowly grow earned wealth until you reach FIRE or are they the way you plan to earn most of your wealth in order to get there? I know a couple people in real life who tried to win. One was with bitcoin and the other was by spending all his money in his own business. In less than 10 years they are both worth 8 figures. And also on a forum I know a couple posters who had about $1,000,000 five years ago. They decided to try for more using Tesla instead of index funds and now they are worth 8 figures as well. All these people seem very happy and can live amazing lives far nicer than someone like me who tries not to lose. The pictures of their homes and vacations are incredible. Some of them FIREd already but some are working longer to try to get to larger goals. I know there are probably many cases of people who tried to win and failed. But it does not take away the sting of thinking I could "shoot for the stars" and end up with a much better life than VTSAX will ever get me. submitted by /u/fire-emblem [link] [comments]

Bridge Period Safe Withdrawal Rate Posted: 06 Sep 2021 11:09 AM PDT Most of us are familiar with the 4% Rule meant to ensure retirement income for the remainder of one's life, but what if our net worth is largely tied up in traditional retirement accounts? I've been thinking about how to make sure one doesn't run out of accessible funds during the early part of retirement. We could use the 4% Rule, including only our penalty-free investments (Bridge Account) as a conservative estimate, but I've also seen it suggested that we could use the higher of 4% or (100/[years out])%. Since our investments will hopefully continue to grow, it seems reasonable to me that we could use the mortgage payment formula to "pay down" the Bridge Account over the years remaining until reaching 70 years old (when all traditional retirement instruments are available): (Withdrawal Rate) = (0.04) * (1.04)^(Years Left Until 70) / [(1.04)^(Years Left Until 70) - 1] Years Until 70 40 30 20 10 Withdrawal Rate 5.1% 5.8% 7.4% 12.3% % of Success* 57% (71%) 58% (78%) 58% (99%) 55% (100%) *of Bridge Account lasting until 70 (or 60) at the above Withdrawal Rate according to the FireCalc Tool. Note that the Withdrawal Rate is the percentage of the principal withdrawn for that year. The amount withdrawn each year is the same; as the account value decreases, larger portions of it must be used. How do the Withdrawal Rates here stack up with what you are planning to do? submitted by /u/Gradiest [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