Financial Independence Daily FI discussion thread - Saturday, November 06, 2021 |
- Daily FI discussion thread - Saturday, November 06, 2021
- Democrats put 401(k) and IRA restrictions for the rich back into their Build Back Better plan
- Democrats plan to bump state/local [itemized] tax deduction to 80,000 through 2030
- Potential changes to taxation of cryptocurrency in the recently passed bipartisan infrastructure package.
- Saving for a house while on the FIRE track?
- Did I mess up by contributing to an IRA?
- Lateral career change regret? What'd you do about it?
- Does buying the franchise fee of a business also come with an actual building to operate from?
| Daily FI discussion thread - Saturday, November 06, 2021 Posted: 06 Nov 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]  |
| Democrats put 401(k) and IRA restrictions for the rich back into their Build Back Better plan Posted: 06 Nov 2021 03:25 AM PDT |
| Democrats plan to bump state/local [itemized] tax deduction to 80,000 through 2030 Posted: 06 Nov 2021 01:33 PM PDT In other words, you're paying less taxes if you are a high income earner + live in a state with state income tax. [Assuming you itemize your tax return] [link] [comments]  |
| Posted: 06 Nov 2021 09:45 AM PDT Details are thin (by the nature of the text itself), but the bipartisan infrastructure bill that was just passed by the House and slated for signature by the president in the coming hours/days has a provision that would potentially subject cryptocurrency transactions to substantially more scrutiny and taxation. I don't have any cryptocurrency holdings, but I thought this update was relevant to many in this subreddit as many folks seem to have substantial crypto holdings and this law has been passed by both chambers and is merely awaiting the president's signature. Please also take note of the "no politics" rule when commenting. [link] [comments]  |
| Saving for a house while on the FIRE track? Posted: 06 Nov 2021 03:07 PM PDT I'm considering moving from an apartment to a house and was wondering if there are different considerations for those on the FIRE path (i.e. those with more substantial investments than average) compared to your usual homebuyers. Is is at simple as selling stocks from your brokerage account for the down payment? I know people talk about taking loans out against your investments rather than selling them. Is that an advantageous route for a typical homebuyers on FIRE? Are there other routes available? I know your typical Joe tends to just save money in cash the old fashioned way, but that seems less than optimal for the FIRE-minded. Any advice would be greatly appreciated! [link] [comments]  |
| Did I mess up by contributing to an IRA? Posted: 06 Nov 2021 02:53 PM PDT In addition to maxing out my 401k, I contributed to a traditional IRA for the first time. In reading more about tax law, I'm starting to think that this was a mistake. Here's my current understanding:
If my understanding is correct, is my best option to do a backdoor Roth by converting these non-deductible contributions to a Roth IRA? I do have some capital gains now, so does that mean I'd just pay income tax on the gains when converting to a Roth? Thanks for the help! [link] [comments]  |
| Lateral career change regret? What'd you do about it? Posted: 06 Nov 2021 02:51 PM PDT I'm curious if there's others in the FI community who have run into a similar experience, and what you decided to do about it. TL;DR Went into a different career, feel incompetent in it. What do The full story: I'm at about 50% of my way to FI, comfortable enough that if I started Coast FI now I'd feel pretty safe about my outcome. That combined with a particularly frustrating co-worker got me thinking about how safe and comfortable I'd become in my current position: and how I'd gotten really good at doing basically the same thing for nearly a decade now. And how there might be greener grass on the other side. That thought turned into dissatisfaction, and some voices I'd heard earlier in my career that told me that what I was doing was "safe" and "easy" popped back into my head and made me even more dissatisfied with how I'd let myself settle. Then when a co-worker in another department heard about my dissatisfaction he recommended me for a position that's very dissimilar to the one I'd been doing for most of my career. I jumped at the chance to do something new: I figured that my essentially Coast FI status meant that I had some wiggle room to take risks and "get uncomfortable." I wanted to prove to myself that I was more than just a one trick pony. The position was basically a lateral move financially, though I technically took what I thought was going to be a temporary reduction in seniority while I learned this unfamiliar skillset. I felt pretty sure that I could get up to competency within a few months and find my way back to that ranking however. Boy, was I underestimating how much more difficult and deep this position and its domain, tribal, and legacy knowledge was going to be. I quickly realized that I'd jumped from being a big fish in a small pond to a finless fish in a vast ocean. Admittedly, ramping up during the pandemic has made the experience more difficult than it might have otherwise been. I've lost the ability to stand at someone's desk and talk to them face to face, and I find that text chats and video calls haven't been as effective. But I think in large part it's also me. The domain knowledge and "gotchas" that you have to just kind of know about that are required for this new role are so much larger than what I was doing before, and I feel like I'm drowning in my ignorance and having to remember all these little "gotchas." So many of them. I feel like that picture of the guy holding too many limes, but the limes are critical but unintuitive things you have to know about some vast system to prevent some edge case problem or unwanted emergent outcome. And there's always more coming up every time I feel like I've found out about them all. Or some that I haven't thought about for a while and forgotten until they bite me in the ass. It's been a bit over a year, and rather than enjoying being uncomfortable I'm beginning to think that perhaps I *was* a one trick pony. I'm just not picking up this new career well: and my incompetence at it has caused me to take a pretty significant hit to my already not-great feelings of self worth. People seem to be understanding about the difficulty of the transition at least when they talk to me about it, but I'm pretty angry with myself at how slow and useless I feel compared to my prior position. I'm beginning to think that, despite my financial situation being stable, I still made a big mistake. What I don't know is where to go from here. I'd love to hear if other people have ended up in a similar situation, and what you did. The way I figure, my options are:
Have any of you been in this situation? What did you do? Do you have any advice that might be helpful? [link] [comments]  |
| Does buying the franchise fee of a business also come with an actual building to operate from? Posted: 06 Nov 2021 02:30 PM PDT I was looking into buying a Mr Clean car wash and it says the franchise fee goes from $30,000 to $50,000. Does this also include an actual car wash or would one have buy the actual car wash separately? [link] [comments]  |
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