Financial Independence Daily FI discussion thread - Sunday, January 16, 2022 |
- Daily FI discussion thread - Sunday, January 16, 2022
- I think I’m ready to resign
- How hard is it buying a home AFTER FIREing?
- Would you consider moving to a poorer country in order to minimize costs and making easier to achieve financial freedom?
- What’s in it for the lender? (Real estate)
| Daily FI discussion thread - Sunday, January 16, 2022 Posted: 16 Jan 2022 02:02 AM PST 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] |
| Posted: 16 Jan 2022 01:38 PM PST UK based. Nearly 50. Half of a couple with no kids. Have just hit £3m in savings between us, not including our house. Roughly half in pensions and half not. No debt, no mortgage. The £3m is mostly in tracker funds, with a chunk of bonds, and perhaps a little too much cash (10%). Our spending lies somewhere between £50k per year as a pretty comfortable minimum, and £80k per year (or more) with increased travel, a new car occasionally , or whatever. So even allowing for fees and taxes, we can more than survive on a 2% Safe Withdrawal Rate. And if we edge up to 3% we're laughing. I used to enjoy my work, but not so much these days. So I think I'm ready to take the plunge. But the twin calls of "one more year" and "you need something to retire to" are holding me back. My plan is to quit and take six months off. With the aim that it's an experimental retirement. If I like it - and if the markets don't crash horribly in the next six months - I'll extend it. But within the next year I reckon I could get another decent job, if needed. Any thoughts or words of encouragement? [link] [comments] |
| How hard is it buying a home AFTER FIREing? Posted: 16 Jan 2022 07:41 AM PST Just a general question, for those who have stopped working and no longer have a sizeable income how difficult is it to buy a home? Do banks recognize when folks have large amounts of investments as an actual income (the 3 or 4% rule)? Does not having an actual "job" make it significantly difficult? For context: I make ~$140k, my wife receives a $50k pension, we have over a $1M in the market, and have an income generating rental property. By all accounts we have already hit FIRE. I have an opportunity to quickly leave my job and we will start our early retirement but at that point we will only have her pension, $1M and a rental we will just likely sell off. Intent is to buy a $500k home over 30y VA mortgage with about $100k down for a roughly $2k a month mortgage (benefits of my wife's pension is we pay zero property tax what so ever). We are not in a position nor do we want to buy the home now, it would have to be only after I leave my job (we would be moving across the country after we FIRE). I'm sure others have been in this position before. [link] [comments] |
| Posted: 16 Jan 2022 07:56 AM PST A lot of people are moving away from expensive cities such as Los Angeles, NYC and London to cheaper places such as no income tax states and the countryside (high house prices are a huge factor). However, (since buying a house is the biggest purchase that most people make in their lifetime) would you want to minimise that expense by buying a property in country where the prices are super low. For example, in Zaisan (the Beverly Hills of Ulaanbaatar. Mongolia) a 4 bedroom apartment would cost less than $350k (https://www.mongolia-properties.com/properties/buy/sale-gorgeous-4-bedroom-apartment-sale-golden-buddha). The majority apartments in Ulaanbaatar cost less than $100k (or even $50k!). Those prices would be an absolute bargain in western countries. There are plenty countries where you can get pretty nice properties in overlooked countries such as Vietnam, Laos, Serbia, Kazakhstan, Philippines, Botswana etc. For instance, if you earn an average western salary and have the ability to work remotely (such as being a YouTuber, Freelance programmer, Twitch streamer, your company allows you to work remotely etc.) then it won't take long to pay off the mortgage for the property (since prices are so low, there may be cases where you can straight up buy the property). If you are interested in investing in stocks for dividends, you don't need as much invested since generally the cost of living is lower and since property prices are much lower, you can invest more money in stocks and other investments therefore generating more passive income. However, I understand that there will be some disadvantages (Infrastructure and Institutions might not be as strong) and it could become a bit problematic if you are raising a family, Education and career for your children opportunities in these countries might not be as strong as those in the west or other developed countries. Also, Internet speeds might not be as fast. But if you are single and just want to chill and achieve FIRE pretty quickly, then buying a more affordable property and immigrating to less developed countries might be a good idea (especially for a financial sense). [link] [comments] |
| What’s in it for the lender? (Real estate) Posted: 16 Jan 2022 03:39 PM PST I'm reading a well-known book to build on my real estate knowledge and at one point the author talks about a deal in which he received money for real estate from a private lender. He goes on to say that after a year he paid back the lender the same amount, and henceforth enjoyed a steady cash flow blabla I couldn't make sense of this scenario since no one lends money for free. Why would a private lender give 90k, and a year later receive only the 90k back. This may be an overlooked point in the book but I wanted to make sure I'm not missing anything [link] [comments] |
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