Financial Independence I’ve made it to the top career wise, and I’m about to break down 5 years before FIRE. What do I do? |
- I’ve made it to the top career wise, and I’m about to break down 5 years before FIRE. What do I do?
- Where does TSP fall in preferred withdrawal order?
- Thoughts on the power of compound interest - vs the power of saving alone
| I’ve made it to the top career wise, and I’m about to break down 5 years before FIRE. What do I do? Posted: 10 Feb 2022 09:23 PM PST 29M, Single HCOL Area, Tech - 275K total comp. ~35k per year current spending, overall content with lifestyle/spending. 400K Net Worth, fire number (slightly conservative 1M). So I'm less than five years away from FIRE and I've landed an extremely well paid job as of six months ago. I've never really enjoyed my tech career, but I'm ambitious. I've obtained a raise/promotion every year for the past 8 years but with each bump, I've felt more and more stressed. The plan was for me to suck it up until 35 and then retire for life. My new highly paid job is ruining every moment of my life. It sounded great on paper, but it's an immense amount of stress and pressure. Every day I tell myself to just hang tough, but it's ruining (what I think) are some of the best years of my life (30-35). I've been so burnt out for so long, I don't think I can scale back to a lessor paying but still stressful job. What would you do? Any words of wisdom! 1) Grind it out until FIRE (5 years) 2) Find a government job (assuming it's easier and coast for 10-12 years) 3) Quit without a plan to heal. [link] [comments] |
| Where does TSP fall in preferred withdrawal order? Posted: 10 Feb 2022 11:42 PM PST Hi FI readers. I'm curious where the US govt's Thrift Savings Plan (TSP) would be in a list of retirement accounts if you sorted them by the order they should be withdrawn from. My understanding is that you ought to draw your pension first (clearly), a 401k type of account next, and Roth-like accounts last (on the principle that you should pay the tax debt you owe on your earnings as late as possible). And when to draw SS has its own decision-making process based on how much you need the money right now and your life expectancy. Where might the TSP fall in this list? [link] [comments] |
| Thoughts on the power of compound interest - vs the power of saving alone Posted: 10 Feb 2022 08:49 PM PST Just realized something cool today. I kind of just hit my "coast fire" I believe the term is? Didn't even realize it, nor was it something i was objectively tracking! Compound interest is incredibly powerful. I am 27 with around 100k in the market - mostly in VTSAX and other S&P 500 based funds. The average 10 year return for VTSAX was around 13% yearly (Data listed here) Running these numbers, I up with the following (Assuming 0 more dollars were invested out of my pocket into the market. 100k - 13% investment returns
Its pretty friggin incredible when you put things in that perspective - unless I totally botched my math on this. This is all assuming the optimistic 13% return rate is hit Compare that to someone who isn't investing and is just saving - you would have to save a whopping 5000 a month if you had 100k saved to hit the 1.1 million number in 18 years. (Ran calculations using this site) https://www.nerdwallet.com/banking/calculator/compound-interest-calculator Anyway, its all pretty fascinating stuff - I know some of my numbers are most likely off - and I am attacking this with a lot of optimism. But it may relieve some of the stress from your Journey if you take your foot off the gas and realize your snowball is already growing an exponential rate even if you stopped! Thanks for reading! [link] [comments] |
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