Financial Independence Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice - February 28, 2022 |
- Weekly “Help Me FIRE!” thread. Post your detailed information for highly specific advice - February 28, 2022
- Daily FI discussion thread - Monday, February 28, 2022
- I have 6 figures in a 401k at a previous employer. What do I do with it?
- Weekly FI Monday Milestone thread - February 28, 2022
- Path to FI
- Daily FI discussion thread - Sunday, February 27, 2022
- [Illinois Only] Save $1,000 per year in taxes by doing Traditional 401k->Roth conversions instead of contributing to Roth directly
- Discussion : does anyone else get tired of fear-based assumptions or mentalities from folks in your life that don’t have a FI mindset?
- $650k Net Worth at 30 - 3 Kids and 1 Income
| Posted: 28 Feb 2022 02:01 AM PST 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? [link] [comments] |
| Daily FI discussion thread - Monday, February 28, 2022 Posted: 28 Feb 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] |
| I have 6 figures in a 401k at a previous employer. What do I do with it? Posted: 28 Feb 2022 10:24 PM PST 42M, now self employed, married w 2 kids. Both wife and I are currently contributing annual limits to our Roth plus monthly to a Brokerage account (both at Vanguard). My question for all you guys is what would be the best way to handle this account moving forward? Transfer it to a traditional IRA? Thank you! [link] [comments] |
| Weekly FI Monday Milestone thread - February 28, 2022 Posted: 28 Feb 2022 02:00 AM PST 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. [link] [comments] |
| Posted: 28 Feb 2022 07:20 PM PST Reading these posts fuel a desire to be FI but I have a lot of debt. Personal home at - 720K balance at 2.875 or Rental (hand it over to kid when they need it as their own) - 220K balance at 3.25. Both have about 29.5 years left on them Is it better to keep mortgage on a rental vs a primary home? Is it better to just pay off the higher rate debt? Is it better to pay off the rental for cash flow? I would like to FI in about 14 years- Current age 41. [link] [comments] |
| Daily FI discussion thread - Sunday, February 27, 2022 Posted: 27 Feb 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: 26 Feb 2022 03:57 PM PST Illinois does not tax retirement income, and the law does not make a distinction between income from roth conversions and income from withdrawals. What this means is you can save money by doing a Roth 401k conversion instead of contributing to a Roth 401k instead. An Example: Scenario 1. Your income is $100k, you put $20k into Roth 401k(after tax). You pay tax on 4.95%, you pay $4,950 in taxes. Scenario 2. Your income is $100k, but you contribute 20K to traditional 401k, and then rollover that $20k to Roth 401k. Your income is still $100k, but $20k of that is "retirement income" and thus untaxable in Illinois. You pay 4.95% of $80k, or $3,960. Things to keep in mind:
Disclaimer: I am NOT an accountant, please confirm with your accountant first. Edit: I don't recommend moving to Illinois just for this, I really meant this post just for people that happen to be in Illinois. Our taxes are terribly high even with the loophole, don't come here. [link] [comments] |
| Posted: 26 Feb 2022 06:26 PM PST TLDR; Hi, long time FI'er, first time poster. Very long story short, I'm considering leaving my job because I'm burnt out. The burnout has hit the point of affecting my mental health. When I voice this to friends and family (other than my wife, she's on board) I get a lot of fear based responses that just aren't grounded in what I'd consider to be reality or probably outcomes. Long version: For some context, I've run the numbers. We're already well into coast-FI territory. My wife wants to keep working, we will still have health insurance, and with her income alone our standard of living/spending wouldn't change. Our savings rate would just decrease, but there's enough money at work that our gains already outpace our contributions. We have plenty of cash, and I have a good skill set to return to the workforce and make good money if I decided to. It's unfathomable to the people I've spoken with to simply stop working, or quit and take a break. Some highlights: "If I saw a gap in a resume I'd assume they got fired."(friend who's a manager.) "I have no sympathy for someone who tells me in an interview that they took a break for their well-being. I wouldn't even interview someone with a gap." — ok, I don't want to work for a bootlicker anyway. "you should have another job lined up before you resign." (Person who I already explained numbers to.) Why? If I have money and passive income why else would I need a job? I have zero career aspirations. The career is just a means to financial independence. It's most definitely my fault for even bringing it up to them. How did it come up? Either via needing to vent, or asking what's new and me saying "eh, thinking about leaving my job and taking a break." What did I expect? Honestly, probably just some support or encouragement — and trust that they know how I am as a person and it's all already been calculated and war-game'd to the nth degree. Instead, it's a bunch of caution or fear mongering. Observations/conclusions: people just operate on autopilot and have no idea what "enough" looks like, or have their identity entwined in their job, or blow a perceived risk out of proportion relative to more urgent matters — like burnout/anxiety/depression NOW somehow doesn't matter as much as saving more money in case you ever get cancer—that one still bothers me. I sat on it all day, and typing it out just confirms how stupid it sounds. I'll never make enough money to not have file for bankruptcy if I ever have a massive multimillion dollar medical emergency. I guess I should know better by now. From here on out, that topic is off the table, just like religion or politics. It's an engrained belief system and -most- folks won't see it any other way. Anyone care to share your experiences, vent, or how/if you overcame it? Over the last few weeks of these sporadic conversations it's probably scared me into staying a few more pay periods and reassessing thereafter. [link] [comments] |
| $650k Net Worth at 30 - 3 Kids and 1 Income Posted: 25 Feb 2022 03:59 PM PST This post is not to be a brag at all, but I did want to share how my wife and I have been able to go from $0 net worth at age 22 to an approximate $650k net worth at age 30 while having three kids and 1 income most of the time. Some background on me. I was raised in a lower middle class household in a LCOL area. I went to public school and was able to get most of my college funded via scholarships. My wife and I got married and graduated from college with about $20k in loans. I was fortunate in that I lived with my parents for 8 months or so and was able to save up a down payment for our first home and pay off our school loans. This was in 2013/2014, and we were able to buy a 3/2 home in a LCOL area for $189k. The same has today would be worth $350k - $400k, so I understand that part of the story isn't really replicable. My wife worked in education and her starting salary was $33k in 2013. I worked in supply chain and my starting salary was $45k. We had our first child in 2016 and have had two additional children. We are done having kids, but it was always our goal to have kids early (we were both 24) and design a lifestyle where my wife could be a SAHM. Education
Our income history is below. You will notice our income goes down in 2016 due to her dropping out of the workforce. The large growth in income since 2018 comes from 2 promotions, one in 2019 and one in 2022.
Our current investments:
Expenses We currently spend about $60k a year, which does include preschool for some of my children. My mortgage (not including PT and I) is less than $1,7300 a month on a 15 year mortgage at 2.375%. I refinanced last year. I currently owe $245k (including a HELOC at 5.5% interest) and plan to pay the loan off early, although about $1,000 of the payment each month goes to principal. I know this is not the mathematically optimal strategy, but I am personally debt averse. I sold my first house in 2015 and bought my current home to upgrade to a larger home with an additional bedroom. One of my only financial regrets is not keeping my original home as a rental. I think I would have an easier time finding quality tenants where I live than where my other rental properties were located. I would guesstimate my home is worth about $450k, but could probably get a little more. We have no intention to move at this time. Although we could spend less, I personally feel like our budget is fairly tight with three young kids. I own both of my vehicles with no loans. My vehicle is a 2008 toyota and my wife drives a 2016 honda. Total value of vehicles is probably about $35k in a "normal" car market. Career I have stayed at the same company my entire career. I work at a Fortune 200 company in a MCOL area with decent benefits and decent pay. I work from home 90% of the time, I have minimal stress and I enjoy my job. As of right now, I will be able to continue working from home in the future. I do have direct reports, but I have been able to build my team and have 0 drama each day. I would guess that I probably "work" about 3-4 hours a day, although I do stay online for 8 hours or so. I am on a solid career trajectory and will probably be making $250k - $300k over the next 5-6 if I keep working. FI Plan Based on our current investments and savings rate, we will have about $1.1M - $1.2M in investments in the next 5-6 years depending on how soon I get my next promotion and market returns. I will be 36 or so and my wife is the same age. We plan to pay off our house at that point and will have about $1M in investments. We will also be done paying for any preschool, and our projected annual spending is a little under $40,000. The $20,000 difference includes projected inflation, and is driven by no mortgage/HELOC and no preschool. I actually think we could spend closer to $30k with no mortgage if we had to. I do plan to work in the future, but definitely not in the corporate world. I am not sure what this looks like yet, I would love to be some sort of life coach (I know that is frowned upon by some). I enjoy teaching/coaching others, but would want to set my own hours. My ideal life would be working 15-20 hours a week and making at least $40,000 a year to cover my annual expenses while my investments grow. I personally do not do well without some productive work each week, although I totally understand some people are not wired that way. I know this is not the most interesting story in the world, but I do think most of it is replicable for people with a college education. If you are 22, the biggest difference would be housing costs, I am thankful I'm not trying to buy a house right now. Happy to answer any questions if you have any. [link] [comments] |
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