What are the top 10 Commandments of Options Trading Strategies

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An under performed sector over the last 18 months. But have been on call options and vertical spreads since Jan 2024. (NEE/D/DUK) (XLU) Stick with utilities. submitted by /u/Lazydaygo [link] [comments]

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I was casually watching some Dave Ramsey videos. While most of his work is really with people who have a negative net worth, in a few of the videos his callers actually have some funds. In those cases, he seems to consistently advise them that they could draw at least 10% from their stock based investments and never run out. He cites statistics that the average stock return has been 11%+ over the last 80 years. Doesn't that seem like some awfully aggressive advice, especially given that his listeners are typically unsophisticated and must be prone to financial errors or panic in a down market? I can understand why the 4% rule might be too conservative, but geez, a 10% withdrawal rate, year after year, seems awfully high.... What would be his motivation for routinely handing out such aggressive guidance? submitted by /u/sick_economics [link] [comments]

With knockout certificates in germany (i am regarded) submitted by /u/blackpot49 [link] [comments]

FTX caused a major concern among investors in 2022 regarding the security of their cryptocurrency holdings.. But, if a crypto exchange goes bankrupt, there might be a chance to change customer deposits into dollars and pay them back if crypto prices go up again. This strategy wasn't used for FTX, but it was thought about when Mt. Gox went bankrupt around ten years ago.. Nevertheless, executing such a strategy without legal repercussions seems damn near impossible. When need a Michael Lewis sequel. submitted by /u/Same-Variety-677 [link] [comments]

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Declining sales for mobile chips - Apple recently announced the decline for iPhones was 10% this quarter. The only reason their stock pumped up was due to their share buy back announced. ARM will not have this luxury and decreasing demand will hurt them Previous guidance was made under the assumption of 3 rate cuts this year. We are down to maybe 1? This had hurt SMCI as well as AMD two chip manufacturers who build chips using ARM's archecture... suffice to say guidance will be poor hurting their stock price against Wall Streets insane expectations for chip manufacturers I have NVDA calls (expiring May 24th) , one of ARM's biggest customers, thus by proxy my calls are gonna tank after close. Honestly debating on buying ARM puts (expiring this Friday) to hedge but IV crush is gonna be a bitch with this one Edit: I bought calls expiring this Friday so it’s gonna crash. GG friends Edit 2: I told yall their revenue guidance would miss smh 🤦 submitted by /u/rayrayrex [link] [comments]

I am looking for other people's thoughts on my emergency fund. My fund is $25k which my normal spending, bills, mortgage etc.. Will last me 8 months. If i cut back i could get that to last 12 to 14 months. I do not see any problems with my employment so no problems there. This spring I found a 8 month cd special and put 10k for 5.35% Apr. (CD matures in September) And the 15k is in a hysa, 4.15% apr A different credit union 8 month cd just advertised at 5.75% for 10k. Would you put 10k from the hysa for 1.5% more apr? I go back and forth on if I should or not submitted by /u/CryptographerNo8232 [link] [comments]

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Hey guys, Airbnb is reporting earnings today and I wanted to know everyone's thoughts on it. So far they're looking to hit $1.8 billion in revenue, marking a solid 20% year-over-year growth. Guys, that's insane. That’s not just good; it's their best first quarter ever. We're looking at a net income of $117 million compared to a net loss of $19 million last year. The turnaround story here is all about scaling revenue while keeping a tight leash on expenses and raking in some decent interest income. This rocketed their net income margin from a shitty -1% to a pretty decent +6%. So here I'm gonna outline my bullish thesis on Airbnb and try to justify buying calls for earnings. I want to know if it's a good idea. Cash Flow and Share Buybacks Free Cash Flow (FCF) hitting a massive $1.6 billion, thanks to increased bookings and margin expansions. What does Airbnb do with all that cash? Buybacks. They’ve bought back $2 billion worth of shares and just announced a new buyback program up to $2.5 billion. This rewards shareholders and boosts EPS. Bookings and Travel Trends Travel isn't just rebounding; it's evolving. Airbnb’s total Nights and Experiences booked jumped by 19%. 36% spike in cross-border bookings. Long-term stays (28 nights or more) are also doing well, making up 18% of all bookings. This isn't just a rebound; how and why people travel is changing. Supply Growth On the supply side, Airbnb boosted its listings by 18% year-over-year. That's growth across the board... North America, Latin America, urban, non-urban, etc. More supply means more options for consumers and more revenue potential for Airbnb. The Analyst's Angle From what I've read all analysts are keen on Airbnb's performance, noting the resilience in travel demand and robust financial health. Looking at pre-earnings forecasts there are strong expectations based on prevailing travel trends and economic conditions. My thoughts Airbnb is doing pretty damn well in our post-pandemic world. They're capitalizing on new travel behaviors, like increased interest in international destinations and longer stays, which could be a long-term trend rather than a short-lived reaction. So guys, what’s the play here? Airbnb seems to be on a solid path with strategic stock buybacks, strong quarterly performances, and robust growth prospects in the travel sector. You can grab shares if you're looking for a growth stock with some stability and bullish market sentiment. I'm going to grab calls tho. IV on calls actually doesn't make it seem like it's worth doing. If you expect a 5% bump AH, calls won't be profitable due to the premiums right now. 5/10 160c is $5.80/share. But I'll go ahead and grab the 165c just to see, it's a little cheaper at $3.75/share. submitted by /u/GrowYourConscious [link] [comments]

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Nvidia (NASDAQ:NVDA) shares were in focus on Tuesday as Goldman Sachs raised its earnings estimates and price target on the semiconductor giant amid "robust" AI server demand and better supply. ​ Goldman Sachs analyst Toshiya Hari raised his price target to $1,100 from $1,000 and reiterated his Buy rating on Nvidia, raising his earnings estimates for fiscal years 2025 to 2027 on average by 8%. ​ Despite Nvidia's near 85% gain year-to-date, positive earnings per share estimate revisions are likely coming, which should help drive the stock higher, Hari said. ​ And with shares trading at roughly 35 times earnings (or roughly a 36% premium compared to other semiconductor stocks in Hari's coverage universe), there may be more room for upside. ​ Nvidia is slated to report fiscal first-quarter results on May 22. A consensus of analysts expects the Jensen Huang-led company to earn $5.22 per share on $24.39B in revenue. ​ submitted by /u/DumplingGoddessTe [link] [comments]

Trust the process, the fact that Sam hasn’t released any flashy PR yet and people are hopping on makes me believe there will be a huge move up before Thursday AH. I’ll hold my shares and play this out with stop losses. NRC denied their application 2 years ago. Since then, they have added government related officials to the team and have signed multiple deals. I think they’re closer to approval than people expect. submitted by /u/MartJJ1 [link] [comments]

Hi everyone - first of all, I want to acknowledge that compared to most people who lose their job, I am in a better position than most. Yet, I'm struggling to have the right mindset, as it comes at a time when we could technically coastFIRE. I'm 40, DINKWAD with about $1.1M in investments and an extra $1.1M in home equity, living in HCOL in Canada. Our household salary up (both in tech) until recently was ~$500k, of which I contributed a larger portion. Abruptly, the startup I was working for shut down. My partner's salary can cover (just) our living expenses. Obviously, losing a job is hard emotionally for anyone. I tried telling myself that we are in a very good position, and that I can take my time to find something I love, or perhaps even do much less work (part time consulting, advising, that sort of thing) and coastFIRE. One of the reasons this is a bit of a mindf#% is that, while we have always planned on retiring abroad (south of spain) with a much lower COL, our FIRE numbers were always ambitious enough to be able to stay here, if we wanted. It really felt like we were on our way with the money we were making. Even if we expatFIRE, it would still be a couple of years away, I think. My partner needs to stay in North America for work and wants to do that for another 1-2 years. All of this is to say that I feel lost and stressed, and even guilty for perhaps not having the right attitude, or seeing things clearly, objectively. So many questions in my head that shape how I take on each day. If we are at coastFIRE based on Spain numbers, why not take this time to trial that and work the bare minimum or not at all given that my partner can currently cover living expenses? Am I ever going to get a high paying salary like the one I had? Should I focus my energy on finding another job soon, get back on the wheel, and keep adding to our nest egg? Why do I feel so down and worried about the future when we have a financial cushion? I suppose it has to do with feeling so close to FIRE, and then fearing taking steps backwards. Anyway, I would love your thoughts, either as critique or support. If someone has had a similar experience (needing to take time off work, losing a job, etc.) when in the back 9 of your FIRE journey, how did you feel? what helped you navigate that period? Thank you, all. I love this community. submitted by /u/TwelfieSpecial [link] [comments]

Just curious what percentage of your net monthly income goes to mortgage. Been looking at houses lately and the way prices are going and houses are going off the market, I'm thinking that percent is going to be a bit high - like 40%. But I'm hoping that after some time, I'll be able to refinance and get the monthly payment lower. submitted by /u/cardsfan986 [link] [comments]

The United States is projected to triple its semiconductor manufacturing capacity by 2032, following the passing of the landmark CHIPS and Science Act, according to a report by the Semiconductor Industry Association and the Boston Consulting Group. ​ The CHIPS Act, enacted in 2022, is aimed at bolstering domestic manufacturing, and reducing reliance on other countries. It provides $52.7 billion for semiconductor research, development, manufacturing, and workforce development, which includes $39 billion in manufacturing incentives. ​ America's projected 203% increase in fab capacity from 2022 to 2032 contrasts with the 11% increase from the previous decade. ​ According to the report, the U.S. share of world’s chip manufacturing capacity will jump from 10% in 2022 to 14% by 2032. Without the CHIPS Act, the U.S. share would have slipped to 8% by 2032. ​ The U.S. is expected to grow its share of the advanced logic (below 10nm) manufacturing to 28% of global capacity by 2032, up from 0% in 2022. ​ America is expected to corner 28% of the total global capital expenditures from 2024-2032, behind only Taiwan's 31%. In the absence of the CHIPS Act, the U.S. would have only been able to capture 9% of global capex by 2032. ​ Following the passing of the CHIPS Act, companies have announced more than 80 new projects across 25 U.S. states, totaling nearly $450 billion in private investments, the report added. ​ The announced projects are expected to create more than 56,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional U.S. jobs throughout the U.S. economy. ​ The U.S. is not alone in its efforts to bolster its domestic semiconductor manufacturing capacity. The European Union has its own $47 billion Chips Act. India has approved $15.2 billion in investments for semiconductor facilities. Similar programs have emerged in China, Korea, Japan, and around the world. submitted by /u/DumplingGoddessTe [link] [comments]

DD: They call their employees broistas instead of baristas submitted by /u/fakeyfaked13 [link] [comments]

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Canada gave us the fall of BB in the late 2000s. Time for another tech company crash from Canada? submitted by /u/RevolutionaryBed1814 [link] [comments]

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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]

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This has to be the craziest market ever. Many economic indicators are screaming recession but yet we are at all time highs. I have few points I would like to share. Jobs report has been revised down for 10 months straight, skipping December 2023. Even the latest job report of 175k was below expected. Many being part time jobs Yield curve 2yr/10yr has been inverted for 673 days, counting today. Yield curve 3month/10yr has been inverted for 561 days, counting today. Reverse repo has been falling but is at 475$ Billion - cushion to the system. Banks are underwater from low yield Treasuries and Commercial Real Estate. https://www.cnbc.com/2024/05/01/why-hundreds-of-us-banks-may-be-at-risk-of-failure.html Bullshit growth rate of GDP at 1.6% - probably be revised down. Fed has already over tightened but can't cut b/c of the inflation rate, and the inflation rate is not going to come down anytime soon. 1.6$ Trillion in Federal Deficit this year 7.6$ Trillion of Debt is maturing this year, U.S Treasury doesn't have that kind of money lying around so they are going to sell treasuries to pay off the principal of the ones that are maturing. Just like when a broke consumer pays one credit card off with another. The problem being the debt that is maturing was locked in at 1-1.5% but now it has to be given at 4-5% which adds to the cost to service all that debt. https://finance.yahoo.com/news/7-6-trillion-us-government-040643412.html Oracle of Omaha is holding on to the biggest stock pile of cash/cash equivalents ever - 188$ Billion Dollars So that means inflation is not coming down below 2% anytime soon yet the growth of the economy is slowing down - STAGFLATION and eventually a serious depression. The only real question is there has been Quantitative Easing that has happened 4 times. Fed's balance sheet was at 900$ Billion before it all started, it stands at 7.36$ Trillion - How high will it go this time when they inevitably print again to avoid the pain and kick the can down the road? submitted by /u/watifurdadpulledout [link] [comments]

tl;dr: Like the question states - what amount of FU money made you see the world (and especially your work/life balance) differently? Was it a set figure (e.g, $50k) or equivalent to a certain number of months? Did you ever deploy it, and how did that go?! …………………………………….. Well, somehow it’s the eve of my 39th birthday 🎂, and I don’t really have any FU money. Probably because I really only got serious about investing (and financial independence) around 36, I elected not to build much of a liquid emergency fund and instead 1) prioritized investment accounts, and 2) just made sure that I have easily accessible funds if needed (a HELOC, my HSA/ROTH contributions, available credit cards, etc. - I originally got this idea from the Choose FI gentleman, who I think got it from Big ERN). From a where-do-I-get-emergency-cash-from? perspective, I’m still comfortable with this approach, but more and more, I want to feel the power of FU money. I think I’m extra inspired/motivated by the lightness that finally paying off my six figures in law school loans has brought. Now the question is: how much do I reallocate from my 401k/traditional brokerage/business purchases (I run a resale business on the side) to save as FU money? I’d love to hear your numbers and stories on how you’ve deployed your FU money! submitted by /u/OTFlawyer [link] [comments]

Title edit : Buy or Rent Looking to get feedback from this group. I’m 55M married (53F) with adult children. Our details are as follows: NW is ~$3M $1.7M in IRA/401ks $1.25M in condo equity $50k HYSA I have health issues that have been getting worse over the last few years and I am not certain how much longer I can continue to work. We are considering selling our condo, which we will then be fully liquid, and moving to a lower COL area. We are currently in SWFL and our area is HCOL. Options: Buy a house in cash (~$400k - $500k) $80k estimated expenses I built in a fair amount extra for property tax, HOA, insurance and repairs Rent $95k estimated expenses Assumptions: 5.5% planned return on investments 3% inflation (gives a 2.5% net return) SS at 70 - calculated a 25% reduction to hedge on what will happen with SS in the future - this gives $72k per year in today’s dollars total across the two of us SS COLA - 2.5% Healthcare - I modeled in $1000 per month although I believe with the right tweaks, I can keep MAGI down enough to get the largest subsidies and this number could get closer to $0 From my calculations, both options seem doable and I have run it through multiple Monte Carlo scenarios and they always return 100% success. I would appreciate your thoughts on whether we have enough to retire and what you think the correct route should be - buy or rent. I do like the concept of renting but don’t want to have the potential hassle of moving multiple times over the years. I also like the home purchase but not a huge fan of having to do upkeep around the house/yard anymore submitted by /u/gusatl [link] [comments]

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Hey there, I'm the OP from the "Retired at 31 ... here's a spreadsheet" post the other day. I noticed a few commenters seemingly having a few misconceptions about what returns my portfolio "should" have had based on a 4% SWR. A large part of that was my bad for initially giving some back-of-the-napkin numbers that ended up being pretty misleading (and I apologize for that), but I wanted to address some of the misconceptions I saw people having (even when using the corrected numbers) about portfolio returns during the drawdown phase (or have people correct mine if they spot any). I'll simplify the numbers here to make things a bit cleaner, so let's assume I started with 1m invested back in early May 2021. What should that portfolio be worth today if I was following a 4% SWR? Some commenters stated that since inflation is up ~17% since May 2021, my portfolio should be at least up to 1.17m to not be in trouble. Others stated that since the S&P 500 is up 30% (with dividends reinvested) or 23% (without), it should have been 1.3m or 1.23m. Given that my portfolio was actually only up about 4% over the last three years, I initially gave these commenters the benefit of the doubt, since my spending has been quite a bit higher than what a 4% SWR would indicate (in addition to having more risky asset allocation), but the more I dug into it, the more I realized that there were some deeper misconceptions about portfolio drawdown underlying their comments. So what else to do but create another spreadsheet! (actual link here :P). To dig into a few of the misconceptions directly: The S&P 500 was up ~30% in the last three years with dividends being reinvested (which in the drawdown period is generally not the case), and ~22.8% without DRIP. While at first glance this might make it seem like a 1m portfolio should have turned into 1.23m, this doesn't account for withdrawals along the way. In the first two-year period after I retired, the market actually ended slightly down (-2.3% for VOO) with highs and lows along the way (+12.5% and -15.3% from the starting value) before the last year's impressive +25.8% run-up. Dividends not being re-invested only gets you about 35% of your yearly withdrawals, so you need to sell the other 65% along the way. Taking a look at a 100% VOO portfolio (screenshot), this means that instead of expecting a portfolio value of 1.23m after 3 years, you're really looking at closer to 1.12m instead, and this is assuming the best-case scenario, where you somehow wait to take out all of your withdrawals until the end of each year while simultaneously also holding off on increasing your withdrawal amount for inflation until the following year (just trying to steel man the case for the misconception as best as I can). While the 100% S&P 500 portfolio would be up 12% over the last three years, the Trinity Study and resulting 4% rule are not based on a 100/0 US Equity / Bond portfolio, but instead (if I'm remembering correctly) a 75/25 split which is only up 3.6% over the last three years by my calculations due to bonds not having a single positive year since I retired (BND is down -16.1% in total). Although inflation is up 17% over the last three years, so is the safe withdrawal amount you take out, as the initial 40k withdrawal is inflation adjusted each year. Therefore, the 95% success rate of a 4% SWR portfolio over 30 years already takes into account the effects of inflation (though I'm sure the uncharacteristically-high levels of inflation the past few years has not helped success rates for SWRs in general). And one other critique in that thread which I think bears repeating: A 4% SWR is really only 95% successful over a 30 year period. If you stretch that time horizon out to 60 years it drops to 77.7% (at 90 years it only drops another percent or so). If you're planning for a 60+ year time horizon, you'd need to drop your SWR to about 3.6% to have the same ~95% success rate. Please let me know if you think I'm missing anything or have made any errors in my calculations! submitted by /u/ThrowingMyWayAway [link] [comments]

Elon Musk is still cutting hundreds of jobs at Tesla. The automaker went through another round of layoffs in the early morning hours of May 6. That means there have now been layoffs at Tesla for four straight weeks. Workers who spoke with Business Insider said they were notified of additional cuts to their team on Monday morning. Several also posted on LinkedIn that they’d been let go. After watching my team gradually slimmed down week after week since mid-April, I received the dreaded ‘Hello Employee’ email this Sunday afternoon,” one Tesla worker wrote on LinkedIn. Another worker shared a screenshot of her layoff email on LinkedIn that showed her last day of work would be May 5. submitted by /u/solarisexpertise [link] [comments]

Fun article, but the headline is a bit clickbait-y. It's within most people's ability to FIRE, though more typically in their 40s than 30s, but the vast majority of people will never hit fatFIRE territory. I get the entertainment value of blending the two for the article, particularly given the bougie audience of the NYT, but fatFIRE is the least attainable variant of FIRE and the only one that is arguably on a different financial achievement spectrum from the rest. Still, better piece of journalism than most on FIRE. Non-paywalled article links: https://www.nytimes.com/2024/05/07/magazine/retire-early-saving.html?unlocked_article_code=1.qE0.ji2r.8VKhFsXD21FZ&smid=url-share https://www.nytimes.com/2024/05/07/magazine/retire-early-saving.html?unlocked_article_code=1.qE0.A3OR.7hvwmBtly-Tt&smid=re-nytimes submitted by /u/Zphr [link] [comments]

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I FIRED in May 2024. Then a friend asked me to come work with him on a passion project a few weeks later. I had planned to resign from this role at the end of this June. Carry COBRA for 18 months and then enroll in the ACA for 2026. Well, as Mike Tyson so eloquently put it; "Everyone has a plan until they are punched in the face." Doesn't look like my job will last until the end of June. Will probably end at the end of May. So this gives me a 1 month gap in health insurance in 2025. Are there any options where I can get health insurance for just that 1 month? submitted by /u/1200n [link] [comments]

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]

Assume I retire at 45 with the following allocation for a ~5.8M total portfolio: Taxable: 2.6M (46% of total portfolio) Pre-tax: 2.5M(42%) Roth: 500k（9%） HSA: 170K (3%) Additionally I need to withdraw 3.5% to sustain my life style and my home is paid off. What would your withdrawl strategy be between 45-65 (SSN/Medicare eligible age) and 65+? For example, would you use Roth earlier on to lower the taxable income? If so, would you prioritize ACA subsidy, convert Pre-Tax to Roth earlier on, or something else? Curious to hear what's optimal. submitted by /u/Throwaway_tequila [link] [comments]

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As the title says. I think FI is a bit different from regular retirement. The target retirement date funds from one of the big players model regular retirement AA just fine. But with FI - it's a bit hard to know when to become more defensive. For one most people have a number in mind and then they hit it but don't really call it quits. They chase more. But if the markets tank in this period when they're over allocated to riskier assets like stocks it can be very demotivating if you loose even your original baseline fi amount. There are also various levels to FI. For example you could be coast fi, lean fi, fi, chubby fi, fat fi etc. At each of these levels you feel this desire to protect what you have instead of chasing more wealth. Is there a number where you decided you won the game and took less risk? Any pointers to portfolio construction that limits max drawdowns to some x%? submitted by /u/safog1 [link] [comments]

First time posting on reddit, throwaway account. I'm (38M) married with two kids and a wife and live in a semi-rural area in the Southeast US. Not looking to brag, I just don't have anyone to really discuss this with that I trust to give me good advice or that would understand. I grew up quite conservative (religious) and with a limited, private education (two notches better than homeschooled, but not complaining.) I didn't go to HS, but I did get my GED and did one semester of online college at Western International University. I couldn't afford tuition, had no support from my parents and was too impatient to see how an online instructor could teach me how to make my first million so I dropped out. I only say this for context, so you know I'm not some whizbang, highly educated individual. My first career was in the trades working in my father's company and I still like to work my hands at times. I became interested in real estate around the age of 15, began saving my money and bought my first house at 19 to rent out. By the age of 28, I quit my job in the trades and went into real estate full time, arbitraging/flipping and renting out my properties. At 28, my net worth was around 300k and I think I owned about 7 houses. Mind you, when I quit was married already with one kid (3 yrs old) and one due in 3-4 months. We nearly starved at times during those first 5-6 years. Later on, as I built up my cashflow and rental fleet, it got better and life got a little easier. Sidenote: it's no joke raising kids and starting a business. Fast-forward to today, I own $19.8m in real estate, of which I owe around 10.3m on. This leaves me a net worth of about $9.5m. Hard to believe this happened from age 28-38. Regardless, it happened pretty much due to me keeping my nose to the grindstone 6 days/week, making a couple of right moves, taking some big risks, getting lucky and catching the C19 tailwind. All of that said, I don't think I'm special, I just happened to be in the right place at the right time. I'll also interject that I still don't feel rich or financially independent. I think this is due to keeping so much of my money invested in real estate all the time that I never allow myself to see big numbers in the bank. The most I keep on hand is around 5-600k, with another 3-400k availabe on lines of credit. But that's all for the business of buying/selling, not personal consumption. I find it hard to pass up a good deal and it seems like I find at least one a month, sometimes more. Getting to my point; I'm thinking about the future, watching what's going on with the Fed and interest rates, seeing the money-printing that's happening or is about to happen, and while I think rates will come back down (only slightly) at some point, I also think the stock market is going to continue to do well over the long haul. Here are some of my thoughts around pivoting some of my investments away from real estate toward the markets. I'd like to hear your opinion about my strategy. I keep about 1.4m equity tied up in properties I'm actively flipping. This yields around 20-25% annually pre-tax. This number is pretty heavily sandbagged since I own some land that I think will ultimately bring quite a bit more than I have it down for. Speculative, I know, but I've valued it only at the fire-sale price. For the yield, I'm thinking I'd continue to do this. Maybe not quite as actively, seeing the housing market looks like it may be in a bull trap over the next 1-2 years but continuing as it's a great way to make money (for me.) Take 100-150k annually and contribute it to a taxable investment account. Use this to fund a mega backdoor roth for me, my wife and my kids (possibly. I want to teach my kids to work and make their own, not trying to shortcut them in life.) This is also the #1 consumer of my time, between managing crews and a part-time PM. 30-35 hours/week I have another 4.9m in equity tied up in rental property that, after debt service of 2.7m, yields about 9.7% annually. However, since we self-manage all of our own property this means that I have to service an office staff of two and cover costs of employees (payroll expenses, benefits, etc.) This means that same amount in markets would only need to yield about 8.5% to be comparable. While it's a shame that I can't 1031 into the stock market, I'd look to begin winding down the renting of houses and put that money into the markets. I think I'd lose about 1.1-1.3m in tax ineffeciency but it would put my 'passive' investments into the markets and out of real estate, hopefully making them truly passive. After commissions (my wife is a realtor), I should be left with about 3.2-3.4m. This sucks but I don't really know of any other good way to get out of real esate and into the markets. I would put a bulk of this money into the VOO (S&P 500 Index) and let it ride. I would certainly be tempted to put some of it into equities and likely sell covered calls and trade semi-actively to grow it, if I had nothing else to do with my time. The second part of this plan would be to do an annual mega backdoor roth strategy to move this money to a tax-advantaged arrangement as quickly as possible. This is the #2 consumer of my time, taking probably 10 hours/week usually, but not all at once. Like 1-1.5 hours/day. No escaping to the beach for 10 days with no phone ringing. (I know, it's how I've trained my people but it's also how I've made my money; by being involved.) Alternative to selling everything: Reduce the time and effort by converting rentals into long-term mortgages by selling via owner-finance. My CPA says I would only have to pay income tax on the priniciple received + interest earned for the year. Obviously, I would still pay the taxes but this would keep a nice 50-60k/mo stream of income coming in, likely at a nice 8-10% interest rate (sold and financed over 30 years.) I have another $1m+/- tied up in a self-storage facility I built last year that I'm thinking of liquidating. It has the potential to make 100-125k/yr after debt service in 2-3 years but I got caught with rising interest rates and while 100-125k isn't bad, it was supposed to be 250k+/annually. This is a 4.7m investment (no capital of mine, did it 100% with the bank's money) so it's technically an infinite return but I still have to manage the employees there and deal with it taking up space in my head. Sell this, capture the $1m and take the hit on the taxes. Pay off some higher interest debt (500k @ 7-8% money), buy 100-150k worth of Tesla and put the rest into the flipping business or HYSA This would be a big mental relief. Right now that place is burning 15-20k/mo in debt service that's coming from equity. I have about 6 months to go before I have to refi and pull out more cash (bank says they'll loan it at 8.5%.) When I had it appraised prior to construction, they told me it would be worth 8.5-9m stabilized (about 36 months in.) Now the brokers are telling me I'd be lucky to get $6m on a proforma. Thanks Jerome Powell. Real estate joke: Want to know why they call them brokers? A: Because they're broker than you are. This would also free up my creativity and brain space to go develop some other stuff in the future instead of riding this thing out to stabilization and burning another 5-600k over the next 2-2.5 years. I'm a licensed commercial GC in 2, soon to be 3 states in the southeast and could build/develop other opportunities if real esate turned back great and interest came back down. Just because I'd sell my houses doesn't mean I'm out for life. I think I could find my way back in. I also have about 750k in some great commerical assets that's going to do well so my exposure to long-term real estate holdings would not be going away. The rest of my holdings (about 1.45m) is tied up in crypto, Roth IRA, cash holdings and personal belongings/things I can't really sell. I really dislike there's this much dead weight, especially on personal items, I've been looking over this list and I think I could extract about 200k if I decided to trim some fat. Which I likely should do. I guess my overarching thought is that real estate won't continue to compound like it has in the last several years, and while it always goes up, houses always need maintenance and attention. If I shift my money to the markets, while some years may not be that great, those would be the years to buy the dip. I believe (and here I could be wrong) that the markets are more likely to compound at a true 6-10% annually. I'm also thinking I would do well to execute the move to the markets over a 2-3 year period. I would accelerate this if I thought things were going from bad to worse but I would do this so as to maximize the gain leaving the real estate market. Lastly, while I'm not really wanting to retire early, I do need to pay attention to my health. The stress is pretty rough at times and I've gained a good 40 lbs since I started 10 years ago. It seems like the time has come to pivot to (possibly) lower returns in exchange for a higher quality of life. I haven't had a real vacation ever really. I've worked a lot of hours ever since I started working full time at 14.5. The longest vacation I've ever taken was my honeymoon at 23; it was 7 days and I was worried sick about getting back to work. Most time away is 3 days at the most, and even then it's just to see family over the holidays. Anymore, the work and the money just sort of make me numb. I like the work, it takes time and effort and is sometimes stressful but I sort of know what to do so I'm more just going through the motions. The money is nice but it seems like it's more just numbers on a spreadsheet and money flowing around. No real joy from landing a big deal or anything like that. There used to be more relief in buying than in selling, now it's the other way around. And please, I'm not trying to humble-brag. I really just want to know if my thinking is accurate or not. Some will scoff and say "What a paltry sum!" and others may wish to have my problems. I say, just do you and do what makes you happy. That's what I've done, but it doesn't really make me happy anymore now that it seems to own me more than I own it. What would you do? TLDR: Pivot from income real estate to the stock market? submitted by /u/Financial_Bad8537 [link] [comments]

Some general notes: DINK 2023 HHI: About $250k 2024 HHI: Expected to be $300k About $150k is stable income and the rest is from side hustles (and may not continue after a few years due to burnout). Savings rate is about 60-70% Plans: Hit FI and RE in 15 years (equivalent to present day $200k annual withdrawal), but will have enough saved up to start coasting in about 3-4 four years and let savings compound until we hit FI. Purchase larger house in 5+ years (will need an additional $500-700k saved for it). Our vacation budget used to be about $2-3k a few years back when our HHI was about $120k. However our vacation spending has increased over time and now we are most likely going to spend close to $8k this year on a seven day trip. An area I have always struggled with is spending. I'm generally a relatively frugal person, and while my spouse has started saving into tax advantage accounts once we started planning our future, they have generally been the primary spender. My spouse is absolutely my priority and I will do everything I can to make them happy. However, I am VERY conscious about lifestyle creep. If we were able to maintain our current HHI indefinitely, then I would I say I am fine with our current vacation budget, but my fears of sustaining my side hustle as well as future lifestyle creep makes me hesitant about these lavish vacations. I should preface my spouse is EXTREMELY understanding and I know if I mentioned this directly to them they would immediately want to do a cheaper vacation to keep my happy and less stressed. Although spending less is ideal, these vacations are part of their hobby and I do want to keep them to certain degree. Does anyone have any advice or input to help out (I'm not entirely sure what a solution would look like)? A future vacation discussion came up and it sounded like next year it might bump up to $10k+, and I don't want to be stressed out every year when it comes to paying for it since it does take away from part of the excitement for both of us. submitted by /u/originalQazwsx [link] [comments]

This subreddit is for: People who are or want to become Financially Independent (FI), which means not having to work for money. So the question is do You have "Real-Life" friend(s) or family members who also have a FI mentality? I wish I had someone to bounce ideas, dreams and progress with in real life about saving, investing, not working early in life. (My wife currently enjoys working and it's her identity at the moment. She doesn't think about money as much or the same way I do...she just works and wants me to manage her finances. She doesn't really care about our net worth or our expenses). Everyone else I know seems to accept the fact that you work til 60 or 65.....if not for the money, then the employer healthcare. Talking about Personal Finance may not be openly shared since its viewed as Taboo topic. Consumerism and Materialism is crazy. So that makes me think having a FI mindset is pretty rare.....and most of the answers in this community will be "NO". Is this why we are drawn to this community with 2.2M members Btw, I guess there can be different extremes and approaches to FI as well: --Saving $200k and living Vanlife/overseas forever. --Owning rentals/a business that run themselves.....and not really having to work. I think the common medium approach is saving and investing...then continuing the current lifestyle living off of the saved nest egg. submitted by /u/Formal-Blueberry-203 [link] [comments]

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Previous post: https://www.reddit.com/r/financialindependence/comments/1bo2r77/how_to_feel_like_you_have_enough/ Hey folks! I know my last post was a bit controversial, but I thought I’d take the time to post an update especially since a bunch of people took the time to give advice that really helped me out in kind of a bad time. Tldr on last post: I acknowledge that I’m doing well, but I have a hard time enjoying it because I keep comparing myself to those who are doing better. I reflected on my last post with my partner and arrived on three main conclusions: I was overly focused on the past (“I should have taken a different job”, “I should have saved more”, etc.). I didn’t take enough time to appreciate what I have in the present I didn’t have a clear vision for what I wanted from my future For the first point, without getting too much into details, the biggest thing is that I spent the better part of my 20s making dumb financial decisions and squandering a good income. I made unnecessary purchases, took on debt, and got unlucky joining a company where promised stock turned out to be worth less than expected. As y’all know, you can’t change the past. The best time to improve your financial situation was yesterday, the next best time is today. For the second point, it helps to remind myself that I have a lot to be thankful for. Main things are: I have a beautiful family, far exceeding all expectations I ever had for my life I have a beautiful home I’m good at my job, it pays well, and affords me a great work/life balance We are ultimately very lucky, all things considered For the third point - we did a lot of soul searching and planned for what our ideal life would be like in retirement. A few points came to mind: Retiring once our kids leave home - once we’re 50, in the ideal case Being able to split time between where our kids settle down and the places where we’d like to travel Having the flexibility/ability to take on lower paying jobs in our 40s to pursue passions like teaching, volunteering, coaching, etc. We created a budget for retirement, modeled out our expected retirement balance given our current balance and savings rate, then made a plan for how we would get there. It all seems achievable at current income levels! My previous post was predicated on the notion that I’d need to find some way to increase my income in order to have the type of retirement I could be happy with. Either by climbing up the corporate ladder, joining another startup and getting lucky again, or starting my own company to make a fortune. Knowing that everything is achievable with our current income was a huge weight off my shoulders.Sure, I may not be the next Bezos, but I realized I can still have a very fulfilling life without sacrificing happiness to chase marginal increases in income. Thank you all for the advice and indulging my early mid-life crisis. I hope this cautionary tale helps at least one other person out there. submitted by /u/Weary-Map9384 [link] [comments]

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Hey all, I am looking for a comprehensive calc that will help plan for retirement. I am looking to input current earnings, savings, retirement accounts, expenses, school/college for children etc. to gain an understanding of when I can comfortably retire; and how much would I need to retire. I used a few calcs available online and mentioned here and at /fire; but none take into account expenses; or allow me to play around with scenarios. I tried https://smartasset.com/retirement/retirement-calculator; https://ficalc.app/ and similar tools. The FIRE calcs are mainly focused on testing whether your savings are enough to retire comfortably by using monte carlo etc. What do you guys use? submitted by /u/Illustrious__Sign [link] [comments]

Hello, I am maxing out Roth 401k, HSA, SEP ( few thousand from side gig) and $20,000 for brokerage Wife works part time. , she does $8,000 traditional 403b and Backdoor Roth We are debating changing things up and maxing her traditional 403b with , what would have been , the brokerage money. This would allow me to do all/some of a Roth IRA and we should go under the AGI We have only $100,000 out side of our retirement accounts and 1.8 mil In those various accounts Ok to stay brokerage poor? We are 9-12 years from retirement Hope I included enough info Ty in advance submitted by /u/PisanoPA [link] [comments]