Tag: blockchain

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]

The Millionaire Partner System is a comprehensive program designed to help individuals create passive income streamsContinue reading on Medium »

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I've been with my current company for about 6 years, and have become fully vested in the ESOP plan as of last year. I've been maxing out my 401k, and the current balance is around $175,000. My company ESOP account is at a similar balance around $175,000. ESOP shares are allocated each year based on a percentage of salary, and appreciate based on company value. If the ESOP continues to pace my 401k, I could see it becoming a significant percentage of my overall retirement portfolio by the time I reach my FIRE date in 15 years or so. Do you guys see being locked into company stock like this as a risk? Would you consider moving companies just to diversify those funds? submitted by /u/conconcon [link] [comments]

Welcome to my article “How to Build Passive Income Streams from Scratch” Building passive income from scratch might sound like a dream…Continue reading on Medium »

My spouse and I, both in our mid-30s, are at a career crossroads. Here's our situation: Income: We currently earn a combined $230k per year in the Bay Area, but my wife would continue to work, bringing in $30k annually if I were to take a break or retire. Expenses: Our monthly spending is around $10k or $120k a year, covering everything from rent to entertainment. Investments: We have $1.2M invested (half in retirement other half in brokerage) Emergency Fund: We keep $120k in cash for emergencies. Investment Returns: My annualized rate of return has been 20% from investing in mainly Mag 7 stocks over the years, but I understand it's not guaranteed to sustain at this level. The Burnout: I'm completely checked out from my job. The micro-managing has become unbearable, and I feel utterly burned out. I've been interviewing at other companies where I could potentially increase our income by 50%, but I'm not motivated, and I'm questioning if a new job would just lead to the same dissatisfaction. Dilemma: Stay or Go: Should I stick with my current job, hoping things might improve, or take the leap into a new job with more pay but potentially similar burnout? Career Break: I'm seriously considering a career break to recharge. With my wife still working, would this be financially feasible? Retirement Thoughts: Can We Retire? Given our current financials and historical returns, could I retire with my wife still working part-time, or is that still a pipe dream? Financial Goal: If we're not at the retirement point, what should our savings goal be? $3M or more, considering the volatility of our investment returns? Key Questions: Is it wise to quit my current job given our financial situation, with my wife still earning $30k? Could we sustain a career break for me, and for how long, with her income and considering our investment returns might not remain at 20%? What would be a realistic savings goal for early retirement in the Bay Area, considering our expenses and the potential for lower investment returns? I appreciate any advice or insights. We're open to all suggestions, including lifestyle changes, investment adjustments, or exploring other career paths that might be less stressful but still financially viable. Thanks for your help! submitted by /u/opentablerezzies [link] [comments]

Do you ever catch yourself daydreaming about breaking free from the daily grind? What if you could actually make that dream a reality —…Continue reading on Medium »

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Inflation-beating dividends AND outperforming capital growth? I’m not kidding.Continue reading on Medium »

Seems like there's so many stories of career dissatisfaction. That's what motivates the savings and early retirement goal. Why wait until FIRE at 45 for happiness and fulfillment? Anyone figure out happiness younger? For context, I'm a serious FIRE saver trying to improve my career satisfaction. Reading books about doing more of the tasks that energize you, finding more of a calling, and that work can be very fulfilling. Making intentional career choices, not feeling stuck, etc. submitted by /u/ThrowRa-zucchinizzc [link] [comments]

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Self-promotion (ie posting about projects/businesses that you operate and can profit from) is typically a practice that is discouraged in /r/financialindependence, and these posts are removed through moderation. This is a thread where those rules do not apply. However, please do not post referral links in this thread. Use this thread to talk about your blog, talk about your business, ask for feedback, etc. If the self-promotion starts to leak outside of this thread, we will once again return to a time where 100% of self-promotion posts are banned. Please use this space wisely. Link-only posts will be removed. Put some effort into it. submitted by /u/AutoModerator [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]

Embarking on a project with the potential to make a significant impact on the world is an exhilarating endeavor.Continue reading on Medium »

Pretext; FIRE number has been reached. Roth/401k is about 150k, 3m 80/20 in equities/bonds in non tax advantaged account. Got a 800k mortgage @ 3%, no car loan, credit card debt is around 2k per month auto paid. On CoveredCA. Based in Bay Area. Company I worked for got acquired in June 24’ and got paid out my equity share and was on garden leave until end of 2024. Did my travel, new hobbies, and enjoyed my time off. Now bored and got presented an opportunity due to LA wildfires. Want some advice from fellow Fire’d who went back to consulting. Offered short term contract 6 months and options to extend mutual consent to consult for a company based in LA to prepare them for upcoming LA rebuild post wildfires. They will be supplying a lot of materials for the rebuilds in the plumbing/hvac/electrical sector. Main job and responsibility will be training staff on sales/vendor/operations. Current staff is very green and will be helping/preparing them with the upcoming shit show. Does it make sense to create an LLC v going on W2. Asking for daily per diem, half of accommodations, and flight reimbursement to go home every 2 weeks. Was also offered sign on bonus of one month, performance bonus, and year end net profit bonus. Theory, if I create LLC, I can deduct my flights, accommodations, food cost and other expenses. Contribute to solo 401k and basically get the LLC net as close to zero as possible while taking advantage of the benefits (churning bonuses, travel rewards). Filing the 1040ES on my own? Or am I flawed in my theory? Or do consultants prefer going on w2 for easier and less headaches? submitted by /u/OneDayButTwoDay [link] [comments]

Just hit a massive personal goal. I know I am pretty far behind the curve, but I finally reached 100k total in my Roth+403b. Now that I've accomplished this milestone, was hoping to get any advice/wisdom from those further down the road. Here's my very brief situation: Dual income, currently own our home (~400k) with 30 year 3.2% fixed mortgage Both still have student debt, but I'll have PSLF after 10 years from state job, so not too worried Some credit debt Maxed 7% pretax retirement, employer matches 8%, and I try my hardest to max my ROTH contributions, (don't always get there). I'm the first in my (tremendously small) family to start this path, and am trying to create wealth for my family, especially my single mother who poured a lot of effort into me growing up. Want to make sure, at the very least, we can take care of her and keep her with my family later in life, and not be forced so send her to a home. Aside from the obvious pay down and eliminate credit debt and mitigate student loans, what should be some of my next steps? I'm looking into saving and purchasing another home to add to the portfolio, and managing our first property. I will admit I have seen plenty of writing on the many downsides of managing a property, and don't have much of a network of other property managers to glean info/mentorship... Sorry for wall of text, just wanted to share a huge milestone, and hope I can dialogue with some of you! submitted by /u/Supportakaiser [link] [comments]

Very long story short, I am a professional that has more or less hated most of their professional life; the nature of the work has taken more out of me than it has given (or it's a really close race). There was one ray of hope for me, a role that was perfect, I could ride it into the sunset more or less on my terms (there were catches, of course, but worth it), but due to XYZ, that role has functionally evaporated, and I am left without a clue as to what's next, professionally -- maybe nothing. Anyway, between very hard work, marrying very well (similar conservative views on spending and saving, among other wonderful traits), and some incredible family fortune - literally - I may be, well, retired, although at 48 with my kids still young it feels too early. Curious if you think I'm as safe as I think I am: Spouse and myself are late 40s, 2 young kids (not yet high school), live in VHCOL area on a coast. Own the home outright, prob worth about $1.3M. Definitely modest for the town we live in. Spousal income: about $110K, has fantastic benefits for the family, public employment, very secure. After-tax brokerage dividends: About $60K/year, currently going into settlement account instead of being reinvested, for cash generation purposes, but that may change soon. Savings: Between pre-tax and after-tax brokerages, call it $4.6M. Plenty of cash on the sidelines to get us to the windfall below. A signed-sealed-delivered-contractual windfall in the expected range of $2.7M, based on current value and very low market growth assumptions, in a few years. 529s: Between ours and the grandparents' they're maxed out for both kids, so college (and possibly grad school) not an issue. Our current burn is on the high side, call it about $160K/year, but that's pretty normal in our VHCOL area, despite the fact that we drive reliable Japanese non-luxury cars, don't go to Vail/Turks & Caicos every school break, etc. Delta between spouse income + dividend income = 50K, plenty of cash (low/mid six figures) on sidelines. Spouse and I will also have, in addition to social security (I'm basically at the second bendpoint), public pensions, theirs much bigger than mine, which will basically cover health insurance and groceries after taxes in retirement. (spouse and I will also inherit very well from old Boomer parents who have oodles, but I am not factoring any of that in here, nor relying on it, but barring a depression or nuclear war, it's happening) So, what say you all? Am I good-to-go to be a retired stay-at-home parent? Genuine ask, given our burn (which could be lower), I swear not a humblebrag. I am extraordinarily grateful for my luck in life, both my family and financially, and try to pay it forward when I can. TIA submitted by /u/MaybeOnFire2025 [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]

Hi all, seeking advice on how to prioritize some competing savings goals. Background: early 30s, DI2K (both under 5), HHI 250k, MCOL, current invested assets ~$800k. Adding $80k/year to retirement accounts. Hope to reduce working hours in about ten years and and fully retire in 15-20, depending on how we feel about our jobs, our financial situation, and our kids' financial situations. Goal is ~$2M in today's dollars with a paid off house, and not counting college savings for kids. In the next few years, as kids finish up daycare we'll have an increased cash flow (extra 2500/month starting in September 2026 and another ~2500/month starting in September 2028). We feel good about our current retirement savings rate, so we'd like to put this cash flow towards two other savings goals: pay off mortgage, currently $380k at 6.6%, house value is ~$570k, 27.5 years left. Principle and interest is $2600/month. Would ideally like to be paid off by the time we fully retire/kids out of house for our own peace of mind. save for college, currently have nothing put aside. We'd like to be able to pay for whatever reasonable educational goals they have and are using 4 years of private school as a benchmark. I know not everyone agrees with this much support, but that's not a topic I'm looking to discuss today. If we pay off the mortgage early, we'll reduce our expenses, can reduce our AGI around college time, and hopefully get some more need based aid. We also have a guaranteed 6.6% return (assuming we don't refinance, we're not counting on lower interest rates). The downside is that the money is less accessible if college costs are higher than expected. We have a shorter time horizon for college savings, and I feel like we're already behind. There's lots unknown; kids could get full scholarships or not go to college at all or want to do expensive undergrad + expensive grad school. We are nervous about overfunding a 529 AND about coming up short. If we were short, we would likely take out Parent Plus loans (more favorable terms than a HELOC) or would have them take loans upfront and help pay back. If we step back from our jobs in ~10 years as planned, we would have less income but would put less towards retirement, hopefully evening out. So what's a FIRE family to do? Is it optimal to pay off the mortgage first since we know that expense and wait on the college savings until that cost is more clear? Split the difference and put some money towards each goal? Just save it all in a brokerage and wait to decide what to do with it? Your insights are very appreciated! submitted by /u/diamondskindx [link] [comments]

Hi all, looking for financial advice to achieve financial freedom in these uncertain times. The last year of aggressive layoffs has renewed my vigor to free myself of financial dependency. 33M living in a HCOL area currently working for a fortune 500 company in a technical-adjacent role with a recent promotion from IC to a first time people manager. 33F Fiancé is an attorney (8th year) working for a major US law firm who intends to go in-house once kids are in the picture in the next 1-2 years (job market allowing). Our goal is to work because we want to and not because we have to. Early retirement is a cherry on top. No kids yet but planning to have 1-2. I work in a role that will likely be extremely impacted by AI in the next 5-10 years. We are being up skilled on the job to use these AI tools and overall I am content at my current employer. However, I am planning for a worst case scenario where future job prospects become extremely limited. Fiancé is in a secure position at this time; an integral member of her practice group. She mostly just wants to work less hours. We do our best to keep monthly expenses low. We generally take 1 modest vacation a year. We don’t waste money on frivolous or extravagant purchases. We eat out at most once a week. My NW: 1.2m Her NW: 500-600k Pay: - Mine: 170k/year, 15% bonus, 100k unvested RSU - Hers: 450k/year, 100k bonus (we assume salary goes down 50% if in-house works out) Financial Summary: Mine: I had a late start to investing due to relatively low salary early in my career and the HCOL. Saving grace was joining my current employer where the stock price went up >300% during my time here and they were extremely generous with RSU up until the last 2 years. Brokerage and Roth are split between VOO, VTI, and QQQ. 401k is target retirement fund. HYSA: 350k. Money for purchasing a home Brokerage: 65k Roth IRA: 70k 401k: 270k Vested RSU: 390k ESPP: 50k Checking: 20k No debt Hers: It took Fiancé longer than expected to obtain the big law job (now her 3rd year there). For the first 5 years, she was extremely underpaid + a mountain of school debt. As a result, she began meaningfully investing for retirement ~4 years ago. I am less certain about the specific figures below as she isn’t next to me as of writing this. These are estimates that are fairly accurate. Can’t recall what her brokerage and 401k investments are. HYSA: 300k. Money for purchasing a home Brokerage: 50k 401k: 175k Checking: 25k No debt (250k of school debt paid off by family member when she started the big law job) Expenses: - Monthly Rent: 5,500 - Monthly Groceries: ~800 - Utilities: 500-800 depending on time of year - Car insurance: N/A - both of our parents are fine with us staying on their car insurance until we get married - Phone bill: N/A - same as above - Fiancé personal trainer: 3,000 every 3 months. Will be dropped after the wedding in 2025. Wedding in 2025: - 20-30k: By far the largest known expenses in 2025. We’ve had the vast majority of our wedding covered by generous family. We will pay the remainder ourselves We contribute 15% of our salaries to our 401ks, and I continue to be enrolled in my company’s ESPP. Admittedly, I have gone light on DCA in 2024 in my brokerage due to some extenuating circumstances and know this is something I should rectify in 2025. How do you all think we’re doing? Are we behind, on track, or ahead of the curve? Any advice on what we can do to improve would be greatly appreciated. I’ve identified areas I know I can improve but would love to hear more from people who are more financially literate than ourselves: - Nail down actual monthly expense and create a monthly budget tracker - Continue DCA in 2025 - Exit large position in company stock (hyper growth days are over IMO) If I missed any salient info let me know and I’ll do my best to provide. Thanks in advanced. submitted by /u/blockduration [link] [comments]

When I first put my FIRE spreadsheet together, I set a goal of $3M dollars. That goal is in terms of "today's dollars", which at this point is 7-years-ago dollars. I used 5% stock market growth rates to conservatively account for inflation-adjusted stock market returns. I'm realizing now that my $3M figure in my spreadsheet is still using 7-years-ago dollars. Does this mean I should be updating my goal figure by real inflation each year to give a more accurate view of my progress towards FIRE? Seems like without updating, I will appear to be further along my FIRE journey than reality as time moves forward. But then again, as inflation goes up, so do my annual expenses, and perhaps that increase in expense should be the actual barometer for how much the goal needs to increase each year. Do folks in this community do this reconciliation on your spreadsheets each year? How do you go about it? submitted by /u/FIREgenomics [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]

I was lucky enough to get a remote offer for a software engineering job that pays 90k annually, after I graduated this December, and I just want to have the validation of others to make sure I'm doing this right. I've been following the flowchart and the wiki. I might be switching to another job that pays 110k and a 7% 401k match but I'll make a different post about that lol)/ Just some information about me if it matters (I want to lay it all out to see if there is anything someone recommends changing): I am a 22m that is still listed as a codependent, I currently live with my mother at a relatively LCOL area (Florida) with no state income tax. Growing up, my family has been on the lower income side. Making lower that 50k a year. Graduated college debt-free with a computer science degree My father passed away 5 years ago and the house is currently under my name, but my mom just pays it every month My car insurance, health insurance, utilities, phone bill, and grocery bill is covered by my mom. My main expenses: Gym membership ($18/month w/ $60 annual fee) Weekly volleyball sessions ($28 monthly fee) Bills: Been covering the internet bill for the house ever since college (for some reason lol): $90/month Pay mom monthly rent of $300 Monthly take home pay after taxes(I get paid biweekly): About $5.5k Pay after my expenses are taken into account: 5073 My only credit card is: Chase Freedom Unlimited® Credit Card My plan: I want to be financially stable and go on trips with my girlfriend HYSA (w/ Wealthfront): I have 2.5k in it. Will contribute money until it reaches 8k-ish. Using as my emergency fund. Traditional 401K: Employer doesn't offer any match. I want to to try to reach the limit 23.5k. If I don't switch jobs, I will have to put roughly 2k a month into my 401k. HSA: Can't have one because I am under my moms insurance (?) Roth IRA (w/ Fidelity): Max out Roth IRA for 2024 and 2025 ASAP. Invest 100% into VTI Once I reach my HYSA and Roth IRA goals: I want to save $1k a month and put towards a travel budget so i can travel with my gf around Japan once she graduates this may. This money will just be put in my HYSA, but I'll just keep track of it. Put the rest of my extra money into HYSA into I get to this point and decide what to do it later (don't want to plan to much to overwhelm myself and things can change). However, I will limit myself to only using $500 dollars a month on hobbies/personal items, but I doubt I'll spend this much because volleyball/watching TV/video games/gym is my main source of enjoyment. Always have 4k in my checking account Things I think I could change / Questions I have: Change internet providers (?). It seems like my promo has run out and they have slowly increased the bill ever since Do I need to increase my HYSA? I live with my mom currently so I'm not sure how the 3-6 month of expenses apply to me? I don't plan on staying here for a long time, so might as well build it up? Because I am under my mom's insurance, I'm not eligible for a HSA right? Should I change my 401k to Roth or should I keep it traditional? I hear that most people do traditional 401k and Roth IRA. Is there a credit card that I should using or should I be opening more accounts to get more benefits? I worked at my internship last year that made me over 10k, that means I can contribute to the 2024 IRA fully right? Any advice is welcomed, and thank you in advance! My family isn't financially literate so I'm just trying my best to prepare myself for the future. I know its a lot information, and I appreciate anyone that takes the time to read it. If there is a more appropriate place, please redirect me :)) submitted by /u/Snaphu1 [link] [comments]

Throwaway account. 42 M from Canada, married with 3 kids Aiming to retire in 5 years. Following are my assets: Primary Residence, $1.6 million. Just have $130k mortgage left on it. 3 rental properties that bring in $9600/ month and after paying mortgage and other expenses I net $4000/month. I have around $800k of equity built into my rentals but I am not planning to sell them. I have $600k invested in RRSP, TSFA and non- registered accounts , going with 60-40 split to be on the safe side. I also have $250k invested in the company (private equity firm) work for and expect that to at least double in next 5 years. I also have around $150k invested in commercial real estate through my corporation. Not earning any income but just building equity. Planing on selling that in the next 2 years. Wife works in healthcare and brings $90k/year. And that covers our monthly expenses. I plan to save my $100k after tax income entirely for the next 5 years to add to our retirement portfolio. we are paying to kids RRSPs in full so I expect them getting $80k each when they turn 18. To summarize: Annual rental income - $48k Stock investment portfolio- $600k which is expected to grow to $1.1 million in next 5 years from me just adding to principal amount. Invested in my company- $250k, expected to be $500k in 5 years. $150k in my corporation. I am expecting 5% rerun on my investment. I like to withdraw $100k annually during retirement. To me it seems doable but I would like your opinion on any pitfalls that I am not seeing. P.S- my company investment is very safe due to the industry we are in. submitted by /u/MajorEngineering1505 [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]

I am/was a mechanical engineer mostly having worked contract jobs in the space, aerospace, defense sectors. I had finished a 2 year contract with blue origin (spacecraft sector) in 2023 at age 53. They had offered me a permanent/direct job afterwards but I just felt kinda burnt out and I calculated I could call it quits indefinitely, so i turned it down. This retirement plan entailed me living as an expat in my favorite beach town 40 miles south of cancun (called playa del carmen) for 3 to 6 months out of the year. Plus maybe 3 months/year in the philippines and various other countries. and finally, about 3 months/year in the usa travelling around in my camper van. All these options are very low cost and I could do it for $35k/year give or take. I've made some bad financial mistakes tho. i had maybe $415k in my retirement accounts before the pandemic which were diversified in various mutual funds. I knew early that the pandemic would tank the markets eventually, so i converted all my holdings into stable money markets (basically just cash). The market did tank badly as the pandemic progressed. fast forward 4 or 5 years. for various reasons, i never shifted my retirement money markets back into diversified mutual funds and such. I probably missed out on doubling that $415k. I also (stupidly) heavily invested in what i thought would be a very stable dividend stock (it was classified as a dividend aristocrat for decades). basically $200k (or 1/3 my cash) went into that stock. the stock tanked and i just stupidly held on to it. the dividend was cut in half and it was de-listed from the dow. that was a major kick in the guy. it's possible it comes back but it will take forever. it's a big setback. so now, i only have about $500k total in cash (currently invested in CDs). my retirement accounts are still at about $415k but they are at least earning something since shifting them to CDs too. I have 2 paid off houses (been paid off for about 10 years) with a current total estimated worth of $600k. I rent both houses out for a current total of $40k/year gross income. (well, one is currrently vacant and i'm working on redoing the flooring which is much more work than i expected). I would be trying out my expat lifestyle if i wasn't currently tied up with working on that house. I am single, never married, no kids (don't ask why because everyone does and i get tired of it. i've had a lot of trauma, heartbreak, depression, alcoholism, negativity, etc in my life). I now feel that my financial situation is not solid enough and i regret not taking that direct/permanent offer with my last contract job (at blue origin). maybe i'll feel better when i finish working on my rental house, get it rented and then try out my expat experiment in various countries. submitted by /u/red_five_standingby [link] [comments]

I was reading a financial independence book when something didn't quite make sense to me. Its hard to point out, so this may end up quite a long post, I apologize in advance. The first steps are analysis, lowering expenses, increasing wealth, and creating savings. All of these makes sense. Then you begin investing your savings after having enough liquid cash to survive 6 months with your usual expenses. They give an example: year one you earned 4% on $100, adding four dollars to your capital. year two you apply 4% your capital now $104, and you earn $4.16. Add it to your capital. year three apply 4% to $108.16 and you earned $4.33. add it to your capital. year four apply 4% to $112.49 and you earned $4.50. Add it to your capital. so far, I still understand the point is that you build wealth at a percentage so the amount that you get every year increases and the amount that you add in from the increasing amount increases too. The big idea is that you take the amount of money you have in your account invested, multiply it by the interest rate (in the example above the interest rate was 4%), and that’s how much monthly investment income you have. Now here’s my big question: Is it really income if you have to reinvest it? logically speaking instead of spending that 4.50 dollars your 112.49 earned, you should re-invest it into the capital again and on year five you will have 4% of $116.99 and so then you’ll earn $4.68. And so on and so forth. so where is the part where you actually profit? it is infinitely better to keep on reinvesting the money than to ever actually use it. There's another example in the book that’s meant to point out the total assets (amount invested) that i’d need based on expenses. I've already calculated that i’d need at least 40k per year. if you divide the amount of expenses by the interest rate (lets bring back that 4% for example’s sake), then I would need $1,000,000! That goes into the same investment income math though. if I have $1 million on year one I would earn 4% on that $1 million which would mean having 40 K to reinvest in my capital. And of course on year two if I apply that same 4% into the capital which is now $1,040,000 then I would earn 41,600. I would be an idiot to actually use the 40,000 of the “investment income” when I know I can get more if I don’t and just reinvested it. So where then is the financial independence? I feel like there is some math that I’m missing here. submitted by /u/Such-Ad-3597 [link] [comments]

This is an update to my post six months ago about being prematurely FIREd. Here's what I did in the last 6 months and my plans for this year: Took a one month trip to SE and East Asia ($7300) Officially separated from the company (I was given 2 months to find a new position within the company), received severance Bought a cheap laptop to replace the company-issued MacBook ($150) Took a one week trip to Chicago by Amtrak ($1500) Renovated my kitchen ($35k) Just returned from another 45-days SE Asia trip ($7000) Received about $5k in unemployment benefits With more free time, I was able to occupy myself doing these things: Cooking and baking, using my new kitchen Solo hiking Ironically, I spent less time on one of my other passions once I had more free time (lost interest). Hopefully I will get it back once I settle in from all the traveling. For health insurance, I took advantage of the 2 months I was still covered under the old plan (before my separation) to take care of all my needed shots, clean my teeth, and get new glasses. I didn't buy insurance for the two months after separating, counting on COBRA to retroactively kick in. For December, I bought travel insurance while overseas. Starting in January, I bought a high deductible plan for catastrophic coverage, subsidized through ACA. Here are my plans for 2025: Through a connection from my alma mater, I will try my hand at teaching a course for a quarter Take a couple of overseas trips, though with less budget (~$2k of each of my 2024 trips was spent on gifts for others) Budget for about $50k in income by selling enough of my RSUs and buying VTI, and converting some of my 401k to Roth. Receive about $5k more in unemployment benefits I'd welcome any suggestions on what else I can do or if I should do anything differently. submitted by /u/anonymous_1983 [link] [comments]

I’m planning to quit my job in about 5-6 months, and I thought it would be fun to share the transition with everyone. Using a throwaway because I periodically wipe my main account. All numbers are in CAD using 2025 dollars. Let the FINE (financial independence next endeavour) journey begin! Numbers 44F. Single. No kids. Medium-High COL. Ontario, Canada. No mortgage and no consumer debt. Current Assets Net worth - $2.0m Retirement Assets - $1.3m Asset Balance House $700k TFSA $150k RRSP $285k Non-Registered $850k DCPP $15k Asset allocation – 80/20 Pension Income Source Annual Income Start Age DBPP $18k 60 CPP ~$10k TBD (65 at the earliest) OAS ~$9k 65 Target RE Spend (Gross) - $65-70k I will likely be receiving a 6-figure inheritance in the next 10-20 years. On the low side, we’re currently projecting $400k, but that’s very much subject to change and not included in my financial planning. Withdrawal Strategy I’m planning to use a variable withdrawal strategy. For the first 15-20 years, my WR will be about 5% with guardrails set at 4% and 6%. All very much subject to change based on the markets. If necessary, I could cut my spending back to 3% without much difficulty. Circumstances would need to be quite dire to reach that point though. I’ve laid out some portfolio limits on when I would need to cut back spending and/or start thinking about finding an outside income. These limits will vary over time. In the early years, my hard floor is currently set at about 60% of my starting balance. A sustained downturn (>1-2 years) at that level would require a mandatory return to work. A minimum wage job would be enough in that circumstance. I would not need a full-time professional salary. Tax Planning I’ll be withdrawing from all three of my accounts (RRSP/TFSA/NREG) in various percentages to balance my tax load. I plan to continue to max out contributions to my TFSA every year, withdrawing only the cash distributions at first (which will also increase my contribution room each year). For the first 15-20 years, the priority will be draining my RRSP. The goal is for that account to be near empty by the time my pensions start to switch on at 60 and 65. After that, it becomes a juggling act between the various accounts to keep my taxable income under the OAS clawback limit. I don’t see this being too difficult, but it’s something I’ll need to be aware of. Based on my calculations, I should be able to keep my effective tax rate in the 8-10% range to start, increasing to about 10-12% in later years. The Story I’ve had a 20+ year career in healthcare technology, working in technical project management for the last 5-6 years. My original plan was to permanently retire closer to 50 with about $1.8m in RE assets. Making the decision to walk early with a lower than planned nest egg has been a process. It’s something I’ve wrestled with for several months. Despite being completely burnt out, I’ve really struggled with the idea of leaving so much career potential on the table. My peak earning years are just starting, and I have a lot of upwards trajectory left. Ultimately, it comes down to a health decision for me. My stress levels have been red-lined since 2020. The workload went parabolic during Covid, and it hasn’t slowed down since. There are no signs of change on the horizon, and the chronic stress is starting to impact both my physical and mental health. So, something needs to give. FAQ Why not switch jobs, go part-time, or take LOA? Part-time jobs are unicorns in this industry. There are a few out there, but it would absolutely require moving. I’m not currently in the mental head space to make that type of decision. We’ll see how things look after I’ve had time to reset and recharge. My current employer rarely approves leaves of absence. Also, I have no desire to continue working for them. I did consider switching jobs for quite some time. I eventually came to the realization that I’m done with the industry. It is moving in a direction that I don’t like, and there is little enjoyment or satisfaction left for me. Also, I have shit to do! Haha! I have a long list of things I want to do, experience, and learn, and I’m tired of trying to cram it all into 3-4 hours a day. Work is getting in the way of living my life the way that I want to. Why wait 6 months? Part of the reason that I gave myself a long runway rather than just walking away now is that I wanted to have the option of making this a permanent early retirement. Since I’m still quite young, I fully expect to bring in some sort of an income in the future. I wanted that to be optional though and not a necessity. $1.25m is my rock-bottom minimum RE number, and I’m barely past that. I wanted to find a balance between preserving my health and padding my bank account balance as much as possible before I walk. I also need some time to finish re-organizing my accounts for withdrawals. Plus, I want to stick around for my 2024 bonus payout. Have you told your employer? Yes. I've always been very open about my plans to retire early. All of my immediate team are very much aware of my timeline. My manager knows I'm leaving this year, but doesn't know exactly when yet. I'll probably be giving formal notice some time in February. There is zero risk of being walked out early. *** If you made it all the way to the end, thanks for reading! Happy to answer any questions. submitted by /u/FIRE-Throwaway80 [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]

Running my numbers, it looks like I may be required to get my kids healthcare through CHIP rather than the ACA marketplace. And this may or may not also sign me up for SNAP in my state........ Has anyone here run into this during early retirement? Did you increase your AGI so kids could get into ACA plan with family? I'm running into a bit of a moral dilemma with qualifying for CHIP. submitted by /u/itchybumbum [link] [comments]

Hey everyone, with my FIRE number in sight, I have started to think about the next phase. To be honest, the withdrawal phase seems a bit more complicated than the accumulation phase. I have compiled a list of reading regarding insurance options and withdrawal strategies but I admittedly have not yet dove as deep into the subject as I would like. Anyway, my tentative plan has always been to retire with 2MM and a paid off home and live off $60k to $80k per year depending on the market performance that year. I want to make sure that I'm setting realistic expectations for how much money I will be able to spend every month and I understand that after taxes and health insurance I might not end up with that full $60-80k in my pocket every year. I'm curious - for those who had reached FIRE and are in a similar situation as me, how much do you actually end up with after you take care of taxes and insurance? I'm in Virginia, US and 35 years old by the way! submitted by /u/fz-09 [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]

Hi everyone, I’d like to share my situation and get your insights on how realistic my early retirement (RE) plans are. I’m 50M, my wife is 47F, and we have two teenage kids. We live in a low-cost-of-living (LCOL) area in the South. Our long-term goal has been to retire early, well before 67. Now, we’re taking a serious look at our finances to assess where we stand. Financial Overview Net Worth: $1.9M Primary residence: $500K Retirement Accounts: 401(k)/IRA (self): 800K IRA (wife): $150K Roth IRA (self): $230K Roth IRA (wife): $75K Other Investments: Brokerage: $60K Cash: $70K Safety Net: $200K HELOC (untouched, available until 2032) College Plans: $150K in Roth IRAs reserved for kids' education. Key Milestones Mortgage free by late 2027 Kid 1 is expected to finish undergrad by late 2027, and Kid 2 by late 2029. No plans to downsize or sell our home. Retirement Planning We estimate needing around $75K/year post-retirement, assuming ACA remains as it is. Here’s the plan I’m considering: Aim for $1.25M in my 401(k)/IRA before retiring. Rebalance to a 70:30 portfolio at that point. Use the new 72(t) rule (5% distribution) to generate approximately $75K/year until 59.5. [ Annuitization Method ] Start Social Security at 62 (estimated combined benefit: $3,000/month). Keep other assets (brokerage, wife IRA, Roth IRAs) as an emergency backup. Questions Does this plan seem realistic, or am I being overly optimistic? Are there any steps we can take now to better position ourselves for early retirement? Any advice or suggestions would be greatly appreciated! Thanks for taking the time to read and share your thoughts. Update to answer questions : Yes, when backout the home and money reserved for college, current net worth is 1.2M I split it as two buckets: Bucket 1(72t bucket) : 800K Bucket2 (EverythingElse bucket) : 400K I split it that way, so that I don't mess-up the 72t account and also will have flexibility to withdraw in case of emergencies or one-off purchases/repairs. As of now, I do not have an exact age when I want to RE. Plan is to retire when , Bucket 1, my 800k IRA grows to 1.2M (Another 50%) growth. So, by then, Bucket 2, of my NW would grow from 400k to 600k giving a total NW of 1.8M. I assume it wont happen before 2027, so I don't see a path to RE before 2027. House will be paid-off by late 27 and Kid 1 will also graduate by then. I plan to cash-flow mortgage and Kid1 education until then. Also, plan to contribute 10k/year to 401K until RE. 75k/year is upper estimate and it includes PropertyTax/, HomeInsurance and IncomeTax. Includes cost for ACA (Medical/Dental with subsidies). It does not include mortgage payment as I would be mortgage free by end of 2027. Floor would be 65k. submitted by /u/Innerfortunes [link] [comments]

As 2024 draws to a close, many of us are doing our final checks of our spreadsheets/RIP to Mint/Monarch/Personal Capital/pivot tables/abacus calculations and reflect. Please use this thread to report anything you want - whether it be a massive success, reaching a mini-milestone, actually accomplishing your goals from last year, or even just doing nothing while time does the work for you (for those of us in the 'boring middle' part). We want to hear about all that 2024 did for you - both FI related and personally as well. After reflecting on the past, we also want to look towards the future. What are you looking for in the new year (or even decade) - what are your goals and aspirations that will help guide you this coming year. Are you looking to finally max our your retirement accounts, get a 529 going for your kid, nearing that next comma, becoming completely worthless, or finally hitting your number and cashing in all the GFY's you can get? Here is a link to past threads- thanks again to u/Colorsmayfadeintime for the links. 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 submitted by /u/therapistfi [link] [comments]