Tag: Extra cash

We all love treating ourselves: a cozy sweater 🍂, a long-awaited gadget 📱, or tickets for a dream vacation ✈️. Shopping brings joy… but…Continue reading on Medium »

The global shift from traditional jobs to digital asset ownership.Continue reading on Medium »

(screenshots included)Continue reading on Activated Thinker »

Let’s be honest. Most of the talk about “passive income” sounds like a scam.Continue reading on Medium »

Your 9–5 doesn’t have to be your only paycheck. Here’s how everyday people are earning $500-$3000+ monthly with zero experience.Continue reading on Write A Catalyst »

I Wasted $800 on Courses. This $50 Fix Worked.Continue reading on Medium »

Stop trading your time for money. Start leveraging Wall Street algorithms and AI digital assets simultaneously.Continue reading on Medium »

PDF. Then I published a “tragic” draft and made my first sale in 24 hours.Continue reading on Medium »

I was sitting at The Starbucks last Thursday, nursing a lukewarm latte and trying to ignore the rain tapping against the window. I wasn’t…Continue reading on Write A Catalyst »

A simple framework for spotting business models that collapse under pressureContinue reading on Medium »

I’m trying to decide whether leaving a stable federal government job at 44 to pursue real estate full time is financially reasonable, or if I’m underestimating the risks. I’m also being asked to return to the office 4 days a week, which is part of what’s pushing me to reconsider my long-term path. If you were in this situation, would you make this transition? Am I crazy, or would you tweak the plan? For context, almost everyone in my circle plans to work until traditional retirement age, so I’m trying to get perspectives from outside that environment. Location: Quebec / Ontario region (Canadian tax rules apply). Background Age: 44 Federal government employee for ~20 years Current salary: ~$130k · Background in project management · Comfortable with renovations — I own a lot of tools and enjoy doing some of the work myself If I leave, I qualify for: Departure package: ~$130k paid over two years 2 years of pensionable leave Realtor tuition covered Pension If I leave now, I would have a deferred defined-benefit pension: ~$3,700/month at age 60 (indexed) ~$3,300/month if I start at 65 CPP and OAS would also start around that time So the pension would act as a guaranteed income floor starting at 60. Current Assets Principal residence Value: ~$650k Mortgage: $0 Plan: sell (tax-free) Long-term rental (4-unit) Value: ~$900k Mortgage: ~$300k Equity: ~$600k Considering selling Short-term rental / Airbnb (4-unit) Value: ~$750k Mortgage: ~$200k Gross revenue: ~$110k/year Net: roughly ~$50k/year Investments RRSP: ~$30k TFSA: ~$4k Total net worth roughly ~$1.9M–$2M. If I sell the principal residence and long-term rental, I’d have roughly ~$1.3M liquid while keeping the Airbnb. Annual spending I’m single with no kids. Current annual personal spending: ~$45k Paid-off car No personal debt ~40k currently sitting in chequing No major home repairs expected So roughly speaking: Airbnb net: ~$50k/year Bridge capital: ~$1.3M liquid Time until pension: ~16 years The Plan Leave government and pivot into real estate and development, while going back to school to obtain a realtor license. The general idea would be: Airbnb acts as the income anchor (~$4k–$5k/month net). ~$1.3M in liquidity acts as bridge capital until the pension begins. Sell the current properties (except the Airbnb) and periodically buy, renovate, and live in a new primary residence, roughly every 4–5 years. Potentially act as my own general contractor and build or significantly renovate those homes, with the goal of selling them later as a principal residence rather than doing quick flips. Use the principal residence exemption where applicable to capture tax-free gains over time. Pension begins at 60, providing long-term baseline income and stability. My biggest concern My biggest fear is that I might be underestimating the risk of leaving a stable government job with a defined-benefit pension. At the same time, the departure package + pensionable leave + tuition feels like a rare window to make the transition. I want to make sure I’m not making an irreversible mistake. Although pretty confident in my ability to be able to get a job eventually (the current market is rough and WFH rarer) Questions Is relying on one Airbnb property as an income anchor too risky? How would you structure ~$1.3M liquid during a transition like this? Would you go full cash to fund next project? If you had ~$1.3M liquid, one cash-flowing Airbnb (~$50k net), and a guaranteed indexed pension at 60, how would you structure the next 15–16 years to balance real estate opportunities with capital preservation? What would be the biggest financial mistake someone in my position could make during this transition? Does it make more sense to buy a business that is for sell? For additional context I’m also meeting with two fee-based financial planners next week to discuss this plan professionally, but I’m curious to hear perspectives here as well. Any thoughts or critiques would be appreciated. Disclosure I used ChatGPT to help structure and organize my thoughts for this post. The situation and numbers described are my own. submitted by /u/phunkyou [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]

If you are searching for Money Making Ideas 2026, you are probably not looking for a gimmick. You want options that work with modern…Continue reading on Medium »

Im still young, 20s. Company did another layoff. I am not impacted. I love the craft, hate the corporate aspect, finding a new job is difficult (The bar is higher than in the past) . I think finding something more stable and doing something meaningful like helping people would make me more happy. I got around 600k liquid. 6 months of emergency fund afterwards. I can coast fire basically. I live rent controlled. I need around 2ish mil real value to FIRE. If I lose my job in the future, is this a step back? maybe its the layoff news thats hitting me. submitted by /u/badboyzpwns [link] [comments]

I've been working for a company with an Employee Stock Purchase Plan for a few years and have been re-examining if this plan might be advantageous. The rules of the plan are as follows: During the offering period, paycheck deductions are made. These deductions are after-tax and go into a brokerage account until the purchase date. Each offering period is quarterly. On the purchase date, company stock is purchased with the funds from the brokerage account. A 5% discount on the average of the high and low trading prices on the purchase date is applied. Is this worth it? submitted by /u/Tone-Powerful [link] [comments]

Start Selling From MondayContinue reading on Write A Catalyst »

I always thought I was doing well saving for retirement and now I’m not sure and would really appreciate some insight and advice. Also, can’t believe we are almost 40!! We’d like to retire by 60, or earlier if we can. Can anyone offer advice on what to do to set ourselves up better? 39 year old couple with a 5 year old Combined salaries are $170k in a MCOLA 401K’s = $465k (he puts in 9% and company matches at 5%, I put in 8% and company puts in 12%. My company will go up to 14% when I turn 40 and then 16% at 50) Roth’s = $56k (he puts in 5%, I put in 2.5%, through Vanguard all in 2055 Target date fund because idk?) HSA = $16k (put in approx $3,200 annually - company $2k and me $1,200, but we spend some on bills) Brokerage = $3k (invested $2k about 4 yrs ago, don’t currently fund monthly, most of it is in S&P Index ETF because idk?) Cash = $35k (in a bank, need to find HYSA?) 529 = $3k (we put in $125 per month, not sure college is going to be his thing, but if so, we get 50% off tuition through my husband’s job) Cash for child = $15k (in an 11 month CD @ 3.78% that we keep rolling over) we add $50 per month plus birthday and Christmas) With our companies contributions included, I am investing about 23% and he is investing about 19%. Which I thought was right on track, but I’ve realized I want to be ahead, not ON track as I don’t want to work until 67. Annually this puts us roughly investing $35k into all of the above. Debt = Mortgage - $85k @2.5% (15 yr with 10 left) and $95k HELCO @ 6.5% (10 year with 9 left), house is worth around $550k Cars - One paid off, one brand new hybrid 2026 worth $55k, owe $36k @ 4.99% for 6 years (put down $18,500) Monthly expenses are around $5k including mortgage, car, utilities, child care, gas, groceries I don’t know if we should be funding the HSA, ROTH, 401k or brokerage more and by how much. I’d like to know what changes we need to make to set ourselves up better in 15-20 years without sacrificing too much now. We want to enjoy life, go on vacation yearly, and live comfortably while investing in our futures. Should I seek out a financial advisor or can I do this on my own? I am lost on investing stocks. I thought I could do this but now I’m second guessing…. submitted by /u/reddituser12358132 [link] [comments]

I do this every couple years - collecting new calculators that pop up. Anyone have suggestions to add to the list? I update my personal spreadsheet twice per year and afterwards I spend few hours testing different FIRE calculators with my data. As someone who thinks more visually than with raw numbers, these tools help me grasp concepts that spreadsheets alone don't make clear Each calculator has unique features that make them useful: This is my main reference point that I compare others against. The interface could be better (inputs scattered across pages) but the visual output is really clear https://firecalc.com/ This one incorporates mortality data which is fascinating. Sure, there's 4% chance I run out of money at 87, but there's also 25% chance I won't be around anyway, so that 4% feels more manageable https://engaging-data.com/will-money-last-retire-early/ What I appreciate here is setting target inheritance amounts. Other calculators show 100% success if you die with just one dollar remaining. This lets you specify exactly how much you want left for whoever comes after (whether that's family or favorite charities) https://www.nesteggly.com/fire-retirement-calculator This one converts your savings into "freedom days" per year. So with 450k saved and 70k annual expenses, you get 93 days of freedom yearly in retirement. Pretty creative way to visualize it https://engaging-data.com/freedom-calculator/ This calculator includes inflation rate adjustments which most others skip. The interface isn't my favorite but the inflation modeling is useful submitted by /u/LastNeighborhood4191 [link] [comments]

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]

How the shift toward AI-powered audience engines is quietly replacing the traditional “product-first” hustle for digital beginners.Continue reading on Medium »

I know the consensus is to just buy a total market index fund or S&P 500 ETF, but in practice is that really your portfolio allocation? Are you mixing in bonds, international, dividends, gold, small cap, etc.? submitted by /u/mycounterpointers [link] [comments]

A non-technical guide to turning internet complaints into high-demand products.Continue reading on Medium »

Throwaway. Not a flex post - genuinely looking for feedback/perspective. Mid 30’s couple, 1 kid, renting in HCOL area HHI ~$500k Savings rate of ~33-40% of gross income. Expenses ~33% mainly due to childcare $2.5M investable net worth + $65k in child’s 529 & $5k UTMA Rough breakdown: $950k Taxable brokerage (S&P) $450k Retirement accounts (mix of Roth IRA’s/401k’s) $450k Real estate equity (cash-flowing multifamily investments) $320k Cash (mostly HYSA for emergency fund/house fund) $180k Individual company stock (fully vested) $100k T-bills $50k Crypto Nuance: while obviously not guaranteed, and not waiting around for people to die, there should be a meaningful inheritance at some point in our lives. We don’t count on it, don’t think about it day to day, however we are factoring it into our overall estate planning, and realize that it probably changes our long-term picture significantly. Recent life events - loss of a family member, raising a child, aging parents, etc. have made us question whether we’re optimizing for the wrong things. Wife and I have not taken a real vacation in years. Not really due to fear of spending, more just bogged down with life. Truthfully, we’ve never been intentionally trying to FIRE. We enjoy what we do for the most part. My wife’s job is stressful however, and we’re hoping she can either retire altogether or take a less stressful position in a couple of years. We’d like to buy a home at some point. Housing market by us is tricky, and it’s hard to justify paying $1M+ for a fixer-upper 2,800 sqft home, but not really sure what to do, or how much house we can really afford? I’d probably opt to put a large chunk of money down to feel comfortable with a smaller monthly payment. Would love some feedback on a home purchase. For people who’ve crossed into FI territory or are close (and maybe had future inheritance considerations), how did you start giving yourself permission to actually live? What spending felt worth it to you? How do you think about large commitments like a home, cars, etc? Any and all advice is appreciated. submitted by /u/Sensitive_Builder684 [link] [comments]

Build a business, not a hobby. Let’s get your first signal today.Continue reading on Medium »

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]

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’ve been in sales, fully on commission for years and I’ve needed to play with different ways of managing expenses and budgets, with the inability to have a consistent income. I would like to know what you have done in the situation? The best option that I have found is to establish what my yearly expenses are and what my average income has been over the last few years and two only move that monthly average amount into an account while leaving the remainder in a slush fund. I draw from the slush fund on months that I don’t get paid or that I get paid a little and I add to it on months that I make excess. Overall, I am very grateful and fortunate to be in the situation that I am because while the commission is not guaranteed, it is higher than I would be earning in another line of work could. Please share what you do in a self employed position to keep track of your finances and staying on track. submitted by /u/PhoenixSammy [link] [comments]

No, the website owners don’t pay meContinue reading on Medium »

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]

For context, about 3 years ago I didn’t have enough money to buy a single Diet Coke for my girlfriend (now fiancé) when she asked for one. Now I’m about to secure a job that can pay off our home in less than a year. Instead of feeling satisfied, I feel restless and anxious. I don’t want to chase bigger numbers forever, I want freedom and autonomy. Every time I get close to a goal, my brain moves the goalpost. Has anyone else felt this when they first saw a path to financial independence? TLDR; on track with financial freedom but still anxious. submitted by /u/Intelligent_Lies [link] [comments]

27F / 33M HHI: $280–300k Home equity: ~$250k Invested: ~$550k (RRSP/TFSA) Goal: retire in 20 years. We want ~$100k/year in today’s dollars (no mortgage in retirement). At 3% inflation, that’s ~$180k/year in 20 years. Using 4% rule → ~$4.5M nominal target. Assuming 7% returns: • $550k grows to \~$2.1M in 20 years. • Required savings to hit $4.5M ≈ $58–60k/year. We’re currently saving ~$70k/year (~23–25% combined gross savings rate). Some years likely more. Both of our incomes are expected to increase over time, which should push savings higher — but I’m intentionally running this on current numbers only. So mathematically, we’re on track for ~18–20 years. The tension: Since my raise ($102k → $120k + 10% bonus), we’ve added: • Cleaner every 4–5 weeks • Meal delivery instead of cooking We’re still exceeding required savings, but I feel guilty about lifestyle creep even though the plan works. At what point does optimizing more just become unnecessary stress? How did others get comfortable spending once the math was solid? submitted by /u/Dependent-Cell-8596 [link] [comments]

Decoding the psychology of “passive loopholes” and the technical reality of AI-driven income in an era of algorithmic dominance.Continue reading on Medium »

No big question at the end of this - just sharing a funny experience / learning y’all might laugh at or learn from. We found a new CPA who markets himself as primarily a CPA/tax guy but also available for financial advice. Older guy, great reviews. During initial consult call he said he loves discussing early retirement and is very comfortable with the topic. On our annual call with him, he crushed all the tax stuff. Knows it cold. We told him we plan to retire around 40, 2.5M invested now and wanted to hear about how 72(t) works when we are ready. He wasn’t very familiar (instant flag that he probably wasn’t gonna be our source of financial advice). “How much do you think the 2.5M grows on its own in 8 years?” “About 2x under normal circumstances.” “Ok, $5M is nowhere near enough to retire at 40.” Doesn’t know our annual expenses and didnt ask. Assumes oddly that we don’t save or invest more during that 8 years (I was answering his question literally on passive growth). Assumes we won’t earn a penny past that point. He shares a story of a 50 yr old client with 6M and 250k/yr expenses who wanted to retire in 5 years. He told her 6 mil / 250k a year only lasts 24 years and that it’s simple math. My wife and I stared with raised eyebrows. He asks what we think after he lectures about this. I say “i think you are fundamentally misunderstanding the math. Why wouldn’t your client’s 6M earn any interest at all? 3.3% a year of 6M is 200k - you’re right she can’t stop now but she is close to living purely off investment income especially if she plans to draw it down toward zero by the time she dies.” He tells us kids are expensive, elder care for yourself or your parents is expensive. Obvious “life is expensive” platitudes on things that dont apply to our situation. He couldn’t even comprehend that if we use his ludicrous set of assumptions (we dont save a penny the next 8 years, we stop earning 100%, our nest egg earns zero market returns like it’s all in a HYSA) if our annual expenses were 100k/yr, $5M would still divide by 100k 50 times and make it to 90. So I guess don’t get your FIRE advice from a CPA in their 60s still working 7 days/week by his own admission 😅 seems like a great tax guy though! submitted by /u/thewealthyhealthy [link] [comments]

I am making this post as a sanity check to ensure that I am not (or maybe I am?) doing something that will have a terrible impact on my life. I am a software engineer in my early 40s. I changed careers in my early 30s, and since then, I have been working mostly as a contractor in tech. I have managed to save around $900k USD. I estimate the origins of my savings as: 60% from grinding/working as a tech consultant, 20% from crypto investments, 10% from flipping an apartment, and 10% from investing in stocks during the COVID crash. My savings are mostly invested in stocks like REITs, energy, telecom, and BDCs (as you can see, mostly income investing), or stocks in deep-value territory. I also have some high-paying fixed income (corporate bonds and developing countries' bonds). And yes, I am a HODLER of some crypto (because I was an early Bitcoiner, and I expect it to go to $1 million). According to a Monte Carlo FIRE calculator, I could withdraw 5% annually and maintain my wealth until my death if I manage to get my investments returning around 9% per year. If I make it to 10% or 11%, I will die wealthy. This would give me around $3,500 USD a month, which, frankly, is enough for a happy middle-class life, provided no health catastrophe happens to me or my loved ones. And if it does, I would have plenty of free time to figure out my way around public health systems, etc. I have a stable job that I don't hate, but I also don't love. It pays me enough to save a lot and keep building momentum toward full financial freedom. But the moment of freedom never seems to arrive. I am getting sick of it. Every day, I think I should be investing in myself—learning new tech and building my own apps—instead of clinging to the safety of a boring job. Since COVID, I have been working remotely, and my social life is close to zero. Being quite honest, I am not in my happiest state. I feel like my skills are much less valued than they used to be, and with AI, this takes on an even bigger twist. I have no time to learn the things I am passionate about. I also mostly try to silence the truths about my work environment; I had previously decided that my financial freedom was worth dealing with less-than-ideal managers, bosses, and basically unhappy humans (they are everywhere). Now, I have the opportunity to move to a low-tax, modern location with my spouse, but I would have to give up my job. The timezone is very different. My spouse would earn more than she does now, but still much less than I do. We don't have kids yet, but that situation won't last much longer. I am now confronted with pulling the trigger a bit earlier than I wanted—going for my ultimate adventure before I become too old and too much of a "daddy" to live a nomad lifestyle. I can give myself one to two years with the $3,500 USD a month to learn new programming languages, study more about AI, and even launch my own solo business (my ultimate goal). If I succeed, I will be so thankful to myself. If I fail, I will find myself with significantly fewer savings and further away from real financial independence. My anxiety regarding financial markets is very real. I check my brokerage accounts multiple times per day; my crypto holdings are the most anxiety-generating part of my portfolio. I also know how wild the stock market can be. I have made some very risky moves in the past and doubled my investments, but I have also been on the other side of the trade with a total loss. I know ETFs are easy, but I have a strong distaste for them. Actually, the business I would like to launch is an investment portfolio tracker for people like me (and us) who are trying to FIRE but are not willing to invest $300 USD a month in expensive tools. I think this would bring my anxiety down, as my new "job" would help me stay calm. Eventually, if it is really good and people pay for it, it could become a complementary source of income. The other alternative (the safe route) is to keep grinding for another five to ten years, saving an additional $500k minimum, until I can FIRE with much less anxiety. What would you guys go for? Adventurous/risky pre-FIRE, or boring, soul-sucking, safe FIRE? My 30-something self would be jealous of me being in this situation. But my 40-something self is, honestly, a bit tired and looking for the well-deserved peace of mind that money can buy. By the way, I want to have kids in the next two years, and I don't think $3,500 USD a month would be enough in that case. submitted by /u/vogons-passports [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 tried with different numbers. this calculator retiro.ca keeps showing me > 50% failure rates when the Monte Carlo option is turned on. even $1 MM with SWR=3.2% failed the "Monte Carlo" simulation . Not sure what I missed. submitted by /u/CuteLogan308 [link] [comments]

From Zero to Automated Royalties in 2026Continue reading on Medium »

Original: https://www.reddit.com/r/financialindependence/s/iaJXfAJL0u 1 year update: https://www.reddit.com/r/financialindependence/s/ZKjPZkUgc0 TLDR - Long story short 3 years ago I "retired" / took a sabbatical of undetermined time. After 3 years I am going back to work on Monday. Financially we are probably fine but it feels like a good time to have a career again even if it doesn't last very long. Financially returning to work will save a ton as my Roth Conversion Ladder is still not fully set up. If I were to not return to work the taxes and ACA subsidies would be pretty expensive for 3 years while get fully funded. Also we are spending more than anticipated. I do not regret having a 3 year sabbatical even though my income will be less considerably less (60-70% of previous). Topics I plan to cover in post: Quick background Why am I going back? Interview process after 3 years removed How has 3 years been? Future plans/thought Other ways to solve desire for a bit more money Would I have done anything different or if starting over now what would I change? Quick Background I am a 37 year old married with 4 kids (under 11) . At 33 I stepped away from work(my SO had already stepped away over a year prior). I stepped away with closer to 4.5% withdrawal rate ($1,739k investable asset and $2,681k Net Worth) (with expected spending at 80K(actually that year was 93k (5.35%)). We currently have $2,310K investable assets and $3,607K net worth (with spending closer to $108k). Part of the reason I am returning to work is spending will get worse for a couple years as taxes and ACA go up due to the Roth Conversion Ladder not fully set up yet. Why am I going back? Non-Financial: A bit bored - bored may not be the right word as I stay busy but maybe unfulfilled. I want a new challenge somehow. Returning to Civil Engineering in a different role, I am hoping I will be that challenger and I can also make decent money. I used to really enjoy mentoring and training new engineers and I should have a similar role here. When I started my “sabbatical/retirement” my kids were younger than now and needed even more attention. They still need it but at 8, 5, 3, newborn require much more than a 11, 8, 6, and 3 year old. The youngest is even in preschool 2 days a week. I am really glad I took the time I did but don’t feel that I need to be at home more as much. Feels like if I took a longer sabbatical it might be harder to reenter the workforce. During interview discussions I pretty much explained the gap in employment with a simple I planned for a bit of time off to finish building a house, help with young kids, get involved in a new community, have some fun, and some family medical stuff. And I probably told the white lie for over 2 years instead of close to 3 years. No one really batted an eye. However I feel like at the 4 or 5 year mark that is a different discussion. Financial: I need to finish setting up my Roth ladder. If I don’t return to work the tax and ACA subsidy lost will mean spending will be much higher than previous years. We are spending more than I anticipated. Part of that is a mindset where we have been trying hard not to be super frugal and just see where we are at. Part of it was unknown as we had moved 1500 miles to a new location. Biggest increase in spending from projected was Water/Sewer Bill, Property Tax, Health(had family bills that were unexpected), Insurance(rentals have really been hit hard), grocery(probably a factor of location, inflation, and older kids), entertainment (kids sports, skiing, hunting, etc) probably a bit like needing to be frugal currently and I don’t like it. Along with the desire to spend more freely, not that I think we limit ourselves but there is something in the back of my head still saying we shouldn’t do this or that. Example there is a big trip I want to do someday and I can’t justify it (its probably 10k-15k total but also its just for me not a family or couple trip) land desire (development and SO would love to buy land near family farm) Greed - have to admit I just want more and I have ran some scenarios on expected return with a couple more years of work. Both Financial and Non-Financial I missed an attempt on great investment properties and made me realize I want to do work of some sort. Long story short, I had an offer on a house I was going to convert to a duplex, then subdivide into two parcels and be able to sell the land or build another rental on it. The deal fell through at the last minute. I was super excited to be managing and doing some of the work on my own. Plus it would have turned a nice profit and been in my mind a small win for the community I live in as it would have created more long term rentals which are desperately needed. Learn and invest in community - with my new role I hope to expand my knowledge on subdivision process and development in the location I live (note prior to my “sabbatical” I lived and worked over 1,500 miles away) Along with above I have a desire to buy land/rentals in two areas(both our current area and some farm land around my SO family) . This job doesn’t guarantee this happening at all but if I were to not return to work, these would become much harder. high vacation/ flexible options - The job I ended up taking has unlimited PTO, while this can be a trap I think in this case I should work out well for me. What I really desire is to start work early, take a longer lunch to workout, then leave early to be with family to allow me to still coach activities and enjoy life. I also want an occasional day on a powder day to go skiing and I want some normal vacation to enjoy other hobbies and enjoy family. They also have no issue with me working remotely for a couple weeks when I am out of the state visiting family. Obviously I have not fully tested these waters but in general it seems to fit my desires. Interview process after 3 years removed I applied to one job sort of on a whim right before Christmas I had interviews and meetings at 8 local Civil firms. And ended with 7 offers. And honestly I think I could have been happy at any of the firms The offers were all fairly close to one another (except the first which was very low, they ended up coming up a lot). Base 105k-125k (benifits, bonus and ownership vary quite a bit) I ended up taking the lowest base salary offer but I will quickly get ownership. They are an S-corp so also some tax benefits. my base salary at new job is around 67% of previous base - I used to live in Houston now in Mountain West One realization was that when I received offers I kept thinking if I just had more vacation/flexibility in previous jobs I wouldn't have pushed for FIRE so early. And maybe my mindset is different where those roles could have been plenty flexible. I also needed a couple years in location to get established and figure out hobbies and activities. How has 3 years been Money update - Net worth increased from $2,681k to $3,607K, Investable assets from $1,739k to $2,310k. This is over roughly 3 years. Spending has been much higher than anticipated 2023 - 93k +20k house finish, 2024 - 105k, 2025 - 112k (note previous highest year was 76k in 2018 with 24k being daycare). See above in section 1 for more information on increases. To some extent we have a spending problem not an income problem but we have accepted that most of the increase is due to high cost of living and being a bit house poor. Funding retirement / Withdrawal process - Funded about 20k per year from rental cashflow. Additionally, I used Turo to rent a car for an average of about 4-5k per year. We funded the first year with cash and selling of a rental, years 2 and 3 were using old Roth contributions taken out tax free. Also did Traditional to Roth Conversion for our Roth ladder, in year 1 only 10k due to selling rental, year 2 - 105k, year 3 - 121k. healthcare ACA - pretty much free premiums for a family of 6 as long as our MAGI was below $110k (note this is very location dependent). Insurance did get a bit worse this year to stay with free premiums we had to go with a POS which is not ideal. Note if I were to not go back to work I would likely end up paying about 7k per year in insurance premiums for at least the next couple years to get the Roth Ladder setup. Taxes - taxes have been very minimal - federal level basically 0 thanks to income around 110k coming from Roth contributions withdrawals, trad to Roth conversions, and rentals. The state level has been closer to 4k. I will not I do pay a ton in property taxes for rentals and home side money success and failures - really did not make any money during the 3 years. Turo I made about 12l total over 3 years. I made a couple hundred bucks working with a friend helping him convert a boat to a treehouse for vacation rental. I was very close to buying a rental to BRRRR and subdividing in November of last year. I am looking for something similar but this deal would have been great. I failed mostly because I couldn’t fund fast enough Fun/Accomplishments during last 3 years Fitness - (Marathon, Trail Marathon with 5k vertical, olympic tri, dunk a basketball again, lots of lifting, playing indoor and outdoor soccer) Backpacking in Nat Park with friends, and kids Home Projects - many including finishing basement from studs to finished including very detailed tile shower, furniture(bed, 3 nightstands, large built in dresser), live edge barn door with mirror, office built in desk, large pantry, laundry room, “floating” bunk beds, loft(railing and ladder and flooring), Coaching - coached multiple seasons of following Soccer(actually going to get paid for this this spring), flag football, basketball and sunday school teaching. Kids - also have done XC skiing, downhill skiing lessons, wrestling, tennis, and golf. Skiing/Snowboarding - close to 500k vert each season + teaching all 4 of kids to ski including our 3 year old (went from being okay skier to very comfortable on entire mountain) Mountain Biking - very limited experience prior but have done quite a bit Food (sour dough everything, smoking meat for first time, lots of experimenting new styles of food including (Indian & Greek), experimenting with wild game, and trying different food for health) Hunting in Backcountry - no experience to 5 days solo hunting out of backpack in grizzly country (some good success) Travel - Fairly limited as really trying to enjoy our vacation destination location. Did have 2-3x trips home per year plus SO went to help with Harvest, visited Yellowstone, Grand Tetons, and Black Hills. When we drive home to visit family we take time and have visited many college friends SO and I took a trip away to some Canada National Parks. And have an upcoming trip to the beach with kids in March. Plus many of my hunting trips were to other parts of state. Future plans: Obviously in flux but I sort of see myself doing job that starts next Monday mostly full time for 2-4 years (8 weeks PTO), then try to take more time off in future (10-12 weeks PTO, likely same vacation as before but take 1 day every week to spend with wife during day and all family during day) college funding thoughts….more detail Withdrawal Strategy - Setup Roth conversion ladder while working - I will have higher taxes but will not be hit by the ACA subsidy issue. First year, do big conversions. Year 2 and 3 big but not as big. Hopefully I am enjoying the work and want to continue so I can do less conversion. Year 4+ no more need for conversions as will have ladder setup. I can also do Roth IRA(maybe 401k) contributions. Additionally or alternatively as I have a large amount in a traditional IRA if that grows decently using a 72(t) can be a good option depending on growth and how long I keep working. This is a decent plan for FASFA as well as the Roth conversion ladder gets double counted(sounds like ways around this). Assuming I retire early again. I plan to do a big withdrawal every other year or every 3rd year. During the big withdrawal year I will have no or limited ACA subsidies. This will also impact college FAFSA (if stay under 175%FPL we automatically qualify for maximum pell grant). Obviously I have more planning to do but I think this is a decent start if we want to spend more. If I continue to work I will likely want to consider paying off out primary mortgage to reduce yearly spending need. One way to accomplish this if interest rates drop is by refinancing some rentals to get cash out but really just move around where the loans are located to be most tax efficient. Side jobs - while working or if I retire early again one side gig I want to consider is (minor land development and/or build 1 home every couple years to sell and/or rent) Assuming I keep working and have excess money - fun ways to spend including bigger family trips(Alaska fishing, Tour Du Mont Blanc, Canada Hunting/Fishing Trip, Hawaii/Costa Rica - surfing/spearfishing, Cat Skiing Trip, more local guided fishing trips) or “toys” including e-bikes, ski/fish boat, dirt bikes and a fun car(Jeep/Bronco). Other ways to solve desire for a bit more money Move location - we started our “sabbatical/retirement” as we moved to a Ski Resort town with much higher cost of living. Thus if we moved back to midwest or even to a cheaper nearby town this would impact our spending rate a ton Part time work - consider lower paying part time work plenty of options but none that sound that interesting to me. Maybe a ski instructor. Alternatively I have considered some more handyman type jobs or try to get hired by a contractor who is adding on to our school. However, I have actually started a part time job with pay as a soccer coach. I would have done it for free but I won’t turn down the money. Spend less - look for ways to cut, probably in the 5-10k range, not something really interested in doing. Big saving potential travel home to see family, other entertainment/sports and less on food. Build house - this one is more of a gamble but I do believe if we built another house again we could sell the current house for a large profit and likely be much closer to mortgage free. Granted getting a construction loan would be very hard without a job and honestly may be hard even if I do have a job. Also we love our house and location(walking distance to schools with 4 kids is very hard to beat) Rent house out for high demand months in summer - Use this time to vacation fo own or visit family, go camping, or combination of all 3 (issue here is figuring out how to do this around our HOA and city regulations require 1 month rental in our zoning) Why do I think we would still be fine even if I did not return to work? - Mortgage payoff is a really big deal to us (due to rentals and being “house poor”). Also Social Security will hit after that. https://www.cfiresim.com/4a878551-9126-4ddb-b1a7-2d33283ca24d Car “Hack” - I have been renting out an older 2014 Ford Explorer during the busy tourist season. This has been pretty profitable(around 8k last year if we assume most expenses we would incur anyways). I will lose some ability to do this with starting a job. However, we are planning to try to buy another vehicle to allow us to do this again and pay for a vehicle for kids to drive Would I have done anything different or if starting over now what would I change? Have a better balance of Roth / Trad IRA / After Tax / paid off mortgage / rentals. We had basically 0 in the after tax amount and a large mortgage of $500k (only like 30% value). Having a paid off house can really help with tax planning. I think if I had planned better originally I would have had a bit of money in an after tax account. I think I did not really see the potential rise of interest rates and how that could impact me. With interest rates rising it sort of limits some of my real estate plays. I could easily access money by refinancing but with interest rates higher this is not really very tempting. Additionally I have had a very hard time finding any good deals to create more income. I basically have found two over the last 3 years I was interested enough to put offers on. If I think real hard about hindsight if I would have moved where I wanted from the start. I probably would have been in a similar financial standpoint as most of my rentals were purchased in areas that did not see great appreciation vs area I could have lived saw more appreciation thus similar outcome. Granted working in Texas was great for high income, low cost of living, and low income tax. Trust my gut a bit more. When I was buying rentals around 2018-19, I was looking in the location I currently live. I was told by a property management company that there is no cash flow. But I knew appreciation was likely to be good(I didn’t think it would be as good as it was). submitted by /u/outdoorfire38 [link] [comments]

I’m 34, earn about 115k, support a family of six on a single income, and crossed 1M net worth this week. I know it’s just a number and it will probably dip below again with normal market swings, but it feels great to finally add a comma. I put together a Sankey diagram to show exactly where everything sits today. A few important notes up front: • I received about 80k in inheritance when my father passed away. That absolutely helped and I want to be transparent about it. • A life insurance policy was started for me at birth by my grandparents to fund college. I used a policy loan for part of school and paid it back. I don't recommend permanent life insurance for most people. In my case, keeping it now makes more sense than cashing it out due to taxes and the structure of the policy. • We benefited from good timing in housing. Bought our first home in 2016 for 158k, sold in 2019 for 202k, then bought at 304k in 2019. Current value is around 432k with a low interest mortgage which definitely helps with the day to day budgeting. Beyond those tailwinds, it’s mostly been steady saving and consistency. Since our mid 20s we’ve put roughly 25 percent of gross income into tax advantaged accounts each year. No crazy side hustles, no massive salary jumps, just steady contributions and time. https://imgur.com/Y8PkiDT submitted by /u/Emergency_Berry_3718 [link] [comments]

So my dad talked to a CPA causally and the guy told him to open a brokerage account with both of our names on it and start putting in the annual gift tax amount. Is there anything wrong with this or tax implications he’s not thinking of? UPDATE: I'm in my 30s and he is 67. They aren't spending as much as they thought so they want a way to offload more. I think I need to ask him what the point of the gift is - is it to give me money NOW or set aside a greater nest egg specifically noted for me and my siblings later? I feel like reading these he just make a separate account but leave me and my siblings out of it UNLESS he intends on gifting it now. submitted by /u/savesammysave [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]

Received notice that I was selected as the final candidate for new job. Will be negotiating numbers soon, but I am jumping from a current salary of around $80k, to hopefully an OTE of around $175k-$200k (with base around $125k). Not sure if that income qualifies me to be considered a “high-earner” amongst this group, but my wife also makes a decent amount (no kids). What’s your 1 piece of advice to keep in mind as I begin this new, life-changing, phase of my career? I currently have a mix of emotions of feeling “not-deserving”, nervous, and crazy excited. Please tie advice into terms of financial independence journey, obviously. EDIT: Wow, thanks for all the advice. Some additional context for those in comments trying to guess my situation, I’m 25m and while I haven’t been “rice and beans” poor, I am already super tight with my budget, invest aggresively, and think twice before getting Chipotle if I had it last month. The overall advice is sounding like avoiding lifestyle creep and overspending, while still treating myself to some luxuries in life that are actually in my range now (like maybe TWO Chipotle trips in a month). Will definitely enjoy a fancy dinner with the wife to celebrate and run up the bill for us and then go back to our normal lives. Can’t thank everyone enough for their advice and please, I welcome more. submitted by /u/throwaway_manz_73 [link] [comments]