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Working part time kicks rear end. If I go too long without a crunch time though, I'll get antsy.
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Jun 15, 2021 22:04
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For you people that are FI or close to it, what does your asset allocation look like? Are you letting it ride at 90%+ stocks, or increasing your bonds since you've already "won"?
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Jun 16, 2021 02:30
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90% stocks in broad market ETFs, 10% in government bonds (Canadian GICs). I think next year I may move to 20% bonds since this last year has really surpassed expectations.
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Jun 16, 2021 02:42
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Inept posted:For you people that are FI or close to it, what does your asset allocation look like? Are you letting it ride at 90%+ stocks, or increasing your bonds since you've already "won"? I am staying 80% equity, as that has historically been the best approach (I'm overly summarizing, but you get the point) long term even when retired early. From what I have seen (admittedly calculations done by others), there is a far greater risk of being too safe and not earning a sufficient return to keep up than being too risky and having everything wiped out. Generally speaking, once you hit a critical mass, you should be able to ride out even the worst storms (again, this is all theory, but at least it is theory backtested since something like 1871 - of course, past results are not guarantees of future results). I am conservative and anxious by nature, so this unnerves me every day, especially in an environment where I feel like the market has been artificially propped up to unreasonable valuations by fiscal and monetary policies. But throughout my life, I have attempted to invest in accordance with the best evidence methodology, rather than my "gut", and it has come out well so far. Tomorrow, I may lose 80% of what I have, what the gently caress do I know, but in some ways, it may actually be easier for me to then at least say I was doing the right thing by the numbers. SlyFrog fucked around with this message at 04:02 on Jun 16, 2021 |
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Jun 16, 2021 03:45
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We're in the process of relocating to a LCOL area from a VHCOL area and are about to put our house on the market. I'd like some advice on what to do with the proceeds of that sale. Current financial situation: Assets: Taxable accounts: 1.2M Stock options from previous employer, now public (expiring 2023): 700k Exercised ISOs from previous employer, now public: 250k My retirement accounts (mostly 401k): 300k Wife's retirement accounts: 300k 529s: 300k Savings: 160k Liabilities: Car loan: 6k @ 2% (400/mo) Mortgage on old Seattle house: 600k @ 4.3% 30yr Mortgage on new LCOL house: 800k @ 2.8% 30yr Salaries: Me: 190k Wife: 170k With a combination of stock sales, having two mortgages, and the move (which has upended childcare arrangements) it's a little hard to calculate our normal saving rates going forward. In Seattle, we were maxing tax advantaged accounts, and then contributing an additional 50k/yr across 529s and taxable. We're nearly done with 529 contributions though. We expect the Seattle house to sell for around 1-1.1M given the state of the market which should leave us 300-400k after everyone gets their cut. My original plan had been to just throw the remainder into taxable accounts. I've recently toyed with a few other options and I'd like an objective other opinion. Option 1: All in taxable. This feels like the most generic FIRE advice: maximize that leverage now in my good friend VTSAX and then decide if we want to pay off the mortgage once we decide to FIRE. Option 2: Pay down the LCOL house's mortgage to below the jumbo line, then refinance to a 15 year. Right now it looks like these are at 1.8% which is banana pants. Pros are that it's close to the same monthly payment as the 30yr and halves our time with a mortgage with a comedically low interest rate. Cons are that it's tying up a chunk of change that's excluded from compounding. Option 3: Pay a percentage down on the mortgage to accelerate timelines a bit. This generally feels suboptimal to Option 1 or 2 since it doesn't yield a lower interest rate nor a higher yield. Option 4: YOLO buy the Porsche 911 that I've always wanted and spend the rest in Vegas. Pros are that I would get the 911. Cons are that I would be single and that would probably hamper my FIRE plans even more. I normally have leaned towards option 1, but seeing some of the recent posts on SWRs and having a mortgage, it makes having a paid off house seem way more attractive. And quite honestly, having a paid off house here also reduces our FIRE number to really attainable goal. I would love any additional thoughts!
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Jun 21, 2021 06:12
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you should buy a 911, 993s, 997s, and even 996s are all getting more expensive
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Jun 21, 2021 12:31
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I would absolutely not pay off the mortgage early nor get a 15 rather than a 30 year. I think I've posted a lot about it in the home threads if you want to read more reasoning. Although you may want to slice and dice more in your taxable account. Having 4-5 funds in there makes it easier to tax loss harvest and manage taxes overall. And there's a small tax advantage to investing in international in your taxable account. Agreed about the 911, I have a yellow one* and I love it. *hot wheels edition
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Jun 21, 2021 14:13
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moana posted:I would absolutely not pay off the mortgage early nor get a 15 rather than a 30 year. I think I've posted a lot about it in the home threads if you want to read more reasoning. Cool. I'll search in the home thread. That one moves too fast for me to keep up with day-to-day. Ah, I hadn't thought about the tax loss harvesting implications of concentrating so heavily. I was being a little hyperbolic with saying it would all go VTSAX. I generally do a split of 70% VTSAX and 30% VTIAX when investing new money. I do have a couple smaller allocations in VFIAX (65k) and VIGAX (80k) from before I decided to simplify. I'm a little overweight on large cap because of it, so maybe I'll add a small/med cap and sprinkle across? KYOON GRIFFEY JR posted:you should buy a 911, 993s, 997s, and even 996s are all getting more expensive Sounds like this would be an appreciating asset and I'd be losing money by not buying one.
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Jun 21, 2021 17:50
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h_top posted:Sounds like this would be an appreciating asset and I'd be losing money by not buying one. exactly!!!!
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Jun 21, 2021 18:25
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My next door neighbor has a Porsche 996 GT2 with a "Please be patient - Student driver" sticker on the back I thought it was a joke Until I saw his teenager pull it out of the garage
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Jun 21, 2021 18:27
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moana in the home buying thread in 2020 posted:I'm firmly in camp 30 year mortgage rather than 15yr. Reasons: having low interest debt lowers your inflation risk significantly. Even a super conservative portfolio beats the rates today, and it's over a 30 year horizon. You have a ton more flexibility with payments so you have a smaller emergency fund requirement. You have less concentration risk with your home equity as a significant part of your net worth. Overall your portfolio (including home equity) is long term less risky and has higher returns. (There was also some back and forth around this ^ post as well, but this captures the gist of it) This makes sense to me. Basically, my takeaway is that getting rid of mortgage debt for FI is a hedge against sequence of returns risk which is a fundamentally different situation than I face today. If I spend money to solve that problem, it's just straight up inefficient and silly. Instead, I should continue on my current path of accumulating money in
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Jun 22, 2021 16:35
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I am a big fan of getting rid of your mortgage early, and even I will admit it is not EV positive. For me, there are a lot more psychological benefits in having it gone than keeping it around, but from a numbers perspective, keeping it (especially at these rates) is clearly the smarter move.
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Jun 22, 2021 17:32
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I think living in NJ makes this an easier decision since we're paying stupid high property taxes. It doesn't feel like a such a victory if you pay off your house but still have to make half the payment forever.
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Jun 22, 2021 21:22
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I tried to quit today, and my boss came back at me with "you can just work less! Work 2 hours a week! Work outside office hours! Work from home! Take some time off and just think about it!" and ugh, why does he have to be so nice, I feel bad and told him i would think about it over the weekend. Why is quitting always so HARD I did convince him he needs to hire a replacement and said I would be happy to train them.
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Jul 3, 2021 01:53
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I mean, I'd take two hours a week with benefits.
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Jul 3, 2021 02:55
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It is absurd how well your employer treats you when they know you don't need the paycheck
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Jul 3, 2021 18:25
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Came across this on the Boglehead forum. Guy documents his journey to leanFIRE 2005 to 2015. Blog goes dormant. Comes back to post an update in 2021 about how things went. It…did not go well. https://livingafi.com/2021/03/17/the-2021-early-retirement-update/#more-15998
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Aug 1, 2021 02:54
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There was some discussion on that a few pages back, if you're curious (and plenty of room for more right here  ).
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Aug 1, 2021 05:45
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Man, I didn't read the Comments last time it was posted FIRE dorks really hate women
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Aug 1, 2021 06:40
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There has been a lot of research on what women find attractive in men, there are the obvious traits, such as symmetrical face, waist to hip ratio, lots of skeletal muscle, youth, signs the man will be a good father etc. However for women the overwhelmingly most important trait is that the man must be culturally successful, or likely to become culturally successful.
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Aug 1, 2021 17:25
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Yowsa
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Aug 1, 2021 17:53
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Broke, a penny saved is a penny earned. Save for a rainy day Woke, live below your means to worry about money less Bespoke, However for women the overwhelmingly most important trait is that the man must be culturally successful, or likely to become culturally successful.
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Aug 1, 2021 18:02
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Epitope posted:Broke, a penny saved is a penny earned. Save for a rainy day Thankfully they didn't specify which culture, and there are so many to choose from where I am!        
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Aug 4, 2021 05:31
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Cross-posting from the r/relationships thread:quote:I've 40m worked almost 20 years to quit a job I hate; now it's finally time and my wife (38f) doesn't want me to quit. Everyone is saying she's right.
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Aug 5, 2021 13:10
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It seems to be a consistently bad idea to quit working cold turkey. Like start out part time and/or at a not poo poo job. Gradually learn to use the free time in a mentally healthy and sustainable way, more time to get the partner on board, makes the money last easier, etc. win-win. Threadkiller Dog fucked around with this message at 14:35 on Aug 5, 2021 |
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Aug 5, 2021 14:28
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Threadkiller Dog posted:It seems to be a consistently bad idea to quit working cold turkey. Did you read past the title? Partner has been on board for the past 16 years: quote:I have the good fortune to have a high paying job (currently around 250k/yr), but I have never liked it. Even at the beginning of my career I was dreaming of saving enough money to retire early, but I also wanted to have a family. When I met and dated and married my wife, I was explicit about my dreams and she agreed that when we had "enough" money I could quit. Enough was defined as a paid off house and $2mm in invested assets. I kept track of this every month since 2005. She was always supportive until it looked like the finish line was in sight. Dude can quit if he likes and find a part time job later if he's bored or something.
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Aug 5, 2021 16:25
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Dude should mic drop and walk out tomorrow. Take the kids to the go kart track.
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Aug 5, 2021 17:46
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I'm curious if the Mrs. is concerned about money or if she just likes having OP out of the house all day.
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Aug 5, 2021 17:54
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spf3million posted:I'm curious if the Mrs. is concerned about money or if she just likes having OP out of the house all day. It's quite simple, really. There has been a lot of research on what women find attractive in men, there are the obvious traits, such as symmetrical face, waist to hip ratio, lots of skeletal muscle, youth, signs the man will be a good father etc. However for women the overwhelmingly most important trait is that the man must be culturally successful, or likely to become culturally successful.
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Aug 5, 2021 17:56
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Threadkiller Dog posted:It seems to be a consistently bad idea to quit working cold turkey. Quitting addictions cold turkey is possible, and one big method for success is having a date set, and sticking with it. It also helps a lot to have support, too bad all of civilization is codependent in this case
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Aug 5, 2021 18:01
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Tbh I don't know if I would be okay at retiring with $2m with a young family either. When you're far away it sounds like such a big number, but then you realize any kind of big health issue and it could be gone. I'm also curious whether he plans to fund the kids' college. He talks about not setting them up for after college, which I think isn't unreasonable, but would they have to take out loans to get through it?
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Aug 5, 2021 18:28
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i like nice words
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Anne Whateley posted:Tbh I don't know if I would be okay at retiring with $2m with a young family either. When you're far away it sounds like such a big number, but then you realize any kind of big health issue and it could be gone. I was going to say this, but in a different way. I think a family of 4 could retire with $2m, but I don't know if this particular family could. If he's been making $250k/yr for any significant length of time, I have to wonder how he only has 2 million plus house saved after 20 years. That's obviously a huge amount of money, and maybe I've been reading too many 50%+ savings rate stories lately, but I wonder what their expenses look like. It also seems inevitable this is heading for divorce, regardless of what they decide to do.
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Aug 5, 2021 18:40
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Darkrenown posted:Dude can quit if he likes and find a part time job later if he's bored or something. She was obviously on board with the theory but not the practice of the concept. Its possible he wasn't prepared either. The last blogger that was posted in this thread didn't really make a good look either. All I'm saying its a big change, obviously so considering their evident issues. One cant predict how things will play out and easing into it makes a lot of sense even if you think you have it all planned out. Hell maybe his wife was the sensible one. Threadkiller Dog fucked around with this message at 19:17 on Aug 5, 2021 |
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Aug 5, 2021 19:11
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I feel like expecting your spouse to continue working in order to not draw down your investment principal while you gently caress off and read the internet all day is a ticket to divorce. Including the wife and modelling FIRE expectations around both of them retiring around the same time and maybe she doesn't push back so hard.
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Aug 5, 2021 19:52
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Diva Cupcake posted:I feel like expecting your spouse to continue working in order to not draw down your investment principal while you gently caress off and read the internet all day is a ticket to divorce. Read the sentence after that one again. He was just using her working still as an example, I don't think he actually expects her to do it.
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Aug 5, 2021 20:03
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Regardless of who is right, the spouse definitely doesn't have the same goal if she is trying to get him to buy money pits like a boat or light aircraft. So she is not a small tweak from being convinced of his life choice of early retirement. At the time they married, she agreed with him. Now, she doesn't, which is not her fault, but is what they need to talk about. Talking about inflation concerns and whether they really have enough misses the point that she totally has different ideas of what kind of life she wants for her family.
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Aug 5, 2021 20:09
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People lie. A lot of "I supported this for 20 years" can actually be "I just said sure because it sounded crazy to me but unlikely to ever happen, so why rock the boat." I will confirm - a lot of people simply cannot understand the concept of not "working" pretty much no matter how financially set you are. For a lot of people, it's just impossible to contemplate, and it actually is a major problem for them if someone else does it.
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Aug 5, 2021 20:36
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I feel bad for that dude. Wife has a crab bucket mentality and wants to keep up with the neighbors. Buying a boat or light aircraft, what the gently caress.
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Aug 5, 2021 22:55
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Have they considered a seaplane? Best of both worlds.
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Aug 6, 2021 07:52
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MrKatharsis posted:Dude should mic drop and walk out tomorrow. Take the kids to the go kart track. Lol that's it. That's how you beat that.
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Aug 6, 2021 08:15
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