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Chadzok posted:To kick it off, my current dilemma is how long I should stay in my full-time job, which earns me about 1/3 of my total income, when I could be earning 2/3 of my current total from 5 days of work per month. The job is related to the side business and helps with my profit margins and I learn mechanical skills which do come in handy on occasion, plus I can reach my financial aspirations sooner - of course I could also look for a higher paying job in the same field, but it may not come with the same benefits. But then again.. not having to work ALL WEEK, would free up a lot of time to pursue other potential income streams. Two other questions about your side job: #1 - Is it reliable income? As in, can you guarantee there will be five days of work in every month if you choose to pursue it? #2 - If you so chose, could you work more than five days per month on your side job? (Or is it limited by necessity?) #3 - This might work out better for you as an Australian than it would for those of us in the USA, but are your health concerns (present and future) still covered in the event that you fail to retain the primary day job? (AKA will you get hosed by lack of insurance, cost of private insurance, etc?) If the answer to all three of those is yes, I'd be on the side-job in a heartbeat and trying to turn it into the primary job to massively multiply the income relative to your current job.
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Jul 17, 2013 13:56
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The one thing I've always run into while trying to sort this out is the near impossibility of paying for health insurance as a 'financial independent.' MMM's articles keep showing people with $15K-25K annual expenses. While I was self-employed, just covering the cost of health insurance for myself and my wife hit $20K a year, and we were both under 30 at the time. (Yay for PECs!) This keeps me stuck in my day-job because it's the only way to ensure continued health care access.
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Jul 18, 2013 15:13
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I'd like to point out that he refers to a $10,000 deductible + 20% copay up to 12K limit (meaning $22,000 in a year) as "very manageable" in spite of $22,000 being more than the full annual budgets his example people use. Furthermore, he refers to a $7500 deductible as a Cadillac plan in spite of that being horrible insurance as well. If you're going to predict retirement health cost requirements, you have to assume worst-case scenarios, not best-case (never using the worst, cheapest catastrophic insurance you can find). You have to assume that health care utilization will occur on a yearly basis, and possibly on a more than yearly basis as you get older. Furthermore, he still didn't address pre-existing conditions or the fact that they tend to add orders of magnitude to the costs of insurance. I wasn't kidding with my quote on what I was paying when I was self-employed. Neither one of these is actually good insurance, nor is $22,000 in a year assuming you get hurt early in the year manageable when you're assuming your annual living costs are $20K. Note that the limit / deductible reverts to full again at the end of the calendar year, meaning an extended course of treatment billed over the new year will accrue extra costs up to $44,000 depending on just how bad your timing was for getting hurt. That's multiple years taken out of your expected compounding interest, devastating your long-term plans. If you aren't accounting for those expenses, you're in for a rude awakening about the time you run out of dough at age 55. quote:Really? I can't imagine such a service being worth it financially since the only people who would get it would be women expecting to get pregnant soon. They tend to have claim dating requirements that force you to go without a claim for a certain number of months before they'll cover anything. 18 months of premiums before they'll pay out, for example. Average cost of childbirth in the USA is $8,802 according to a study found in a quick google search, but it was not a very thorough search or anything. Sundae fucked around with this message at 19:20 on Jul 18, 2013 |
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Jul 18, 2013 19:14
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Cicero posted:One is much more likely, sure. I brought up lightning striking because we were talking about the possibility of spending your max out-of-pocket expenses for health care for every year for thirty years straight. To me, that's unlikely enough as to not warrant special consideration. No, we weren't talking about that at all. That's a gross mischaracterization of what I said. (Though I honestly don't think it's as unlikely as you say. I'm on year five of maxing my deductible + OOP each and every year, but we did agree earlier to ignore pre-existing conditions, so I'll drop that point.) Let me make this nice and simple: #1A - You have to assume that, at some point (and possibly more than once depending on your comfort for risk), you will be paying your maximum health amount x 2. This is a December injury or illness. #1B - If you (in this case MMM) plan on spouting the powers of compounding interest to maintain an independent lifestyle off your original savings, you have to acknowledge that taking a hit like #1A will have a significant long term impact on your projected lifetime finances. The earlier you take that hit, the worse the impact will be. #2A - You have to assume regular use of health care services. I didn't say "regularly maxing your OOP year after year" or anything of the sort. You have to assume that you or someone in your family will need health care every year. THAT is what I said. #2B - You have to assume that your need for health care services will increase as you age. This is a matter of reality for the vast majority of the planet, whether they get access to said services or not. The items identified in #2 have, in the event of catastrophic-only insurance such as what was being offered up earlier in the thread, no or minimal coverage. This is all out of pocket, effectively, meaning that your $7.5K or $10K deductible is getting dug into every year in addition to your premiums. If you've accounted for this in your budget and have decided that you're comfortable with the degree of risk, great. Go for it. None of the examples posted from MMM accounted for any of that, and spouting out advice like that while ignoring reality is insane enough that I actually went to see if he was trying to sell something. (Doesn't look like he is, really. Was kinda surprised.) Sundae fucked around with this message at 17:36 on Jul 19, 2013 |
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Jul 19, 2013 17:34
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drat, three months of STD? That is some seriously impressive insurance, Queef.
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Mar 28, 2015 14:47
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Most places use a standard of STD after all your paid leave, so that's even more awesome. My last three (I am a known connoisseur of terrible jobs, in fairness) were "use all your PTO" followed by 5 days STD at 100% followed by LTD. My first employer was 50%/75% (included benefit / extra you can pay for), followed by 45/60% at next employer, and now my current one is 50% self-paid benefit (no LTD included in benefits otherwise). So yeah, I get 5 days total after exhausting all my vacation days.
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Mar 28, 2015 16:12
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'gently caress you' money is awesome, admittedly (unlike that website).
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Apr 1, 2015 01:44
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Mofabio posted:One thing to consider is that ghosts don't haunt 1-bedroom apartments, just houses, because ghosts are actually huge creatures and won't fit Are you confusing spirits with Minecraft ghasts again?
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Apr 10, 2015 20:12
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poopinmymouth posted:The vast majority of jobs and financial opportunities actually are a rigged system. My son (and MMM's) will have the benefit of avoiding crushing poverty, but that was through his parent's luck. I wish MMM would drop the idea that it's all a meritocracy and realize that his advice is for the people (that for whatever reason) have middle/higher incomes. I agree that the majority of the system is indeed rigged and luck plays a good part in being in the position to potentially become financially independent in the first place. However, (hopefully?) he's not preaching to the choir, but instead to people who have the potential for FI but haven't made the lifestyle changes necessary. Maybe telling people it's a meritocracy could actually be a convenient lie, because it eliminates most of the excuses the middle/higher income people could use to not do it. To close out a long-time tangent from the early days of this thread (like, first few pages if I remember), I am eternally grateful for the ACA. My new insurance premium quotes are less than 1/10th what they used to be pre-ACA, so I can finally afford to do this. Yay for no more PECs! I'm cutting down spending right now and building up for an end-of-day-job transition early next year. I'll still be running my side business because I love doing it, but it's different when you WANT to do something, versus HAVE to do something. 
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May 25, 2015 17:16
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uninverted posted:Can someone explain how the Roth conversion ladder works when rolling over from treasure buried on a remote island? You don't bother, because you already have your savings in gold. Fat lot of good your Roth will do you once the government collapses and all your fiat currencies are worthless. Unless, of course, your Roth investment vehicle is a vehicle. 
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Aug 5, 2015 03:26
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quote:I'm living on 25-30k in the Bay Area. So for curiosity's sake (because I'm about to move out there), where are you living that you can get rent even close to living on that amount? It feels like everything I find is $2.5K-3.5K regardless of size or distance from work. Clearly, I'm missing a neighborhood or something. I'm nowhere near the point of "oh god, $200K isn't enough to live on" but I'm always game for spending way the gently caress less rent.
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May 2, 2016 15:54
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On the other hand, your apartment smells like freshly baked bread. 
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May 3, 2016 16:32
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GoGoGadgetChris posted:Have your kids before your early 30s though. IVF treatments are BWM Adopt while working for a company with adoption cost benefits, then retire. GWM.
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Jan 19, 2017 00:14
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silicone thrills posted:Legitimately this is my plan. We are on schedule to be FI in about 6-7 years. My current company has a fantastic retirement plan and adoption assistance. We never planned to have any children from our own genetic cesspool. We will transition from work being work to hopefully having fun raising a kid and hopefully traveling a bunch. I'll be 36 and he will be 44 Legit plan for us here too, minus the FI. It's impossible to retire at any age where we live (late arrivals to the bay area), but we'll adopt (most likely) using our company's adoption assistance and then moving somewhere else to retire. St. Vincent is great. The best is figuring out where the closest consignments are to stupidly wealthy neighborhoods in your area, and then raiding those for clothes and furniture. Men's clothing is hit or miss in my experience unless you like twice-used golf-shirts and dead-man suits, but women's clothing and stuff for children is usually awesome.
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Jan 19, 2017 23:12
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Depending on how well adoption goes i'd also consider fostering in our time.
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quote:http://www.gq.com/story/how-to-edit-your-wardrobe  My jeans get covered in mud, grease, drug excipients at work, salsa, etc etc. The mere idea of spending $210 on a pair of pants I know are going to be wrecked within 6 months is astounding. Jeans aren't (or shouldn't be) fashion statements in my opinion.
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Apr 19, 2017 19:34
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GoGoGadgetChris posted:Don't blue collar and white collar both have "clothes for work" in addition to "clothes for outside of work"? They're basically the same for me, excluding a pair of pajama pants. You can fit all my clothes into two dresser drawers (excluding my suit). quote:If you're willing to buy used you can get nice (at least by my standards, I would never buy $400 jeans) clothes for very cheap, maybe 1/3 the cost of buying new. The downside is that digging through the racks at used clothing stores to find something that's decent takes a lot of time. I've seen a couple online stores popping up though, my girlfriend has had good luck getting dresses that way. Even if something doesn't fit every once in a while you still come out way ahead of buying new. Agreed here. Goodwill tends to be more miss than hit for men's clothing, but I don't think I've purchased a shirt that wasn't from Goodwill in the last two or three years. I'd never buy socks and underwear there and men's jeans are usually too worn out to be worth buying used, but you can typically find 1-2 decent things whenever you go even for men.
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Apr 20, 2017 00:28
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Pryor on Fire posted:I'm sorry but however the numbers work out there is something fundamentally wrong with a person and/or society if they are opening funds for their healthcare expenses 40 years down the road. gently caress that poo poo. Give us another 10 years and we'll have funds to save for your kids' adult healthcare expenses similar to college funds! 
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May 10, 2017 21:38
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El Mero Mero posted:Health insurance is expensive and insurance companies are masterful at loving you over even when you have it. Didn't check that that anesthesiologist in the corner was in-network before getting put under? Whoops! Basically this. You don't even have to be conscious to be responsible for an out-of-network charge in some states. Prior to ACA (I think? I think it was ACA that fixed this), you could be completely unconscious and have an out-of-network ambulance or in-network ambulance take you to an out-of-network hospital and you were still responsible for the OON charges instead of the insurance-covered in-network charges. The same applies to every person involved in your treatment, from surgeon to prep squad to anesthesiologist to monitoring doctor who just happened to come in and check your pulse in the room without asking you while you were asleep, etc etc. Any one of these people isn't in your network and you're getting billed out the wahzoo. Been there, been minorly hosed by that before. Random doctor came in and checked my wife's pulse after she had surgery before leaving again, and that 15-second pulse check cost us more than the entire rest of the surgery/recovery stay put together since he didn't participate in our plan.
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May 13, 2017 08:09
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poopinmymouth posted:I'm not armchair theorizing, I've literally lived in California and now Germany + Iceland, and I'm a high paid tech worker, literally your example group. (assuming you're not talking about literal millionaires but rather well paid normos) What's it like living in Iceland, by the way? I've always assumed it'd either be awesome or (maybe after 6 months or so) boring as gently caress. How're you enjoying it?
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May 22, 2017 18:08
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Dwight Eisenhower posted:Also it is hard to put a price on not getting guillotined On the other hand, it's way cheaper than a mortgage or rent. Pay some prole to make sure that your grave is kept clean and the carrying costs are otherwise nil!
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May 24, 2017 02:21
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withoutclass posted:I was kinda wondering the other day why Pharmacists haven't already been eliminated with automation given most of what they do seems so rules based. A lot of the tasks pharmacists do have been automated or been given computerized assistance for (references to interactions, medicine contraindication checkers, tablet counters / reconstitution units, etc). However, they still have a bunch of "human element" tasks that aren't easily automated (yet) around patient counseling re: medicines, trying to enforce regimen adherence, knowing/understanding that the patient absolutely loving will not read that little instructional pamphlet whatsoever so sneak instructions in there verbally, etc. Also, general patient interaction to a degree. It's definitely things that can be automated, but it's not there yet mostly because patients are stupid.
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May 26, 2017 20:38
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Pompous Rhombus posted:I mean, we took it for granted you needed a license to run a taxi service or a hotel, and that those industries would be able to protect their monopolies, butttt... Need your prescription? Our app will locate independent contractors in your area with a supply they're willing to sell* you! *Surge pricing applies for anyone on the last day of their prescription. Edit: Actually, why don't pharmacies already do that? If a customer shows up at the pharmacy for a refill of a vital medicine and they're on their last day before they run out, why has no company set up where it'll triple the price? Is it just because they know the insurer will reject it outright anyway and they won't get extra $$$?
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May 30, 2017 01:44
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