|
Alctel posted:Ideally, my aim is to be getting ~1,000 a month in passive income so I wouldn't have to touch my capital at all. Not that you explicitly mention it, but in case it comes up: remember there's no difference between dividends and selling shares that appreciate in value. (Except possibly taxes, if your income is very low.) quote:Back of the envelope maths is at 5% return (is that reasonable?) I'd need 240,000 in savings, which is around 5 years or so, putting me at 42. 5% after inflation is a long term (20+ year) average expected return holding US equities. If you want to take 5% out (inflation-adjusted) each year, you'll need a plan: either save more in case the market tanks early in your semi-retirement, or be ready to pay yourself less and work more in the down years. quote:Butttttt, for 240,000 that's pretty close to a house in the Hull area that I could be renting out at 2,000 a month. Hmm. Well, subtract repairs, upkeep, taxes from that rent. And if you're trawling the BC coast then you're maybe paying someone closer to Hull to help manage the place. I think what you're pondering is very doable, hopefully I don't come across as a downer. Just want to point some things out that might affect the how and when.
|
#
¿
Jul 11, 2020 18:52
|
|
|
|
| # ¿ May 2, 2024 09:14 |
|
|
Alctel posted:Thank you for all the responses. I guess I have a lot more reading to do, hah. In the meantime, get your money into at least a high interest savings account (here's a list: https://www.highinterestsavings.ca/chart/) so it stops evaporating.
|
|
#
¿
Jul 11, 2020 19:49
|
|
|
I've actually read the whole blog, it's fairly funny in places and it was nice to read about someone's FIRE attempt without them selling me stuff. I vaguely remember his now ex-wife was never quite 100% on board with his plan. And it seems like he pushed for them both to stop working, and/or his ex-wife wasn't ok with just her working. Which is a pretty major difference in how to live your lives, so splitting up seems kinda inevitable. And I didn't take the update as "I'm not owned!" so much as "my financial models didn't take divorce and major health problems into account", which seems like a good cautionary tale?
|
|
#
¿
Mar 17, 2021 23:03
|
|
|
KYOON GRIFFEY JR posted:Like that dude mentions that he now sets the thermostat at a temperature that is more comfortable for his partner. The things he was seeing that were "so obvious" were fantasies and delusions, at some level. I like the idea that his ex was rolling her eyes every time she grabbed a second sweater to put on because "we're retired and we have a plan".
|
|
#
¿
Mar 18, 2021 16:39
|
|
|
No Wave posted:The thing that strikes me is the idea of saving 50+ percent of your income felt like this revolutionary idea back in 2012 or whenever MMM blew up but now it just seems normal for single people making 100k+ per year. Like this whole movement started because it made sense to save as much money as possible when you can (a great idea) and what I got out of MMM is it's just stupid to not save whatever you can. Is that just normal now? Is lifestyle adjustment for income increases less of a thing now for people <40 than it was in the past? Or was I just being dumb? I suspect you're mistaken about how "normal" it is. Maybe during a pandemic, if you kept your well-paying job but lots of ways to spend lots of money become impossible or too risky, it happens by accident. But I also suspect it's becoming more normalized. The FIRE crowd doesn't seem like a small group of misunderstood misfits anymore, and some of the ideas are spreading even if not everyone declares themselves a member of the community. I don't think you're being dumb, but it takes time for ideas to spread. Especially ideas that are antithetical to mass consumerism.
|
|
#
¿
Mar 18, 2021 17:11
|
|
|
Fancy_Lad posted:Sure validate your numbers as best you can, anticipate the future as good as anyone can, and it's probably advisable to have some play in there for the unexpected. But unless you folks are advocating having 2x your actual FIRE numbers before pulling the trigger, in this case him going back to work doesn't seem that unreasonable to me given the circumstances. If I recall, the last couple years of the blog before he officially retired (the first time), his modelling told him he could retire but he didn't feel like he had enough of a margin. So he'd built in some wiggle room there, but in retrospect it wasn't enough. I don't think he was at all prepared to go back to work. Cast_No_Shadow posted:I think the obsession with cutting is down to the maths. $ values are irrelevant. If you save 60% of $500k a year or 60% of 10k a year the time you need to save for is the same. I think there's a bit more to it. Since you're presumably investing your savings, spending less will pay off non-linearly. If you think about your savings as "how many years can I live on this", cutting your spending in half gives you more than twice as many years. So it's not unreasonable to focus more on expenses than earnings. I'm not saying obsessing about expenses is healthy, and it depends on the actual numbers of course, but splitting the spending:earning effort like 60:40 instead of 50:50 makes sense to me.
|
|
#
¿
Mar 18, 2021 19:07
|
|
|
smackfu posted:Geez, that ChooseFI podcast puts out an hour long episode every day or two. How is there that much content on FIRE??? If your financial independence and/or early retirement depended on publishing 30 minutes of podcast per day, could/would you do it?
|
|
#
¿
Apr 28, 2021 16:13
|
|
|
I love the assumption that one simply walks into their local Starbucks (that they've never patronized because it's out of their budget) and walks out with a job.
|
|
#
¿
Apr 28, 2021 19:11
|
|
|
The work/money towards becoming a CFP is a sunk cost. The charities you donate to won't shut down if you slow or stop your donations. Are you surprised that you're feeling bored and unchallenged at this point of the job? I've never looked into the CFP certification process, is it pretty well mapped out or is there room for variation? I don't have an up-to-date goons.xls, did you start this job during the pandemic? Were you expecting too much of the job? Not sure what "I haven't had my normal time off" means. No time off, less time off, smaller chunks of time off, fewer/more/no/different companions on time off? What was rough about it? This past year has been a global dumpster fire, and it's ok to feel and say that, even if you had it relatively good on the pandemic front (I don't know your situation, I'm projecting here). Maybe take a month off and see how your "back to work" date feels as it approaches? Dread, relief, apathy, joy, fear, anger, you'll learn something.
|
|
#
¿
Jun 13, 2021 06:28
|
|
|
moana posted:I think I may just pull the bandaid off and ask to train a replacement when my boss comes back. That's a pretty brilliant way of combining the teaching you like with the leaving-on-good-terms you crave.
|
|
#
¿
Jun 13, 2021 18:06
|
|
|
There was some discussion on that a few pages back, if you're curious (and plenty of room for more right here  ).
|
|
#
¿
Aug 1, 2021 05:45
|
|
|
I guess, though the less gotta-dunk-on-em way to say it is that even a modest income (e.g. from a hobby you monetize, or a less stressful part-time job) brings a surprisingly large reduction of risk that you run out of retirement savings.
|
|
#
¿
Nov 28, 2021 17:36
|
|
|
SlyFrog posted:I don't think this has anything to do with LeanFIRE. Oh, my bad, I get the dumb names confused.
|
|
#
¿
Nov 28, 2021 20:06
|
|
|
|
| # ¿ May 2, 2024 09:14 |
|
|
What I take from fire is a combination of "you may need less saved up than you think to retire" and "if you spend half as much you more than double your runway". Which makes leanfire redundant. It reminds me of a lovely old web forum (hello) where everyone has their current PC parts list in their signature on every post. As if anybody gives a poo poo what flavour of fire you're engaged with. a dingus posted:I think of leanfire as gently caress you money. Not a plan for complete retirement but it essentially buys you the choice of working on whatever you'd like (but still working). The income you bring in is insurance against the unexpected expenses of life while your leanfire stash is what does 95% of the heavy lifting. As someone who made this mistake a page or two ago, apparently this is baristafire. Aren't these labels useful? I turned your correct and useful post into being "wrong". Wait maybe this the real reason they exist: bullshit gatekeeping!
|
|
#
¿
Dec 1, 2021 17:10
|
|