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FI/RE (Financial Independence / Retire Early) --- who's pursuing it?


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 2 months ago '04        #1
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x Tha Arkitek x 
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FI/RE (Financial Independence / Retire Early) --- who's pursuing it?
 

 
Just curious to know if any one on BX is pursuing FI/RE, or F.I.R.E? It's not something I ever see mentioned or discussed here.

For those who don't know, its essentially reaching a point of financial independence, a point where you can choose to...

-Not work and retire early,
-Volunteer your time towards whatever you want.
-Devote your time to work that you simply find more meaningful.
-Travel the world
-Spend time on meaningful hobbies, even some that can generate income.
-Continue your usual 9 to 5, but having the peace of mind knowing that you can literally walk out at any moment and not stress it.
-Lastly, not really a point of it, but an added bonus --- not having to worry about finances if your health takes a bad turn and you can't work.

The goal is to basically earn the freedom to do whatever you want and spend your time how you best see fit, instead of HAVING to work to survive.

The overall savings goal is to reach 25x your expected annual living expenses, and as long as you follow the 4% withdrawl rule & spend the same amount each year, you'll never run out of money.

I'm 34, and I've been pursing FI/RE for about 2.5 years now and I'm on track to reach my goal at age 45, and that's calculated using an average return of 7% & needing just under $50K per year. At the moment, I'm not planning to fully retire, but instead request to move to a part time work schedule, while having the ability to spend more time on travel, exercise and photography . I really like what I do (Systems Administrator), I just don't like being at work for 40 hours per week, week after week after week.

For those who are interested in learning more, feel free to ask me...or check out the links below....

visit this link Investopedia: The Defintion of FI/RE
visit this link ReddIt - r/financialindependence
visit this link Mr. Money Moustache
visit this link Our Rich Journey
visit this link The Mad Fientist: Financial Independence and Early Retirement (has some good podcasts)
visit this link Bogleheads Wiki
visit this link Bogleheads Forum


Note: Bogleheads isn't necessarily focused on FIRE, but it will provide you with the knowledge to begin investing in low cost index funds and managing your own portfolio in order to save for FIRE.



Last edited by x Tha Arkitek x; 12-30-2019 at 07:23 PM..
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 2 months ago '05        #2
pnoi89 
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I'm fully on-board with the hype.

Just some background on my situation and what I'm trying to project:

1. I have zero student, credit card, car, etc. debt aside from my mortgages at my primary home and investment homes.

2. I make a humbling $92k base salary at my full time job before bonuses, while working whatever side jobs I can for a high pay rate.

3. I invest nearly 30% of my income, but am trying to ramp up to 50%.

4. I'm cashing out ~$100k+ by refinancing my home and am still planning what to do with the cash via investing, whether finding another rental property, business venture, etc.

5. I'm still waaaaaay behind from being FIRE'd, as I only have $85k in my 401k and IRA, and around $20k invested in the taxable accounts. On the bright side, I have properties under me approaching real close to $1M total in appraise values.

6. Also have no kids and am not married, so it gives me an expense advantage in some ways, but also working hard together with my sister and her family too in building our real estate portfolio.
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 2 months ago '04        #3
Tastemaker331  topics gone triple plat - Number 1 spot x7
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I’m definitely down with the lifestyle
I’m basically living from the cash flow from my business, but I make enough to keep stashing money away

I’m planning to open up some accounts for retirement (Roth IRA) soon
I made some dynamite picks in the stock market so I’m done trying to play that game


Last edited by Tastemaker331; 12-30-2019 at 06:03 PM..

 2 months ago '10        #4
eightytyson06 
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question i just copped a house so im thinking of following the dave ramsey snow ball effect plan. I only have 10k in student loans and 140k mortage. do you guys plan on continuing to use your credit cards? i know fire movement is different just curious is all

 2 months ago '11        #5
eliwood 
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 Tastemaker331 said
Iím definitely down with the lifestyle
Iím basically living from the cash flow from my business, but I make enough to keep stashing money away

Iím planning to open up some accounts for retirement (Roth IRA) soon
I made some dynamite picks in the stock market so Iím done trying to play that game
Look into solo 401k or sep ira through your business

Larger contribution limits
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 2 months ago '11        #6
eliwood 
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My thing is I want to make the most money possible in my lifetime. I'm down with the lifestyle with having the option to stop working and living off what I've built up but my parents have built up a lot to pass on to me and my sister and I want to do the same for my future generations

 2 months ago '04        #7
x Tha Arkitek x  OP
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 eightytyson06 said
question i just copped a house so im thinking of following the dave ramsey snow ball effect plan. I only have 10k in student loans and 140k mortage. do you guys plan on continuing to use your credit cards? i know fire movement is different just curious is all
I personally use a credit card for every thing I purchase (aside from bills that also charge a transaction fee). I use these cards to accumulate cash back to pay for hotels on trips, while my girl uses her cards to cover flights. That being said, it all comes down to your level of discipline & budgeting. We pay our credit card balances off multiple times throughout the month & we know exactly how much we need to live off each month. Our investing is on auto-pilot and we only spend what goes into our checking accounts. So if you're disciplined enough to take advantage of credit card rewards, I highly recommend doing so. But if you're going to end up spending out of control & not paying your balance in full each month....then PLEASE DO NOT USE CREDIT CARDS.

 eliwood said
My thing is I want to make the most money possible in my lifetime. I'm down with the lifestyle with having the option to stop working and living off what I've built up but my parents have built up a lot to pass on to me and my sister and I want to do the same for my future generations
Here's something to consider. If I retire in my mid 40's w/ a $1.28M portfolio and die at 90....my projected portfolio will still be valued at $1.1M at my death. I do have a Military Reserve pension which I'm estimating to be around $500 per month starting at age 60, and I'm also going to be withdrawing social security immediately at age 62. Both of those would offset the amount I need to take out of my investment portfolio to live off of $49K-$50K per year.

As long as you're doing the 4% withdrawal, your money won't run out. As that money continues to be invested...and ideally your beneficiaries would leave it invested as well allowing for continued growth.
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 2 months ago '10        #8
eightytyson06 
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Naw I'm on same wave I pay multiple times a month and pay in full. Just copped a house so I'm cashing in on reward points now.
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 2 months ago '17        #9
Brother Sloan  topics gone triple plat - Number 1 spot x9
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 pnoi89 said
I'm fully on-board with the hype.

Just some background on my situation and what I'm trying to project:

1. I have zero student, credit card, car, etc. debt aside from my mortgages at my primary home and investment homes.

2. I make a humbling $92k base salary at my full time job before bonuses, while working whatever side jobs I can for a high pay rate.

3. I invest nearly 30% of my income, but am trying to ramp up to 50%.

4. I'm cashing out ~$100k+ by refinancing my home and am still planning what to do with the cash via investing, whether finding another rental property, business venture, etc.

5. I'm still waaaaaay behind from being FIRE'd, as I only have $85k in my 401k and IRA, and around $20k invested in the taxable accounts. On the bright side, I have properties under me approaching real close to $1M total in appraise values.

6. Also have no kids and am not married, so it gives me an expense advantage in some ways, but also working hard together with my sister and her family too in building our real estate portfolio.
Nice bro. How long you been investing in prop?

 2 months ago '05        #10
pnoi89 
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 Brother Sloan said
Nice bro. How long you been investing in prop?
I bought my primary home back in 2013. For about 4 years, I basically rented out the entire house under the table cash while living in it. During that time, another property that's my sister's was converted to a rental, then we converted my childhood home into a rental last year and also bought my parents a home as well. So I'd say I've been in the game for almost 7 years now.

 eightytyson06 said
question i just copped a house so im thinking of following the dave ramsey snow ball effect plan. I only have 10k in student loans and 140k mortage. do you guys plan on continuing to use your credit cards? i know fire movement is different just curious is all
Personal opinion, I'd tackle high interest loans first vs. small loan amounts.... If you only have student loans and a mortgage, just pay the minimum on the mortgage, pay off your student loans ASAP, then invest. You're returns are likely much greater by investing elsewhere, while just paying minimum on your home vs. paying off your home ASAP and not maximizing your time investing ASAP.

 eightytyson06 said
Naw I'm on same wave I pay multiple times a month and pay in full. Just copped a house so I'm cashing in on reward points now.
Making multiple payments a month doesn't make sense to me? When a statement closes, you typically have 3 weeks to pay off THAT amount aka your Payment Due date to avoid interest. What's the purpose of multiple payments in a month, a*suming per credit card?

As for rewards points, you should be factoring in that in your spending as a discount, and not as a reason to spend to accrue rewards points. The only time it makes sense to spend constantly is if you're making a return on a business, meeting a initial bonus incentive (in that case, manufactured spending is a route to front load money for later use) or if there's a backend discount where someone's basically giving you free money.
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 2 months ago '17        #11
2007 
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Work hard in your 20s, lay a solid foundation in your 30s, then cruise through life in ur 40s+

 1 month ago '04        #12
x Tha Arkitek x  OP
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 pnoi89 said
Making multiple payments a month doesn't make sense to me? When a statement closes, you typically have 3 weeks to pay off THAT amount aka your Payment Due date to avoid interest. What's the purpose of multiple payments in a month, a*suming per credit card?
For me it's a mental thing. I know I can afford to pay off my balance once at the end of the statement period. But I simply don't like seeing a high balance on my cards. Aside from a high-dollar purchase, I never let each card accumulate beyond $300-$400 before I open the app and send a payment. That's the only reason I send multiple payments per month.

 1 month ago '04        #13
Tikyle2 
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 pnoi89 said
I'm fully on-board with the hype.

Just some background on my situation and what I'm trying to project:

1. I have zero student, credit card, car, etc. debt aside from my mortgages at my primary home and investment homes.

2. I make a humbling $92k base salary at my full time job before bonuses, while working whatever side jobs I can for a high pay rate.

3. I invest nearly 30% of my income, but am trying to ramp up to 50%.

4. I'm cashing out ~$100k+ by refinancing my home and am still planning what to do with the cash via investing, whether finding another rental property, business venture, etc.

5. I'm still waaaaaay behind from being FIRE'd, as I only have $85k in my 401k and IRA, and around $20k invested in the taxable accounts. On the bright side, I have properties under me approaching real close to $1M total in appraise values.

6. Also have no kids and am not married, so it gives me an expense advantage in some ways, but also working hard together with my sister and her family too in building our real estate portfolio.
You are on your grind my friend, I salute you. I'm in a similar situation as you but with much different variables.

1. Same

2. Close. I'm slightly over $100k, but I'll be 40 soon.

3. This is where I struggle. I'm married and have been for over a decade. I save close to 20%+ but always have to dip back in for some during the year.

4. My home values are rising but I was underwater in my first property and I'm finally in the black on that but it's being rented out now.

5. This is where I'm a little ahead. My 401K's (I have like 5 or so, I'm been job swapping) are sitting at $500K+ right now. My properties value at just under $500K but I owe like $390K+ in mortgage on them so it's not much of a gain or much to cash out on.

I need a strategy to get further ahead because my monthly expenses (two mortgages plus living expenses) are sky high now. The rent I'm collecting on one property offsets it a little but the rent on the property doesn't cover that properties mortgage (when you add in insurance and property taxes). Any ideas?
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 1 month ago '04        #14
x Tha Arkitek x  OP
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 Tikyle2 said
5. This is where I'm a little ahead. My 401K's (I have like 5 or so, I'm been job swapping) are sitting at $500K+ right now. My properties value at just under $500K but I owe like $390K+ in mortgage on them so it's not much of a gain or much to cash out on.
Any reason why you haven't consolidated any of your 401K accounts? I understand there are reasons to keep an old 401K open (primarily better investment options & lower expense fees on the funds). But typically it makes sense to either roll your previous 401K account(s) over into your new employers 401K account or roll them over to a Traditional IRA.

 1 month ago '04        #15
Tikyle2 
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 x Tha Arkitek x said
Any reason why you haven't consolidated any of your 401K accounts? I understand there are reasons to keep an old 401K open (primarily better investment options & lower expense fees on the funds). But typically it makes sense to either roll your previous 401K account(s) over into your new employers 401K account or roll them over to a Traditional IRA.
Yes and no. So my largest 401K account was from a government job and that account has the lowest fees of any of my accounts. I did consolidate one account into my most current one but that was in order to purchase my newest property. The others I have not really looked into consolidating as they seem diverse and I don't know if the fee difference is enough to make a difference.

The return I'm getting on some of those older 401K's I have (government and government contractors) is in the 15% range some years. They seem to blow away what I'm typically getting on my newer accounts. That number isn't consistent but I have had a year of 17% return and a year of 15% on those older government accounts.



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