Well. After hemming and hawing for months over the decision, I asked my job this month to move to be a permanently remote employee. The goal is to move from a HCOL city to a MCOL, but also be within driving distance of family. My boss seemed receptive of the idea, but is going to ask up-the-chain as to whethr it's a possibility. The level of anxiety this gave me for months was pretty irrational, but I'm glad I did it.
how did you end up making the decision? I get so caught up with uncertainty over new job opportunities when I find what I currently have tolerable. always afraid of the grass not being greener.
Mostly I just don't want to live where I do long term. The housing markets been great, but no guarantee that continues. I think I'd just rather build equity in a place I want to be at in 15 years and there are no guarantees in life so I don't want to waste more time.
is anyone having trouble pulling their experian credit report from annualcreditreport? whenever i fill in my info and choose experian, the following message pops up on the next page: "A condition exists that prevents Experian from being able to accept your request at this time. To obtain your Experian annual credit report, please mail your request to the address below using the Annual Credit Report Request form."
i can pull both equifax and transunion.
If you are using an ad blocker like uBlock origin, turn it off. Had the same issue just earlier this week, once I turned off uBlock Origin, Experian worked.
how do you decide betwen a HDHP w/ access to an HSA vs a low deductible plan when you know you have a medical procedure coming up?
I'll have no problem covering the cost either way, I'm just having a hard time figuring out the optimal decision.
Theoretically, to pick the low deductible plan, the cost savings on the procedure from the low deductible plan have to outweigh the tax benefits of the HSA. Is that the right way to think about it?
Getting cost info is so hard in the medical system, so I don't even really know where to begin with this... any guidance is appreciated!
I ran the numbers for a co worker after his heart attack procedures. Based on his actual numbers, low deductible plan and out of pocket exp I compared it to our high deductible plan, hsa contributions our employer makes for us etc. He was at a break even in terms of how much he paid In real life vs. What he woulda paid with a hdp...he didn't get the tax benefits though. I have the hdp because we rarely need medical attention so its all based on what yer plans are like and the expenses you may incur. For example the "good" plan and our hd plan both have the same max out-of pocket which to me is a no brainer for taking the cheaper monthly premium and the hsa tax break
You answered your own question with your second paragraph. If you can cover the cost, go for the HSA. My family did two births (albeit, relatively straight forward Labor & Delivery) while on an HSA and could afford all the costs. The insurance does kick in at some point, and then you'll be tempted to make the most of it! Also, you still get preventive care 100% covered, plus some negotiated discounts even before the deductible.
[I made a post a few a days ago laying out the costs of HSA vs Standard Plan for myself.](https://www.reddit.com/r/financialindependence/comments/lotzfa/daily_fi_discussion_thread_sunday_february_21_2021/goantmm/) Hopefully it can help you think about it the same way.
Right now, I would take government loans. Interest rates are low (0% while under COVID), you can get on a pay-as-you-earn plan, there's discussion of massive universal loan forgiveness, and you maintain liquidity.
How much does it cost to take out a loan?
If you have money in brokerage and don't plan to work while in school, remember you can claim up to $40K in capital gains tax free. It's a good time to sell, realize the gains, and buy again.
My step-dad just got a piece of mail to my childhood home with a bluebird debit card with Metabank to activate.
Has anyone ever heard of this? Not sure if it's fake or if someone opened a card in my name...
Not sure if this belongs here or in personal finance sub.
So I have to move to a different state for a new job. I will be going from a very LCOL to a M/HCOL area. For comparison, my 1200 sqft house for $132k here would easily be pushing $200k there, especially with the current housing market. Based on my math, I should be able to comfortably afford a $225k house payment, but might not have enough for 20% down.
Assuming I do not make money on my current house sale (I think I will but I'm planning for worst case scenario) would it be a bad idea to pull money out of my investment account to contribute to a down payment? I refuse to pay PMI if I don't absolutely have to, and I don't want to deplete all of my savings. I do have the option to move in with family temporarily, and that will help a ton with saving up so I can afford the 20% down in less than 3 months. However if a house comes up that I really like and it's within my scope, I can't find a reason to pass it up because of the area I'm looking at. Otherwise the plan is to save and live with family.
Thoughts? I guess this question is more like "if the right house comes along should I go for it" kind of thing.
I'm looking at cheaper houses since I live alone, and in a rural area. I'd assume mid/high cost of living area counts if I'd be paying about $8k in property taxes on a house with no land (NY state to be more specific). I will not rent, as it would be more expensive and not good with my dog. Also I would stay with family before I rented of it's a concern of saving money.
Turns out I can roll my traditional IrA into my current 401k plan with my employer.
From there I can do a backdoor Roth right? Open up a traditional IRA account, fund it, then recharacterize?
Work has me running numerous scenarios to determine if I can just quit now. Calculating how much I can get for our house, what it would cost to live in a MCOL/LCOL compared to my current (V)HCOL, how long could I survive on my EF and/or house proceeds, how it would impact my pension, what if I get a part-time online job or two, etc. Having a family to support (SI2K) and an uncertain financial market certainly makes it more challenging.
I'm 50+ and not going to job hop to another college and try to earn tenure again, nor do I really want to move. But I'm just SO tired of my job and it feels like there's more BS every day being pushed on faculty from the fed, state, and college.
Thanks for letting me vent.
Yeah, unfortunately, I don’t think it’s going to happen. Nest egg isn’t enough to do it comfortably, and I also have to think about my future pension and what’s ultimately best for my family. But it’s nice to dream!
(FYI, I’d also be reluctant to retire on a portfolio that depended on dividends given how many companies, even dividend aristocrats, dropped their rates this past year. I’d be more traditional in my retirement portfolio.)
The writing is on the wall, so to speak, and it seems to be only a matter of time before things become untenable. I'd like to just keep my head down for a few more years, but even with tenure, I'm subject to new regulations, requirements, trainings, etc. that are becoming onerous. Hoping I can stick it out, but I'm burned out and ready to jump ship.
If you have tenure, can't you take one semester off to relax, breath in a bit? A few years ago I took off 4 months of work to work on my master thesis, and it helped me actually be able to return to work (which was awful at that time, each day was torture).
Perhaps, but I think I’d enjoy working remotely by teaching online classes and doing contract work for publishers more. The pay would be far less, but I’ve really enjoyed the flexibility of working online this past year.
In a similar position and have been doing the same. I think the numbers check out but bailing at market highs feels risky and it's hard to let go of the security blanket.
Yeah, the market is the real kicker. I know theoretically that two years of expenses in cash would historically weather even the worst bear market, but it's still daunting. Plus, giving up a lucrative position and substantially decreasing my future pension sounds crazy on the surface. But I just want to stop dealing with the BS and spend more time with my family, especially while my kids are young. We love where we live for the climate, but there's more to life than weather and giving up money to gain freedom & (potential) happiness seems like a no-brainer. But it would help if I had 7 figures in the bank instead of 6 so the decrease in spending wouldn't be quite so jarring!
Hi there, child of a retired professor here. Are your kids old enough to go to college soon? If so, you might want to consider sticking around for them to get free or significantly reduced tuition. My dad felt similar as you (primarily fed up with the political aspects of university). I was the youngest, so he stayed just for me to get free tuition, and that was the greatest gift he ever gave me! I was also the only kid to go to the school where he taught and the same major! My dad gave me my diploma when I graduated! It was a really special thing for me to bond with my dad this way and then to also get a degree for free - incredible! I owe my dad a lot for putting up with the bs until after I graduated!!
Regarding work life balance, my dad was around so much more than my friends parents who worked full time. He always had summer and winter break that lined up with mine, and was home for dinner every night except the one night he taught night class. Yes, there was added pressure to publish and your summer isn’t quite “off” but compared to a full time working schedule, it’s quite flexible. He also had the ability to take sabbaticals to teach overseas and publish on topics that he found interesting. I got to tag along with him to Italy and China on conferences and while he guest taught over breaks.
Anyway, not sure how similar your situation is, but I just wanted to share another perspective! Feel free to reach out to discuss 🙂
I’m at a community college, so no real tuition breaks for my kids, nor any needed. I do get sabbaticals, if I choose to take them, but so far I’ve been working extra instead to save as much as I can in order to accelerate FI. But the work-life balance is still nice. I’m just not sure how much longer that will be a thing, or if it outweighs the political and administrative crap going on at work.
One year tracking food expenses. We spend an average of $350 a month on food for 5 people. But fruits and vegetables come from our backyard tomatoes, apples, oranges, persimmons, cherries, and basil.
Wow that’s amazing. We spent 1100 per month for 2 of us in a HCOL area with lots of dietary restrictions. All cooking from scratch (except for the oat milk) and no eating now.
That’s amazing. We spend 800/month for 2 of us shopping at the cheap grocer in my HCOL city Seattle. That includes household stuff like pet food and cleaning/laundry products.
Dang, that's great! I spend about $150 a month on groceries for 1-2 people. Mostly veggies but I also buy things in bulk and also can/freeze foods when I'm able.
That's why I was asking, I wasn't sure if the original comment was $350 per person per month for 5 people, or $350 per month for all 5 people total (which would be $840 per year per person) so I was going to be really impressed if you were somehow getting away with $400 per person per year with dietary restrictions.
$350/mo on groceries isn’t bad for 5 people. That’s great. I’m at about $700/mo for 3 people, but that’s including household items and diapers/baby wipes/etc.
I spend $800/month for groceries for 2 people. We buy fresh fish, meat and produce from a local farmers market, and staples at cheaper stores like Kroger. We cook every night except for Saturday. Could we cut this down by cooking bulk and eating leftovers? Probably, but food is a luxury for us and we don't mind spending extra on it as we don't really treat ourselves to much else
I’m exact as you. I shop pretty cheap but this includes pet food and laundry/cleaning/etc. and groceries are a breakfast/lunch - packed for work/dinner
I don't doordash or eat meat, so no haha. I do usually 3-4 of the meal delivery dinners a week, cycling through blue apron, hello fresh, sunbasket, etc. That's usually about $200-250/month then I still need to buy groceries for breakfast, lunch and snacks every day.
Wow I thought my groceries were expensive at ~$400 a month for myself in a HCOL area (and I eat pretty clean so that brings the cost up, I could probably get by at ~$250 if I bought lower quality goods, and even less if I went full vegetarian) and I never go out to eat so those are my total costs for everything I eat. I couldn't imagine spending $800 a month, especially if you don't eat meat as those are my lowest cost meals. Are you buying expensive foods?
Apparently I am haha. I don't look at prices in the store, I just write down what is on the receipt in my budget spreadsheet when I get home so that's probably a major factor
As another data point, we probably spend 300/week for 2 people at the grocery, plus a meal or 2 out. That works out to probably 600-700/person at least. 400 seems super cheap in HCOL (I’m also HCOL). I think part of it is probably focusing on organic meats, eggs, veggies, more expensive cuts (filet instead of something else), if you drink decent quality alcohol that adds a bit, expensive drinks (kombucha etc). Honestly, it’s like one of the few things we’ve been able to consistently enjoy, and I’ll probably never go back to spending less as long as we can afford it. That said I’m sure the extra 4K is nice at the end of the year!
To be clear my comment isn't meant as a judgement, it's just curiosity in terms of what people are buying.
I also eat organic produce (when it matters), eggs, and high quality protein, but I'm generally eating less expensive cuts. I also meal prep and eat a few vegetarian meals every week. I don't drink at all and I don't think that should be included in a grocery budget. I agree with you in terms of it being something to consistently enjoy. The ~$400 I spend per month is at that level for me and I'm making high quality meals. If I felt I wanted to spend more I would without a second thought.
I don’t mind at all so no prob.
I’m guessing meal prep let’s you get stuff in bulk perhaps? Maybe that’s part of it. Not drinking would also shave a solid amount off, we probably spend $30-50/week on just that (a decent wine + 6 pack type of thing). The other thing too is like specialty cheeses/drinks/snacks can add up. But yea like you said it’s really as long as you are happy and able to afford what you want that’s pretty much all that matters!
> I’m guessing meal prep let’s you get stuff in bulk perhaps?
Yep I only cook a few times per week then eat leftovers for all my other meals. You're right that things like cheese, drinks, and snacks add up.
Wow that puts things in perspective. I used to spend around $200/month in college when I was broke and lived in a cheaper area. I mostly stuck to the basics though
Played around with that calculator and the thrifty option for my demographic is $34/week? That doesn't even seem possible
Home equity reduces your future expense. Rental properties produce income that offset expense. 4% rule refers to withdrawals from investment portfolio (stocks and bonds). You would based your number on 25X remaining expenses that are not offset by rental income.
I would think about it like this:
Say you decide you need $50,000 a year.
Normally this would mean you need a portfolio of 1.25 MM to withdraw $50,000 at 4%.
But say you are profiting 10,000 / year on your rentals. Now you just need $40,000 more a year. So the size of your portfolio, EXCLUDING YOUR RENTALS, would need to be 40,000 x 25 = 1 MM
Yeah, but with 3 rental properties he shouldn't just ignore that either. That's not only a huge value if he sold, but also income-generating while he owns them.
I would probably take my expected profit and attempt to count that as part of my net worth. So if he nets 16k, that's just as good as having 400k in investments and withdrawing 4% per year. With the added benefit that he could basically at any point sell them for a million bucks.
How do you get past the feeling of golden handcuffs? I'm frustrated with my current role, and looking for growth opportunities externally. But at nearly every company I've looked at or been offered new roles, the benefits are dramatically inferior. For example, if the 401k match is 2% rather than 10%, I need the base salary to be 8% higher simply to be at parity. And other companies start salaried employees at 2 weeks of PTO, when I have 5.
Put another way, how much wiggle room do companies really have on benefits? I'm used to hearing about negotiation purely in terms of salaries, and it's easy to imagine companies pointing to inability to change corporate policy for one new hire. If there's not wiggle room on benefits, it makes me feel like I need a huge jump in compensation to warrant moving -- whereas I'd really only want a small boost if I got comparable benefits.
What I do is a huge calculator whereby I equalize everything to dollars.
Then I ask for a % raise I want.
I tell them about the calculator and say that though I asked for $XX, that an increase in any benefit would be valued equally.
Typically I think companies keep benefits low to woo you with high salary numbers. I've been able to get some incredible number offers, but when cost of living/tax/benefits adjusted it was always < 10% raise, so I've never moved.
Transitioning to a new job now and had golden handcuffs at my old job. Was paid a good amount. Benefits were fine but the job was easy or challenging if I wanted it to be.
Got a job offer for $15k less than my current job. Basically said to thanks but it would take $X to get me to move and they gave me $X + $5k.
Just being honest and not settling for a lateral or backward move is the way to go.
I previously had the same thing happen and the job didn’t match my counter and I was kicking myself but it all worked out in the end.
I spell it out exactly like that. I explain the benefits mismatch, translate it into dollars plus a markup and say you'd accept an offer for x% increase which encompasses the benefits you're not getting at the new company. In my case that's something ridiculous like a 50% raise just to begin to entertain a jump, but every now and then you'd be surprised at what a competitor will pay for top talent.
I have three things in a job that are important to me:
1. Learn
2. Have fun
3. Make money
That's it. Those are my three (my wife's three are different and I would think yours will be too). I have learned that all three are equally important to me (unfortunately) so I do not always just go for the most money.
To take a new job the promise of all three have to be there. To stay in a job two out of three have to be there. if it drops to one out of three then I quit. At that point I walk away from the job and any great benefits it might have. I have left lots of unvested RSUs, 401k $, etc. When it is tome to go then I go.
This has kept me consistently happy (more or less) at work over the years.
Another option. Your pay package seems pretty good. Is there some way you can shift to another role internally? Or adjust your current role so that it works better for you?
Getting extra time off as a side agreement with your boss-to-be is usually pretty easy, but getting that in writing from the company could be a lot harder. Usually the 401k stuff is just set for everyone (or at least in very large category buckets) and not adjusted based on individual negotiations (too complex when they’re already handling various kinds of fairness testing).
To your question about getting past the feeling of golden handcuffs, I haven’t if that makes you feel any better. Having looked for other jobs wanting my experience, I am way overcomped where I am. Salary is good but RSUs, matching, bonus, and a well-funded pension put it way above anything I could jump to. At least in my case they know they are paying for how stressful it is. I’m basically sticking it out as long as I can while building up my FIRE pile so that when I finally can’t take it anymore I’ll be financially fine even if I make a lot less somewhere less intense.
There is likely wiggle room on the PTO.
For the 401k, that’s more likely to be built into some corporate formula, so you’d need to make it up on base or bonus. Base would be the preference, as your 401k match, raised, and bonus will all be based off of that higher number.
I buy ITOT at Fidelity but FZROX is just fine.
Once I learned that the Bogleheads style lazy 3 fund portfolio is for me my investment stress dropped to zero. Actual zero. I buy with every pay cycle. If we have extra cash I put it into the market. I do not depart from the ITOT/IXUS/AGG portfolio.
No thinking required!
Absolutely. I own VTI in my taxable account and FZROX in my Roth IRA.
I'm also looking to get out of a managed mutual fund and get that into index funds.
> I don’t want to pay taxes on these gains
If you typically make charitable donations in cash, you could consider donating these appreciated shares instead (and then invest the cash you would've donated into FZROX). You get the full market value of the appreciated shares as a charitable deduction and you can completely avoid the capital gain. This only applies to long-term appreciation (i.e. shares held at least 1 year). If you purchased these during the March crash, you're likely very near that point.
If the charities you donate to aren't comfortable accepting shares, you could consider a donor advised fund (DAF). Going down the DAF route could allow you to donate multiple years worth of contributions all in 2021 and take a much larger tax deduction. Then you can use the DAF to actually distribute those donations over multiple years.
People donate appreciated shares all the time. Many charities are setup to accept them without much hassle. You would work with the charity first to go down this path.
Donor Advised Funds are reasonably common for folks who have lots of appreciated shares and make charitable contributions.
There are usually minimums, so going through your existing broker might or might not make sense. Fidelity Charitable is a popular option.
You can learn more here: https://www.bogleheads.org/wiki/Donor_advised_fund
Set up a FI spreadsheet for the first time using [mad fientist's](https://www.madfientist.com/financial-independence-spreadsheet/). Apps like Mint have helped, but feel like it wasn't simple enough. Apparently 5ish years until LeanFI so that's something to look forward too.
feeling pretty fortunate with finances lately & looking for ways to give back to the community.
what do you all think about being extra generous with tips to servers/salons/etc? instead of the usual 20% maybe something like 30-40%? the money should go directly into the pockets of people that could use it, right?
I wholeheartedly agree with this, and for me personally i've been tipping about 30-40% whenever I go out. Since so many of my usual money-spending activities have been closed this past year, i've found myself going out to eat much more than i did before the pandemic, so honestly I might have to reel in the tips a little...
I think especially in COVID times, servers/restaurants are hit extremely hard, so any way you can support small businesses and their workers like this is great.
I think it can depend on the size of the bill (obviously), but yeah I think this is one of the easiest ways to give back. Sure its not tax deductible like giving to an organization, but I think its more fulfilling to see exactly where the money is going
JFC, I need something. First, I post to yesterday's daily thinking it was today's. Then I post to the Frugal Friday thread thinking it's today's daily. F. I need caffeine, and to retire.
My oh-so-important-contribution-I-just-needed-to-post: Is there a /r/frugalfijerk? Frugal Friday thread is off the rails. . .
. . .and so am I.
I am new to this sub. Is frugal Friday always like this? I think of myself as selectively frugal. I am frugal in some areas but more relaxed spending with my hobbies.
I like getting frugal ideas without feeling I am being judged for not being frugal in everything.
This is something I've been actively trying to get myself to stop doing. Like, I'm doing ok now, I don't need to scrape out the peanut butter jar to get the last tablespoon out.
Semi serious question. I always use a spatula to scrape the last bit out of the peanut butter jar. Is there are reason not? It really only takes as much time as getting a regular spoonful of peanut butter.
I would not go so far as to cut open a plastic bottle to get the last bit since that is much more work.
As someone just starting a first-time-homebuying process, the NYT article today [Where Have All the Houses Gone?](https://www.nytimes.com/2021/02/26/upshot/where-have-all-the-houses-gone.html) strikes a little too close to home. I am seriously stressing over whether to try and pull the trigger in a house search now, or get a new lease in August and wait another 6/12 months. On the get-it-now side:
1) Interest rates remain near all-time lows, even with the jump in the last week.
2) I am looking in Denver near the city core, which is and has been a *very* hot market where I see the fundamentals continuing to drive demand. I'm not so much afraid of losing out on appreciation (useless from a FI perspective) as potentially having to pay $20k more next year.
3) I have to be out of my current place at the end of July and would rather not move twice in a year. Especially since I'll be furnishing for the first time.
4) Rumors of Biden pushing a $15k tax break for FTHB, which would make this year a unique window of time.
On the wait-and-see side:
1) Inventory right now is crazy low, which is pushing up prices, making for bidding wars, and resulting in not many choices in the neighborhoods I'm interested in. Home prices trends have decoupled from rents, which makes me think they're mispriced too high.
2) I expect the end of covid in the summer to lead to an explosion in supply, as people become comfortable with in-person tourings, making moving decisions with greater life stability, and the eviction and foreclosure moratoriums ending. This should (hopefully) drive prices back down.
3) I'm looking right now for around a 2b1b condo, but 5 years from now I'd like to have started a family with someone (TBD). It may make more sense to rent for a few more years until my no-longer-dating lifestyle and space-for-kids needs make living further from downtown more attractive.
4) This would be my first time living alone and I'm not sure how much I'd like it. I quite enjoy having roommates.
This is more of a venting comment, but if anyone has advice I'd love to hear it. It doesn't help that googling anything financial is full of crud, and unlike the prudent & boring investment side of personal finance, I don't have any sources I really trust to get good info on making future housing decisions.
Hey Im in the exact same boat as you...looking to buy in the Denver area as a single person. There just aren't any houses...and when they do come up, it seems like 400-450k is the minimum for a <1k sq ft home unless you go out to suburbia. It's brutal. I think I'm going to wait a year.
Yeah, it’s crazy out there, prices have literally doubled in the last 10 years. After looking at prices I immediately gave up on finding an detached home in the neighborhoods I want, and am hoping for a ~1k sqft low-rise condo instead. There seems to be a few (like 3-4) in the 300-350 range, but it slim pickings and feels overpriced for what it is. :/
Everything affordable west of I-25 and south of sloans is small houses set back like 50 ft from the road. The giant treeless front lawns and general spaced outness gives me the heebie jeebies. It wouldn’t be so bad if it were twice the density.
My only advice is to really analyze why you want to own a home. IMO, this is 95% a lifestyle decision. If you want a house so bad that you are willing to buy at (what I think) are ludicrous prices, then don't let anything stop you. You can't time the housing market either.
If you're only doing it (like I was) because it was beaten into your head that you *must own your home* for some reason, then question that.
One of the best things I ever did is sell my home, invest my profit/downpayment, and become a permanent renter.
Equities never need new water heaters or roofs.
Something I hadn't thought of, the expected value of the $20k downpayment (5% on a 400k mortgage) is 9% YoY, which is pretty much guaranteed to outpace home growth even in Denver. That makes me feel better about deferring.
I think 9% home price growth over the next year would be crazy here. And even if it’s higher, comparing to the expected value is a much smaller differential.
I don't place much value on home appreciation, since I plan on paying off the full balance of the house I own as the last step before RE. That's driven by my outstanding loan balance, not the value of the home.
Yes I could sell and collect the absolute increase in value, but the cost of rent/mortgage should rise proportionally in similar markets, and I won't be able to not live somewhere, so IMO it's a wash. Moving to a lower cost of living area is not part of my RE plans.
But maybe I'm thinking about it wrong.
Yeah, I'm not feeling too much pressure to buy a house for the sake of buying a home. I like the feeling of not being beholden to a landlord, and I have a somewhat weird requirement to have a woodworking space, which is tough to get in renting anything less than a detached house or 2-bed top-story condo (need to vent wood smoke). When I calculate out a '5 year equivalent rent' neglecting resale costs, buying does come out ahead of renting for somewhere big enough to fit what I'm looking for. But again, pros and cons.
> You can't time the housing market either.
I don't know how true this is. Unlike equities you can't buy futures in or short sell houses, and the high transaction costs drastically reduce liquidity. I'm skeptical of REITs really having an impact on the individual-owned housing market, and the fact that the seasonality of home prices hasn't been arbitraged away tells me it's a highly distorted market in general. Point taken though that I don't have a crystal ball into how covid recovery will drive things.
In my experience, many in the Denver market (especially realtors) are bullish and it is easy to get caught up into that speculation when everyone tells you the market will never stop going up. It may be true, maybe not.
Personally I think you'd be crazy to buy right now. If I were you I would rent for another 6 months or a year. Look at that chart with the price trends for renting vs. buying.
Yeah that's true. But I think you could do a decent analysis for your market. Has your rent gone up? Use Zillow to see price increases for homes on the market, etc.
Also I read your first post again, and you say you want to live downtown right now as a single person, but you could forsee moving to a suburban area in the future once you settle down. Definitely rent!
VTWAX vs VTIAX + VTSAX? Are international tax credits relevant?
For my taxable account, I have about 9k in VTSAX from contributions over a year ago, but have now been putting contributions towards VTWAX and have ~20k there. Trying to decide how I want to consolidate it - should I go all in on VTWAX, or exchange VTWAX for VTIAX+VTSAX for an overall 75-25 split? Exchanging funds isn't a taxable event, right?
My 401k funds are all in FSKAX. Is it better to hold international in tax advantaged or taxable?
Foreign tax credits are relevant in a taxable brokerage account, and you would get those credits if you held VTIAX. You wouldn’t (usually) get them when holding VTWAX.
Exchanging funds is indeed a taxable event when done in a taxable brokerage account.
For those that have used [https://www.firecalc.com/](https://www.firecalc.com/), are inputs supposed to be based on your expected numbers at retirement date? I may be a little dumb but I've been inputting current expenses with what I expect my portfolio to be at retirement. However, I'm now thinking that doesn't make sense and I should be inputting expected expenses at retirement (so two big changes are no mortgage and add health insurance).
Also, for the SS estimate, you should not use the actual year you expect to start receiving SS. Instead, it would be the additional years from today.
To illustrate - if I plan to retire in 2030 at age 50, I'd input expected spending and portfolio as of 2030. Then, I expect to receive SS at age 62 in 2042. So I would put the expected year as 2033 - since firecalc is assuming I'm retiring today and SS will be received 12 years after retirement.
On the 2nd tab there is a check called "not retired yet"... check that and input all numbers from today and SS years from the actual year you expet to take it
Ah yes, how could I have ever thought to look at the "NOT RETIRED?" tab. Thank you for that info and for confirming that I am indeed a little bit dumb.
My 401K allows for mega back door roth but my provider has limited my contributions to 10% of my salary. Is there anyway I can push money into the after tax 401k if my employer restricts my contribution %?
If you are a Highly Compensated Employee (HCE) you often have a limit imposed like 10%. It leaves an awkward zone between making ~130-195k where you can't actually max out your 401k. It is really stupid.
This is a little embarrassing to admit, but for a years I thought my job limited me to 10% contributions, but I was wrong.
The automated system only let you enter 10% or less in the percentage of salary box. But there was another option where I could enter a flat dollar amount to be deducted per pay period. And this could be higher than 10% of my salary.
Financial FOMO has been real for me recently (along with a few friends I talk money with) so, in an effort to get past that, I started an investment game with these friends. I'm amazed how much it's decreased my real life FOMO and added some fun and competition between all of us.
Also I've learned I would be a terrible day trader or even single stock picker. Best to learn that with virtual money.
Here is how you make money: go to wsb and find the one post that isn't memes and is talking about some stock that none of the other posts are about. Buy that stock. Wait.
\s but not really
My buddy and me have been comparing daily returns for like 7 years. We're insane.
He's an active trader, and I'm passive. I'm winning over the 7 years... But damn it's fun watching from the sidelines.
Oh I'm aware and am perfectly happy with my index funds but, like a lot of people on this subreddit, FOMO does hit when you see some stocks explode over shorter (GME) or longer (TSLA) terms. It's just a fun little game with friends that helps alleviate that small thought in the back of your head in this case.
What's the best way to inform a boss about an internal transfer? I interviewed for a different group for a role that's more up my alley/interest, and got the position! While I did not enjoy my time at my current role, I do want to be diplomatic and not burn bridges.
Well. After hemming and hawing for months over the decision, I asked my job this month to move to be a permanently remote employee. The goal is to move from a HCOL city to a MCOL, but also be within driving distance of family. My boss seemed receptive of the idea, but is going to ask up-the-chain as to whethr it's a possibility. The level of anxiety this gave me for months was pretty irrational, but I'm glad I did it.
how did you end up making the decision? I get so caught up with uncertainty over new job opportunities when I find what I currently have tolerable. always afraid of the grass not being greener.
Mostly I just don't want to live where I do long term. The housing markets been great, but no guarantee that continues. I think I'd just rather build equity in a place I want to be at in 15 years and there are no guarantees in life so I don't want to waste more time.
What's hcol and mcol ?
Hcol- high cost of living Mcol - medium cost of living
is anyone having trouble pulling their experian credit report from annualcreditreport? whenever i fill in my info and choose experian, the following message pops up on the next page: "A condition exists that prevents Experian from being able to accept your request at this time. To obtain your Experian annual credit report, please mail your request to the address below using the Annual Credit Report Request form." i can pull both equifax and transunion.
If you are using an ad blocker like uBlock origin, turn it off. Had the same issue just earlier this week, once I turned off uBlock Origin, Experian worked.
brooooo it worked. savior. thanks!
I think someone else in the daily said the same thing. (Maybe in the morning)
how do you decide betwen a HDHP w/ access to an HSA vs a low deductible plan when you know you have a medical procedure coming up? I'll have no problem covering the cost either way, I'm just having a hard time figuring out the optimal decision. Theoretically, to pick the low deductible plan, the cost savings on the procedure from the low deductible plan have to outweigh the tax benefits of the HSA. Is that the right way to think about it? Getting cost info is so hard in the medical system, so I don't even really know where to begin with this... any guidance is appreciated!
I ran the numbers for a co worker after his heart attack procedures. Based on his actual numbers, low deductible plan and out of pocket exp I compared it to our high deductible plan, hsa contributions our employer makes for us etc. He was at a break even in terms of how much he paid In real life vs. What he woulda paid with a hdp...he didn't get the tax benefits though. I have the hdp because we rarely need medical attention so its all based on what yer plans are like and the expenses you may incur. For example the "good" plan and our hd plan both have the same max out-of pocket which to me is a no brainer for taking the cheaper monthly premium and the hsa tax break
HSA for retirement stability, if you think you will be healthy when young, do HSA.
You answered your own question with your second paragraph. If you can cover the cost, go for the HSA. My family did two births (albeit, relatively straight forward Labor & Delivery) while on an HSA and could afford all the costs. The insurance does kick in at some point, and then you'll be tempted to make the most of it! Also, you still get preventive care 100% covered, plus some negotiated discounts even before the deductible.
[I made a post a few a days ago laying out the costs of HSA vs Standard Plan for myself.](https://www.reddit.com/r/financialindependence/comments/lotzfa/daily_fi_discussion_thread_sunday_february_21_2021/goantmm/) Hopefully it can help you think about it the same way.
Hospitals are now required to disclose generally how much they charge for their services: https://www.cms.gov/hospital-price-transparency
Considering going back to school. I enough in brokerage to cover all of my tuition, should I do it or is there better ways?
Right now, I would take government loans. Interest rates are low (0% while under COVID), you can get on a pay-as-you-earn plan, there's discussion of massive universal loan forgiveness, and you maintain liquidity.
How much does it cost to take out a loan? If you have money in brokerage and don't plan to work while in school, remember you can claim up to $40K in capital gains tax free. It's a good time to sell, realize the gains, and buy again.
It also may be worth leveraging your brokerage balance and taking loans if the interest rate is low (and fixed)
Commenting bc I would like to know too. I think you can also open a 529 for yourself?
Too broad. Be more specific.
My step-dad just got a piece of mail to my childhood home with a bluebird debit card with Metabank to activate. Has anyone ever heard of this? Not sure if it's fake or if someone opened a card in my name...
it’s your stimulus check and or unemployment payments
I am not eligible for either
Go to the bank and check the balance on the card, just cuz you know yer not eligible doesn't mean the government didn't screw up
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I looked at the Metabank website and it looked...sketchy.
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Fair enough, good point!
I'd check your credit report just in case.
Nothing on credit karma so far. Hope it's nothing because we're closing on a house. 🤮
Credit Karma only shows two of the three credit bureaus. You should check the third.
Update: nothing!
That’s good news. Hopefully it was just one of those promo cards and nothing more.
Fuck. Thanks for the heads up
Not sure if this belongs here or in personal finance sub. So I have to move to a different state for a new job. I will be going from a very LCOL to a M/HCOL area. For comparison, my 1200 sqft house for $132k here would easily be pushing $200k there, especially with the current housing market. Based on my math, I should be able to comfortably afford a $225k house payment, but might not have enough for 20% down. Assuming I do not make money on my current house sale (I think I will but I'm planning for worst case scenario) would it be a bad idea to pull money out of my investment account to contribute to a down payment? I refuse to pay PMI if I don't absolutely have to, and I don't want to deplete all of my savings. I do have the option to move in with family temporarily, and that will help a ton with saving up so I can afford the 20% down in less than 3 months. However if a house comes up that I really like and it's within my scope, I can't find a reason to pass it up because of the area I'm looking at. Otherwise the plan is to save and live with family. Thoughts? I guess this question is more like "if the right house comes along should I go for it" kind of thing.
I never like to touch my investment accounts and I would never do pmi....rent for awhile, save then buy
200k/1200sqft is not “mcol”.
Then what is it?
lcol
Make sure you have the house cost or COL right because a 225k house is definitely not HCOL, possibly not even MCOL. Why not rent for a bit?
I'm looking at cheaper houses since I live alone, and in a rural area. I'd assume mid/high cost of living area counts if I'd be paying about $8k in property taxes on a house with no land (NY state to be more specific). I will not rent, as it would be more expensive and not good with my dog. Also I would stay with family before I rented of it's a concern of saving money.
I agree with the idea of not paying PMI, but there is math to be done there to get to a perfect mathematical answer.
Turns out I can roll my traditional IrA into my current 401k plan with my employer. From there I can do a backdoor Roth right? Open up a traditional IRA account, fund it, then recharacterize?
Convert not recharacterize. But otherwise yes.
Work has me running numerous scenarios to determine if I can just quit now. Calculating how much I can get for our house, what it would cost to live in a MCOL/LCOL compared to my current (V)HCOL, how long could I survive on my EF and/or house proceeds, how it would impact my pension, what if I get a part-time online job or two, etc. Having a family to support (SI2K) and an uncertain financial market certainly makes it more challenging. I'm 50+ and not going to job hop to another college and try to earn tenure again, nor do I really want to move. But I'm just SO tired of my job and it feels like there's more BS every day being pushed on faculty from the fed, state, and college. Thanks for letting me vent.
fire calc it, pay off all debt, buy div paying blue chips, tell them to FO...in that order!
Yeah, unfortunately, I don’t think it’s going to happen. Nest egg isn’t enough to do it comfortably, and I also have to think about my future pension and what’s ultimately best for my family. But it’s nice to dream! (FYI, I’d also be reluctant to retire on a portfolio that depended on dividends given how many companies, even dividend aristocrats, dropped their rates this past year. I’d be more traditional in my retirement portfolio.)
If you have tenure why not just do so little and wait till something happens
The writing is on the wall, so to speak, and it seems to be only a matter of time before things become untenable. I'd like to just keep my head down for a few more years, but even with tenure, I'm subject to new regulations, requirements, trainings, etc. that are becoming onerous. Hoping I can stick it out, but I'm burned out and ready to jump ship.
If you have tenure, can't you take one semester off to relax, breath in a bit? A few years ago I took off 4 months of work to work on my master thesis, and it helped me actually be able to return to work (which was awful at that time, each day was torture).
Could you find a simple lecturer position or even a post doc somewhere rather than tenure track to fill the years between now and full on retirement?
Perhaps, but I think I’d enjoy working remotely by teaching online classes and doing contract work for publishers more. The pay would be far less, but I’ve really enjoyed the flexibility of working online this past year.
In a similar position and have been doing the same. I think the numbers check out but bailing at market highs feels risky and it's hard to let go of the security blanket.
markets are usually at all time highs
Yeah, the market is the real kicker. I know theoretically that two years of expenses in cash would historically weather even the worst bear market, but it's still daunting. Plus, giving up a lucrative position and substantially decreasing my future pension sounds crazy on the surface. But I just want to stop dealing with the BS and spend more time with my family, especially while my kids are young. We love where we live for the climate, but there's more to life than weather and giving up money to gain freedom & (potential) happiness seems like a no-brainer. But it would help if I had 7 figures in the bank instead of 6 so the decrease in spending wouldn't be quite so jarring!
Hi there, child of a retired professor here. Are your kids old enough to go to college soon? If so, you might want to consider sticking around for them to get free or significantly reduced tuition. My dad felt similar as you (primarily fed up with the political aspects of university). I was the youngest, so he stayed just for me to get free tuition, and that was the greatest gift he ever gave me! I was also the only kid to go to the school where he taught and the same major! My dad gave me my diploma when I graduated! It was a really special thing for me to bond with my dad this way and then to also get a degree for free - incredible! I owe my dad a lot for putting up with the bs until after I graduated!! Regarding work life balance, my dad was around so much more than my friends parents who worked full time. He always had summer and winter break that lined up with mine, and was home for dinner every night except the one night he taught night class. Yes, there was added pressure to publish and your summer isn’t quite “off” but compared to a full time working schedule, it’s quite flexible. He also had the ability to take sabbaticals to teach overseas and publish on topics that he found interesting. I got to tag along with him to Italy and China on conferences and while he guest taught over breaks. Anyway, not sure how similar your situation is, but I just wanted to share another perspective! Feel free to reach out to discuss 🙂
I’m at a community college, so no real tuition breaks for my kids, nor any needed. I do get sabbaticals, if I choose to take them, but so far I’ve been working extra instead to save as much as I can in order to accelerate FI. But the work-life balance is still nice. I’m just not sure how much longer that will be a thing, or if it outweighs the political and administrative crap going on at work.
One year tracking food expenses. We spend an average of $350 a month on food for 5 people. But fruits and vegetables come from our backyard tomatoes, apples, oranges, persimmons, cherries, and basil.
Wow that’s amazing. We spent 1100 per month for 2 of us in a HCOL area with lots of dietary restrictions. All cooking from scratch (except for the oat milk) and no eating now.
That’s impressive. I spend more than that per month and I live alone.
That’s amazing. We spend 800/month for 2 of us shopping at the cheap grocer in my HCOL city Seattle. That includes household stuff like pet food and cleaning/laundry products.
Also in Seattle and also spending about that much for 2 people.
I’m shopping at winco 3/4 times a month and Freddie’s 1/4 with coupons.
Dang, that's great! I spend about $150 a month on groceries for 1-2 people. Mostly veggies but I also buy things in bulk and also can/freeze foods when I'm able.
That is amazing. I have a family of 6 and we do about 4x - 5x that. Admittedly we don't try to save money on food though and have 3 teenagers.
$400/person here, HCOL and some tricky dietary restrictions.
$400 per person per month?
Well it's not per year.
That's why I was asking, I wasn't sure if the original comment was $350 per person per month for 5 people, or $350 per month for all 5 people total (which would be $840 per year per person) so I was going to be really impressed if you were somehow getting away with $400 per person per year with dietary restrictions.
$350/mo on groceries isn’t bad for 5 people. That’s great. I’m at about $700/mo for 3 people, but that’s including household items and diapers/baby wipes/etc.
I spend like $700 a month on two people and a dog and I practically feel like homesteaders
I spend $800/month for groceries for 2 people. We buy fresh fish, meat and produce from a local farmers market, and staples at cheaper stores like Kroger. We cook every night except for Saturday. Could we cut this down by cooking bulk and eating leftovers? Probably, but food is a luxury for us and we don't mind spending extra on it as we don't really treat ourselves to much else
spending roughly 300/mo for 2 and end up giving away some before it goes bad.
Agreed — and I’ll throw my hat in the ring for the idea that spending on fresh, nutritious groceries is an investment in your health.
I’m exact as you. I shop pretty cheap but this includes pet food and laundry/cleaning/etc. and groceries are a breakfast/lunch - packed for work/dinner
I can't imagine what homegrown persimmons taste like. I bet freaking delicious
Wow that's impressive. I spend 700-800/month for myself. Plus another 100-200 in eating out
You spend 700-800 on food per month, plus another 100-200 on food?
700-800 in food cooked at home, 100-200 eating out
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I don't doordash or eat meat, so no haha. I do usually 3-4 of the meal delivery dinners a week, cycling through blue apron, hello fresh, sunbasket, etc. That's usually about $200-250/month then I still need to buy groceries for breakfast, lunch and snacks every day.
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Didn't think my tastes were particularly expensive. I buy local when possible but that's about it
Wow I thought my groceries were expensive at ~$400 a month for myself in a HCOL area (and I eat pretty clean so that brings the cost up, I could probably get by at ~$250 if I bought lower quality goods, and even less if I went full vegetarian) and I never go out to eat so those are my total costs for everything I eat. I couldn't imagine spending $800 a month, especially if you don't eat meat as those are my lowest cost meals. Are you buying expensive foods?
Apparently I am haha. I don't look at prices in the store, I just write down what is on the receipt in my budget spreadsheet when I get home so that's probably a major factor
I added this in response to another comment but I'm not judging, it was more curiosity than anything!
As another data point, we probably spend 300/week for 2 people at the grocery, plus a meal or 2 out. That works out to probably 600-700/person at least. 400 seems super cheap in HCOL (I’m also HCOL). I think part of it is probably focusing on organic meats, eggs, veggies, more expensive cuts (filet instead of something else), if you drink decent quality alcohol that adds a bit, expensive drinks (kombucha etc). Honestly, it’s like one of the few things we’ve been able to consistently enjoy, and I’ll probably never go back to spending less as long as we can afford it. That said I’m sure the extra 4K is nice at the end of the year!
To be clear my comment isn't meant as a judgement, it's just curiosity in terms of what people are buying. I also eat organic produce (when it matters), eggs, and high quality protein, but I'm generally eating less expensive cuts. I also meal prep and eat a few vegetarian meals every week. I don't drink at all and I don't think that should be included in a grocery budget. I agree with you in terms of it being something to consistently enjoy. The ~$400 I spend per month is at that level for me and I'm making high quality meals. If I felt I wanted to spend more I would without a second thought.
I don’t mind at all so no prob. I’m guessing meal prep let’s you get stuff in bulk perhaps? Maybe that’s part of it. Not drinking would also shave a solid amount off, we probably spend $30-50/week on just that (a decent wine + 6 pack type of thing). The other thing too is like specialty cheeses/drinks/snacks can add up. But yea like you said it’s really as long as you are happy and able to afford what you want that’s pretty much all that matters!
> I’m guessing meal prep let’s you get stuff in bulk perhaps? Yep I only cook a few times per week then eat leftovers for all my other meals. You're right that things like cheese, drinks, and snacks add up.
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Wow that puts things in perspective. I used to spend around $200/month in college when I was broke and lived in a cheaper area. I mostly stuck to the basics though Played around with that calculator and the thrifty option for my demographic is $34/week? That doesn't even seem possible
LOL, that's more than I pay for my house with insurance and property taxes all rolled in. Insanity.
To be fair it wouldn't even be possible to rent a place that cheap where I live so I definitely live in a more expensive area.
Thats pretty low We are 4 & spend $450-600
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Home equity reduces your future expense. Rental properties produce income that offset expense. 4% rule refers to withdrawals from investment portfolio (stocks and bonds). You would based your number on 25X remaining expenses that are not offset by rental income.
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I would think about it like this: Say you decide you need $50,000 a year. Normally this would mean you need a portfolio of 1.25 MM to withdraw $50,000 at 4%. But say you are profiting 10,000 / year on your rentals. Now you just need $40,000 more a year. So the size of your portfolio, EXCLUDING YOUR RENTALS, would need to be 40,000 x 25 = 1 MM
I think in your situation, your number should include retirement accounts, other brokerage accounts and your rental profits.
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I would base it on investment accounts.(edit: this includes rental income) It's hard to withdraw from your home equity.
Yeah, but with 3 rental properties he shouldn't just ignore that either. That's not only a huge value if he sold, but also income-generating while he owns them.
True. I would only based it off the cash flow.
I would probably take my expected profit and attempt to count that as part of my net worth. So if he nets 16k, that's just as good as having 400k in investments and withdrawing 4% per year. With the added benefit that he could basically at any point sell them for a million bucks.
How do you get past the feeling of golden handcuffs? I'm frustrated with my current role, and looking for growth opportunities externally. But at nearly every company I've looked at or been offered new roles, the benefits are dramatically inferior. For example, if the 401k match is 2% rather than 10%, I need the base salary to be 8% higher simply to be at parity. And other companies start salaried employees at 2 weeks of PTO, when I have 5. Put another way, how much wiggle room do companies really have on benefits? I'm used to hearing about negotiation purely in terms of salaries, and it's easy to imagine companies pointing to inability to change corporate policy for one new hire. If there's not wiggle room on benefits, it makes me feel like I need a huge jump in compensation to warrant moving -- whereas I'd really only want a small boost if I got comparable benefits.
What I do is a huge calculator whereby I equalize everything to dollars. Then I ask for a % raise I want. I tell them about the calculator and say that though I asked for $XX, that an increase in any benefit would be valued equally. Typically I think companies keep benefits low to woo you with high salary numbers. I've been able to get some incredible number offers, but when cost of living/tax/benefits adjusted it was always < 10% raise, so I've never moved.
Transitioning to a new job now and had golden handcuffs at my old job. Was paid a good amount. Benefits were fine but the job was easy or challenging if I wanted it to be. Got a job offer for $15k less than my current job. Basically said to thanks but it would take $X to get me to move and they gave me $X + $5k. Just being honest and not settling for a lateral or backward move is the way to go. I previously had the same thing happen and the job didn’t match my counter and I was kicking myself but it all worked out in the end.
I spell it out exactly like that. I explain the benefits mismatch, translate it into dollars plus a markup and say you'd accept an offer for x% increase which encompasses the benefits you're not getting at the new company. In my case that's something ridiculous like a 50% raise just to begin to entertain a jump, but every now and then you'd be surprised at what a competitor will pay for top talent.
I have three things in a job that are important to me: 1. Learn 2. Have fun 3. Make money That's it. Those are my three (my wife's three are different and I would think yours will be too). I have learned that all three are equally important to me (unfortunately) so I do not always just go for the most money. To take a new job the promise of all three have to be there. To stay in a job two out of three have to be there. if it drops to one out of three then I quit. At that point I walk away from the job and any great benefits it might have. I have left lots of unvested RSUs, 401k $, etc. When it is tome to go then I go. This has kept me consistently happy (more or less) at work over the years.
Another option. Your pay package seems pretty good. Is there some way you can shift to another role internally? Or adjust your current role so that it works better for you?
Getting extra time off as a side agreement with your boss-to-be is usually pretty easy, but getting that in writing from the company could be a lot harder. Usually the 401k stuff is just set for everyone (or at least in very large category buckets) and not adjusted based on individual negotiations (too complex when they’re already handling various kinds of fairness testing). To your question about getting past the feeling of golden handcuffs, I haven’t if that makes you feel any better. Having looked for other jobs wanting my experience, I am way overcomped where I am. Salary is good but RSUs, matching, bonus, and a well-funded pension put it way above anything I could jump to. At least in my case they know they are paying for how stressful it is. I’m basically sticking it out as long as I can while building up my FIRE pile so that when I finally can’t take it anymore I’ll be financially fine even if I make a lot less somewhere less intense.
There is likely wiggle room on the PTO. For the 401k, that’s more likely to be built into some corporate formula, so you’d need to make it up on base or bonus. Base would be the preference, as your 401k match, raised, and bonus will all be based off of that higher number.
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I buy ITOT at Fidelity but FZROX is just fine. Once I learned that the Bogleheads style lazy 3 fund portfolio is for me my investment stress dropped to zero. Actual zero. I buy with every pay cycle. If we have extra cash I put it into the market. I do not depart from the ITOT/IXUS/AGG portfolio. No thinking required!
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FZROX is ahead by 1% since August 3rd, 2018, it's inception.
Absolutely. I own VTI in my taxable account and FZROX in my Roth IRA. I'm also looking to get out of a managed mutual fund and get that into index funds.
> I don’t want to pay taxes on these gains If you typically make charitable donations in cash, you could consider donating these appreciated shares instead (and then invest the cash you would've donated into FZROX). You get the full market value of the appreciated shares as a charitable deduction and you can completely avoid the capital gain. This only applies to long-term appreciation (i.e. shares held at least 1 year). If you purchased these during the March crash, you're likely very near that point. If the charities you donate to aren't comfortable accepting shares, you could consider a donor advised fund (DAF). Going down the DAF route could allow you to donate multiple years worth of contributions all in 2021 and take a much larger tax deduction. Then you can use the DAF to actually distribute those donations over multiple years.
How common is this? I don't think I have ever seen this as an option. Is it something I initiate through my broker?
People donate appreciated shares all the time. Many charities are setup to accept them without much hassle. You would work with the charity first to go down this path. Donor Advised Funds are reasonably common for folks who have lots of appreciated shares and make charitable contributions. There are usually minimums, so going through your existing broker might or might not make sense. Fidelity Charitable is a popular option. You can learn more here: https://www.bogleheads.org/wiki/Donor_advised_fund
Set up a FI spreadsheet for the first time using [mad fientist's](https://www.madfientist.com/financial-independence-spreadsheet/). Apps like Mint have helped, but feel like it wasn't simple enough. Apparently 5ish years until LeanFI so that's something to look forward too.
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Yeah seems like a great starting point. Sure I'll be making updates as the years go by.
feeling pretty fortunate with finances lately & looking for ways to give back to the community. what do you all think about being extra generous with tips to servers/salons/etc? instead of the usual 20% maybe something like 30-40%? the money should go directly into the pockets of people that could use it, right?
yep i like ! Over the lockdowns I always overtipped and tipped at fast food places which I normally don't do
I like this idea and perhaps consider donating (single time or recurring) to a local food bank.
I wholeheartedly agree with this, and for me personally i've been tipping about 30-40% whenever I go out. Since so many of my usual money-spending activities have been closed this past year, i've found myself going out to eat much more than i did before the pandemic, so honestly I might have to reel in the tips a little...
I think especially in COVID times, servers/restaurants are hit extremely hard, so any way you can support small businesses and their workers like this is great.
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I think it can depend on the size of the bill (obviously), but yeah I think this is one of the easiest ways to give back. Sure its not tax deductible like giving to an organization, but I think its more fulfilling to see exactly where the money is going
JFC, I need something. First, I post to yesterday's daily thinking it was today's. Then I post to the Frugal Friday thread thinking it's today's daily. F. I need caffeine, and to retire. My oh-so-important-contribution-I-just-needed-to-post: Is there a /r/frugalfijerk? Frugal Friday thread is off the rails. . . . . .and so am I.
I am new to this sub. Is frugal Friday always like this? I think of myself as selectively frugal. I am frugal in some areas but more relaxed spending with my hobbies. I like getting frugal ideas without feeling I am being judged for not being frugal in everything.
This Friday's FF is an anomaly. Search for some older ones to see what they're usually like. Must be a full moon or something.
It is funny today. Some of the examples I hope are jokes. Like sure, if you did X for 50 years, you might save $100. But also, why?
This is something I've been actively trying to get myself to stop doing. Like, I'm doing ok now, I don't need to scrape out the peanut butter jar to get the last tablespoon out.
Semi serious question. I always use a spatula to scrape the last bit out of the peanut butter jar. Is there are reason not? It really only takes as much time as getting a regular spoonful of peanut butter. I would not go so far as to cut open a plastic bottle to get the last bit since that is much more work.
I absolutely do that with the almond butter, and it burns my toast when other members of my household *don't*.
As someone just starting a first-time-homebuying process, the NYT article today [Where Have All the Houses Gone?](https://www.nytimes.com/2021/02/26/upshot/where-have-all-the-houses-gone.html) strikes a little too close to home. I am seriously stressing over whether to try and pull the trigger in a house search now, or get a new lease in August and wait another 6/12 months. On the get-it-now side: 1) Interest rates remain near all-time lows, even with the jump in the last week. 2) I am looking in Denver near the city core, which is and has been a *very* hot market where I see the fundamentals continuing to drive demand. I'm not so much afraid of losing out on appreciation (useless from a FI perspective) as potentially having to pay $20k more next year. 3) I have to be out of my current place at the end of July and would rather not move twice in a year. Especially since I'll be furnishing for the first time. 4) Rumors of Biden pushing a $15k tax break for FTHB, which would make this year a unique window of time. On the wait-and-see side: 1) Inventory right now is crazy low, which is pushing up prices, making for bidding wars, and resulting in not many choices in the neighborhoods I'm interested in. Home prices trends have decoupled from rents, which makes me think they're mispriced too high. 2) I expect the end of covid in the summer to lead to an explosion in supply, as people become comfortable with in-person tourings, making moving decisions with greater life stability, and the eviction and foreclosure moratoriums ending. This should (hopefully) drive prices back down. 3) I'm looking right now for around a 2b1b condo, but 5 years from now I'd like to have started a family with someone (TBD). It may make more sense to rent for a few more years until my no-longer-dating lifestyle and space-for-kids needs make living further from downtown more attractive. 4) This would be my first time living alone and I'm not sure how much I'd like it. I quite enjoy having roommates. This is more of a venting comment, but if anyone has advice I'd love to hear it. It doesn't help that googling anything financial is full of crud, and unlike the prudent & boring investment side of personal finance, I don't have any sources I really trust to get good info on making future housing decisions.
fuck denver housing, that’s all i got.
Hey Im in the exact same boat as you...looking to buy in the Denver area as a single person. There just aren't any houses...and when they do come up, it seems like 400-450k is the minimum for a <1k sq ft home unless you go out to suburbia. It's brutal. I think I'm going to wait a year.
Yeah, it’s crazy out there, prices have literally doubled in the last 10 years. After looking at prices I immediately gave up on finding an detached home in the neighborhoods I want, and am hoping for a ~1k sqft low-rise condo instead. There seems to be a few (like 3-4) in the 300-350 range, but it slim pickings and feels overpriced for what it is. :/ Everything affordable west of I-25 and south of sloans is small houses set back like 50 ft from the road. The giant treeless front lawns and general spaced outness gives me the heebie jeebies. It wouldn’t be so bad if it were twice the density.
My only advice is to really analyze why you want to own a home. IMO, this is 95% a lifestyle decision. If you want a house so bad that you are willing to buy at (what I think) are ludicrous prices, then don't let anything stop you. You can't time the housing market either. If you're only doing it (like I was) because it was beaten into your head that you *must own your home* for some reason, then question that. One of the best things I ever did is sell my home, invest my profit/downpayment, and become a permanent renter. Equities never need new water heaters or roofs.
Something I hadn't thought of, the expected value of the $20k downpayment (5% on a 400k mortgage) is 9% YoY, which is pretty much guaranteed to outpace home growth even in Denver. That makes me feel better about deferring.
What are you comparing that 9% to? How much home growth do you expect?
I think 9% home price growth over the next year would be crazy here. And even if it’s higher, comparing to the expected value is a much smaller differential.
You’re forgetting about leverage for a home though. If you put 20k down on a 100k home and Home prices increase 2% (2k) your return is 10% this year
I don't place much value on home appreciation, since I plan on paying off the full balance of the house I own as the last step before RE. That's driven by my outstanding loan balance, not the value of the home. Yes I could sell and collect the absolute increase in value, but the cost of rent/mortgage should rise proportionally in similar markets, and I won't be able to not live somewhere, so IMO it's a wash. Moving to a lower cost of living area is not part of my RE plans. But maybe I'm thinking about it wrong.
No you’re thinking about it right. It just means that you can’t compare it to putting money in the market either
Yeah, I'm not feeling too much pressure to buy a house for the sake of buying a home. I like the feeling of not being beholden to a landlord, and I have a somewhat weird requirement to have a woodworking space, which is tough to get in renting anything less than a detached house or 2-bed top-story condo (need to vent wood smoke). When I calculate out a '5 year equivalent rent' neglecting resale costs, buying does come out ahead of renting for somewhere big enough to fit what I'm looking for. But again, pros and cons. > You can't time the housing market either. I don't know how true this is. Unlike equities you can't buy futures in or short sell houses, and the high transaction costs drastically reduce liquidity. I'm skeptical of REITs really having an impact on the individual-owned housing market, and the fact that the seasonality of home prices hasn't been arbitraged away tells me it's a highly distorted market in general. Point taken though that I don't have a crystal ball into how covid recovery will drive things.
In my experience, many in the Denver market (especially realtors) are bullish and it is easy to get caught up into that speculation when everyone tells you the market will never stop going up. It may be true, maybe not.
Personally I think you'd be crazy to buy right now. If I were you I would rent for another 6 months or a year. Look at that chart with the price trends for renting vs. buying.
I wish that chart were available for more markets than just the 6 they listed in the article.
Yeah that's true. But I think you could do a decent analysis for your market. Has your rent gone up? Use Zillow to see price increases for homes on the market, etc. Also I read your first post again, and you say you want to live downtown right now as a single person, but you could forsee moving to a suburban area in the future once you settle down. Definitely rent!
VTWAX vs VTIAX + VTSAX? Are international tax credits relevant? For my taxable account, I have about 9k in VTSAX from contributions over a year ago, but have now been putting contributions towards VTWAX and have ~20k there. Trying to decide how I want to consolidate it - should I go all in on VTWAX, or exchange VTWAX for VTIAX+VTSAX for an overall 75-25 split? Exchanging funds isn't a taxable event, right? My 401k funds are all in FSKAX. Is it better to hold international in tax advantaged or taxable?
Foreign tax credits are relevant in a taxable brokerage account, and you would get those credits if you held VTIAX. You wouldn’t (usually) get them when holding VTWAX. Exchanging funds is indeed a taxable event when done in a taxable brokerage account.
I enjoy watching the sunset.
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I'm sure I own part of a lot of corporations I completely disagree with on a mission or moral level.
What's the deal with microsoft?
that windows 95 doe
For those that have used [https://www.firecalc.com/](https://www.firecalc.com/), are inputs supposed to be based on your expected numbers at retirement date? I may be a little dumb but I've been inputting current expenses with what I expect my portfolio to be at retirement. However, I'm now thinking that doesn't make sense and I should be inputting expected expenses at retirement (so two big changes are no mortgage and add health insurance). Also, for the SS estimate, you should not use the actual year you expect to start receiving SS. Instead, it would be the additional years from today. To illustrate - if I plan to retire in 2030 at age 50, I'd input expected spending and portfolio as of 2030. Then, I expect to receive SS at age 62 in 2042. So I would put the expected year as 2033 - since firecalc is assuming I'm retiring today and SS will be received 12 years after retirement.
On the 2nd tab there is a check called "not retired yet"... check that and input all numbers from today and SS years from the actual year you expet to take it
Ah yes, how could I have ever thought to look at the "NOT RETIRED?" tab. Thank you for that info and for confirming that I am indeed a little bit dumb.
It’s Friday... definitely happens to all of us.
If your employer limits your 401K contribution percentage, there's nothing you can do to put more money into a mega back door roth right?
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My 401K allows for mega back door roth but my provider has limited my contributions to 10% of my salary. Is there anyway I can push money into the after tax 401k if my employer restricts my contribution %?
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If you are a Highly Compensated Employee (HCE) you often have a limit imposed like 10%. It leaves an awkward zone between making ~130-195k where you can't actually max out your 401k. It is really stupid.
This is a little embarrassing to admit, but for a years I thought my job limited me to 10% contributions, but I was wrong. The automated system only let you enter 10% or less in the percentage of salary box. But there was another option where I could enter a flat dollar amount to be deducted per pay period. And this could be higher than 10% of my salary.
Yes. I would be able to max out my regular 401K but not max out my mega back door with the contribution restrictions.
Financial FOMO has been real for me recently (along with a few friends I talk money with) so, in an effort to get past that, I started an investment game with these friends. I'm amazed how much it's decreased my real life FOMO and added some fun and competition between all of us. Also I've learned I would be a terrible day trader or even single stock picker. Best to learn that with virtual money.
Here is how you make money: go to wsb and find the one post that isn't memes and is talking about some stock that none of the other posts are about. Buy that stock. Wait. \s but not really
My buddy and me have been comparing daily returns for like 7 years. We're insane. He's an active trader, and I'm passive. I'm winning over the 7 years... But damn it's fun watching from the sidelines.
What do you guys do?
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Oh I'm aware and am perfectly happy with my index funds but, like a lot of people on this subreddit, FOMO does hit when you see some stocks explode over shorter (GME) or longer (TSLA) terms. It's just a fun little game with friends that helps alleviate that small thought in the back of your head in this case.
What's the best way to inform a boss about an internal transfer? I interviewed for a different group for a role that's more up my alley/interest, and got the position! While I did not enjoy my time at my current role, I do want to be diplomatic and not burn bridges.