Killroy1999
Well-known member
Oh, boy. I think I am going for the anorexicFIRE. $2M in net worth - $80,000 income.
I have not really run the numbers, but I will have my place paid off and rental income.
2021 Investment Thread
- Thread starter scootergmc
- Start date
Oh, boy. I think I am going for the anorexicFIRE. $2M in net worth - $80,000 income.
I have not really run the numbers, but I will have my place paid off and rental income.
NorCalAthlete
O_o
That's known as leanFire.
900ss
Well-known member
Apologies if this come off sounding like a lecture.
Live within your means (living below your means is a better idea) while having fun, don't use your home as a piggy bank if you own it, pay yourself first, invest smartly and hope for some good returns from your investments. Staying gainfully employed is a plus!
My wife worked briefly for Apple, and the RSU's and ESPP shares she has are a part of our overall portfolio, albeit not a large portion of it. The largest parts of our portfolio are our 401ks, followed by our home and the one my wife inherited from her mother. I always contributed (and still do) the maximum to my 401k and have been fortunate with it, but was never able to convince her to contribute the maximum. Nonetheless her 401ks have also performed well.
We paid off our home some years back before the loan was up, and never took out a 2nd mortgage against it. Writing that last check, although painful at the time, was extremely liberating.
My wife retired 4 years ago to take care of her ailing (now late) mother, but before her retirement we were able to take some very nice overseas trips. We plan on doing so again once the pandemic settles down.
I'm 4 years away from full retirement; some days I think I should consider retiring before that point, but have a concern many people share; medical insurance costs.
All that being said, I never stated that I have 2 mil +. If I did Mike might ask me to adopt him so he can work on his car restorations full time..... :rolleyes
Killroy1999
Well-known member
Let's check the math:
Invest $320 per month
From 25 to 65 years old
10% per year -- the historic US stock market gains
>$2M at 65
Do it again with 7%
Invest $775 per month
From 25 to 65 years old
>$2M at 65
Your returns make a big difference, so try and match the market average.
https://www.calculator.net/future-v...tv=775&ciadditionat1=end&printit=0&x=113&y=24
FYI, I had an offer for a contractor position at G on a hot project and it was too low. They don't pay everyone well was my conclusion. It was probably because the contracting agency takes a big cut.
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900ss
Well-known member
Killroy1999
Well-known member
I just posted some examples of how to get to $2M for 65 years old. Use the calculator I posted to calculate FIRE.
For a visual:
The math is better explained here
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UDRider
FLCL?
Disregard everything I wrote......
It's still a good advice.
I just posted some examples of how to get to $2 for 65 years old. Use the calculator I posted to calculate FIRE.
For a visual:
The math is better explained here
Assuming 15 years of investing, seems like answer is either very rosy returns, or putting away a metric ton.
Killroy1999
Well-known member
Agreed. Who said 15 years now? Lost of variables. I think the people that really do FIRE have been trust funded, are high earners, hard penny pinchers, or a combination.
I wish I had been tracking my net worth on Mint.com longer. I did a extrapolation with the last 7 months and I hit my number in 2 years. I WISH!:rofl
FYI, a metric ton is more correctly a Mg (megagram) in official SI units (metric system) :nerd
This lady says that the target for "Lean FIRE" is $1M, $40,000 a year ---OMG
youtu.be/u1iY1AevvqM
I like the idea of hitting Lean FIRE and transitioning to Barista Fire. I could quit engineering widgets and start a Instagram and Youtube business. All travel and toys are tax write-offs. Suck it IRS.
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UDRider
FLCL?
Well we are talking FIRE, so start at 25, and retire at 40. So 15 years. I was being generous with my timeline. Some are talking retiring in their 30s.
Point being my original question, in context of FIRE, was:
So seems like an answer is not many.
On side note I chuckled when she said "minimalist at heart" as she seats with what looks like MBP, and Apple watch on her wrist.
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scootergmc
old and slow
IMO, the USA is following something similar to the 1980s Japanese economic model and if history has told us anything, we're in for a significant years-long correction in the near future. Everything can't keep going up.
Many of these young youtube FIRE folks have yet to experience a true investment market recession/pullback. When they do, bread lines and tattered clothes they'll be.
Many of these young youtube FIRE folks have yet to experience a true investment market recession/pullback. When they do, bread lines and tattered clothes they'll be.
900ss
Well-known member
It will be sad yet entertaining to watch.
I heard on the radio this morning that buying and selling stocks has become just another game to many, with no regard to cost or value, or that thing called "investment".
afm199
Well-known member
Agreed. There are a lot of kids out there who have only seen an upward market since 2009-10. They don't really have a visceral feel for a correction. They think it's just easy money, lol.
scootergmc
old and slow
Move out.
edit: kdding aside, just a simple S&P 500 fund in a Roth.
edit: kdding aside, just a simple S&P 500 fund in a Roth.
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900ss
Well-known member
Download this; it's a good overview of investing in general, targeted at younger savers. https://www.etf.com/docs/IfYouCan.pdf
https://www.bogleheads.org/ has some good advice, once you weed out the b.s. posts. Some are from or targeted towards new savers.
The classic 3 fund portfolio makes sense for many.
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Killroy1999
Well-known member
-If the company offers it with matching 401K and max it out
-HSA if the company offers it and max it out
-Invest in the S&P500 or ESGV
-read the 'Index Card'
-Read 'Rich Dad Poor Dad'
-Listen to Freakonomics podcast
-Track your budget on Mint.com
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JesasaurusRex
Deleted User
You can open an HSA even if your employer doesn't offer it. Fidelity let's you invest the money. May be others now too.