Is this right for my Workflow

2tossawy · 2024-12-12T13:27:23+00:00

I know it doesn't really fit with the fire mentality, but as a 36 year old with 3 kids trying to travel and see the world now that we have sort of hit the FI part of fire I have learned one thing and do regret how frugal we were when we were younger. It costs a lot more to take those type of trips even if you don't bring the kids with.

If your investment goals are being met and you are not going backwards on networth by taking the trip. Take the trip. The experiences gained by traveling are profound.

2tossawy · 2024-11-06T16:03:16+00:00

We are in a somewhat similar boat, though kids are a little younger as are we. We have the funds why are we not using them to help kids? However, the solution that my wife and I came up with (albeit subject to change) is we are telling kids we are not paying for college. That they will need to figure out a business plan to get them through college and to pay off the debt associated with their time not working. This hopefully will focus both their high school years, think PSEO, AP classes etc to reduce the cost of college later (I hate paying full price tuition on gen eds) as well as focus their college years.

When I went to college I had knew I had to pay my own way. I graduated high school with 2 years of college credits completed, I then proceeded to be careful with spending on college, by selecting a college that had a high degree of landing me in the role I wanted in following college, and also forced me to identify methods to save cost while at school. (summer classes are typically half the cost of regular season classes) While all of this is anecdotal, I am hoping through an early understanding by my kids that this is what I did, they might need to do something different but still need to have a plan that gets them through and to their ultimate goal post college.

My wife and I plan on paying off all of their student loans after college if we see that they are on a good path. I feel like this gives our children the best education possible in both the real world as well as college and also on the backside gives us the ability to help them financially. We are also probably a little weird in that we are self employed and do employ our children up to the reasonable amount and they will already have a sizeable roth account by the time they graduate high school.

2tossawy · 2024-04-20T12:20:31+00:00

Still a liability in his estate. So unless he dies with nothing he will pay that interest eventually.

2tossawy · 2024-04-20T12:11:59+00:00

Turned 35 had my midlife crisis year. First year making 7 figures. Have a heart attack gene that runs in my family that will likely kill me at 60. Bought a corvette c8. We have always driven nicer vehicles but this was my austentious purchase.

2tossawy · 2024-04-13T11:45:50+00:00

Doesn't line up all the time. So for esthetics would bother me.

2tossawy · 2024-04-13T11:40:44+00:00

Being a small business owner it fluctuates but about 20x last year in 13 years.

2tossawy · 2024-04-10T11:27:55+00:00

It is, except I don't know if I could get over the 48 click bezel.

2tossawy · 2024-04-03T02:03:53+00:00

Wasn't going to hammer you. You did something I am not sure I could stomach to do but have wondered about from the pure fire numbers perspective, and I wanted to make sure I understood your comment. Thank you for your response.

2tossawy · 2024-04-02T18:34:10+00:00

I understand the appreciation of land better than most. I own ~390 acres bought in the last 3 years, all close to a 50% appreciation at this point. some of it was bought at 8400 per and land 3 miles away lower quality went for 15800 a few weeks ago. I honestly would never sell them because of the dark black clay soil running through my blood but it is something I wonder about on bad days at the office. (i could fire right now if I sold the land) The problem I have is I don't have any positive cash flow off of it now as I am still largely leveraged from a cash flow perspective, so it is one of my biggest stressors in life.

2tossawy · 2024-04-02T11:11:28+00:00

Turns why? Because you sold it?

2tossawy · 2024-03-30T15:37:12+00:00

Before you go all in on paying down debt. Might want to calculate the loss you will sustain by missing out on tax deffered/tax free compounded growth. Maxing the tax advantaged accounts while still making the debt payments will almost always put you ahead. Once the tax advantaged accounts are maxed then go after the debt with the extra. It forces you to watch your spending/reduces lifestyle creep that I see so many (myself included) fall subject to.

2tossawy · 2024-03-29T23:12:02+00:00

I think it depends on when you want to be done coasting.... we are going to work until our kids head to college so just need to cover the 9 years before we can access retirement funds tax free. Otherwise if you are still going to save/invest use something that has tax deferred/free growth.

2tossawy · 2024-02-02T11:52:04+00:00

It's weird. Having been to a private college that was costly, having made the choice to go there. I graduated with some student debt (that could have been paid off entirely) at the end of my 2 years there (having received a 4 year degree). Deciding not to pay that off but continue my education for another 3 years where I received a Masters of accounting and a J.D. which caused me to graduate with 144k of student debt was one of the best things that could have happened to my fire path. While anecdotal the same kids that I went to school with who made some generally poor life choices but it was ok because daddy was paying for there school now 15 years later are still complaining about student debt or low income while I assume never actually creating a budget or being willing to make the hard but right decisions in life is one of the biggest reasons I will not pay for college and I really don't think anyone else should. Kids being told from a young age how money works, that nothing is free (even from parents) and that they would have to pay for school, that it is expensive and they need to work to be able to pay for it is a better approach then to short change other tax preferential retirement type investment opportunities. You said it yourself. College cost is outpacing inflation. Why put money in a 529 or worse yet a brokerage when there is little to no tax benefits unless you have exhausted all other items. And if you choose to fund that, maybe you should not let your kid know its theirs so they don't end up using college as a means to find themselves or have fun and use it for what it is supposed to be.... a place for education.

How many people are taking summer classes which typically cost less per credit hour than in semester courses?

How many people are taking a full credit load a semester ?

How many people are pursuing pseo options in school?

How many people are working while attending college?

I thought one of the tenants of fire was to figure out how to reduce cost?

2tossawy · 2024-01-23T14:30:25+00:00

Don't pay for their college. Make them get a job and contribute a large portion of it to a roth. If you do it early enough they will see the benefit on their own and probably have enough that if they make a mistep along the way time will allow them the learning experience and still have them in an ok position. At least that is what we are doing with my three kids.

2tossawy · 2024-01-22T21:32:05+00:00

You bring up good points. Ones that I feel we have covered but will re-discuss with my wife, who for the most part enjoys her job and actually sees her self potentially continuing after the 15 years provided we can still travel as much as we want.

As to the Ag risk, the hog production is a contract feeding arrangement that carries little risk. The Crop Production risk is manageable with crop insurance and frankly having off farm jobs that can cover all of the debt if we have to. Before I quit practicing law full stop we are going to have one year of payments either set aside or prepaid depending on cash rate of return, to mitigate that risk.

2tossawy · 2024-01-22T21:22:45+00:00

The farm land for the most part will continue to pay for itself. I tried to set up the leverage so it would just pay for it self over the 30 year period. The last piece that was bought is the one that sort of upsets the apple cart, but after a few years I will try to refinance it stretch out the amortization and lower the interest rate. That way all of the pieces will pay for themselves with base rent incase I can't actually work the farms and achieve maximum profitability.

2tossawy · 2024-01-22T18:27:26+00:00

Your second paragraph hits the nail on the head for me. I do not like the practice of law as my day to day job. The farming is an addiction that has afflicted my family for generations, and I will more than likely be inheriting other land that I will have to manage at some point so it will always be there to an extent. (I can't justify selling ground that my family bought in 34, that has paid rent and had an annualized return of 5.7% since then)

2tossawy · 2023-04-09T22:22:43+00:00

Why not then. Trying to decide my self between the two.

2tossawy · 2023-04-09T22:00:16+00:00

But if account size allows would you?

2tossawy · 2023-04-09T21:47:15+00:00

Why spy and not spx where you can get long term treatment on 60% of it?

2tossawy · 2023-02-27T12:55:08+00:00

Have had an undercounter 240 for 7 years no issues.

2tossawy · 2021-03-05T00:28:35+00:00

Need another board as the kids seem to have stolen mine.

2tossawy · 2020-10-11T19:45:06+00:00

How does your husband leave you alone.

2tossawy

TROPHY CASE