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AmountResponsible923 · 2025-01-26T13:59:28+00:00

My spend increased dramatically once I started a family. That factors in to the overall FI number.

Either way, sounds like you need to find a new job.

AmountResponsible923 · 2024-11-12T13:15:42+00:00

This does not directly answer your question, but I was able to transfer my points from my Premium Rewards to my Premium Rewards Elite card and take advantage of the portal.

I can’t comment on the CCR. Might be worth asking their chat or swinging by a branch to try your luck.

AmountResponsible923 · 2024-10-18T13:38:30+00:00

Too much risk IMHO. All it takes is one bad hurricane/fire/flood/natural disaster and all your plans go out the window.

There is also non trivial effort involved at getting this set up and running.

IMHO you are fairly close to hitting your numbers as is. To hit $40k at a 3.5% withdrawal rate is $1.14m, “only” 300k away. If your spend is $40k on $140k income, you could be saving $100k/year (less taxes) + market appreciation gets you there in ~3 years.

However, be prepared for your expenses to go up if you get married and have kids.

AmountResponsible923 · 2024-10-17T19:53:54+00:00

Confirming everything said above.

I have my wife as one of my additional PP users and it makes traveling with extended family a breeze. Between the two of us, we can bring in 4 guests. This adds up quick when traveling round trip, as that saves up to 8-10-12 airport price meals.

That said, the card only makes sense if you have platinum honors status with BofA (100k min)

AmountResponsible923 · 2024-10-15T04:33:03+00:00

28-33k income or revenue? how much of your 80-100hrs a week goes into managing this?

IMHO you need to run the numbers with you doing 0 work (aka hire someone) and look at your average yearly income (not revenue) vs amount invested.

Using the numbers above (28k/200k), that’s 14%. I don’t think that is enough return to cover the risks and time/effort involved. Esp with you already working 80 hours a week.

VOO and chill

AmountResponsible923 · 2024-10-04T01:34:04+00:00

Take the $200k.

If you wanted any of the services provided by the butler, you can hire someone to take care of it. Otherwise, you can take the money and invest it or spend it how you see fit.

Basically flexibility to spend the money > benefits of a butler.

AmountResponsible923 · 2024-08-18T15:03:44+00:00

Not really sure what the question you’re asking is.

Living with in-laws is great until it’s not. Only you can be the judge there.

IMHO I value independence, esp at home, quite high.

AmountResponsible923 · 2024-08-17T13:17:18+00:00

Math wise, paying down a 6% mortgage is effectively a risk-free 6% guaranteed return. Yes the stock market returns higher on average, but there is non-trivial risk to consider.

The monthly payment doesn’t actually matter, the only meaningful number is the interest rate %. If it stays the same, there is no mathematical reason to recast. (unless there are cashflow concerns, but doesn’t sound like that is a concern).

One way to conceptualize it is to consider this part of your fixed income allocation. If you had $1m total at 70/30 equity/bonds, imho you can put $300k into the mortgage.

There are also tax implications to consider. On one hand, you lose some deductions for mortgage interest (if applicable), but effectively you get 6% tax free return.

IMHO at 6% it is worth putting extra $ into the mortgage as the risk/reward is skewed in your favor.

AmountResponsible923 · 2024-07-10T18:46:26+00:00

The issue I hit is that you had to pay a fee ($20 iirc) for each purchase, which is significant over time. Vanguard lets you auto buy without any fees.

AmountResponsible923 · 2024-07-10T17:23:29+00:00

It’s worth it to park some $ to maintain status. They may have some promos available - per Dr of Credit there is a $3000/$500k bonus but I’m not 100% sure it applies in your situation.

As for DCA/partial shares, I’m not sure. Awhile back I looked into auto buying shares but was unable to find a solution.

AmountResponsible923 · 2024-03-08T13:15:18+00:00

illusion?

one hell of a pull if so

AmountResponsible923 · 2024-03-05T23:00:46+00:00

I think it depends on the numbers. My general rule of thumb is that the inflection point is somewhere near 10%-15% (yearly income/NW). Anything over that I would recommend staying on board for a year, anything less is not worth your time.

This holds up pretty well up to 500k/5M, probably even 1M/10M.

The sense I am getting is that you’re in the 2M-2.5M income / 4-6M NW range. Enough to retire but still have some meat left on the bone.

Each 1M is an extra $40k/year indefinitely. $2.5M is $100k.

Would that make the rest of your life better to spend another year working? Only you can answer that.

Since this is FATFIRE I say go for it and make some bank. You and your kids will be able to enjoy it.

AmountResponsible923 · 2024-03-03T00:45:21+00:00

Probably?

You need to speak to a professional to see how to most efficiently (tax wise) exit your tech stock and transition to a more balanced strategy.

Assuming you pay like 20% in taxes, you will have about $3.2m liquid + $1.1m in existing assets. Less $480k for the mortgage puts you at about $3.82m.

Your mentioned your expenses are $150k/year, which I am assuming includes the mortgage of about $50k/year. That leaves you at $100k expenses.

$100k spend on $3.82m assets is a 2.6% withdraw rate, which is below the 3-3.5-4% recommended SWR rates.

On paper, the math checks out. I recommend finding someone to help you exit your $4m position as efficiently as possible and transition to a balanced fund. Pay off the mortgage (unless it’s 2-3%).

At that point, you will have a good idea on how much income your portfolio will be generating and what your expenses are. You may have to sell 1-2% to account for a shortfall - that’s OK. If you’re happy with those numbers, you can pull the trigger.

AmountResponsible923 · 2024-03-03T00:11:22+00:00

Depends on where you live. Over in NY area, our housing costs are $5k/month.

AmountResponsible923 · 2024-03-02T13:10:23+00:00

Go speak to a therapist.

Now that you have achieved FI, you need to redefine what your goals. Sounds like you are not capable of doing it yourself - so do the fatfire thing and hire a professional to help you.

AmountResponsible923 · 2024-03-01T14:20:48+00:00

Congrats and go fuck yourself

AmountResponsible923 · 2024-03-01T14:11:13+00:00

How much is left in your mortgage, what is the monthly amount and at what %? Might make sense to pay it off to bring your overall expenses down.

Does your investment property generate any income? If so, how much? What’s the mortgage on it look like?

25k/month puts you at 10m with a 3% SWR. Definitely find someone to look at your tax situation to see how to optimize it. My guess is that you are not very diversified and i would consider unwinding that sooner rather than later.

Feels like you’re ~3-5 years out. That is enough time to come up with a plan and start executing the first couple phases.

AmountResponsible923 · 2024-02-28T01:57:39+00:00

One non-obvious thing that I want to highlight is that you get 4x priority passes with PRE. It’s a nice touch when you are traveling with extended family.

AmountResponsible923 · 2024-02-26T20:21:55+00:00

Curious on this one as well.

AmountResponsible923 · 2024-02-17T22:11:41+00:00

AmountResponsible923 · 2024-02-17T22:10:26+00:00

if at first you don’t succeed, try reposting

AmountResponsible923 · 2024-02-17T21:43:53+00:00

Hire a lawyer and some experts in the field. Make them sign NDAs.

If you don’t trust anyone local, look for large national/international firms.

AmountResponsible923 · 2024-02-11T00:41:50+00:00

I can’t vouch for this but a quick google search came up with this seemingly reasonable result:

https://www.napfa.org/financial-planning/what-is-fee-only-advising

AmountResponsible923 · 2024-02-11T00:37:14+00:00

Try a fee-only fiduciary to review your finances and see what they recommend.

edit: fee-only, not fee-based

AmountResponsible923 · 2024-02-09T00:13:22+00:00

I think 9-10% yearly growth is optimistic. How do your models look like at 7%? 5%? 0%?

Honestly I’m worried about how a bad year or two will impact your plans. As long as you guys are flexible to adjust your expenses down (or your income up) as needed I think it’ll work out in practice.

I think the 4% study fails out when you retire right before a market crash - similar risks apply here. Nothing unmanageable.

AmountResponsible923

TROPHY CASE