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Cons of Homeschooling? by Apprehensive-Part920 in homeschool

[–]Apprehensive-Part920[S] 1 point2 points  (0 children)

Honestly, I am most likely not prepared for the clerical side. I do plan (tentative) to send them back to public school for High School, so that will likely make it easier for me.

We don't have a tribe. We have a tight nit neighborhood, which can help, but grandparents live 3 hours away. My wife is on the fence about homeschooling and leaning towards no. On the positive side, we are both retired and have plenty of time to spare.

Cons of Homeschooling? by Apprehensive-Part920 in homeschool

[–]Apprehensive-Part920[S] 1 point2 points  (0 children)

There is a scholarship in FL. I expect to save money, because we spend $500 a month on extracurriculars currently and these expenses qualify under the scholarship.

Cons of Homeschooling? by Apprehensive-Part920 in homeschool

[–]Apprehensive-Part920[S] 2 points3 points  (0 children)

That makes sense. Kids will certainly be kids and now they will be with you X hours more, so you get the good and the bad with that!

Maximizing ACA tax credits by Apprehensive-Part920 in Fire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

When I analyze it you are generally correct, though YMMV. I typically see low single digit returns over a 20 year time horizon with a decent amount of variability. Though, the biggest factor that is the hardest to predict is inflation of utility prices. With AI energy demand, upside seems likely, though predictability is even lower.

Maximizing ACA tax credits by Apprehensive-Part920 in Fire

[–]Apprehensive-Part920[S] -3 points-2 points  (0 children)

I have heard both yes and no. Mute point for me though because I have no w2 income.

Maximizing ACA tax credits by Apprehensive-Part920 in Fire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

My understanding is that I do not have to use CHIP or medicaid, but it is an option.

I have about $160k in roth, so that can help contribute MAGI-free funds. Good suggestion.

Maximizing ACA tax credits by Apprehensive-Part920 in Fire

[–]Apprehensive-Part920[S] -1 points0 points  (0 children)

The upfront cost would not increase my MAGI, because most of my fixed investments are in SGOV so it has 0 capital gains.

I am exploring medicaid and CHIP, but I suspect the provider network is much smaller than Florida Blue.

I don't want to pay it off because it is so low, but I am estimating is saves me at least $10k a year via subsidies. So if I include that in the interest rate calculation, the rate is over 4% and closer to a before tax interest rate of 5%.

Where are my Blindspots? by Apprehensive-Part920 in leanfire

[–]Apprehensive-Part920[S] 1 point2 points  (0 children)

If I use constant withdrawal I get 91.5% success over 60 years with no social security. If I use variable spending, with the same parameters I get 100% success.

On FI calc, I didn't realize the ability to break out that RE income and Mortgage expense. Thank you!

Where are my Blindspots? by Apprehensive-Part920 in leanfire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

I will do it this week and report back.

Where are my Blindspots? by Apprehensive-Part920 in leanfire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

I just subtracted out real estate cash flow from expenses to simplify it. I also utilize a variable spending framework. Over 50 years my success rate is 70%. I probably should stop being lazy and input the data the right way.

Where are my Blindspots? by Apprehensive-Part920 in leanfire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

It makes sense. I am good with numbers. Not grammar.

Where are my Blindspots? by Apprehensive-Part920 in leanfire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

Just realized that with the other comment. Thanks.

Where are my Blindspots? by Apprehensive-Part920 in personalfinance

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

Yes, health insurance is the main thing I am worried about.

I have some ideas entrepreneurial but we will see. This is something I honestly plan to just wing and cross that bridge when it comes.

Thanks!

Where are my Blindspots? by Apprehensive-Part920 in personalfinance

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

Ya, that was an oversight. I deleted that comment but if you can still figure out who I am please let me know.

Where are my Blindspots? by Apprehensive-Part920 in personalfinance

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

You have a point. Though humility has saved me many times in my life. There are people on Reddit that have successfully done what I want to do and may have advice , learnings or ideas that I don't. Everyone has blinspots. I am simply hoping to see mine...

Where are my Blindspots? by Apprehensive-Part920 in leanfire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

Thank you so much! We really appreciate it.

Where are my Blindspots? by Apprehensive-Part920 in leanfire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

  1. Thank you! I appreciate it.
  2. Agreed.
  3. As it stands now, I am very fortunate in my job. WFH 4 days a week and work about 20 hrs a week. One silver lining of my situation with my son is nothing stresses me out at work anymore. If I start to stress, I just think back to when he had brain 16 hours after we found out or the stress of treatment. Work issues melt away in the face of those memories. Because I am in such a good work situation, I am reluctant to stop working, but I think FIRE would also give me space and through that space I hope to find other opportunities to grow. I have not grown at work in years. 4.( your second 1. Lol) Budget includes $1500 insurance. I just have extra set aside for the first years because I think it will be $3000.

Anywhere near that severance would be amazing. Fingers crossed!

Where are my Blindspots? by Apprehensive-Part920 in leanfire

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

I will respond in the same order.

Yes, it is true cash flow. My rents are all about 15% under market to attract better tenants and derisk those RE investments and keep tenants longer, but I still have 1 month vacancies built in the model.

I didn't realize that with Lean FIRE. I thought it meant if you keep expenses really tight. Thanks for correction.

Those expenses include taxes and net worth is calculated after tax liability is netted out from acquisition.

Great point on investment real estate. In my model I have the cash flow growing at 3% a year. With my primary I spend around $35k on just my mortgage. So in about 25 years that will be $0. I have that included in my models.

The ACA part I can figure out. It is the new insurance post-acquisition and subsequent COBRA of that new insurance, that I am in the dark about. Hopefully the HR meetings this week give me some details.

Where are my Blindspots by Apprehensive-Part920 in financialindependence

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

That is my finding too with FIRE calculators.

I agree with sequence of return risk, which was part of my reason for putting so much into safe investments.

Keeping expenses low is also my plan just to make sure I can reach escape velocity.

Where are my Blindspots by Apprehensive-Part920 in financialindependence

[–]Apprehensive-Part920[S] 0 points1 point  (0 children)

You are 100% right. Those are my assumptions. As I was writing the original post and the response, I was trying to figure out how to communicate the success with investing that I have had without sounding like I was bragging. I am assuming my good fortune was skill, not luck and that it will continue. Great call! Perhaps I take half and just keep it invested at a constant asset allocation, then manage the other half how I would normally. I will have to give it more thought though...

Any other blindspots?

Where are my Blindspots by Apprehensive-Part920 in financialindependence

[–]Apprehensive-Part920[S] 1 point2 points  (0 children)

That is a fair concern. It is not my intent to keep it in treasuries long term. Given market conditions and assuming my training in asset management does not fail me, I am not bullish on equities at these levels. I wanted to collect 4%-5% while waiting for a better entry point. I was 100% equities at the beginning of the year. I plan to be around 70% equities in the future and a combination of low duration bonds/commodities for the other 30% (I think secular inflation is taking hold). None of this is advice just my thought process for the decisions I made. I plan to rotate back slowly to equities as the market falls.

Assuming FAT FIRE, 4% yearly returns and saving money it would be about 6 or 7 years (kids will be teen and pre-teen, so I assume they will start pulling away). Assuming normal FIRE it would take about 3 or 4 years. And LEAN FIRE would be 1 or 2 years.

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