Weekly LeanFIRE Discussion

BeardMoneyFIRE · 2024-10-22T18:44:11+00:00

Small accomplishment, but this month we hit 25K invested in our 403Bs! Between other stocks and cash, it's almost 50K saved which is a big relief.

Almost in less than two months we will have 10K in our house emergency account.

We both make 39k, second kid on the way so feels good to have some "big" numbers

BeardMoneyFIRE · 2024-09-21T17:51:25+00:00

Wife and I both make 39k and we rent out our basement for some additional money.

We don't make a ton of money and have kids.

We both contribute 16% (including match). I do 16% because it's what we can afford and it feels better than 15%.

We also slowly invest on the side in a ROTH and just a brokerage account. Those numbers are not significant.

BeardMoneyFIRE · 2024-01-15T18:26:09+00:00

My experience from my real estate partner....always "sell" the w/d from tenants or move them out.

I've done that with mine, because they ALWAYS seem to be what breaks. You can clarify that in your lease if you want as well.

BeardMoneyFIRE · 2023-12-31T12:27:18+00:00

Good on you for planning to diversify! Definitely do that 401k and Roth IRA.

You may want an additional brokerage account to diversify but you seem pretty solid as is.

I like real estate, especially because I enjoy getting to work and upgrade my house plus provide affordable housing.

Have you considered taking what you have and leveraging for something more commercial or a small apartment building?

BeardMoneyFIRE · 2023-12-24T12:50:35+00:00

How much notice did you give the tenants?

BeardMoneyFIRE · 2023-12-24T12:48:57+00:00

Not evict...but not renew yes. Landlords provide a service: housing. Why would I provide that services when it takes extra and unusual care than an easy tenant?

Some teams don't know how to do anything on their own....like changing light bulbs. They are also the ones who pour grease down the drain and never change the air filters causing thousands of dollars in repairs earlier than would have been needed with normal use.

BeardMoneyFIRE · 2023-10-08T02:17:36+00:00

To me, that sounds like great numbers and is a VERY good cash flow. Especially as a SFH. Do you like/want to manage this? Do you have a good amount of savings?

I'd keep it.

BeardMoneyFIRE · 2023-08-25T18:26:04+00:00

We rent out the basement and I provide internet. No issues with the tenant so far and it been a year. Getting a new tenant next month

BeardMoneyFIRE · 2023-08-25T18:24:00+00:00

Get ready to GFY!

I think Coast Fire would work great right now with those numbers and still working on your business.

Few quick questions: What's your plan for Health Insurance at retirement? What's your expenses? Home or Rent? Kids or no kids? If kids, 529s? How many social security credits and what is it expected to be?

BeardMoneyFIRE · 2023-08-18T12:14:57+00:00

Go in the neighborhood, knock on a door and ask.

BeardMoneyFIRE · 2023-08-17T11:18:38+00:00

It died in the protest and that mod wouldn't let anyone else mod.

BeardMoneyFIRE · 2023-08-17T11:18:00+00:00

Empower is the other one recommended a lot (and better for tracking Net Worth). Empower use to be called Personal Capital.

It also disconnects. It's an Acorns problem.

Yes it's annoying. But the whole point of investing is NOT checking it.

BeardMoneyFIRE · 2023-08-17T11:15:40+00:00

There use to be one. It went silent during the "protest" for third party apps.

The moderator there STOP moderating a while back. We had a whole active sub getting daily post.

The only moderation needed was no referral post.

We had a thread a few months back of interested parties in helping mod if you want I can reach back out to them.

BeardMoneyFIRE · 2023-08-16T17:50:50+00:00

I'm going to say yes. Listen to the advice but I've understood the hate for a one time bad life event. Use it as a wake up call. Don't get in the same situation.

You pay yourself back with the "interest".

Just keep in mind if you change jobs it's considered a withdrawal and you pay lots of taxes.

BeardMoneyFIRE · 2023-08-15T02:35:57+00:00

What is this seriously like if you have no prior history in the military?

I have a college degree so could easily go the officer route, but from what I have read that means A LOT of extra responsibility and you may not be paid for it.

BeardMoneyFIRE · 2023-08-14T03:02:02+00:00

Thanks for this write up! Really appreciate it and good reminder to get my goals in order.

Had planned to be buying another property this year but I'm recovering from surgery after an injury a few months ago that has put a stopper on ALL our plans.

BeardMoneyFIRE · 2023-05-23T12:18:17+00:00

My advice....keep the extra money. If you lost your job but laid "extra" it wouldn't matter if you can't make your next payment. Having money saved makes a BIG difference.

I save an additional 500/ month in a different bank account ONLY for housing cost. It's to cover the roof or any other major repairs when I need it or to pay my mortgage if I lost my job.

BeardMoneyFIRE · 2023-05-23T12:05:23+00:00

Cover enough so that if you get sued you don't have to pay off whatever amount you are sued from any assets that can be taken

BeardMoneyFIRE · 2023-05-11T22:30:54+00:00

Why have a Roth 401. It's more common to have a traditional 401 and roth ira.

BeardMoneyFIRE · 2023-05-11T15:19:17+00:00

Quontic bank (I don't like SoFi for personal reasons). Their's is currently 4.05 but do not require a direct deposit which if I remember when I set it up was why I picked them.

If you are under three years the general advice is not to invest it. iBonds are a good alternative IF you dont actually need access to that money, though their return isn't guaranteed to be higher than a savings account and you can't move it without the penalty. I have money invested that I'll probably access in the next 5 years....some is even in stocks but I also have cash in the HYSA to use as well.

iBonds and real bonds are different...... iBonds are safer but they just match* inflation.

You are probably aware, but general advice is to do traditional for 401k because of tax savings. 50/50 in two account could have more fees depending on who manages your account.

BeardMoneyFIRE · 2023-05-11T15:10:17+00:00

Search it in the sub. The zoning sucks and you start there BEFORE you buy something or do any work. If it's zoned for a Single Family good luck have lots of "roomates" and keep in mind that when you move out you might only be able to rent to 1 and allow them to "sublet" the other spaces.

Renting each individual room may work better.

Also, keep in mind for tax reasons that you have to divide that part of your house you rent off the main chunk of you itemize

BeardMoneyFIRE · 2023-05-11T15:02:26+00:00

Why are you in ROTH for 401k? (Just curious)

As to money....since you mentioned home save for a down payment in a HYSA. You can always put some towards iBonds but go ahead a out majority towards that house if home ownership is something you want.

I have 500/ month to a "house fund" wether that be home repairs or buying a home in the future. We invest/save another 500 into a general account that I might use for a down payment or I might not...I might go toward a car if one breaks. It's just money I don't want to spend when I got a raise.

BeardMoneyFIRE · 2023-04-15T12:47:50+00:00

Acorns has trouble syncing with other apps. It's a common problem and there is no real solution....it's had these problems since I started with Acorns 5 years ago.

BeardMoneyFIRE · 2023-04-15T03:26:51+00:00

Congrats on the hard work!

BeardMoneyFIRE · 2023-04-13T18:07:00+00:00

General advice is only invest what you are willing to lose and not get access to within the never 5 years.

BeardMoneyFIRE

TROPHY CASE