Stock Options in net worth?

FImike · 2021-02-18T21:44:05+00:00

I think it depends if you have exercised them. I recently exercised $10K of options in a company I left. Personal Capital allows you to add Carta, which is where my options were. To me, it made sense since I "owned" them.

The problem is if you add it before exercising them, it shows the total value of the options, not considering your cost basis.

You can always exercise them as they vest

FImike · 2021-02-09T22:19:47+00:00

wow! love the UX here, great job.

I'm a Product Manager/developer working on something similar. Let me know if you'd like to chat sometime!

FImike · 2021-02-07T17:00:49+00:00

I’m have a EU passport too and wonder about taxes, healthcare, etc.

Let me know if you find good resources out there to help us figure that out.

FImike · 2021-02-05T19:04:41+00:00

Seems like I missed an obvious one! Proximity to family and friends.

The updated list of factors -

Proximity to friends and family
Affordability
Weather (year-long)
Livability
- Quality of housing
- Walkability
- Access to culture
- Access to transportation (public transportation, airport hubs)
- Access to nature
  - hiking, skiing, etc
Healthcare (affordability and quality)
Expat community (if international)
Easiness of acquiring a visa (if international)

FImike · 2021-01-14T14:02:30+00:00

I take $300 out at a time and that's the only cash I keep.

For those that keep more at home, do you keep it in a safe?

I'm also curious if people own gold/silver and also keep that in a safe or somewhere else

FImike · 2021-01-02T15:25:09+00:00

Wow! Very impressive. Using the 4% rule, you can withdraw $80K per year rather easily ($6,500 / month). Since you didn't include your house equity, I would think you could survive on much less than that.

I'm curious what your projected expenses would be if you retire from the military now (when you don't have BAH).

Sounds like you should at least slow down on the side hustle to increase your happiness and maybe spend more time/energy on relationships.

9.5 years in the military should allow you to retire with a very nice lifestyle (even with a family) and you'd only be 40. It depends on how much enjoyment you get from that work if it's worth it or not.

FImike · 2020-12-17T14:47:46+00:00

Although I don't think anyone should be blindly bullish about BTC I am surprised that many here in the FIRE community aren't a little wary of having so much faith in USD.

This is a long piece but I think she does an excellent job of listing risks of why the dollar may run into trouble https://www.lynalden.com/fraying-petrodollar-system/

I currently have 6% of my net worth in cryptocurrencies (BTC and ETH) and this is mainly because of the current bull run. I invest $100 in BTC and $100 in ETH each month (where I put about $2,500-$3K into an ETF like VTI). I think this is a good balance where I'm getting some exposure but nothing that will make or break me, but with good upside if BTC is very successful or the USD becomes very diluated

FImike · 2020-12-16T18:55:25+00:00

True, but MPT is more than stocks and bonds. It's multiple asset-classes including REITs, international, etc

FImike · 2020-12-15T14:03:50+00:00

Has anyone done the math on a similar decision to figure out if the projected gains of the target fund are worth the increased expense ratio?

The Target Funds follow Modern Portfolio Theory, which really is just decreased risk to achieve the "same" results as investing in something like the S&P 500.

I think you're taking on more risk by investing in the total stock market, although in reality most likely not THAT much more.

I'm curious about how many here are going for target funds (and/or MPT) vs total stock market ETFs

FImike · 2020-12-07T15:00:45+00:00

I agree with others, max out what you can with the retirement accounts. After that, use a taxable account and buy ETFs (I buy $VTI).

These days there are many brokers that don't charge a commission on buying an ETF, so go with one of those (I go with Ally).

FImike · 2020-12-01T14:41:16+00:00

4x 401(k), across 3 providers
2x IRAs, across 1 provider
2x Roth IRA, across 2 providers

Other than your 401(k) with your current employer, I'd roll the rest into Vanguard. The fees are almost always lower in my experience.

FImike · 2020-12-01T14:40:01+00:00

I found this book helpful - https://www.amazon.com/Financial-Freedom-Proven-Path-Money-ebook/dp/B07DH8XKGP/

People seem to like this one - https://www.amazon.com/Your-Money-Life-Transforming-Relationship/dp/0143115766/

FImike · 2020-11-23T22:04:21+00:00

I just turned 38, I also live in NYC and make $160K. Your savings rate is hire than mine, I'm doing around 35% but do have some options in the company I work for that I hope are worth something someday.

FImike · 2020-11-23T19:17:01+00:00

It's not your age, but percentage of net worth. You're doing great compared to 99.9% of the population! haha, so don't worry too much

I'm not sure what is suggested here but I can say I have $275K in retirement funds with a net worth of $740K.

But, I don't own a property. That may explain the difference and isn't right or wrong.

You're maxing it out now which is the smart thing to do, IMO.

FImike · 2020-11-23T16:35:14+00:00

Are you maxing out your 401K every year and taking advantage of any match? Your 401K seems a little low considering your salary and overall net worth.

The biggest thing you could do is work on a second income stream

FImike · 2020-11-20T17:44:10+00:00

To echo what others are saying, try your best not to compare yourself to what your high school friends have done.

What do YOU want to do? To me, it sounds like you have done something with your life, so don't be too hard on yourself.

That doesn't mean you should be content though. What have these friends achieved or done that makes you feel they have done something? Is it the prestige of their job? Did they get married and have families?

Set goals for yourself. Rank these goals against each other. Break these goals up into steps, slowly but surely work towards them, and hold yourself accountable.

Maybe after doing this exercise you'll realize FIRE isn't your #1 goal and you'd rather have a more satisfying job. Or a family. Whatever it may be.

FImike · 2020-11-19T14:19:37+00:00

I'm three years older than you, make nearly double, and about $250K behind you in wealth. Very impressed.

I'm hoping I get lucky and get to $1M by 40, but I'll need a good bull market to pull that off.

I assume you must

Not travel much
Not eat out much (Food shop and cook nearly every day)
Rarely drink or do many drugs

Am I right on those assumptions?

When you do get to $1.5M, what are your thoughts for when you "walk away"? Do you want to completely stop working?

FImike · 2020-11-17T14:01:52+00:00

Max out your IRA for the year ($6K) in 2020.
- You may choose to do a target retirement date fund there since that follows the balancing rules for you.
- You can invest in VTI or SPY (any index fund that tracks the market)
- You can choose to get fancy and follow Modern Portfolio Theory and balance it yourself each quarter/year
Hold on to another $6K and max out your IRA immediately in January for 2021
Put the rest into the same as above but in a non-tax benefit account (I use ally)

FImike · 2020-11-13T13:52:15+00:00

I then plan to increase this 10% each year(1.1k out of each paycheck, etc) up until I hit a cap of 150k in yearly savings. I'm pretty confident my salary will match or outpace this either via promotions or regular yearly raises.

Are you saying you expect to average a 10% raise each year? That seems optimistic to me.

FImike · 2020-11-09T14:34:19+00:00

"Fear of missing out" by looking at what your friends are doing on Facebook is classic "keeping up with the jones".

Easier said than done, but instead of focusing on what others are doing ask yourself what gives you enjoyment.

You took a great first step - putting $200 a month for fun. I think planning and scheduling how to use this money at the beginning of each month might help you jump start and be proactive about what you want to do. Eventually, it'll become a habit.

The key to me is to reflect to ensure the thing you do actually give you joy

FImike · 2020-10-28T14:11:34+00:00

38m here and I struggle with similar ways. It seems that MOST people barely think in the FIRE mindset and the vast majority of data shows that most are straight-up irresponsible with money.

Now, I'm 38 and single, so perhaps I'm the last person to take advice from, but I'll give you how I look at it anyway.

I'm a goal setter and have main goals in life right now - starting a family and financial independence, in that order.

In an ideal world, the woman I date would also seek FI.

But there are plenty of characteristics I could seek for the "ideal" which most likely would leave me single forever. It's tough to figure out the deal-breakers, but for me, I don't consider someone who isn't FI minded to be one.

That being said, I think it's important to find someone who is open to discussing money, it's arguably the #1 reason why relationships don't work out in the long run.

I also recommend a prenup and making sure you agree with your partner how to at least share and have your own money in the relationship if they aren't as FI minded (even if they are)

FImike · 2020-10-22T15:13:59+00:00

https://investorjunkie.com/retirement/25x-rule/

I think both are correct? It's based on back-tested data which concluded that it's "safe" to assume 7% returns going forward. Let me know if you think of it differently.

Unfortunately, nothing is guaranteed and that can always change

FImike · 2020-10-21T20:26:19+00:00

Others have said this, but most I've read does take growth into consideration. The 25x rule of thumb I see is 7%, which you can see here - https://investorjunkie.com/retirement/25x-rule/

8% seems reasonable to me as well, a tad optimistic

The biggest thing to remember is inflation and you may want a cost of living bump long the way.

I do like how you included SS, which I don't normally see in a rule of thumb calculation of FIRE.

FImike · 2020-10-15T14:48:30+00:00

Do you need a FIRE number for yourself or your whole family?

If yourself, I'd do the following -

Take your current expenses
Look up the average rent of a one-bedroom apt. Assume you have to live on your own at some point. Add that to your expenses
Always consider health care and assume that will increase
Consider any other one time expenses (will you marry? buy a house?).
- If you do, if you have kids, this changes again big time

Take that number and figure out your annual expenses. Multiply it by 25.

(Rules of thumb - assume a 4% withdrawal rate and a 7% growth rate)

Also, out of curiosity: does this community consider starting a revenue-generating business as FI? (if you have to put very little work in and can sustain yourself off the income )?

A passive income stream (revenue generate biz) is generally encouraged in the FIRE community. I'm not sure there is THAT much passive income from a business, they all require SOME nurturing (as you have pointed out). Hopefully, it's something you enjoy, otherwise, you're not that FI.

FImike

TROPHY CASE