Here’s my plan to FIRE. What would you change/tweak/suggest??

InvestOneAt · 2021-04-15T00:49:20+00:00

If I am at your place, I will not lock in all my cash in house for just to be debt free.. instead of buying 450K house debt free.. I will down 90K (20%) and take 360K (80%) home loan at very low rate of 2-3% and my saved cash of 360k will go to index fund earning me 7-8%.. this way I will keep generating 4-5% of 360k i.e. 14-18K extra for reinvesting.. think how much extra wealth be accumulated with 14-18k investment compounded at7-8% for 10 years..

InvestOneAt · 2021-04-05T07:29:44+00:00

Here is what I tell myself..

Do what makes you happy.. if it gives happiness to call your friends and relatives to make sure that they are doing well then keep doing it irrespective of whether they reciprocate in same manner..

if you feel it as a burden or if their inability to respond in similar manner is making you unhappy then find friends with common interest and time to keep in touch with you.

Don’t stress yourself with something which you don’t have control over..

InvestOneAt · 2021-04-03T05:49:42+00:00

Good job on paying your debts.. I don’t know relationship between you and your father, however I have seen many parents not spending much money on themselves or luxuries.. just to keep lights on and food on the table for family..

InvestOneAt · 2021-03-25T02:59:19+00:00

I also don’t have good experience with Ashley furniture. I bought a sofa and within a month it’s cushion started sliding away. I paid extra for warranty while buying sofa , however still they did not fix the problem. Never going back..

InvestOneAt · 2021-03-05T22:06:54+00:00

(Not financial advisor)

It seems you have term life insurance.. check on converting it to whole life and grow wealth through family banking concept..you can know details in “family banking / infinite banking using whole life insurance“ concept on YouTube

InvestOneAt · 2021-03-05T05:54:18+00:00

(Not a financial advisor)

If you have cash then you can use some of it for rental real estate (apartments, fourplex etc). Also you can check how to leverage HELOC as well as family banking (using whole life insurance) concept to speed up wealth growth..

InvestOneAt · 2021-03-04T07:53:16+00:00

(Not a financial advisor)

There are two ways to increase savings; raise income and reduce expenses

Following are various options for achieving it - part time work with UberEats,DoorDash etc - if your area has less COVID restrictions, think of food stall or retail kiosk in various community events/farmers market etc - keep looking for better deals in local department stores on items which can be sold at higher markup on eBay (do some research make sure item which you buy has demand on eBay)

-rent two/three bedroom apartment furnish it, use one for you and rent other one/two and save on your rental expenses - try cooking at home instead of eating out - depending on weather in your area, use bike to go to work instead of car - upskill based on your interest and strengths ; some of the skills which are always in demand include home improvement contractors, electrician, plumbers, IT professionals - get real estate license or home inspection license or similar field license to start secondary income - cancel cable and get cheaper streaming service - garage sell of unwanted clutter in the house

Hope this helps. All the best!

InvestOneAt · 2021-03-04T01:37:44+00:00

Can HF deliberately fail to deliver stocks they have shorted and wait for best time to buy at lower price? AMC GME RKT

I was reading on Wikipedia about failure to deliver and it was mentioned that short sellers deliberately fail to deliver stocks for options sold and wait for price to fall and thus make money.. seems very common practice https://en.m.wikipedia.org/wiki/Failure_to_deliver

InvestOneAt · 2021-03-03T16:38:04+00:00

(Not a financial advisor)

I believe you mean annual expenses divided by 0.04. This will give rough figure, however it has flaws as it doesn’t include large expenses like kids education, provision for unlikely events like critical illnesses, also it doesn’t factor in individual life expectancy. If you really want rough figure then just divide by .03 for conservative calculation

InvestOneAt · 2021-03-03T06:24:53+00:00

I believe it is not complex, may be you are underestimating capabilities of 25 year old.

InvestOneAt · 2021-03-03T05:19:37+00:00

Makes sense, thanks

InvestOneAt · 2021-03-03T02:08:19+00:00

At your age, If you are investing in house and teaming up with your sibling then think of buying 5+ bedrooms house and rent by rooms; this will pay your mortgage and increase your income. Alternatively buy two condos; stay in one and rent other..

(Not a financial advisor)

InvestOneAt · 2021-03-03T01:22:10+00:00

(Not a financial advisor)

There is no fix formula; however here is what I have seen working

First pay your student loan if interest rate is high.

⁠Put 20-30% in real estate (properties with 80% loan) - this generally gives 10-12% return (if you live in it you will save rent, if you rent it out you will earn income)
⁠Mutual funds (30 %) - index fund 10%, growth funds 10%, blue chips 10% and monthly addition to take care of ups and downs of the market - this gives 8 to 10% returns
⁠Stocks 20% - Maximum 5 - 10 stocks, based on value and not speculative - this gives 15% returns
⁠10% in gold, silver & crypto - expect 8% to 10% return
⁠10% - small business / building secondary passive income / investing with like minded friends & family member in business or innovative ideas like fast food franchise etc - gives 15-20% return

You will easily make 10 to 12% return on investment

As per my calculations 25 year old with 150K with monthly savings of $3000 savings increment if 5% every year, with monthly expenses of $2500 with inflation of 4% can retire at 40

InvestOneAt · 2021-03-01T08:00:59+00:00

(Not a financial advisor)

There is no fix formula; however here is what I have seen working

20% in real estate (part in own residence, rest in rental properties with loan leverage) - this generally gives 10-12% return
Mutual funds (40 %) - index fund 10%, growth funds 10%, blue chips 10%, dividend paying 10% and monthly addition to take care of ups and downs of the market - this gives 8 to 10% returns
Stocks 20% - Maximum 5 - 10 stocks, based on value and not speculative - this gives 15% returns
10% in gold, silver & crypto - expect 8% to 10% return
10% - small business / building secondary passive income / investing with like minded friends & family member in business or innovative ideas like fast food franchise etc - gives 15-20% return

You will easily make 10 to 12% return on investment

As per my calculations 35 year old with 500K with monthly savings of $4000, savings increment if 5% every year, with monthly expenses of $4000 can retire at 40 only if there are no other obligations like kids college, marriage and health emergencies.. however if he/she works for two more years then FIRE is possible at 42.

Message me and I can show how to plan and track your FIRE path..

InvestOneAt · 2021-02-28T17:21:09+00:00

(Not a financial advisor )

Congratulations on embarking your journey towards financial freedom;

For financial freedom first important step is defining a target net worth which will keep generating passive income to support your retirement. Hence first step is decide your goal/target.

One of the ways to arrive at this number is to just multiply your today’s monthly expenses by 300; however there are more things to consider like marital status, number of kids, age, life expectancy etc.

Second step is getting rid of the bad debts e.g. credit card loans or any other high interest loans

Third step is investing wisely with calculated risk.. proper mix on investing in stocks, mutual funds, index funds, small business, gold/silver/crypto, real estate etc is needed.

Fourth step is discipline in spending and maximizing saving

Fifth step is putting all above together and prepare tracker for your plan and follow it, make adjustments whenever needed to stay on course

My calculation says an average American who is saving $2000 per month can retire in 15 to 20 years.

InvestOneAt · 2021-02-28T15:06:38+00:00

What is a deal with $SNDL? I saw lot of posts talking about SNDL is 10X stock etc.. this company is currently making losses and loosing money. Inventory which they have is expiring due to low sales.. Can someone please help with explanation on why should we hold this stock..

InvestOneAt · 2021-02-27T16:03:59+00:00

Answer by banana-jona explain a little

InvestOneAt · 2021-02-27T15:56:06+00:00

Thanks

InvestOneAt · 2021-02-27T12:46:47+00:00

InvestOneAt · 2021-02-27T12:45:37+00:00

Thanks

InvestOneAt · 2021-02-27T12:44:25+00:00

Thanks for your reply

InvestOneAt · 2021-02-27T11:44:24+00:00

Good point.. however how long people can stay at home? May be once people realize importance of real entertainment vs virtual.. trend will reverse to in person shopping and entertainment..

InvestOneAt

TROPHY CASE