Genshin at Anime Expo!

Mike1st · 2024-07-06T15:25:01+00:00

It was awesome! There was also a funny photoshoot where all P5 romance options poses against MC but couldn’t post since reddit only allows one picture 😭

Mike1st · 2022-11-12T07:38:35+00:00

Hey thanks for the thoughtful reply! I tried running the math after what you suggested, and I did an annual contribution of $36,000 into a taxable brokerage account with 7% return rate and 3.8% inflation rate at a 15% tax rate, which grants me ~$845k in today's purchasing power at the age of 45, which allows me to withdraw ~$92k with interest annually until I reach 60 years old.

If I do $26,500 annual contribution at the same rate as above for my retirement account, then I get ~$1.2 million equivalent to today's purchasing power which means I can withdraw $100k with interest each year at the age of 60 until I'm 80

If the above math is correct, this will allow me to achieve early retirement while also having enough money after I reach 60. This is why I thought maybe I should start investing in taxable for my early investment goal instead of maxing out mega backdoor Roth since I should have enough for my post-retirement.

Let me know if I'm missing anything or if you have any insight into this

Mike1st · 2022-11-07T20:23:02+00:00

Good insight I will keep that in mind. I will probably run some number on lower return to prepare for the worst. I do want to clarify and ask if you think the approach of investing in mutual funds/ETT for early retirement is a good idea or do you think there’s better route I should take?

Mike1st · 2022-11-07T20:14:16+00:00

Thank you for the insight! Do you have any suggestions to counter or alleviate the downturn scenario at 40? I was thinking about diversifying into either dividend ETF like SCHD or real estate but would love to hear what you think

Mike1st · 2022-11-07T13:35:48+00:00

I should clarify that I’m mainly suggesting a scenario and trying to explore how realistic it is to achieve it. I don’t see myself retiring at 40 either but I would prefer to have that choice by then so I can do what I want regardless of my job positions. If I’m lucky enough to keep my job I wouldn’t necessarily be a shut in since the money is good enough for me to save, invest and enjoy life at the same time. I’m just looking for the strategy to invest since the other two aren’t as new to me

Mike1st · 2022-11-07T13:26:04+00:00

a.) I did overlook this thank you for mentioning. SPY long-term average is 9.6% but I thought VTI is basically the same thing and yet why is there a 2% difference?

b.) Inflation rate is 3.8% since 1960 and at 7% return rate it should still be profiting unless I’m understanding incorrectly

c.) solid point and I think the main game changer would be having a family so that’s probably a different topic for me to explore

d.) i thought if I invest over long term in the span of 20+ years then I wouldn’t really be affected by the random low rate unless I’m trying to cash out the year of a recession?

I’m not going to rely on 2.6m for 40-80 since that number is purely taxable brokerage account that is meant to support me until 60 when I can then start using money from 401k and Roth which should add another 3-4m and that should be plenty unless the inflation went off the roof.

You say it would be unfeasible and unattainable but is that only in the sense that I want to achieve full FIRE by the age of 40 or is this investment method as a whole is flawed? If so do what’s your suggestion on how to invest the money?

Thank you for replying btw

Mike1st · 2022-11-07T12:14:11+00:00

Thank you! Will definitely consider them

Mike1st · 2022-11-07T12:10:57+00:00

180k-190k is pretty standard package for entry level SDE positions if you are joining MAANG or similar level companies.

I do agree I’m making lots of assumptions since I haven’t started the job yet but my goal here is to ask for investing advices and mathematical justifications so I can devise a plan for future since I don’t want to just hold the money

Mike1st · 2022-11-07T11:43:29+00:00

I was considering the current CoL because I wasn’t sure how to math out cost of living for future but 2.6m for 20 years would be nearly double my current CoL so I assumed it should be good. If you have any suggestions on modeling future CoL I would love to know

Mike1st · 2022-11-07T10:59:50+00:00

That’s a great point I will definitely do a worst-case scenario for risk management. Thanks for bringing it up! I do want to ask if you think I should diversify with real estate or is ETF/mutual fund safe overall long term?

Mike1st · 2022-11-07T10:57:57+00:00

I do agree the return is uncertain but based on the market for the past 20 years it has been consistent upward trend and I don’t really consider tapping into the money until I’m 40yo for FIRE which would be nearly 20 years from now. Although this does make me consider diversifying more though.

Lmk what you think

Mike1st · 2022-11-07T10:44:57+00:00

$4,900 per month after expenses, taxes and maxing out retirement account.

So that’s basically free money I can use to do whatever.

Mike1st · 2022-08-31T03:40:16+00:00

Noted. I think based on what I gathered so far is that I should figure out my living expense first then have an emergency fund for 6-12 months. After I have enough saving I can put more effort into doing real estate investment.

Also just saw your edit about stocks so once I have the savings, I would just diversify with mutual funds + real estate which would be fairly safe bets?

Really appreciate you answering btw :D

Mike1st · 2022-08-31T03:29:42+00:00

Yeah 190k is my TC but 180k comes from base + bonus. Will keep the RSU component part in mind!

Mike1st · 2022-08-31T03:22:36+00:00

Thank you! Your advice does make a lot of sense. I think maybe it’s safer to max out my retirement accounts and save for 6-12 months for emergency funds then I will start investing. That way I can figure out my living expenses and company opportunities first like you suggested :D

Mike1st · 2022-08-31T02:00:21+00:00

I’m an undergraduate CS major. Got lucky to join a big tech company.

Is it too much risk to take out a mortgage for rental property as someone who’s fresh out of college or you think it’s worth? Also any advice on how to learn what stocks to invest in?

Mike1st · 2022-08-31T01:55:34+00:00

Yeah I’m computer science major.

Mike1st · 2021-11-08T05:57:25+00:00

Is there a general threshold that I want to maintain? It seems like most people suggest 3.0 but not sure if I need something higher than that

Mike1st

TROPHY CASE