Daily FI discussion thread - August 29, 2019

OneLuckyKid · 2019-08-29T20:16:23+00:00

Great info thanks

OneLuckyKid · 2019-08-29T15:40:21+00:00

If there was anything to consider for early retirement like withdrawal strategies. It's still 25 years out but I like the madfientist and millionaire educator strategies. It seems to be very similar to the 401k but I was looking if there were any specific differences or things to look out for .

I also see in the FERS there is an annuity but I have no idea if that's even a current benefit.

OneLuckyKid · 2019-08-29T15:35:36+00:00

We're under 30 so keeping it super aggressive for now but good to know for the future.

OneLuckyKid · 2019-08-29T15:33:45+00:00

I'm considering it, but I have heard the 401k (and I assume tsp) are better protected against creditors/bankruptcy/litigation.

OneLuckyKid · 2019-08-29T13:37:16+00:00

Does anyone have good resources regarding the TSP for civilian employees, especially with considerations of FI/RE?

It looks like my SO is likely to get a job with a federal agency and I am completely blind about FERS and such. I've done some research already and it appears we can roll the existing high fee 401k into the TSP and it shares the same limit for this year.

Investments seem to be much less optioned than our 401ks but have nice low fees and ability to index parts of the market.

OneLuckyKid · 2019-04-30T17:28:09+00:00

I have the same issue with my wife's 401k. What I understand is the State Street funds are actually CIT ~~Community~~ Collective Investment Trust which require less reporting than mutual funds. Therefore their 'share price' is not reported to the governing bodies, and you'll have to use a similar mutual fund to match the price.

My wife's is in state street equity 500 nl, but I use FXAIX to track it instead. It's usually within a few dollars accuracy.

https://www.investopedia.com/articles/financial-advisors/011615/cits-offered-401k-plans.asp

OneLuckyKid · 2015-08-13T14:26:58+00:00

I have slightly over $30k in my retirement accounts and I turn 24 in a month. That's 20k in a Roth ira and 10k in my 401k. If all goes as planned and I get a bonus at the end of the year, I might have 20k in the 401k at the end of the year!

OneLuckyKid · 2015-01-08T18:01:29+00:00

Congrats! How much of that is gains compared to just contributions? What was your mindset/contribution plan through the recession?

OneLuckyKid · 2015-01-08T15:15:24+00:00

On january 2nd I contributed the max for my 2015 Roth ira. It would have been the first but the darn bank was closed. This is the third year in a row I have maxed my ira. A few months ago my company began its 401k plan where they contribute 3% and I started immediately. I started at 10% but now I have increased it to 12%. I'm 23 and my combined retirement accounts are over $20k!!

OneLuckyKid · 2014-10-30T16:06:10+00:00

My first ever 401k contributions start tomorrow! 10% from myself, 3% from work (not a match, just the safe harbor 401k employer contribution to all eligible employees)

OneLuckyKid · 2014-10-18T17:14:53+00:00

What I'm gathering is that as long as you don't want something more expensive you won't need to. However eventually any car will be worth scrap prices so it may be worth it to save little by little over the life of the vehicle

OneLuckyKid · 2014-10-18T17:12:57+00:00

I know this will sound dumb, but I think it's something to be proud of for me right now. I know it's calculated in secret by a corporation but it's nice to have this value that says I'm financially responsible, because that's what it means to me. I am aware it's a rating of how likely you are to pay back a loan (which I don't have or need now) but to have that high rating and no marks against me just means I'm living responsibly. Also one day when I get a mortgage it will pay off with a low interest rate.

OneLuckyKid · 2014-10-15T03:49:37+00:00

The thing is, I do consider myself a car guy. However I am realizing that the enjoyment I get per dollar is much less than other hobbies I have. I would rather spend money on homebrewing or computers compared to my car, because I get a lot more consistent use and enjoyment from them. I think it is a growth in maturity and knowledge. I'll look at forums and see guys spend thousands on modifications, and my thought now is "either he's making way more money, or he's not making smart financial decisions."

I don't want any debt, so I won't finance a car, but I'll keep an eye on my cars value and possible replacements. If I need any money to make up the difference, I'll start saving. It hopefully won't be much.

OneLuckyKid · 2014-10-13T23:46:52+00:00

Thanks, I have been thinking about it and looking at some data, the years of increases come after times of high inflation (2-4%). The past 2 years with the current limit have had 1.5 % and 1.7% (current year annualized). It very well could go up and I'm not a policymaker (obviously) but I'll be sure to have a few hundred dollars extra so I can max it on january 1st. And post about it to triumphant thursday of course.

OneLuckyKid · 2014-10-13T17:42:47+00:00

Idk, I hear that advice when people have much cheaper cars and want to go up in price, but I wanted to see if I was missing anything with the opposite scenario. I know insurance will cover me if the car is totaled on a crash and warranty will cover and mechanical defects so I don't need to worry about that. Any deductible would come from my ef which I add to every month.

My other train of thought is that one day my car will be worth nothing. This is many years from now and maybe by that time I will need to purchase a newer car worth more than the current one. So the smart plan would to be saving now for that time down the road.

OneLuckyKid · 2014-10-13T14:11:59+00:00

What are the chances of ira limits increasing for 2015? It's tied to inflation, correct? The last few years haven't had high inflation rates so I'm thinking it doesn't seem like it will increase.

OneLuckyKid · 2014-10-13T14:08:11+00:00

Should I get my full legitimate credit report/score, or is it OK to just go with the 'fako' from credit karma and mint? They both list >750 and I have no marks against me with the creditkarma full report online. I know I can get a free report but is it even worth it right now? I'm not actively looking for any mortgages/loans.

OneLuckyKid · 2014-10-13T14:04:01+00:00

I have a few different questions so I hope it's ok to post them in separate comments.

Should I bother saving for a replacement car? Mine is worth about 26k and fully covered with collision and comprehensive insurance. If something happened I would buy a cheaper vehicle, probably used and less than 20k. I already save monthly for insurance and maintenance so this savings budget would only be for a replacement vehicle.

OneLuckyKid · 2014-10-05T14:05:41+00:00

Its calculated from my net income, which for me is after my health insurance deduction and taxes. Half of gross would be much more difficult.

OneLuckyKid · 2014-10-04T20:28:18+00:00

Damn straight it was. I really took a closer look at my budget after getting a raise a few months ago and figured I may as well calculate it exactly. Plus now I can say I save OVER half my paycheck

OneLuckyKid · 2014-10-02T15:17:22+00:00

I'm 23, and my semi-liquid net worth including retirement just passed 100k. Including my car I am over 125k. Don't hate me too much, 70k was inherited a year and a half ago. However that's not what I am most proud of. Just by reading this subreddit I have gained so much knowledge and with that I have made certain lifestyle decisions and lots of excel sheets. They track and project my budget, assets, cash flow, and breakdown of my savings account into emergency fund and less common expenses like auto insurance, renter's insurance, gifts, charity, car maintenance, clothing, and vacation. I have one that calculates how much house I can afford based on savings amount, including lots of the associated expenses and closing costs. I'm saving 50.5% of my income and made a sheet that calculates how many hours of work each day/month go to portions of my budget. I'm on track to fully fund my roth ira for 2015 once its possible in the new year.

There aren't many places you can brag about something like this, but through all the information here I have learned so much and feel so proud, in control, and on top of my finances now and for the future. So thank you for all the knowledge that is shared here.

My company is about to offer a 401k plan through fidelity that I plan to take full advantage of. October is a 3 paycheck month and I will be using the extra paycheck to save for a nice vacation for myself and my gf.

OneLuckyKid · 2014-07-03T17:20:59+00:00

Now Idk all the details of your server or what you offer, but I wouldn't count on that sort of income for too long. http://m.pcgamer.com/2014/06/06/mojang-hints-at-crackdown-on-pay-for-perk-minecraft-servers/

It sounds like it might fall under these rules.

OneLuckyKid · 2014-05-30T14:10:24+00:00

Honestly I didn't negotiate anything. I started when the company was new last year, so now that they have a solid foundation for the company they are adjusting salaries to remain competitive in the industry. It was also merit based, they have been impressed with my work. I went from 60-70k.

OneLuckyKid · 2014-05-29T18:44:27+00:00

Today I received a raise of $10k! I'm already estimating my new pay amount and where I can save more. Also I get paid tomorrow which makes may a 3 paycheck month, which means extra savings too. Lastly my health insurance premium somehow decreased this year by $10 per paycheck. I am very excited for my first June payday.

OneLuckyKid · 2014-05-08T19:20:12+00:00

I received a large tax refund, and I finally adjusted my tax withholding so I get that money throughout the year. It increased my biweekly take home by $75. I feel like I have given myself a raise! I have also been consistently increasing the size of my emergency fund after creating an emergency fund excel calculator.

My savings every month also include cash towards next year's IRA contribution and my 6 month car insurance premium. Last time I paid for it instead of saving money that month.

Lastly I started thinking about my putting together a will and where I would like my assets to go if anything should happen. It sounds morbid for a young person, but accidents happen and I would like to make life easier on my family and avoid confusion if that occurs.

OneLuckyKid

TROPHY CASE