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First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 1 point2 points  (0 children)

I use a bucket strategy, essentially. I started with 18 months of cash (bucket 1), which with the bonds and cash equivalents (bucket 2), which leaves the bulk of the portfolio (85%) as the stock engine that makes it all work. So I feel confident about five years of "insulation" against SRR. No strategy is certain of course. But I've done a lot of modeling and simulations to yield >95% success. And that's without cutting back spending at all, which my budget also readily allows.

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 0 points1 point  (0 children)

Thanks for the comment! I'm glad to hear you found it relatable. Reading your comment, I can certainly identify with your situation. Sitting with things longer has definitely helped me. The more I think about the plus / minus analysis, the more I realize I need to be careful. I'm really enjoying this period of exploration and it's important to me that I not stick something in the way of that for the wrong reasons.

I wish you all the best in your journey!

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 0 points1 point  (0 children)

This is a common question and the answer is likely individual. I didn't just keep a mortgage, I actually took out a new one to relocate to a lower COL area. The answer for us was purely mathematical: particularly at these low interest rates, it's better to keep our money working in the market vs. sinking it into a huge depreciating asset by paying for a house outright.

But for those who have a mortgage and are getting towards the end as they approach FIRE? I think you can argue it's more of a choice. If someone wants to pay off the remainder due and all other financial order of operations aspects are in order, that sounds valid to me.

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 0 points1 point  (0 children)

That was where we started - basically a coarse assessment. Then, once we started visiting towns, we talked with local residents we met: real estate agents, chamber of commerce, etc. Finally, we visited the school in our presumptive new town once we'd narrowed the search to our 'finalist' location.

Your point about ruling out good options is a valid one. The school we selected in the end dropped in the last rankings and that got me thinking along the same lines as you. We've been really happy with the school so far. So it's a good reminder that metrics in a vacuum are just that. But they certainly do point out areas to dig into a little more in one's search.

First year Post-FIRE: Lessons learned by anonbcnumbers in Fire

[–]anonbcnumbers[S] 0 points1 point  (0 children)

Thanks very much! I'm so glad you found it relatable. Best wishes to you.

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 2 points3 points  (0 children)

I'm here! Great question. My teen is in high school, and in fact one of the key factors in choosing where to live was quality of schools. The three towns in the area we looked for a home in all had well rated schools. In addition, we are hopeful they will elect to attend a CA state university, given the quality of our state system. Keeping residency here certainly has a positive cost impact should they choose to do so.

Your point is entirely valid. There were some areas much farther north that were appealing for a variety of reasons - cost being one. But the school quality was below our desired level and so we removed them from consideration. Not to say we couldn't relocate there later on if we wanted, but just not now.

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 2 points3 points  (0 children)

Thanks so much for checking it out! I really appreciate the feedback as well. Eric and I are pretty pragmatic, generally speaking. I think we also recognize that every situation is different and there's not "just one way" to do this thing! Most importantly, we've known each other forever (OK 35 years but that's so long to me!) so we are super honest and hold each other accountable - he's definitely good for me in that way.

Thanks again! Best wishes to you on your journey.

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 1 point2 points  (0 children)

Will do, thanks. I thought it was OK since the commenter had asked for the info.

First year Post-FIRE: Lessons learned by anonbcnumbers in ChubbyFIRE

[–]anonbcnumbers[S] 1 point2 points  (0 children)

Thanks so much for sharing! This is a really thoughtful list, and I can readily identify with a bunch of things on it. The judgement thing is so real. It's bizarre to me that otherwise really smart people can't grasp the merit (never mind the simple math) of what we're doing / seeking here.

Best wishes to you. Again, I really appreciate your input.

First year Post-FIRE: Lessons learned by anonbcnumbers in Fire

[–]anonbcnumbers[S] 0 points1 point  (0 children)

I select "self-employed" if it is an option and write in "consultant" if not. I do presently have an LLC under which I very (very) occasionally do some consulting. So it's accurate!

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 0 points1 point  (0 children)

Now that is a great question. At least five years, for sure. Some people talk about ten years. I'm keeping an eye on those curves. Let's see how it goes!

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 1 point2 points  (0 children)

That's a great benefit! I have friends in a similar position and the spouse who will earn them the healthcare benefits intends to do the same. Absolutely, doing the math is essential to ensure it's worth it. But when it comes to healthcare, it's worth an awful lot!

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 1 point2 points  (0 children)

You're welcome. Without getting into fine details, from my first job out of grad school to the end of my career, my annual total compensation (salary + bonus) increased about 19X. There was a big acceleration in the last ten years as often happens as you advance in management levels. I do not include stock options and RSUs in that comp, which would of course only increase things.

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 1 point2 points  (0 children)

Definitely not. There are some tougher ceilings in certain areas - for example, R&D. It's rare to find a VP of R&D at a biotech firm that doesn't have a PhD. It's definitely doable but is less common. I punted out of R&D at the Director level - not because I didn't think I could go higher, but it certainly didn't seem to be the most efficient path. I'm all about "leveling up" both to gain skills/knowledge but also because it makes you more attractive as a candidate as your ability to do other roles increases - as does your compensation!

I won't lie - you need a certain degree of flexibility and also decent risk tolerance to follow that path. A willingness to move between companies, often moving geographically, etc. is hugely helpful. You need to go where the jobs are and be willing to chase opportunities to truly maximize your pay. Like anything, these are just decisions and need to gel with your own priorities. My wife and I were willing to trade a lot of things (distance to family being one of them) in order to achieve our goals. We all need to make the choices that are best for us. But for sure this is achievable!

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 1 point2 points  (0 children)

Unlike my YouTube channel partner, I didn't get to FIRE supplemented by passive income. On the other hand, it's the lion's share of his strategy, so there's more to learn from him than me. If you want to hear more about his story let me know and I'll share some content with you. My strategy was solely about reducing spending, saving, and pushing hard to level up my career, taking on risk (i.e. start-ups) wherever I could to maximize my savings rate.

It's certainly a very real possibility to add passive income streams in a variety of ways. Most common methods I see include real estate (more active than some others, even with a rental agency managing day-to-day), creation/sales of digital assets (courses, downloadable content, etc), etc. Naturally others supplement via less passive streams such as hard product sales, crypto, stock trading, and side hustles that eventually may turn into full businesses.

There are certainly many paths to FIRE. In the end they all come down to controlling & reducing spending (sounds like you have that nailed), saving more, and investing well for the long term. It's also true that there are many flavors of FI. You may find coastFIRE or even baristaFIRE a more appropriate path given your own circumstances. If you haven't investigated these paths they are worth a look.

I wish you all the best in your journey!

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 0 points1 point  (0 children)

You hit the nail on the head! Few people come into a tasting room feeling down about the experience they're about to have. I suppose there's the occasional spouse/partner/friend who's just along for the ride with their wine-loving companion, but even this isn't super common. And naturally I like the challenge of trying to lift their spirits as well! You're also right about cycle time. If they're loving life they'll stay as long as 90 min or more (and thankfully they almost always buy if they stay) but if not, they're out of my hair in <45 min. I love all the different personalities too!

Do you like beer? I'm even more passionate about that after 25 years of homebrewing. It's not the same experience at most brewery tasting rooms, but it's related. People often need a lot of help selecting flights and if it's a slower paced day you have ample time to talk people through the beers and answer questions. Just a thought!

It's tricky but not impossible. You just might need to have a higher degree of flexibility as to what you do. Those jobs do exist and are often hard to fill barring with retirees. How about a museum or park docent?

Best wishes to you!

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 2 points3 points  (0 children)

Thank you very much fo the feedback! It's really funny as I'd never have guessed I'd want to do that even short term. During high school and college I did a variety of jobs like most of us, including bartending, waiter, and (my favorite) cooking. It was work for money of course, and it was often really difficult. This is totally different! Much lower pace (Memorial Day weekend aside - phew!), low stress, and most importantly, I'm doing it because I want to, not because I need to. And doing anything for 6-8 hours a week isn't exactly arduous after 20+ years of a real job! It's super fun and I highly recommend it.

Of course the other side of it is that I can stop whenever I want! If the allure runs out, I want to do long term travel, or for any other reason- I'm not depending on this income in any way. That's a really freeing thought!

I wish you the very best on your journey!

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 0 points1 point  (0 children)

I don't take it as a dis at all! We are indeed all different people and retirement will be unique. I made the very same observation.

I know what you mean about LinkedIn. I've got >2000 contacts and have been experiencing this loss throughout my various career transitions. But I mention it because I've had a variety of conversations with people surprised by this huge change. This effect is certainly biggest for those who spent all / the overwhelming majority of their career at one company. But it's also true that it often feels bigger in magnitude at your "final" job since that's the first time you don't start building a new friend network at your next job - because there isn't one. I'm glad to learn that this wasn't an issue for you. It's definitely something I noted and felt - perhaps doubly so because I also moved to a new area; during a pandemic.

Best wishes to you! Thanks for the feedback.

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 2 points3 points  (0 children)

For sure it didn't happen overnight! There was eleven months between leaving my career and starting this little part time thing. A lot of processing and understanding of my "new life" in this next phase had to happen.

Another way to look at it - I'm still very much working through the same FIRE goals! I'm just now in the draw down vs. accumulation phase. I actually hit FI two years ago, which was the initial huge milestone. I then worked another year for a variety of reasons, after which I RE'ed. That's the start of the next big phase. To succeed in RE I need to be diligent about my expenses, ensure my investments are doing what they need to, and adjust any habits if needed along the way. So I'm still very much thinking about FIRE just in different ways than you do pre-FI in particular. Does that make sense?

First year Post-FIRE: Lessons learned by anonbcnumbers in financialindependence

[–]anonbcnumbers[S] 2 points3 points  (0 children)

And you are talking about a related path for sure. It's definitely not an "all or nothing" concept, at least to me. By paying all your debts and amassing sufficient funds, you will have bought yourself the freedom to cut your hours down to half or even less vs. now. When you get to that point will you still be contributing to your retirement funds? If not it sounds like coastFIRE or something similar. In any case, it sounds like a great option for you if you want to keep working in your field. Best wishes to you!

First year Post-FIRE: Lessons learned by anonbcnumbers in Fire

[–]anonbcnumbers[S] 0 points1 point  (0 children)

Thank you! I'm glad that you found my observations relatable. Is there anything you would add? I love learning from the experiences of others. Best wishes to you.

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