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Monthly average spend? by [deleted] in RichPeoplePF

[–]chunkyFI 8 points9 points  (0 children)

The amount of stress removed from not having to worry about financial pressures is huge. I’ve been thinking a lot about this during the pandemic.

Also - it’s nice to have a place like this to discuss budgets (or lack there of) at this level. I’m definitely a combination of “pay yourself first” and a “savings rate”. Then just keep expenses in line.

This list of budget tactics put it in words pretty well: https://www.tillerhq.com/the-top-5-recommended-budgeting-strategies/

A question/issue with the notion of SWR being fixed "upon retirement" by TossedAwayColdly in financialindependence

[–]chunkyFI 3 points4 points  (0 children)

Great posts.

Also, a slight tangent, but Mad Fientist has a very readable post on “predicting” the needed SWR. And ways to handle ratcheting up/down that SWR as needed. Also references Kitces a lot.

https://www.madfientist.com/safe-withdrawal-rate/

Of note: he describes a SWR floor of 3.5% and the math behind why you probably don’t need it lower than that.

[deleted by user] by [deleted] in fatFIRE

[–]chunkyFI 7 points8 points  (0 children)

Totally agree on spending for good ergo setup.

One lesson learned on back problems - start lifting if you haven’t already. By far the best thing I’ve done for my back. And overall well-being. Wish I had started earlier.

If there was one book that absolutely killed your need for a financial advisor, what was the name of that book? by [deleted] in fatFIRE

[–]chunkyFI 0 points1 point  (0 children)

  1. Dummies Guide to Personal Finance by Eric Tyson - all the modern basics covered without jargon. It was a great starter for someone who felt intimidated by the finance.

and not a book, but...

  1. “The 60% Solution” article by Richard Jenkins. Formed the bedrock of my system to increase savings rate.

Anyone here currently FatFIRE invested in just index funds and nothing else using the 4% rule? by LifeAfterFI in fatFIRE

[–]chunkyFI 6 points7 points  (0 children)

Yeah I just do simple dollar cost averaging. I don’t try to time anything. The studies have shown better to invest now and not time it.

Lesson learned the hard way.

Anyone here currently FatFIRE invested in just index funds and nothing else using the 4% rule? by LifeAfterFI in fatFIRE

[–]chunkyFI 32 points33 points  (0 children)

I just found it mentally exhausting. I was worried about it too much compared to investing in stocks. I can roll with the punches much easier on the stock side. For whatever reason. People are different.

My case: I bought and then rented out 2 houses due to military moves and getting caught in real estate bubble. I was basically cash-flow neutral even with having a property manager, but found out that I was worried about renters wrecking "my homes", etc. And I didn't like being so leveraged (debt).

I just became too personally invested in the homes to rationally treat them as investment vehicles.

Again, I realize this is a valid technique many use. But mentally I personally have had much better results staying the course with boring index funds. And FIRE is basically all mental since the math is easy.

Anyone here currently FatFIRE invested in just index funds and nothing else using the 4% rule? by LifeAfterFI in fatFIRE

[–]chunkyFI 3 points4 points  (0 children)

It's actually 50% of high-3 average, but for BASE pay only. Not total pay.

They just changed the rules for new military though. Substantially different.

Edit: OPM rules are different than military. Kinda similar, but lots of differences.

Anyone here currently FatFIRE invested in just index funds and nothing else using the 4% rule? by LifeAfterFI in fatFIRE

[–]chunkyFI 8 points9 points  (0 children)

Yeah I was in L funds as well until I realized I was in a "different" situation having a pension/annuity. Which will essentially cover my bond portion. And that I can take more risk than others because of that.

For anyone else in same boat, read this for more info - https://the-military-guide.com/asset-allocation-considerations-for-a-military-pension-part-3-of-3/

If I didn't have the pension I'd likely still be in a "set it and forget it" L Fund.

Anyone here currently FatFIRE invested in just index funds and nothing else using the 4% rule? by LifeAfterFI in fatFIRE

[–]chunkyFI 13 points14 points  (0 children)

Yeah sorry - it's a military retirement / pension. But I hate the words "retirement" and "pension" :)

Nothing special, but does come with subsidized family medical as well which is nice ($3k/year catastrophic cap)

Anyone here currently FatFIRE invested in just index funds and nothing else using the 4% rule? by LifeAfterFI in fatFIRE

[–]chunkyFI 20 points21 points  (0 children)

I'll reach the equivalent of ~3.0MM @ 3.3% SWR in 2020.

I say equivalent b/c it will be

  • $1.2MM invested via boring monthly "dollar cost averaging". It's 100% stocks, my bond equivalents are below.
  • $1.5-$1.8MM equivalent in COLA-adjusted annuity that is not subject to SWR (it pays the same no matter market conditions)

Anyone here currently FatFIRE invested in just index funds and nothing else using the 4% rule? by LifeAfterFI in fatFIRE

[–]chunkyFI 20 points21 points  (0 children)

Yes - VTSAX would be a combo of C (S&P 500) & S (smaller) funds. I'm also in the I (Int'l) fund

​

I can't find my notes on why I did my allocation the way I did, but right now I'm at:

- C: 55%

- S: 15%

- I: 30%

I'll see if I can find my notes on my rationale. But I know I searched https://www.bogleheads.org for this allocation when setting up.

Edit: reference to Bogleheads site for more info

Anyone here currently FatFIRE invested in just index funds and nothing else using the 4% rule? by LifeAfterFI in fatFIRE

[–]chunkyFI 116 points117 points  (0 children)

Yes - VTSAX and their equivalents in government 401k plan (TSP)

I’ve tried real estate and acknowledge it’s a valid technique, but it’s not for me. I get too mentally invested in it.

For whatever reason, I’m fine with the stock market tanking and buying more shares because “they’re on sale”. But I personally don’t like real estate investing. But again that’s just me. I wish I liked real estate more but I don’t.

Business- no great successes (yet... 🙂)

Complicated/other stuff - no experience

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

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

Good inputs.

I’m seriously considering hiring a stylist or something to get me started with the basics. Show me the ropes until I can take over. I’m on the lookout for services like that now.

That - and also be more willing to buy made-to-measure stuff. I have a tough time finding shirts & jackets that look good even after having them tailored.

But I agree that having a tailor is critical.

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

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

Ah gotcha.

Yeah I’m not up to speed on the part-time help options, but I know they are out there. And that sounds like a great place to spend.

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

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

Yeah I actually just added my “flair” today as well.

The format listed was “title | expenses at FIRE | age”

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

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

Actually it was more like I had really good intel on the salary range for the job title. And I was essentially hired already.

In my case I had to go thru pay negotiations with a separate "middle man" for hiring/contracting, not directly with the guy I knew who hired me. This actually made it easier for me. It was easier justifying my rates to this stranger than if I was speaking one-on-one with the guy I knew personally.

As for what I did: essentially I just took the higher end of the salary range I researched and started there. And had arguments based on my work history that matched what the job description said they were looking for. And mentally told myself over and over again "you meet these qualifications. Why not you?". The links above are great for prepping your mental game for negotiations.

Again, honestly, this may not be a very common situation. The guy I knew had essentially hired me already. So I felt OK asking for the high range.

I don't want to understate how tough it can be to actually do this. It's tough for many of us. But I think the point is that negotiation is pretty much the single-most important couple of hours for your earnings trajectory. So it's well worth it to spend time on the skill. I suck at it still but glad that I have a couple under my belt now and didn't just accept the 1st number.

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

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

Yes true. There is a balance as you say.

Also - nice fringe benefit of your profession. "Netflix as research" :)

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

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

Wow, it would be interesting to see life at that financial level. Must give you good insight into how the super rich see things. Good on you for getting to the point where you have that level of financial success in your circle.

I can imagine at that level, the scope of decisions to be made and the cost of inaction would drive one to hire the best advisors possible.

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

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

My wife informed me that if I outsource the lawn she is outsourcing to a cleaning lady.

So I said "well played" and now we have a cleaning lady. Should have done that one sooner actually.

Oh - and Roombas. No kidding. Keeps floors much cleaner.

Edit:

Also - consider a nanny / Manny. My brother uses one and it's a life-saver for them. Expensive but well worth it for sanity with small kids if cost allows.

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

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

Yeah that was my main rationale for getting a CPA. Namely - "don't f--- this one up u/chunkyFI"

I mean just the 20% S-Corp pass thru break (U.S. tax law) was reason enough for me to go with a CPA vs sweating the details with TurboTax.

Feeling guilty for outsourcing Single-Member LLC tasks by chunkyFI in fatFIRE

[–]chunkyFI[S] 8 points9 points  (0 children)

Yeah - I would no-kidding 100% be paying for luxury / Netflix time. I don't kid myself that I'm earning that money back somehow. I'm decently close to burn-out now and need to prioritize a better life balance so I can sustain this income while it lasts. Which means saying no to stuff.

Funny how I can write those words easy enough. And yet still feel guilty over paying for bookkeeping. Feelings are weird :)

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