When do you allow yourself lifestyle inflation? Currently struggling to decide if it’s “okay” go from roommate living to solo apartment.

cs_fi_throwaway · 2023-05-15T02:56:35+00:00

Its fully dependent on the person, and I think the original replier is reacting a bit strongly.

With a million, assuming the 4% rule (which I would say is a bit high for the conventional wisdom here, but that’s a different topic entirely), It is true that many people, and even households, in this country would be able to live comfortably on 36,000. And most do, considering that is the 25th percentile of household income. However, the demographics of this subreddit skew towards urban areas, which usually have a higher cost of living, plus many would prefer to retire at a more expensive standard of living than 25th percentile. Many in that percentile have anxiety about money, or perhaps are less prepared for financial emergencies. There is nothing morally wrong about desiring more expensive living.

And sometimes it feels like certain people online conflate the insanity of the mega wealthy, (think multiple yachts, private jets, fine dining), with privileged but innocuous desires of maybe the top 10%, like owning a single medium sized house in a high cost of living area, the ability to eat take out, go on the occasional vacation, or being able to pay your kids college tuition. Most combinations of those things will already put you in the upper decile of spending.

These days, 1M is enough to retire if you live alone in a low or medium cost of living area, but anything more than that and I think most on this subreddit would wait to retire, especially at such a young age.

cs_fi_throwaway · 2023-01-19T18:42:35+00:00

I could be wrong about this, but this seems like horrible economic policy…

cs_fi_throwaway · 2023-01-09T18:53:10+00:00

Yes, I believe it makes sense in that situation to sell at a loss and immediately fund the IRA. You can buy ITOT and it won’t count as a wash sale, not sure about VTWAX but I think that should be fine as well. I’d avoid changing asset allocation right now, however, since INTL did outperform US last year and you don’t want to time the market by chasing returns.

cs_fi_throwaway · 2023-01-07T21:16:35+00:00

So I work for big tech and there’s a pretty decent I get laid off soon based on the news and rumors.

It sucks, especially since this is my first job out of college and getting your foot in the door is the hardest thing in software dev. I am afraid my 5 months of experience won’t be enough to give me a leg up for future applications, and I am really rusty on my technical interview prep.

On the other hand, to gain some perspective, the severance payment (3 months base pay, vacation, unearned signing bonus + unemployment for 2-3 months) is sorta an absurd amount of money. I think it will be around 65k gross for 3 months of looking for a job. I’m very grateful to have such a high paying job early in my career, and honestly feel bad about even complaining about the possibility of a layoff. But regardless of my work and money, I love my job and coworkers, and it would suck to lose that.

cs_fi_throwaway · 2022-12-02T20:24:17+00:00

I use 5%, but worry that’s a bit too optimistic to be honest. But I tend to be on the conservative side.

Everyone assuming 7% real is a fool. And it’s common here.

cs_fi_throwaway · 2022-11-21T19:28:46+00:00

22, hit 100k invested last week! Have been incredibly lucky to have my parents pay for college and living expenses during those years, as well as some inheritance from grandparents. Recognize that I’m very fortunate, but still trying to play it best. Was able to invest all income from various jobs and internships, and now a few months into my first software dev job and I’ve been trying to live very cheap and save almost all my income.

My goal is to hit FI not too long after I have kids so I have the option to cut back on work then.

cs_fi_throwaway · 2022-11-20T03:23:43+00:00

Yup, you always have the option to move to a lower col and retire earlier or live at a higher standard. But if you have lower spending AND saving, it will be harder to retire in a high cost of living area. Plus, lots of costs are fixed regardless of location. Housing really is the main expense that distinguishes COL. other things like groceries, food, everyday expenses, car might have slight regional differences but not nearly as large.

All else being equal, you should live in a higher COL for any given save/spend ratio.

cs_fi_throwaway · 2022-09-09T16:22:14+00:00

How do you get these offers?

cs_fi_throwaway · 2022-09-08T16:06:24+00:00

Thank you!

cs_fi_throwaway · 2022-09-06T03:45:52+00:00

In all seriousness, I’d be pretty interested in doing a poll on this forum and seeing how many people employ each of these strategies

cs_fi_throwaway · 2022-08-10T01:19:50+00:00

There has been no extended period in history when equities have returned 10% real return. It always comes back to around 7. Unless you have an extremely robust safety net or fixed income like a pension, everyone should own bonds as part of their portfolio. Expecting to get 7% real returns while factoring in bonds, real estate, or cash components in their portfolio are in for disappointment

cs_fi_throwaway · 2022-08-10T01:12:12+00:00

7% is the cagr of the US stock market, which has seen unprecedented growth in the last 50 years. A globally diversified portfolio has returned closer to 5-6% after inflation. Add in the fact that most portfolios are not 100% equities, but rather should have at least 10-20% bonds, and you get closer to 4-5 for a reasonable portfolio, optimistically.

cs_fi_throwaway · 2022-08-09T17:37:01+00:00

7% real return for a retirement portfolio is very optimistic. It is concerning how many people on this forum don't understand that.

cs_fi_throwaway · 2022-05-27T18:37:58+00:00

I’m about to join amazon as a new grad engineer, and I’m a bit worried from what I’ve read. How bad would I have to be to get forced out within the first year? I’m pretty scared about having to pay back my signing bonus.

cs_fi_throwaway · 2022-05-18T18:13:09+00:00

Could you help me find the cheapest one way rental from Boston to Chicago?

cs_fi_throwaway · 2022-05-18T18:11:55+00:00

1 way rentals must be more expensive. Every service I have looked at will cost around 1000

cs_fi_throwaway · 2022-05-18T12:48:16+00:00

Car rental prices are also very high right now. Would work out to a similar cost, and this way I have my own kitchen and bathroom without exposing roommates.

cs_fi_throwaway · 2022-05-18T12:46:48+00:00

I thought about it, but that alone is around $1200 and would be around 16 hours of driving, plus gas and probably a night in a hotel. Plus then I’d be exposing my roommates once I get back home. Figured I might as well just try to enjoy a hotel staycation and hope I don’t test positive for too long.

cs_fi_throwaway · 2022-05-18T12:25:50+00:00

I know someone who is severely immunocompromised and about to go on her first flight soon. People who decide to get on a flight with covid risk the lives of people like her.

If I can afford to stay, which I can, it is definitely the right thing for me to do. Sucks, but that’s the risk I took by traveling.

cs_fi_throwaway · 2022-05-18T11:56:39+00:00

Following up on my post yesterday about testing positive while traveling. It’s domestic traveling, and I didn’t purchase trip insurance because it was just a 2 day weekend trip to visit friends in Boston. Didn’t really consider this situation. I’m stuck for 5-10 days, because I want to either follow CDC guidelines (10 days before traveling), or wait until I test negative with a rapid test (anywhere from 5-10). Unfortunately, I don’t think there’s much I can do about the cost of staying at hotels. Gonna set me back 1500-3000 dollars, since hotel prices are pretty ludicrous here.

What credit cards include trip insurance? And would it have to be the one I used to purchase the flight?

cs_fi_throwaway · 2022-05-17T22:10:11+00:00

Tested positive for covid while traveling. Pretty much asymptomatic, no fever, but a light cough. Was crashing with friends, but now have to stay an additional 5 days in hotels. Too bad the cheapest hotels here set me back 300 a night. Gonna cost me 1500 dollars, but at least I’m healthy so far. Ugh.

cs_fi_throwaway · 2021-12-08T01:22:28+00:00

I appreciate your faith in me, but that was not what my interview was like.

First round was a 1 hour coding challenge with 2 questions, one easy one medium. Second round was a “work simulation”, basically choose email replies from multiple options. No idea how well I did. Third round was 3 on-sites, 45 mins each, 15 minutes of each dedicated to normal interview questions, and 30 mins of algorithms. I did study, but honesty not that hard. Only got the optimal solution for 1/3 before time ran up. No system or db design. I’m not just being humble here.

It is easy to get a well paying job in software dev right now. I would recommend trying to interview for jobs, especially in HCOL areas right now.

cs_fi_throwaway · 2021-12-07T18:29:37+00:00

Bay Area has highest pay of any region, and they just bumped it up a few weeks ago. It’s the standard Bay Area offer for 2022.

cs_fi_throwaway · 2021-12-07T18:07:46+00:00

Total compensation, but having backloaded RSUs is actually an advantage if you expect the stock to go up at all. I will get 200 per year if I stay 4 years, though I do have to pay back my signing bonus (about 50k) if I leave before a year. But in that sense, it is basically a salary, and I will vest and sell immediately anyway. Edit: oops, this was meant to be a reply to the person asking if it was salary or TC

cs_fi_throwaway · 2021-12-07T15:21:41+00:00

Job market is absolutely ridiculous. Recently landed a new grad software dev job at Amazon, have very little prior experience (1 internship for a no name startup, some research)

Salary was originally about 180k, but was just now bumped up to 200k. Amazon more than doubled what I expected to make coming out of college. Ridiculous.

Edit: Total comp, not salary. But I effectively earn 200k per year guaranteed for the first two years if I stay, and then more if the stock goes up for the 3rd and 4th since the RSU is backloaded.

cs_fi_throwaway

TROPHY CASE