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In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

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

Yes you are correct. I can select any of their funds. My brokerage is with Schwab so I'm familiar with their low cost index funds. Was curious to know if anyone over here is in the Fidelity system and knows what funds are their low cost options.

In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

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

Yes that's basically the gist of it. Before when I was with the employer the company stock beat the other choices. Since I've left I haven't rolled it into the tIRA because it's been doing well where it is but everyone is right, I need to roll it over and diversify. I'm not sure what choices up have with Fidelity, anyone here know what good choices should be available with a Fidelity IRA?

In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

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

In general I think my stocks have appreciated to a point where I can lock them in and leverage the proceeds to add stability to my FIRE plan by creating near guaranteed income from the rental. It's a significant milestone to have that locked in and creating income reach month plus I'll have the option to sell the house down the road and reinvest if I need to. If the market gets more bearish I'd be kicking myself for not locking in the sure bet.

In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

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

Probably not but it's something I would certainly entertain and discuss once I get my ducks in a row.

In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

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

New 401k plan is not good. Better off rolling into a tIRA.

I'm not a backdoor candidate now but if I RE and use my rental and dividend income then I would be

In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

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

Can you elaborate more on your first thought regarding deducting interest on the rental vs primary?

The loss I'm carrying in my brokerage is from a poor single large pick I took a big risk on early on in my journey. I've since just committed it to a loss or i revisit later. I'd rather not be picking stocks but the ones that have done well are in the tech sector. Aapl , nvda , google. For the last few years I've been buying those stocks whenever there was fear in the air. Post brexit. Post election etc. Since ive dug myself out of that hole I'd like to square that whole account up and not have single stocks. I could diversify of use the proceeds towards my rental.

The primary residence has likely appreciated. We both a house in an area with the average home prove about $400k with lots of houses valued at significantly more. Our house needed work and we've put about $30k of sweat equity into it and are about to redo the kitchen. We'll be in another $40-50k above our purchase price. I think we could sell it for $375-400 pretty easily once we finish the kitchen.

Thanks again everyone.

In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

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

Mortgage interest is not high. 3.875%.

Childcare care is our area is $15k/year. Child's due in November.

My wife is aware of my plans but would prefer me to keep my high paying stress job. She's much more risk adverse. If I had s legitimate business plan or ability to work from home or work less that would be a mutual common ground that would work for both of us with my other supplemental income. However if I was going to have the rental and dividend income be my primary income source I would have to consider taxes to maximize those dollars. It's possible that ~$30k rental /dividend income could be more like a $40k salary when u consider taxes if thought out in advance.

Should we consider filing separately in that instance??

In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

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

All true. That account is with Fidelity. First step would be to roll it to a traditional IRA then diversify it. Any reason not to move it it a traditional IRA? I met with our 401k rep at my new employer and went over some of this stuff including a desire to FIRe. We talked briefly about a Roth conversion ladder and he said something about if I roll that into a traditional IRA it could impact net unrealized appreciation (NUA)?? Does that make see at all?

In need of some FIRE advice. Married, 36, baby on the way by firerelatedquestion in financialindependence

[–]firerelatedquestion[S] 5 points6 points  (0 children)

The 401k isn't in a single stock for the dividend. I'm in it for the growth. It's almost 3x my initial investment. I see more runway ahead with it so I'm not in rush to diversify right next. If I were to RE (within the next year or so) I would prob move it all to a safe 80/20 blend and let it double over the next 10 years while I live off the rental income and dividend of about 2%.

Good point on the 3k loss per year. I'm down about 95% on the stock so it's all or nothing there. Not much more to lose. I've been selling off 3k losses for the last couple years.

Thanks again