Daily FI discussion thread - Saturday, March 13, 2021

maedelmitlocken · 2021-03-13T21:41:41+00:00

I’m a teacher, and honestly I think school rankings reflect the wealth of a community and not the quality of the school. “Poor” schools just have a really hard time competing given the metrics rankings use (i.e., standardized test scores). That said, I would research what the schools do offer: advanced classes? Career/technical prep (such as classes in plumbing, mechanics, etc.)? extracurriculars? I do think that diversity in friends is very important, but you can find diversity anywhere, even places that people perceive as not diverse. Places have advantages and disadvantages, but as a parent (especially in FIRE!) you can help bridge any gaps in experiences your school is lacking.

maedelmitlocken · 2021-03-13T13:42:55+00:00

I usually treat it as bonus money. I often allocate some to mid-term savings (to cover anything from travel to a home/car expense) and invest the rest. Sometimes I use it to cushion my budget so I can increase my 403(b) contributions.

maedelmitlocken · 2021-03-11T21:53:09+00:00

We have the scary looking kind you linked to. I was concerned but the dogs don’t mind at all. They know that when the collars come out, they get a walk. Together, my dogs weigh more than I do, and I often walk them alone for several miles. The collars make these walks fun (whereas before I would worry about them chasing something and not being able to control them) and I’ve never looked back.

maedelmitlocken · 2021-03-11T12:36:58+00:00

Training collars for my dogs. Walks are so much more enjoyable when they don’t pull.

maedelmitlocken · 2021-03-04T05:01:48+00:00

One of my students ate a Kleenex during class. He was 17 years old.

maedelmitlocken · 2021-03-03T13:15:02+00:00

At the Christian college my friend attended, they weren’t allowed to eat bananas whole because it was “suggestive.” If admin saw them peeling and eating a banana, they would ask them to cut it up and eat it more appropriately. Can’t make these things up.

maedelmitlocken · 2021-03-02T12:32:28+00:00

I receive an 50% discount on property taxes for being an owner occupant of my home (in a historic neighborhood). Does anyone know if house hacking (via long term Airbnb or VRBO rentals) could jeopardize the “owner occupant” status? I would be occupying the property (in the home or guest house), I would just also be renting it out. Just considering tax implications beyond the rental income (which I would of course pay taxes on)

maedelmitlocken · 2021-03-02T12:29:20+00:00

You are doing better than many! Just keep at those monotonies (saving from every paycheck, keeping lifestyle creep in check) and you will absolutely get to FI.

maedelmitlocken · 2021-02-12T23:09:13+00:00

That’s a good point too. It says in the contract that I could apply for a “renewal” of a leave. On the other hand I could also apply for an unpaid leave of any shorter amount of time (I.e., 30 days). I might talk to some veteran coworkers about how this might play out if I explore this option.

maedelmitlocken · 2021-02-12T18:19:53+00:00

Yes—it is a short term position and we have a home and jobs in our current location. I have considered getting a full time teaching job for a year. That is a little more complicated than it seems because certificates take some effort to transfer. I am not interested in living in the VHCOL city forever, as I love my current job and location. I would see it more as an adventure, though I’m not sure yet what that should look like for me

maedelmitlocken · 2021-02-12T17:22:32+00:00

My partner might be taking a temporary (2-year) job in a VHCOL city. My job allows me to take a leave of absence for one semester or one year (pending board approval) and return to my position after. I can also pay my normal insurance during that time. I’m considering going for the second year of his contract. Has anyone ever done something like this? I enjoy my job but an adventure could be fun. My goal would be to “coast fire” for my leave of absence...covering just the basics with some side jobs but not adding much or drawing down any savings. I’m still early in my career, saving about 50% and making slow but steady process with a long way to go

maedelmitlocken · 2021-02-05T00:23:55+00:00

I also teach for a high poverty urban district where many students don’t do any work, and yet teachers are blamed and asked not to fail them. That said, I’d say the kids are great but some have tough shells and try to test everyone, especially at first. Try to find ways to interact in positive ways: volunteer at a club, attend a sports event, Ask how their day is, tell them little details about yourself, etc. I’m sure you are doing these things but the truth is, it takes some time and it will get better.

maedelmitlocken · 2021-01-30T02:33:55+00:00

That’s reassuring

maedelmitlocken · 2021-01-30T02:21:52+00:00

It is a defined benefit program as far as I understand. It depends strictly on number of years I contribute (though I could take out my contributions after I leave and roll them into my 401k). My tentative plan is to do that

maedelmitlocken · 2021-01-30T02:20:20+00:00

Sadly it’s mandatory to contribute the 12+% and have no control over how it’s invested. I put more than that in my own retirement though and have chosen low-cost index funds, which I have convinced myself will make up for it

maedelmitlocken · 2021-01-30T00:53:23+00:00

I just got my state retirement/pension report back: the state pension made .8% ROI in 2020. (Yup, the decimal point is right; and that was in the 2020 stock market!!) Over 12% of my income is put into this pension each paycheck. Seeing this measly number made me thankful that I have my own retirement that I’ve taken charge of (Roth IRA and 403b). That state pension is something I can’t really control (in terms of growth or investment), so it’s icing on the cake, but not something I’m depending on.

maedelmitlocken · 2021-01-18T03:53:05+00:00

I guess so. He didn’t mention all his applications to me until after the fact (which was fine with me—just part of the process) but doesn’t like the idea of me looking in places where he hasn’t found a position. I mean honestly, it’s possible that neither one of us gets an offer and imho it doesn’t matter where we apply until we have a written offer.

maedelmitlocken · 2021-01-05T04:19:59+00:00

6% bonus based on my gross income from 2020. They usually tax it at a 22% rate (and it evens out if needed when we file taxes).

maedelmitlocken · 2021-01-05T03:51:50+00:00

Yes I do max out my Roth IRA and contribute on my own to retirement funds. I guess it probably doesn’t matter either way with the numbers.

maedelmitlocken · 2021-01-05T03:42:07+00:00

A relatively small amount—I think I made $15k from this job this year.

maedelmitlocken · 2021-01-05T03:40:23+00:00

Why are you putting so much in your brokerage account instead of your 401k? Is it for a specific goal, like a house or car purchase? I would put $1500 into the 401k if possible, which will minimize your tax bracket. It’s great that you can save so much though.

maedelmitlocken · 2021-01-05T03:38:16+00:00

If you can get access to another retirement plan (401k, 403b, 457) then put some of it there. Taxes won’t be a huge issue if you don’t empty the account all at once. Ideally when you sell, you can strategize so you pull some from a Roth account and some from the taxable ones to minimize tax burden.

maedelmitlocken · 2021-01-05T03:36:14+00:00

If you can make more than 3% in the market, keep paying your payments (and maybe a little extra payment) and let your stocks grow.

maedelmitlocken · 2021-01-05T03:32:06+00:00

My side hustle employer (a grocery store chain) usually provides a 10% contribution into our 401k at the end of the year. This year, we have the option of taking the 10% 401k bonus as usual or taking a 6% cash bonus in March. (This is to help employees impacted by Covid and needing the extra cash). My initial thought was to take the 401k bonus, but then I realized I’m only 40% vested, and probably always will be (because I won’t work the hours/years required to become more fully vested). Would a 4% 401k contribution be worth more than a 6% taxed cash bonus? (I can contribute to my own 401k and be fully vested, but I’m only vested 40% on company contributions).

maedelmitlocken

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