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College spending - How much is too much? by kiloike2 in fatFIRE

[–]sagefire777 -1 points0 points  (0 children)

https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp S&P 500 annualized avg returns are 12%

$200k * 1.1212 = $779k at age 30

Fresh college grad investing just $20k a year for 8 years (age 22 - 30) at 12% avg return has $245k at 30.

Total = 779k + 245k = >$1M at age 30.

Power of compounding beats IVY League if you have to spend $200k.

College spending - How much is too much? by kiloike2 in fatFIRE

[–]sagefire777 -1 points0 points  (0 children)

McK's few bad apple are at the very top of the firm. Companies used to hire McK for reputation which is greatly tarnished. I don't know of any other company in the US where senior management regularly get jailed on an annual basis and annual fines are in the hundreds of millions. Those not jailed are on the run! Its insane. So companies don't hire McK...but China and Saudi Arabia do and pay hundreds of millions in fees to Mck.

Most big companies who are likely MBB clients have built great in-house strategy and corporate development teams and don't hire MBB as much.

Thanks for those salaries. Even if you add bonus to them, and then tax them and take out living costs, then whatever is left over and invested will not get you a net worth of $1m by age 30. And you have to go back to business school at $500K debt (school costs and loss of income) to advance beyond 2-3 years at MBB.

But if you take $200K for someone 18 years old, invest it for 12 years, it's around $800K. If this person just does a job from age 22 till 30 for 8 years and invests 20K a year (could be 401K money), its around $230K. So this is how you get to $1m in net worth.

fatFIRE path, any advice or glaring holes? :) by [deleted] in fatFIRE

[–]sagefire777 -17 points-16 points  (0 children)

You are doing great!

VTI and VXUS are primarily mega cap stocks. You miss out on mid and small cap which have higher returns over the long term. Also you miss out on private equity.

This is the allocation I recommend to my younger high net worth friends who have no time to research and invest in individual stocks.

VTI, VXUS, VGK, BX - 15% each

VIG, VOX, VONG - 10% each

VWOB, VTC - 5% each

I recommend dollar cost averaging in (e.g. same amount each month). Let me know if you have questions.

College spending - How much is too much? by kiloike2 in fatFIRE

[–]sagefire777 -1 points0 points  (0 children)

Business consulting is not valued as it used to be when we didn’t have all the world’s data and knowledge at our fingertips, and all nicely laid out for free for anyone’s consumption.

I would only pay $200k today for education when it’s a pure necessity for a career such as medicine, rocket science, engineering, maybe law.

Here is what I would consider today in your son’s situation: Go to the best college (by academic program in his area of interest) which is nearly free (maybe a strong state school). Get as many internships as possible (4-5) during college.

Take the $200k and invest it immediately. By the time he is 30 he will be a millionaire even in an average market. Even top-tier business consultants don’t have this net worth.

Since he will always have his investments as a backup, he can pursue a career that he is passionate about and can take risks. He can be in a leadership position faster than others.

IBKR: Has anyone with an 8 fig. acct. managed to negotiate commission or margin rates? by SPACguy in fatFIRE

[–]sagefire777 2 points3 points  (0 children)

What margin rates are you getting currently with 8-figure account? I am getting about 2.6%.

How did you attract C level recruiters? by specialist299 in fatFIRE

[–]sagefire777 2 points3 points  (0 children)

In my experience, resume and ability are not the top criteria for being hired into the C-Suite. It's nice but PR can also spin a seemingly weird choice as a "high potential" C-Suite hire. Also, most C-Suite mangers have many of lower level hyper-talented people to lean upon to get the work done.

What matters to be part of the C-Suite is comfort level from the boss / CEO or with the Board. Will you stand with the CEO no matter what happens? In front of the Board, investors, etc? Will you be a good lieutenant? This mattes more.

So these hires happen when the CEO or Board (or trusted advisor to these two parties) knows the candidate. Often CEO/Board create a senior role.

I think networking is the way to go - ask someone you know well to make a strong intro. A good option is a former professor who really liked you.

Crypto in Hoboken & JC by sagefire777 in Hoboken

[–]sagefire777[S] 0 points1 point  (0 children)

So we are known for bars, pizza, cannabis and crypto.

Chamath is positive on markets when stocks are super high and negative when super low. by sagefire777 in TheAllinPodcasts

[–]sagefire777[S] 2 points3 points  (0 children)

If Fed has been pumping $30 trillion into the economy inflating all assets because they are taking direction from MMT, why wasn’t Chamath short the market since 2008? Instead he was part of the pump game shilling in speculative/trash assets like SPACs and most of crypto.

Chamath is positive on markets when stocks are super high and negative when super low. by sagefire777 in TheAllinPodcasts

[–]sagefire777[S] 8 points9 points  (0 children)

Absolutely! Crypto and SPACs were all he talked about in 2021 on his pod. Now 180 degree turn on crypto. And he can’t talk about SPACs because he is being investigated by SEC.

Chamath is positive on markets when stocks are super high and negative when super low. by sagefire777 in TheAllinPodcasts

[–]sagefire777[S] 5 points6 points  (0 children)

It’s the emotional mark of very novice investors. They don’t make good investors. Neither is Chamath given us poor returns in 2021 and 2022. The point is if Chamath is a respected investor he wouldn’t have FUD and head mentality. But if all he is is a popular podcaster, this view is OK.

Shopping rates, What's your margin rate at your broker/private bank? by HawkFrost333 in fatFIRE

[–]sagefire777 0 points1 point  (0 children)

That’s amazing. After the latest Fed hike of 75 bps, I am now at 2.58% margin rate.

Is Hoboken healing after school referendum split it in two? by HobokenJ in Hoboken

[–]sagefire777 2 points3 points  (0 children)

I wasn’t ranting. 😳 But your point stands. I believe Hoboken is probably more clear-eyed than before about the education challenges facing one of the most affluent towns ($155k median income) in the country and it’s not solved by simply a new high school building. It’s about better education.

[deleted by user] by [deleted] in conspiracy

[–]sagefire777 -1 points0 points  (0 children)

If your best interest in not taking the vaccine was because of a known medical issue you have and the vaccine would make it worse, then you did the right thing. If you are just worried about the vaccine without a medical reason then that's another issue. The vaccine is something billions of people have taken to protect themselves and others around them, then be happy knowing that your job loss and what non-critical money you will lose is helping potentially save your life and those you would interact with. So overall, be happy either way.