Author Topic: Where is the FIRE list by steps?  (Read 4934 times)

heybro

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Where is the FIRE list by steps?
« on: November 28, 2016, 01:59:43 AM »
Where is the 'Steps to Fire' list and why isn't it a sticky?

I know it is 'Max out IRA'
Then Max out Employer IRA, etc.
But where is that list at?  I can't find it!

Metric Mouse

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Re: Where is the FIRE list by steps?
« Reply #1 on: November 28, 2016, 02:17:25 AM »
Hmmm. I would like to see such a list, if only to see how it differs from my own path to FIRE. In fact, it seems that many of the early retirees on this board have not followed exactly  the "steps" that you list.

MDM

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Re: Where is the FIRE list by steps?
« Reply #2 on: November 28, 2016, 03:01:17 AM »
Where is the 'Steps to Fire' list and why isn't it a sticky?

I know it is 'Max out IRA'
Then Max out Employer IRA, etc.
But where is that list at?  I can't find it!
See the 'Investment Order' tab in the case study spreadsheet: http://forum.mrmoneymustache.com/forum-information-faqs/case-study-spreadsheet-updates/

The suggestion/offer has been made to make this a sticky but the moderators have chosen not to move on this.

Elle 8

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Re: Where is the FIRE list by steps?
« Reply #3 on: November 28, 2016, 03:37:08 AM »
Is this the list you're looking for?
http://forum.mrmoneymustache.com/ask-a-mustachian/case-study-what-to-do-after-sale-of-old-house/msg785034/#msg785034
It was posted by MDM in this thread: "Learning, Sharing, and Teaching Ask a Mustachian Case Study - What to do after sale of old house?"

See below for one defensible prioritization order.  The current 10-year Treasury note yield is ~2.2%.  Differences of a few tenths of a percent will be insignificant over a few years, so using a coin toss (or gut feel) when options are that close is fine.

WHAT
0. Establish an emergency fund to your satisfaction
1. Contribute to 401k up to any company match
2. Pay off any debts with interest rates ~5% or more above the 10-year Treasury note yield.
3. Max HSA
4. Max Roth or Traditional IRA based on income level
5. Max 401k (if 401k fees are lower than available in an IRA, swap #4 and #5)
6. Fund mega backdoor Roth if applicable
7. Pay off any debts with interest rates ~3% or more above the 10-year Treasury note yield.
8. Invest in a taxable account with any extra.

WHY
0. Give yourself at least enough buffer to avoid worries about bouncing checks
1. Company match rates are likely the highest percent return you can get on your money
2. When the guaranteed return is this high, take it.
3. HSA funds are totally tax free when used for medical expenses, making the HSA better than either traditional or Roth IRAs.
4. Rule of thumb: trad if current marginal rate is 25% or higher; Roth if 10% or lower; flip a coin in between
5. See #4 for choice of traditional or Roth for 401k
6. Applicability depends on the rules for the specific 401k
7. Again, take the risk-free return if high enough
8. Because earnings, even if taxed, are beneficial

heybro

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Re: Where is the FIRE list by steps?
« Reply #4 on: November 28, 2016, 07:27:21 PM »
This should be a sticky!  It's like not including the Ten Commandments in the Bible!  haha.

arebelspy

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Re: Where is the FIRE list by steps?
« Reply #5 on: November 29, 2016, 06:57:11 AM »
This should be a sticky!  It's like not including the Ten Commandments in the Bible!  haha.

MOD NOTE:
What thread, exactly, should be stickied?  This one asking what the steps are?

It's already in the case study speadsheet, which is stickied.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.

MDM

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Re: Where is the FIRE list by steps?
« Reply #6 on: November 29, 2016, 09:20:33 AM »
MOD NOTE:
What thread, exactly, should be stickied?  This one asking what the steps are?
It's already in the case study speadsheet, which is stickied.

I believe the request is to have the steps listed in a thread-opening post that then gets stickied.  There was a similar request some time ago, for which I did a "report to moderator" and offered to create such an entry if the moderators would sticky it.  Never got a response so I figured the answer was "no".  I'm OK either way.

P.S. Thanks for the edit in the "How To" sticky this morning.

boarder42

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Re: Where is the FIRE list by steps?
« Reply #7 on: November 29, 2016, 09:24:18 AM »
yeah i think it needs to be a sticky with that as the first post.  i know its in that spreadsheet but that list is so awesome and straight to the point.

ysette9

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Re: Where is the FIRE list by steps?
« Reply #8 on: November 29, 2016, 09:38:37 AM »
As someone who started a thread a few months ago asking for this exact information, I second the request to make this a sticky. Here are my reasons:

1. Many people seek advice but not that many go through the whole process of the case study spreadsheet. Therefore some are not going to see it listed there.
2. As shocking as it is to admit infidelity, this is not the only finance-related website I visit. It is my favorite though, and I love being able to link to a concise piece of advice like this list.
3. My main tool for accessing the forum is my phone. The case study spreadsheet does not load properly on my phone.

Considering how many have asked for this as a sticky, my non-existant vote is to make it a sticky. :)

MDM

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Re: Where is the FIRE list by steps?
« Reply #9 on: November 29, 2016, 10:07:14 AM »
Created a new thread: http://forum.mrmoneymustache.com/investor-alley/investment-order/.

Up to the moderators if they want to sticky it.

boarder42

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Re: Where is the FIRE list by steps?
« Reply #10 on: November 29, 2016, 10:45:26 AM »
done
« Last Edit: November 29, 2016, 12:16:51 PM by boarder42 »

ysette9

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Re: Where is the FIRE list by steps?
« Reply #11 on: November 29, 2016, 11:28:24 AM »
Done!

swick

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Re: Where is the FIRE list by steps?
« Reply #12 on: November 29, 2016, 12:03:29 PM »
everyone go report that to a moderator and sticky icky icky it.

MOD NOTE: Please don't. It has already been stickied. More reports at this point will add to our workload.

Thanks MDM for creating the post.

Metric Mouse

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Re: Where is the FIRE list by steps?
« Reply #13 on: December 04, 2016, 08:45:24 AM »
Good work MDM! It's nice to have this stickied.

arebelspy

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Re: Where is the FIRE list by steps?
« Reply #14 on: December 04, 2016, 08:47:42 AM »
If anyone wants to type up one for Canada, The UK, Australia, etc., we can add it as well.
I am a former teacher who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and am now settled with three kids.
If you want to know more about me, this Business Insider profile tells the story pretty well.
I (rarely) blog at AdventuringAlong.com. Check out the Now page to see what I'm up to currently.