Author Topic: I'm FI!  (Read 10790 times)

4tify

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I'm FI!
« on: April 03, 2016, 09:17:34 PM »
first off i have to say: this community has been incredible. i found MMM and the rest of the bloggers about 4 years ago. i was on my way, but finding you all supercharged the path and i can officially declare FI-dom.

my NW isn't mind blowing, and i still plan to work and build my 'stash, but according to the Simple Math i can now sustain my modest lifestyle--if i so choose--without working for the man.

it's taken me a bit to really internalize that i've made it, and it's pretty cool.

now i just have to figure out what to do from here :)

JLee

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Re: I'm FI!
« Reply #1 on: April 03, 2016, 09:21:33 PM »
Congratulations!

MrDelane

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Re: I'm FI!
« Reply #2 on: April 03, 2016, 09:21:52 PM »
Fantastic!
Congratulations - enjoy the freedom.


SwordGuy

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Re: I'm FI!
« Reply #3 on: April 03, 2016, 09:32:04 PM »
Congrats!

BookWorm22

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Re: I'm FI!
« Reply #4 on: April 03, 2016, 09:49:35 PM »
Congratulations! 

arebelspy

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Re: I'm FI!
« Reply #5 on: April 04, 2016, 05:08:25 AM »
Well done!

Now you can decide what you want the rest of your life to look like, and what extra stache you need to support it, if it involves higher spending (via, e.g. partner/kids, or travel, or particular hobby spending, or whatever).

:)
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Johnny Aloha

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Re: I'm FI!
« Reply #6 on: April 04, 2016, 05:16:40 AM »
Congrats!

Squirrel away

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Re: I'm FI!
« Reply #7 on: April 04, 2016, 06:55:01 AM »
Wow, well done!:)

forummm

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Re: I'm FI!
« Reply #8 on: April 04, 2016, 07:37:21 AM »
<slow clap>
<wipes tear>

falsekrakk808

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Re: I'm FI!
« Reply #9 on: April 04, 2016, 02:36:41 PM »
Congrats on reaching your goal! Heres to the next chapter! Aloha

Lindy

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Re: I'm FI!
« Reply #10 on: April 04, 2016, 04:45:17 PM »
Congratulations!  That must be an awesome feeling!

PhysicianOnFIRE

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Re: I'm FI!
« Reply #11 on: April 04, 2016, 04:51:29 PM »
Way to go!

Drink it in. Fire up those spreadsheets and decide what you want the next year, 5 years, 10 years, or 20 years to look like. You can afford to make changes now.  Take advantage if your life could use some optimization.

Cheers,
-PoF

4tify

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Re: I'm FI!
« Reply #12 on: April 04, 2016, 09:00:01 PM »

 
Way to go!

Drink it in. Fire up those spreadsheets and decide what you want the next year, 5 years, 10 years, or 20 years to look like. You can afford to make changes now.  Take advantage if your life could use some optimization.

Cheers,
-PoF

thanks everyone! and yes, the big question now is what to do next. i have to say it's a little weird to have reached such a milestone. i'm 'only' 48 so there's plenty of time (I hope!) to enjoy the breathing space.

I'd be curious how you folks who've already crossed the bridge began to sort through the freedom??


Metric Mouse

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Re: I'm FI!
« Reply #13 on: April 05, 2016, 07:11:46 AM »
Congrats!

As for sorting through the freedom - I've found making lists is helpful. As ideas pop into my head, I jot them down in no particular order. Then, when I find that I'm lost in the freedom and 'can't decide what to do next', I just grab the list and pick the thing on it that seems most interesting at the moment. It's led to a lot of impromptu trips and failed hobbies.

FrugalFan

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Re: I'm FI!
« Reply #14 on: April 05, 2016, 10:17:16 AM »
Congratulations! That is my ideal goal. Can't decide whether to keep working hard to push for it sooner, or slow down and enjoy life a bit more soon but delay reaching FI.

PhysicianOnFIRE

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Re: I'm FI!
« Reply #15 on: April 05, 2016, 02:33:57 PM »

 
Way to go!

Drink it in. Fire up those spreadsheets and decide what you want the next year, 5 years, 10 years, or 20 years to look like. You can afford to make changes now.  Take advantage if your life could use some optimization.

Cheers,
-PoF

thanks everyone! and yes, the big question now is what to do next. i have to say it's a little weird to have reached such a milestone. i'm 'only' 48 so there's plenty of time (I hope!) to enjoy the breathing space.

I'd be curious how you folks who've already crossed the bridge began to sort through the freedom??

If charitable giving might be in your future, start a Donor Advised Fund now while you are still in a high tax bracket (assuming you are).  If part-time work would appeal to you, explore that option. Develop hobbies and imagine how you might better spend your days if you weren't working.

Focus on your health if it's less than optimal.  Retirement will be better and longer if you can remain healthy throughout.

And celebrate with a nice evening out / long weekend / whatever floats your boat.

Cheers!
-PoF

forest

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Re: I'm FI!
« Reply #16 on: April 09, 2016, 07:23:11 PM »
Wohoo!

CATman

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Re: I'm FI!
« Reply #17 on: April 10, 2016, 12:21:36 AM »
Congrats! That has to be a completely amazing feeling!

Cyaphas

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Re: I'm FI!
« Reply #18 on: April 10, 2016, 12:26:49 AM »
Congrats! I can only imagine the feeling.

Exflyboy

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Re: I'm FI!
« Reply #19 on: April 10, 2016, 11:08:36 AM »
Fantastic!

Do you feel comfortable sharing the numbers??

Lski'stash

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Re: I'm FI!
« Reply #20 on: April 10, 2016, 11:48:08 AM »
Congrats!! I'm curious to hear what you decide to do next.

Jim2001

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Re: I'm FI!
« Reply #21 on: April 10, 2016, 05:11:44 PM »
tmitchell,

  Astounding achievement!  Especially if you plan on staying in the LA area.  I'm here too and it's not a low cost of living area my any means.

What's on your list?


Mr.Tako

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Re: I'm FI!
« Reply #22 on: April 12, 2016, 02:32:29 PM »
Congrats!  Welcome to the club!  As I always say, "FI is just the beginning!" 

Now, what do you plan to do with the rest of your life?

4tify

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Re: I'm FI!
« Reply #23 on: April 19, 2016, 05:35:29 PM »
Fantastic!

Do you feel comfortable sharing the numbers??

I've got 1MM NW in a mix of stocks/bonds/real estate (investment, not home). I count my RE in my "bonds" and currently weigh in about 75% stocks. My plan from here is to pay off the rental property and increase my stock allocation as I continue to earn money. I figure as long as I leave this nest egg alone to grow and keep earning at least a minimal salary, I'll be in pretty good shape in 3-5 years when I figure I may actually ratchet down the amount I do work.


4tify

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Re: I'm FI!
« Reply #24 on: April 19, 2016, 05:38:39 PM »
tmitchell,

  Astounding achievement!  Especially if you plan on staying in the LA area.  I'm here too and it's not a low cost of living area my any means.

What's on your list?

Ya LA is nuts. I've been living a very frugal life here (with roommates!) to get to this point, so my immediate plan is to upgrade my living situation. Since I plan to continue working for a couple years, I feel like it's worth reducing my savings rate in favor of having my own place. I have a pretty awesome job that allows me to travel to some cool places, so I'll be taking advantage of that while I continue to save and figure out where to go AFTER Los Angeles!

Where are you at in the journey? Do you have a "life after LA" plan at all?

acroy

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Re: I'm FI!
« Reply #25 on: April 20, 2016, 10:49:02 AM »
Badass! nice!

Jim2001

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Re: I'm FI!
« Reply #26 on: May 01, 2016, 02:51:37 PM »

...Where are you at in the journey? Do you have a "life after LA" plan at all?

I'm targeting FIRE in December 2017.  I've never lived anywhere else and still have many long time friends, not to mention family in the area. So, no "life after LA" plans, I'm staying put.  Plus, my dear wife needs to work a few more years to optimize her 'stache (she's a few years younger and started saving later).

Interesting you count your RE as bonds.  I posed a question about that sort of classification a few weeks ago and the few that replied made a case for "owning an asset" is different that "making a loan".  But I can see how the income stream is much more bond like, but there can be repair expenses and vacancy gaps.  So, I still haven't decided what that means to my investment profile.  Curious to hear your logic and if you also hold an actual bonds as any sort of ballast in your portfolio.  Also, I'm curious, if you don't mind sharing, is your rental RE local or remote? I have both and have come to dislike direct management of the local stuff.

Physicsteacher

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Re: I'm FI!
« Reply #27 on: May 01, 2016, 04:36:24 PM »
Congratulations!

4tify

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Re: I'm FI!
« Reply #28 on: May 01, 2016, 10:10:12 PM »

...Where are you at in the journey? Do you have a "life after LA" plan at all?

I'm targeting FIRE in December 2017.  I've never lived anywhere else and still have many long time friends, not to mention family in the area. So, no "life after LA" plans, I'm staying put.  Plus, my dear wife needs to work a few more years to optimize her 'stache (she's a few years younger and started saving later).

Interesting you count your RE as bonds.  I posed a question about that sort of classification a few weeks ago and the few that replied made a case for "owning an asset" is different that "making a loan".  But I can see how the income stream is much more bond like, but there can be repair expenses and vacancy gaps.  So, I still haven't decided what that means to my investment profile.  Curious to hear your logic and if you also hold an actual bonds as any sort of ballast in your portfolio.  Also, I'm curious, if you don't mind sharing, is your rental RE local or remote? I have both and have come to dislike direct management of the local stuff.

Ya I don't know if this is reasonable or not. I also hold some bonds as well as cash, but I'm still refining how much. The idea is to give myself a year or two of 'safety' if the market seriously tanks, and stay as aggressive as I feel I can deal with otherwise. I spoke to Jim Collins once and he told me to count my paycheck as bonds, which was really interesting, so as long as I'm earning I'm taking that into consideration. That house is actually where my mom lives, and I lose money on it every month. But that's to keep her comfortable & safe in her old age. Eventually that will change, but who knows how or when. I THINK I'll turn it into a rental whenever she leaves, which would provide a decent stream. It's in CO btw, where I grew up.

I'm feel now it's likely I'll be in LA working for another 2-7 years because I like to work and I don't have a plan to move elsewhere at the moment. My plan (today) is to upgrade my housing (and possibly even buy a condo), while slowly transitioning to a lower savings rate. If I do buy a condo I won't be counting that in my overall portfolio because I consider it a 'spend'. But the cool thing about being baseline FI is that I really only have to sustain my lifestyle here while the 'stash grows, even if that means taking on a mortgage.

When I DO 'quit' I plan to have 2-3 years of 'safe' income (i.e. cash/bonds) for an emergency/crash. That may include rental income depending on what happens. If I sell that house I'll put the money back into a 75/25 bond allocation.

Make sense? Very cool you're coming up on FI in a couple years. It's a great feeling.


Jim2001

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Re: I'm FI!
« Reply #29 on: May 03, 2016, 01:07:47 AM »
... If I sell that house I'll put the money back into a 75/25 bond allocation.

Make sense? Very cool you're coming up on FI in a couple years. It's a great feeling.

I haven't figured the exact stock/bond split for me yet.  I'm currently working the details to bridge the seven year gap between FIRE and 59 1/2 until I can pull from retirement accounts.  Currently increasing bond allocation with short term duration holdings so they mature in the gap and provide cash without a big tax hit. 

You're right, it is a great feeling, but sometimes it is way too tempting to just say "screw it" now and live on less.  We were watching a travel show last week and I told her to remind me when I threaten to quit that it is worth working a while longer so we can afford the really nice vacations every year. 

This Friday will take me down to 43 paychecks (at the current salary).  But, I'm seriously looking for something closer than the 62.5 mile one way commute.  Unfortunately, it will likely mean a cut in pay.  We'll see...

4tify

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Re: I'm FI!
« Reply #30 on: May 03, 2016, 07:44:23 PM »
man, i think every day 'why don't i just quit.' i think it's because we're so close we can taste it. but for me it's also that i'm not 'miserable' at my j.o.b. I'm just ready for the next thing, but don't know what that is yet.

i'm hoping that it'll come to me in the next year or two while i keep building the stash. but yes: the commute thing is ROUGH in this town and it may be worth 'spending' the money to improve your quality of life. just today a mustachian buddy of mine leased a car she could take in the HOV lane. NOT a great choice for FIRE, but a GREAT choice to reduce the life drain of her current work/home thing.

i think if i've learned anything at all from this cult, it's that what we're doing is making choices about where to invest our time & money. it's not about 'not spending' money, it's about using it consciously. sometimes that means eating caviar. sometimes it means choosing not to. unless you enjoy podcasts that much, might be worth improving your quality of life and cut the commute.

p.s. it's good to talk to some one in the home city about this stuff :)

arebelspy

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Re: I'm FI!
« Reply #31 on: May 04, 2016, 10:08:06 AM »
man, i think every day 'why don't i just quit.'

If you're FI, why are you still selling days of your life?  You only have so many, and if you have enough money, you're trading them for something you don't need.

What is your answer to that question you ask yourself every day?
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Exflyboy

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Re: I'm FI!
« Reply #32 on: May 04, 2016, 11:25:33 AM »
man, i think every day 'why don't i just quit.'

If you're FI, why are you still selling days of your life?  You only have so many, and if you have enough money, you're trading them for something you don't need.

What is your answer to that question you ask yourself every day?

Don't you just hate it when people are logical?..:)

Of course the aregument is valid and if you REALLY don't need anymore money (or more to the point having anymore won't improve your lifestyle) they why chase after getting more.

Arebelspy will be the first to point out I am the biggest hyporite in this arena and have worked and chsed after way more than I need. For me the reasons I do this are..

1) Fear, I might not REALLY have enough
2) Wife is still working for OMY (because she really wants to).. So only so much I can do on my own.
3) I actually like my PT Hobby job.. Its actually fun and rewarding.
4) I get a thrill out of gaming the airmiles/hotel points system.

Everyone who knows me will be rolling their eyes at my typing this, but I spent a lot of time wondering why I have not totally quit even though I'm beyond FI based on prior expenditure.

I'm OK with where I'm at.. But I think if it all came down to just fear of running out.. well I really would have simply quit by now.

Jim2001

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Re: I'm FI!
« Reply #33 on: May 04, 2016, 08:34:28 PM »
man, i think every day 'why don't i just quit.' i think it's because we're so close we can taste it. but for me it's also that i'm not 'miserable' at my j.o.b. I'm just ready for the next thing, but don't know what that is yet.

i'm hoping that it'll come to me in the next year or two while i keep building the stash. but yes: the commute thing is ROUGH in this town and it may be worth 'spending' the money to improve your quality of life. just today a mustachian buddy of mine leased a car she could take in the HOV lane. NOT a great choice for FIRE, but a GREAT choice to reduce the life drain of her current work/home thing.

i think if i've learned anything at all from this cult, it's that what we're doing is making choices about where to invest our time & money. it's not about 'not spending' money, it's about using it consciously. sometimes that means eating caviar. sometimes it means choosing not to. unless you enjoy podcasts that much, might be worth improving your quality of life and cut the commute.

p.s. it's good to talk to some one in the home city about this stuff :)

I've thought about an HOV sticker car.  Even went to a few lots to look at them.  To find one with any life left in the batteries would cost close to $20K with tax and license.  I'm a contractor and my assignment was only supposed to be three months (ending 4/28).  It recently got extended through the end of June and it looks like it will get extended again through August.  After that I may get transferred to a client 12 miles from home, if there's work...

I'm so close to FIRE and plan on selling my primary driver as soon as I do, or sooner.  Wifey has a good car and I will have other choices for where ever I need to go (bicycle, motorcycle, bus, train, skateboard, walk...)  I agree that we're all making life style choices and trade offs, but $20K is a big hit for two to four months of benefit. 

And you're right, one can try to imagine living in LA, but there's nothing like it.

Great idea with a large bond/cash allocation and I hadn't considered a paycheck a bond, but from a cash flow perspective, sounds good.  Just no return of capital at the end. 

Let me know if you need a realtor for the local condo decision.  I know and regularly refer quite a few, so could likely find an expert in nearly any area in LA (the benefits of having lived here all my life).