The Investment Thread (help with savings, stocks, retirement funds, etc.)

[Route_2]

Originally Posted by Benny003

To the bold, that's a big thing. Assuming your spouse isn't working at that time either with an employer plan, then you have to buy your own insurance. So that's a big expense to consider as well (assuming Medicare for All doesn't happen by then). Personally, I've had an HSA for several years and I hope to continue building that up for a long time to use that in retirement. I've been maxing it out the past couple years so far.

Same. Healthcare during the gap period is a major topic in the FIRE community. Spousal coverage, getting a low stress job that offers healthcare (barista-FIRE), HSA, out-of-pocket are the usual options sans MFA. My spouse likes her job so plans to continue to work so I plan to go on her healthcare to cover the gap.

[TheLastStop123]

my strategy right now is going to be a combination of index funds and real estate investing. I really want get the passive income stream going. a buddy of mine is 36 and has plans to retire in 5 years. he's already got 4-5 properties to be able to make enough passive income to get by.

[TheLastStop123]

Originally Posted by Benny003

Who knows how the markets will go in the next couple years, but your balance will start to grow fast. Mine grew something like $200k in just the last 2 years.

yeah, but didn't you also get in big on the crazy dip last march? I feel like your returns are overinflated

[YouNeverKnow25]

Originally Posted by Route_2

getting a low stress job that offers healthcare (barista-FIRE)

this is where the FIRE community loses me. the point of quitting my job is to not have to work. if me not working means I can't afford health insurance then I just need to.....continue to work?

if I need to take a low-stakes job being managed by some fuckhead who I am 100 times smarter than, dealing with douchebag retail customers all day, and also make like 15 bucks an hour to do it, I'll just keep making what I make in my real job until medicare kicks in.

also if you think that being a barista is a low-stress job...


PS it's probably my own internalized biases against this mindset more so than it is reality, but when I read a lot of the FIRE stuff it boils down in my head to "live like a hobo now, so that you can live like a hobo later--only while enjoying the actual hobo lifestyle of not having a job."

[YouNeverKnow25]

[also acknowledge the position of privilege I'm in to even have these discussions, of course]

[Route_2]

Originally Posted by YouNeverKnow25

this is where the FIRE community loses me. the point of quitting my job is to not have to work. if me not working means I can't afford health insurance then I just need to.....continue to work?

if I need to take a low-stakes job being managed by some fuckhead who I am 100 times smarter than, dealing with douchebag retail customers all day, and also make like 15 bucks an hour to do it, I'll just keep making what I make in my real job until medicare kicks in.

also if you think that being a barista is a low-stress job...


PS it's probably my own internalized biases against this mindset more so than it is reality, but when I read a lot of the FIRE stuff it boils down in my head to "live like a hobo now, so that you can live like a hobo later--only while enjoying the actual hobo lifestyle of not having a job."

Yup, your body your choice. Some people have different thresholds for lifestyles than you. Find that one that works for you and execute. These aren't 'rules'.

My Dad got aged out of his career and went to work at Target just to get healthcare coverage for my Mom who has MS. They loved him because he showed up on time, never complained and went above and beyond his role.

Some people still want to work to fill their time but want to know that they don't have to work.

'Barista' doesn't mean you have to work at a coffee shop, it's just a catch-all phrase for downshifting from a full time career (that you may or may not enjoy).

The hobo thing seems like a stereotypical pejorative to rationalize a discomfort with making adjustments to an inflated lifestyle. To each their own.

[Benny003]

Originally Posted by TheLastStop123

yeah, but didn't you also get in big on the crazy dip last march? I feel like your returns are overinflated

That was only in my taxable account that I was timing that dip last year. I didn't change anything in my 401k during any of that time. I just always put in my regular contribution every pay period. I had like 17% returns on my 401k last year, which was worse than 2018 and 2019. 2018 and 2019 were in the 20's I think.

[Benny003]

I've always been fascinated with that FIRE lifestyle and I admire people who pull it off, but I've also always known that I would never do it. I like having a fulfilling job and it turns out my fulfilling job pays pretty well, which allows me to plunge into my hobbies buying excessive stuff from time to time guilt free. I try very hard to find the right balance between being financially responsible and enjoying what having finances allows. Having a fulfilling job that pays well can be part of a well-balanced life. For the people who can accept a frugal lifestyle and don't enjoy being committed to a job, then FIRE is a great option, but it's not the only way to enjoy a life.

[Route_2]

Originally Posted by Benny003

I've always been fascinated with that FIRE lifestyle and I admire people who pull it off, but I've also always known that I would never do it. I like having a fulfilling job and it turns out my fulfilling job pays pretty well, which allows me to plunge into my hobbies buying excessive stuff from time to time guilt free. I try very hard to find the right balance between being financially responsible and enjoying what having finances allows. Having a fulfilling job that pays well can be part of a well-balanced life. For the people who can accept a frugal lifestyle and don't enjoy being committed to a job, then FIRE is a great option, but it's not the only way to enjoy a life.

I hear you, but it doesn't have to be one or the other.

I don't hate my job and most days I feel quite fulfilled by it.

For me it's more about uncertainty in the future. Who knows what changes will occur in the future that will alter my career (maybe the ageism my Dad experienced has had a psychological effect on me). I just want the peace of mind to know that I don't NEED to work to sustain myself in the future and I get paid well enough where an increased saving rate does not negatively effect my lifestyle. It's like insurance.

[Benny003]

Originally Posted by Route_2

I hear you, but it doesn't have to be one or the other.

I don't hate my job and most days I feel quite fulfilled by it.

For me it's more about uncertainty in the future. Who knows what changes will occur in the future that will alter my career (maybe the ageism my Dad experienced has had a psychological effect on me). I just want the peace of mind to know that I don't NEED to work to sustain myself in the future and I get paid well enough where an increased saving rate does not negatively effect my lifestyle. It's like insurance.

I think we're on the same page. The point of my post was exactly that, it doesn't have to be one or the other. The choices aren't FIRE or being a slave to a job. There is balance in between. It's possible to have a job and also have a very satisfying life.

[TheLastStop123]

Originally Posted by Benny003

That was only in my taxable account that I was timing that dip last year. I didn't change anything in my 401k during any of that time. I just always put in my regular contribution every pay period. I had like 17% returns on my 401k last year, which was worse than 2018 and 2019. 2018 and 2019 were in the 20's I think.

good to know

[Route_2]

Originally Posted by Benny003

I think we're on the same page. The point of my post was exactly that, it doesn't have to be one or the other. The choices aren't FIRE or being a slave to a job. There is balance in between. It's possible to have a job and also have a very satisfying life.

There is a subreddit r/leanfire that is for people that like the middle ground we are discussing, if you or anyone else reading is interested.

[UCFish]

I will check that out... I think I definitely am in the lean fire mindset.

[justinandimcool]

Originally Posted by Benny003

I've always been fascinated with that FIRE lifestyle and I admire people who pull it off, but I've also always known that I would never do it. I like having a fulfilling job and it turns out my fulfilling job pays pretty well, which allows me to plunge into my hobbies buying excessive stuff from time to time guilt free. I try very hard to find the right balance between being financially responsible and enjoying what having finances allows. Having a fulfilling job that pays well can be part of a well-balanced life. For the people who can accept a frugal lifestyle and don't enjoy being committed to a job, then FIRE is a great option, but it's not the only way to enjoy a life.

same, i had a 3 month period of reading nothing but fire stuff, not for me tbh. leanfire isn’t bad for sure though

[TheLastStop123]

For those of you who contribute to IRAs, do you typically contribute the max as soon as you can or do you evenly spread out the contributions throughout the year?

Trying to decide if I want max out my Roth for 2021 right now or make a $500 monthly contribution. I’m just wary with how high the market is right now.

[justinandimcool]

Roth IRA yes?

i’ve done both

6000 on January 1st. if you can do that i recommend it, as the psychological benefit was so nice, not worrying about timing the market. it also forced me to really lock in on my budget for the year

500 monthly dollar cost averaging. no major cons, you get used to it after a while. but no major pros either other than your typical dollar cost averaging philosophy

[TheLastStop123]

Originally Posted by justinandimcool

Roth IRA yes?

i’ve done both

6000 on January 1st. if you can do that i recommend it, as the psychological benefit was so nice, not worrying about timing the market. it also forced me to really lock in on my budget for the year

500 monthly dollar cost averaging. no major cons, you get used to it after a while. but no major pros either other than your typical dollar cost averaging philosophy

Yeah, time in the market over timing in the market, right? Usually lump sum is better. I just dropped $6k for my 2020 contribution (I’ve just now come around to maxing out my accounts), so just trying to figure out if I should dump another $6k in. I’m leaning towards yes, just sort of low key hate how high the market is right now lol which obviously also doesn’t make much sense.

[Mickey Carson]

There's definitely an argument to be made for making your full yearly contribution as early as possible. I stick with putting $500 per month in our Roth IRAs, which at least gives me flexibility to up that amount if the market significantly declines. Worked out well in March when I was able to contribute a couple grand in our Roths to take advantage of the market dropping.

[Antiramie]

"Time in the market beats timing the market".

Edit: Nm, TLS123 beat me to it.

[Mickey Carson]

Originally Posted by Antiramie

"Time in the market beats timing the market”

Definitely. I can understand TSL’s apprehension though. I’d be nervous about dropping 12k to max out our Roths when the market is at an all-time high. The obvious downside is that I’d be locked out from contributing again until 2022.

I’m assuming that at some point in 2021, the market will dip below this current level. Of course, if that doesn’t occur then I’m leaving money on the table by going the dollar-cost averaging route.

We’re splitting hairs though. Ultimately, the most important thing is that if you qualify for a Roth IRA that you’re contributing the full amount each year.

[Benny003]

Originally Posted by Mickey Carson

Definitely. I can understand TSL’s apprehension though. I’d be nervous about dropping 12k to max out our Roths when the market is at an all-time high. The obvious downside is that I’d be locked out from contributing again until 2022.

I’m assuming that at some point in 2021, the market will dip below this current level. Of course, if that doesn’t occur then I’m leaving money on the table by going the dollar-cost averaging route.

We’re splitting hairs though. Ultimately, the most important thing is that if you qualify for a Roth IRA that you’re contributing the full amount each year.

Regarding the market timing, it feels like we've been saying this for like 10 years and yet the market keeps going up, up, up despite a couple of very brief dips. I'm starting to come around to the idea that the market will never be cheaper than the present moment over the long-term. Everything else is just trying to time the market and you could be waiting months/years for that to happen.

[TheLastStop123]

Originally Posted by Benny003

Regarding the market timing, it feels like we've been saying this for like 10 years and yet the market keeps going up, up, up despite a couple of very brief dips. I'm starting to come around to the idea that the market will never be cheaper than the present moment over the long-term. Everything else is just trying to time the market and you could be waiting months/years for that to happen.

yeah, this is where I'm at too. I've already missed out on like $500 in gains by not investing right away on January 1st. seems like contribute and forget about it is probably the best move.

[Nick@Night]

If I opened a Roth IRA today, could I fund it to the maximum and count it under 2020 contribution since it's prior to April 15th, then after April 15th fund to its maximum for 2021? Or would the account have needed to be open prior to 2021 for me to do that?

[justinandimcool]

nope, if you opened it today you could max it for both years today if you wanted

[TheLastStop123]

Originally Posted by Nick@Night

If I opened a Roth IRA today, could I fund it to the maximum and count it under 2020 contribution since it's prior to April 15th, then after April 15th fund to its maximum for 2021? Or would the account have needed to be open prior to 2021 for me to do that?

you can fund both in full immediately. just be sure to designate which year you are contributing for.

for example, on Vanguard, if I want to make an IRA contribution, it asks me what year I'm making the contribution for. So just set 2020 for your first one and 2021 for your second one. you could fund them literally within seconds.

[neumdogg]

So glad I bought a bunch of GameStop stock in November. Holy shit!

[snake911]

Originally Posted by TheLastStop123

yeah, this is where I'm at too. I've already missed out on like $500 in gains by not investing right away on January 1st. seems like contribute and forget about it is probably the best move.

Yeah, I would argue that dumping a full contribution in on Jan 1st isn't trying to time the market. You are giving your full contribution maximum time in the market. One would just need the discipline to not hold off on the contribution for a perceived peak that is "sure" to dip in the the coming months. I wouldn't trust myself to have that discipline, so its paycheck by paycheck for me.

[justinandimcool]

Originally Posted by neumdogg

So glad I bought a bunch of GameStop stock in November. Holy shit!

congrats! absolutely hilarious how it happened

[Antiramie]

wallstreetbets is fucking insane lol.

[Route_2]

Originally Posted by Antiramie

wallstreetbets is fucking insane lol.

It is quite entertaining.