NewGlfx11

why FIRE?

Noticed that there are so many people out there who’s constantly thinking about getting FIRE as early as possible. Why you want to retire early? Is it because you don’t like what you do and tired from your manager/company? Or it’s about getting a few millions just to chill? If so, can’t you feel secured with $500k for instance? Curious to hear what is that about for you personally? PS. Following tc/yoe-or-gtfo rule: $250k + $150k after-tax money from side gig 4 yoe marketing role in LA

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Google SergeyBlin Jan 3, 2020

Hedging ageism risks. Don't care if noone will hire me at 40+ if I don't need to work

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Glfx11 OP Jan 3, 2020

But like if you do love your job, and you’re getting better in it, aren’t you? In ideal world, by 40+ you should be a VP/C-level of something? Or where I’m wrong?

Google SergeyBlin Jan 3, 2020

Not a people manager type. And as SWE IC, 20yoe+ is more of a liability than an advantage

Google tweaker Jan 3, 2020

I guess it’s just appealing to not have the responsibility of having a job. People want to be financially independent so they don’t need to depend on a job, and can have more time in their lives to travel, relax, and perhaps pursue other dreams. Also — just curious but what is your side gig?

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Glfx11 OP Jan 3, 2020

I’m running a course at one of the schools in my home country and also get some money from blogging.

Microsoft bigbeak Jan 3, 2020

I have zero interest in what I’m doing, the only reason I go to work is making money, I want this to end as soon as possible so I can focus on things I enjoy

Google SergeyBlin Jan 3, 2020

So what's your FI/RE number when you'll stop going to work? And what if you'll still want to make even more money then? Personally I'm FI now, but still working, cause hey why not - they still pay me truckloads of money... High TC, it's so addictive. Can't stop working, in fact looking for an even higher TC gig now.

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Glfx11 OP Jan 3, 2020

@MS, you mean your company/product or your field? Why not to change it anytime soon?

Symantec supradmin Jan 3, 2020

You just have 4yoe, it will take some more time for you to realise why FIRE And your side gig will become your main job

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Glfx11 OP Jan 3, 2020

Yeah, that’s why I’m asking. Wanna get the full picture here to decide if I should jump on this train ASAP

Symantec supradmin Jan 3, 2020

For most of us, passion slowly becomes daily chore. It’s really difficult to keep yourself motivated all the time.

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ddDi37 Jan 3, 2020

What’s the point of being in a rat race of high TC etc if there’s no end planned? I look at FIRE as a good checkpoint in life to take care of your future (especially in the US where you have to factor in the fact that you are less employable as you get older due to healthcare costs to the employer), and have enough time left in life to do other things you love, even if your TC is zero, for the rest of your life (or get disabled that prevents you from doing this job, or there’s one or two more recessions in the next 20-30 years) While RE is just a thing that makes the abbreviation sound nice like 🔥, and gets the book authors a lot of media attention (retired by 31, 40 etc), I’d focus more on FI, which you can plan based on what life you want to live now and later. If I want to be FI in 15 years from now, I’d make a budget to reach that goal, which let’s me figure out how to earn / save / invest, without getting sucked into an endless rat race. And I think FI is more important to those who are in jobs or located in a geographical area that one cannot take them for granted. I wish I knew / understood this concept in my 20s. I’d have spent/invested my money differently and saved even more. (better late than never)

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Glfx11 OP Jan 3, 2020

That’s lit! Wouldn’t mind elaborating a little bit? Especially on the last part. What would you make differently if you have a chance?

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ddDi37 Jan 3, 2020

Basically, I was 10%woke (compared to youth nowadays) in that I didn’t believe in saving money, even for tax purposes. Spent a lot on traveling. I could have done the same touristy stuff later, while savings could have compounded. During my 20’s, I didn’t understand how tax saving strategies work. If I knew, I’d have: 1. maxed out HSA accounts every year (and invested that money in stocks) and let it grow (didn’t have much medical expenses to withdraw from HSA but I still emptied it because I never thought of the investing part of it. 2. Invested in Roth IRA (instead of real estate outside US). That’d save me from the urge to splurge on my travels. 3. Saved a little more by cutting down on unnecessary spending (bring a lot of groceries, waste them because I’d eat 2 meals a day outside). 4. Cut down on vehicle expenses by living closer to work (fortunately I didn’t buy a luxury sedan or a gas guzzling SUV) I’d have got a head start in my stock investments which have fared so well (~20% return per year over 5 years). I underestimated my own stock trading skills for too long.

Amazon jbcrxg Jan 3, 2020

nice tc but your money isn’t that meaningful. you gonna ball out on the weekends? probably not since you have a side gig. so you buy a bigger house and car? others might prefer a fraction of the tc but more days off a week.

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Glfx11 OP Jan 3, 2020

I mean I love what I’m doing and don’t mind to spend more time on work. Still have a time for wife, surf, snowboard etc. I’m absolutely sure it will change at some point, and that’s why I’m saving a lot, but just trying to figure out additional reasons to save even more and now

Amazon jbcrxg Jan 3, 2020

not much more than that, as you can imagine, the “I’m absolutely sure it will change at some point” part has happened to others

Google _SSSSS Jan 3, 2020

I am 30 and have a net worth of $570k. My girlfriend has $150k and we plan to get married and save together. I have about 200k in Google stock (after tax), $200k in 401k, and $170k in mutual funds, cash accounts, bonds, etc. Our fatFire number is $5.8M at age 47. This would enable us, at the 4% rule, to spend $242k annually on us, our children, college, travel, etc., which equals what we currently spend + children & higher living costs, times 3% inflation every year until we are 47. I want to be FI so I can decide whether to continue working or to take a huge backseat and focus on hobbies, 5-10 hours a week consulting, volunteer work, and even found a non-profit or small charity that focuses on issues close to me and my family. I am on the path to do this now, with $250k TC and a promotion likey in the next 1-2 years. I'm really excited at the prospect of having enough money to keep my exact lifestyle without the requirement of working a 9-5 for a corporation.

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Glfx11 OP Jan 3, 2020

Niceee. How do you plan your future TC growth? Like do you have any benchmarks on how many years you need to achieve $XXXXXX TC based on your background? Or you just planning everything on the current numbers and then any additional promo/bonuses are considered just as additional benefit?

Google lvhloha Jan 3, 2020

I am in the exact same boat as you! I have saved $470k and am 28. Id like to be FI by 47 as well, need at least $3M. Then I want to go work with K-12 students as a teacher or something. Or start a few businesses. I also have around your TC. I just hired a financial planner (I used an internal Google recommendation sheet) at $5k to make a plan for me on how to do this and check over my work. My primary goal is the same - FI in mid 40s. If you want we can keep in touch and I can let you know if this service is worth it! I don’t feel confident that I can make all the right investment decisions to do this on my own. And I want a professional to help me make sure this plan makes sense.

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flyhigh8 Jan 3, 2020

Save as hard but also know when to splurge. A 10% roi on 1m is not the same as a 10% roi on a measly 100k. Having a huge capital base will give you a risk buffer which would allow you to: 1. Take a bit more risk/try something different. Maybe venture into entrepreneurship for a year or two. 2. Be less stressed about being pip/fired. Not a big deal to get PIPed/fired if you can live off the 10% interest on your $1m. Literally a “fuck you” card to your manager. tldr: Life is short; (suffer && save && invest hard) now to enjoy your future.

Google lvhloha Jan 3, 2020

Im not FI but if I got fired I would just find another job. No shame in getting fired, just wasn’t the right skill match. There now you can have a fuck you card too! 😆

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flyhigh8 Jan 3, 2020

Yeah true but imagine that we are in a recession, and even highly skilled workers are laid off. Vacancies have shrunk, salaries are slashed, you’re older and can’t compete with youngsters(cheap labour + cheaper health insurance). Having bank reduces the stress of finding a job to feed your lifestyle. I just don’t like the idea of being at the mercy of the market economy and your manager. I want to be free.

Google Borgman! Jan 3, 2020

I want to be financially independent. I would probably continue to work as an SDE but would want option to walk out without second thought if required. If you don't need the paycheck, you could. Think of it as your fortress against unknowns in life.

Microsoft NOTNOTL6 Jan 3, 2020

Because time is money and money is freedom

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flyhigh8 Jan 3, 2020

Time > money. If you lose money, you can earn it back. But if you lose time, there’s no way in hell you’re gonna get it back.

Google lvhloha Jan 3, 2020

IMO- mindfulness and peace is freedom, money cannot buy you this but it can buy you some resources to support the development of it If I had $10M but was in mental anguish I would consider this to be less freedom than working full time but living in peace