Recently, I was living in a VHCOL area, and had a great job where I was able to buy a house in cash in a MCOL area, and save enough money to where I can call myself Barista or Coast FIRE. Just a little bit of a rant, and I want to see if anyone else has experienced this before. Just before market close, I can check if markets reversed, I can cancel the MF orders (if desired) or buy more of the ETF equivalent. So if the market drops even further, I have a way to capture more discounts besides staring at the charts all day. The pricing of these are based on end of day close. I might mention that besides some ETFs purchased today, I also have open orders for Mutual Funds. I am a Gen-Xer and the thought of retiring at under 40 years of age never dawned on me - or was particularly desireable.
Just plodded along at work with a high percentage of savings & investing, changed jobs if it wasn't working for me, and enjoyed my life in the moment versus being miserly or obsessed with the future. No special house hacking or incredible real estate scores, no options trading or side gigs, no extreme frugal living, nor crypto downfall. I was a very vanilla, moderate FIREr myself. I got such a notification (as I was preparing to do yard work) - stopped what I was doing - and began buying/adding to my positions. I had set triggers with my brokerage accounts ("good til cancelled' limit orders with really low price target prices or below 52 week lows). Though my portfolio has now shifted into mainly Index Funds, I do have some stock that provides generous dividends. This also helps me to take gains and offload losers.
My cash hedge has allowed me to buy into market downturns and lets me sleep at night. Despite the temptation of the high flying market from 2020 to 2021, I maintained a conservative/balanced portfolio. I had this opportunity back in 2008 crash.īut for currently retired people, the downward market can be a bit more scary. For those of you not yet FIREd and are dollar cost averaging with automatic investments, the down market REALLY is a good thing because you are getting "bargain" stock - especially if you have a longer retirement horizon. These entities invest in real estate, handle all of the work to extract rents, sell shares, and pay dividends. An easy way to invest in real estate passively, and in a way that diversifies your geographical risk. However, it’s one of the most accessible ways for people other than the super-rich to invest using leverage. If you’re the one doing the property searching, due diligence, offers, renovations, tenant marketing, and/or maintenance, it’s a part time job-not passive income. The Bogleheads Wiki is a great resource for learning about that investing strategy.
THE SHOCKINGLY SIMPLE MATH BEHIND EARLY RETIREMENT REDDIT FREE
Free lunches usually mean someone is trying to get your time and attention to try to sell you something.īoglehead: Someone who follows the investing strategy of Jack Bogle. Additional potential rewards in an investment come with additional risk. In other words, you’ll usually never get anything truly for free.
TNSTAAFL: There’s No Such Thing As A Free Lunch. Adds extra risk in exchange for potentially higher returns. In this context, usually debt taken on to invest, hopefully to be paid off by the returns on the investment. Requires more investment, often locking this strategy behind either being a high-earner in your contributing years, working longer, or being lucky. Named for being the opposite of “lean,” like with steak. Metaphorically “tightening the belt” on a permanent basis, either to retire even earlier or because you will be happy enough without spending more than most.įat FI/RE: Retiring early with expected expenses in the top percentile of household income in your area. Lean FI/RE: Retiring early with expected expenses under the median household income in your area. Retiring Early usually refers to actually exiting the labor market and living off your profits from participating in the capital market.Ĭoast FI/RE: Having enough invested for retirement that you no longer need to contribute to your investments to retire by your expected future retirement age (based on expected returns).īarista FI/RE: Having achieved Coast FI/RE, choosing to take a less-stressful job since you no longer need as much income to match your expenses without any savings goals. Financial independence usually refers to no longer needing to sell your labor in order to cover your necessary expenses for the rest of your life. FI/RE: Financial Independence / Retiring Early.
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