4 ms·

pay off your debt: none pay for education: none start a company: definitely not buy a house: nope buy solar panels: nowhere to put them I literally have no

by rublev 10y ago

pay off your debt: none pay for education: none start a company: definitely not buy a house: nope buy solar panels: nowhere to put them I literally have nowhere to 'put' my money except instruments. I already have all the instruments I need. Just finished selling off a good 80% of my possessions as well. I've hit my limit for 'desires'. My only goal now is to make that $20k/year off investments. So you say put half in there and sit on it, but I don't actually have anything to do with the other half.

Retric 10y ago
Getting, ~20k/year for a long time takes something like 500+k with more money being safer. I am going to assume you want to do this to retire early. So, my advice is this, stick with the 50% long term investment and ignore this money. It does not exist until your 65+. Second, dump the other half into the same basic investment, but treat this as your early retirement pool. When you can make it to 65 with this money then "retire." The other half plus social security will last your retirement, and this half is your FU money. Edit: To be clear when 1/2 your money is ~280k @ 50 ramping up to ~500k in @40 you can very likely pull out 20k/year till 65. So 1 mill total @ 40 and 560k @ 50. Why do this? Well your expenses will rise faster than inflation. As you age you just need more help and have more health issues. So retiring as soon as you can is risky unless you living on a small chunk of your nest egg. PS: By retire I don't mean living on a beach someone, just no longer forced to work a job for food. Further, social security is actually a significant amount of money if your single and had a good paying job for ~25-30+ years.
- rublev 10y ago
  Wow thank you. Yes my goal is to hit 20k/month just to cover my basic expenses, at which point nearly 100% of my income can go towards my accounts. I'm 23 right now making $100k USD (in Canada it's around $125k). Expenses are $1500/mo, rest just sits in the bank. I figure if I keep working until I'm 40 (my cutoff age), it'll be much loftier. I also don't plan to live past 65 for personal reasons. When I say 'retire' I really just mean ROI covers life expenses in full, otherwise my sub <20k/year expense lifestyle will do until I die. I still plan on working, just putting all that money into savings. With this new information, how would you adjust your plan? Also can you please clarify the @50 and @40? Do you mean 50% and 40% respectively? Thanks.
  - oh_sigh 10y ago
    > I also don't plan to live past 65 for personal reasons. Can you go into this?
    - rublev 10y ago
      I may one day end my life out of exasperation at the culture I live in bearing down with demands for a certain conduct that I cannot sincerely present, but this future isn’t real to me either, just like no future is real, because I don’t currently feel compelled to commit suicide. I do, however, feel that my frustration will progress. Often it seems like what is expected of us in the industrialized world is akin to joining a traveling sideshow and lumbering around in clumsy costumes, doing a song and dance for the simple delight of some abstract, blurred-out crowd. None of my friends or anyone I know are real either. They are all becoming the same person. Isolated hand crafted social networks. No particular philosophy or ideology to bind them except the mindless packed egalitarianism that the media sold to them in a nice little bundle. Clothing. Beats. Startups. Money. Let's get fucked up bro. You thinking DORSiA tonight bro? It's all pseudo. Even the people who are 'into shit' are usually into it just deep enough where they can virtue signal others of the same depth, then jerk each other off about how fucking amazing they are for being the x% of the population into $y hobby. It doesn't matter what club. The attitude comes in all themes - classical music, startups, etc. Most of it is an illusion, I've only met maybe 2 people in my entire life who've dissolved their ego's (no I am not one of them). We've abstracted human connection and communication to such a disgusting degree we're most likely never turning back. And please spare me the mental health responses.
      - sokoloff 10y ago
        65 is a long time from now; your viewpoint on many things is likely to evolve. I would encourage you to plan your finances as if you'll live to 90+, such that any decision to exit early will be driven by your own volition and not by financial stressors. No mental health argument here; I'm just trying to keep it practical.
        10y ago
dredmorbius 10y ago
Consider putting your money into a business you know, equity, or rental property. The idea is that rather than holding liquid exchange media (money), you make that money work by investing it on a productive venture. Investing in the stock market (or an index fund) is similar in many regards to starting your own business or putting the money into a partnership or investment property: you're investing financial capital (giving someone else the ability to buy stuff -- liquid exchange medium) in return for an ownership interest in the return. On balance, investing in stocks is cheap, has little by way of management obligations, and (notable exceptions notwithstanding) tends to produce pretty good returns over time, especially as compared to holding cash. Your investment is also fairly liquid, as stocks themselves can be sold (converted to cash) at any time. No, it's not risk-free. But it's a pretty decent risk, and in general you're in the same boat as everyone else.

by rublev 10y ago

Retric 10y ago

Getting, ~20k/year for a long time takes something like 500+k with more money being safer. I am going to assume you want to do this to retire early. So, my advice is this, stick with the 50% long term investment and ignore this money. It does not exist until your 65+. Second, dump the other half into the same basic investment, but treat this as your early retirement pool. When you can make it to 65 with this money then "retire." The other half plus social security will last your retirement, and this half is your FU money. Edit: To be clear when 1/2 your money is ~280k @ 50 ramping up to ~500k in @40 you can very likely pull out 20k/year till 65. So 1 mill total @ 40 and 560k @ 50. Why do this? Well your expenses will rise faster than inflation. As you age you just need more help and have more health issues. So retiring as soon as you can is risky unless you living on a small chunk of your nest egg. PS: By retire I don't mean living on a beach someone, just no longer forced to work a job for food. Further, social security is actually a significant amount of money if your single and had a good paying job for ~25-30+ years.

rublev 10y ago
Wow thank you. Yes my goal is to hit 20k/month just to cover my basic expenses, at which point nearly 100% of my income can go towards my accounts. I'm 23 right now making $100k USD (in Canada it's around $125k). Expenses are $1500/mo, rest just sits in the bank. I figure if I keep working until I'm 40 (my cutoff age), it'll be much loftier. I also don't plan to live past 65 for personal reasons. When I say 'retire' I really just mean ROI covers life expenses in full, otherwise my sub <20k/year expense lifestyle will do until I die. I still plan on working, just putting all that money into savings. With this new information, how would you adjust your plan? Also can you please clarify the @50 and @40? Do you mean 50% and 40% respectively? Thanks.
- oh_sigh 10y ago
  > I also don't plan to live past 65 for personal reasons. Can you go into this?
  - rublev 10y ago
    I may one day end my life out of exasperation at the culture I live in bearing down with demands for a certain conduct that I cannot sincerely present, but this future isn’t real to me either, just like no future is real, because I don’t currently feel compelled to commit suicide. I do, however, feel that my frustration will progress. Often it seems like what is expected of us in the industrialized world is akin to joining a traveling sideshow and lumbering around in clumsy costumes, doing a song and dance for the simple delight of some abstract, blurred-out crowd. None of my friends or anyone I know are real either. They are all becoming the same person. Isolated hand crafted social networks. No particular philosophy or ideology to bind them except the mindless packed egalitarianism that the media sold to them in a nice little bundle. Clothing. Beats. Startups. Money. Let's get fucked up bro. You thinking DORSiA tonight bro? It's all pseudo. Even the people who are 'into shit' are usually into it just deep enough where they can virtue signal others of the same depth, then jerk each other off about how fucking amazing they are for being the x% of the population into $y hobby. It doesn't matter what club. The attitude comes in all themes - classical music, startups, etc. Most of it is an illusion, I've only met maybe 2 people in my entire life who've dissolved their ego's (no I am not one of them). We've abstracted human connection and communication to such a disgusting degree we're most likely never turning back. And please spare me the mental health responses.
    - sokoloff 10y ago
      65 is a long time from now; your viewpoint on many things is likely to evolve. I would encourage you to plan your finances as if you'll live to 90+, such that any decision to exit early will be driven by your own volition and not by financial stressors. No mental health argument here; I'm just trying to keep it practical.
      - 10y ago

dredmorbius 10y ago

Consider putting your money into a business you know, equity, or rental property. The idea is that rather than holding liquid exchange media (money), you make that money work by investing it on a productive venture. Investing in the stock market (or an index fund) is similar in many regards to starting your own business or putting the money into a partnership or investment property: you're investing financial capital (giving someone else the ability to buy stuff -- liquid exchange medium) in return for an ownership interest in the return. On balance, investing in stocks is cheap, has little by way of management obligations, and (notable exceptions notwithstanding) tends to produce pretty good returns over time, especially as compared to holding cash. Your investment is also fairly liquid, as stocks themselves can be sold (converted to cash) at any time. No, it's not risk-free. But it's a pretty decent risk, and in general you're in the same boat as everyone else.