You Asked, We Answered. FIRE Q&A
ฝัง
- เผยแพร่เมื่อ 24 ก.ค. 2024
- Answering your financial independence, retire early (FIRE) questions, including the one we're asked most often. This special Ask Us Anything format commemorates the 50th episode of Two Sides of FI. THANK YOU to all who submitted questions and for your continued support of the show! See the link below for the show notes, where we share all the content we referenced in the episode and more.
**Show notes: twosidesoffi.com/ep50
Timestamps:
00:00 50 Episodes!
04:36 Getting started w/FIRE
07:31 When am I FIRE?
09:48 Uncomfortable questions
12:01 Down market adjustments?
13:59 Biggest FIRE regret
18:06 Slow travel plans?
23:20 Persuade my family!
25:55 Bad reactions to FIRE
29:24 Alternative investments
31:09 Will FIRE still work?
33:38 Temptation to work
34:58 traditional or fatFIRE?
40:41 Refilling cash bucket
42:41 How is 2SFI made?
45:30 Long-distance adventures
48:41 Opinions of coastFI
51:41 House in net worth?
53:17 My withdrawal strategy
55:46 FI journey changes?
57:50 MOST commonly asked...
**Show notes, tools, resources + information: twosidesoffi.com
**Our podcast: twosidesoffi.com/podcast/
**Eric’s "NOW" page at 30X40 Design Workshop: thirtybyforty.com/now
**Jason's blog: thenextphaseisnow.com
**Eric’s TH-cam Channel: thirtybyforty.com/youtube
#twosidesoffi #financialindependence #firemovement
@30by40
**Note: This content does not constitute investment advice and is being presented for informational and educational purposes only.
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Did you submit a question and it didn't get answered? If so, ask again here in the comments! We'll also be going back to the earlier video and answering questions in the comments there, so be sure to check back.
Hey guys, I just wanted to say I’ve appreciated every single episode you have shared. I’m a 44 year old doctor and I just hired my replacement who will start the week after Thanksgiving. I hope to do a two month transition to begin stepping out of my private practice from owner/operator to owner. You two have been like friends that I can just listen to on my commute and imagine I’m involved in a conversation… albeit a one-way conversation; yet a source of comfort and reassurance in this path only a select few of us of chosen. Thank you very much.
Shawn, thank you so much for your kind and thoughtful comment. We truly appreciate that and your support. Best wishes to you in your career transition as well as in all things! Please be sure to keep us posted on how things go and what you learn along your journey.
Thanks for the show! I absolutely respect your decision not to disclose your Fi number. But I do want to say that my curiosity in people's Fi numbers in general isn't about credibility or voyeurism at all. I'm a resident physician very early in my Fi journey and frankly have no idea how much I think I may want to spend per year. You guys have shared a lot about your lifestyle, so it would be interesting to see how much spending it takes to achieve that lifestyle and then I could have a better idea of my own goal. But in the end, like you said, you've already given us a pretty good idea of your number, and I'll just have to be patient to see how my life plays out over the next 5-10 years to determine a Fi number for myself
congratz on the 50th anniversary !! Thanks for sharing your experiences ! You're my favorite FIRE guys! :)
Thanks, Petru! We truly appreciate your support.
Thank you for the excellent answer to my question. Your shows are informative and helpful, and I look forward to listening to how both of your journeys continue...
You’re welcome, David! Thanks for all your support of the show
Always good info and very entertaining. Thank you both
Thanks, Joe. And thanks for your support!
Thank you, really enjoyed and learned a lot from your videos. Haven't seen all of them, have seen a lot of them. Appreciate you two
putting in the time and hard work to make all these videos. Wish you and your families a very Happy Thanksgiving holiday. Take care.
Thanks, Ray
Awesome episode Guys! I watch your content every single time!
Thank you!
Love this episode and the show! New listener and I can't wait to listen to all the old episodes.
Thanks, Cyrus! Welcome!
Great episode as always and congratulations on the 50th episode. Glad to see my question as the first one. Keep it up!
Thanks, Dines! And thanks for sharing your question with us
First - thank you guys for putting this show together. I've enjoyed all of your episodes. I particularly laughed at the hiking question - I currently spend my time on youtube with two types of videos - financial topics and hiking topics. Super fun to find others with such a similar set of somewhat specific interests. This year hiked the Northern Loop at Mt Rainier and Enchanted Valley out on the Olympic Peninsula. Hoping/planning to tackle one of the massive challenges like the PCT once life aligns.
Thanks! Sounds like you got some great hikes in this year. Good luck on achieving all your goals - and hopefully the PCT!
Really interesting episode 👏 especially the last response ;-)
Thanks! 😃
Thank you very much for the excellent episode - here is to another 50 :)
Thank you, Bruce!
I really enjoy your content. The style and the information is great. I will be retiring in 5 months at 56 with a pension, secondary pension, 401 and 457. It's A LOT to comprehend and plan and your channel helps make sense of all the choices and challenges.
Thank you very much. You're 100% right that there's so much to know - we continue to learn more with every passing day. So glad to learn that you find value in what we are doing. Best wishes to you in all that is to come - you are in the home stretch!
Congrats on 50th episode….. I look forward to your content…..
Thank you, Ann!
Thank you again guys! I always look forward to a new episode and watch it as soon as I can but this one was amazing! I don’t think you sharing your number or not is an issue of credibility. If I was able to compare your number with my own, it might give me a sense of yeah OK I’m on track too, taking into account lots of variables. But if I were you, I would NOT share my number either! I totally get it. Appreciate everything you guys do, you are credible, honest and super helpful. My favorite, TH-cam channel :-)
Congrats on episode 50! Very generous of Jason to contribute to Eric's Finances 😂👍
I agree with you about the FI Number questioning, it is completely specific to you and your situation, it does not help in any way to anyone else, but ... come on tell us! Hahahaha 🤣
Thanks for sharing your FI journey and experiences here, really appreciate it, so glad to have found your YT channel during my FI path, and continuing after getting RE over 6 months ago, it feels like having a pair of friends to chat about FI & RE with, keep on sharing!
Man do I appreciate this show
Thank you, Jonathan!
Thank you both for all that you share with your viewers. I have learned a lot and gained confidence in my FI #. I agree with the idea that each individual/couple needs to go through the process of learning what their FI # is not just comparing it to others. This is how you understand what works and doesn't work for your situation. My husband and I are retiring in 2 months and I can't wait to see and experience what comes next.
Hi, Loreen...appreciate the kind words + support...congrats to you and your husband! Excited for you...
-Eric
I thruhiked the A.T. back in 2001, at age 28. I met a few folks who waited until they retired, only to discover that their retirement-age bodies couldn't handle the stress. I'm extremely happy that I was able to do my hike when I did!
Love the show! Congratulations on the 50th episode. I have learned a lot from your conversations and appreciate you putting this out there. RE: epic hikes - I recommend the John Muir Trail!
Thank you! We really appreciate your support. Ah, the JMT. It’s definitely on my list! -Jason
@@TwoSidesOfFI You need to dedicate an episode for your audience to choose your trail name:)
Great content! 6 weeks until excitedly retiring at 54. I often dodge the same net worth question especially in today’s economy. Question for Eric…have you had your business value recently appraised which may put you at your FI number?
Well done chaps. One of my favourite channels. FI only clicked recently so got some ways to go. Planning a phased RE once kids are no longer finically dependent on us. In the meantime, best thing I can do is support them with a good education to get a good career.
Congratulations! Thank you.
Thank you, Brian!
Great video. Loved how you approached it. All the jokes were awesome! 😂
Thanks! Glad that you enjoyed it
Thank you so much for answering my question!! Congratulations on 50 episodes! I appreciate the response of "how do you know that you maximized your talents?" It's much better than our retort: "a salary isn't the only measure of doing good in the world." Thank you also for the book recommendation!
Thanks, @athena!
I liked the idea of a possible futures list. Do you have a specific Notion template that you use for this and can share? Love the content and discussion btw.
The two of you are so generous with your knowledge and time, keeping back your fi number is perfectly reasonable. People who want to know are just nosy.
Thanks, Matthew!
Congratulations on episode 50! You're my favorite FIRE guys! :)
Wow, thank you! We truly appreciate the support
Seconds that. Most earnest, down to earth fire guys. We love you.
@@Sanjuro806 Thank you 🙏
Started my notions account today...great idea!!!
Great! We hope it works out to be a great tool for you
I've done a lot of long distance backpacking over the years. Favorites are Wonderland Trail around Mt. Rainier, JMT in CA and the CO portion of the Great Divide. Amazing hikes all.
Thank, Rick!
Love it thanks!
We can't thank you two enough.
It's great what you are doing!
Thanks, Johannes! We really appreciate your support
Congratulations 🎉. Thanks for continuing to share your life experiences. It definitely adds a level of credibility to the opportunities and requirements of FIRE. I’m now 59 and still pinch myself every day to how wonderful RE has been to me. I’m constantly encouraging others to explore this opportunity and suggest your channel as a way to learn more.
Thanks, Joel! You're very welcome. What has been the most impactful lesson you've learned in your own RE experience?
@@TwoSidesOfFI - Honestly tracking and documenting ones expenses for at least 5 years prior to the RE date, along with practicing living solely on the projected RE income during that whole trial period. This process for me just made sense and it proved how to deal with unexpected expenses. In addition, I follow the “minimum dignity floor” approach covered by secure income that is proclaimed by Jim and Chris at “The Retirement and IRA Show” podcast. Definitely not as sexy as a 100% equity position, along with the its inherent risk excitement. For me this completely eliminates any fear of running out of money.
@@joell439 Thanks for sharing, Joel! There's plenty of merit to the practice of covering your 'dignity floor'. What many people often forget is that our individual mental risk tolerance is perhaps just as important as our mathematical risk capacity, and this practice covers the former well. Best wishes to you in all things!
I enjoyed this session and keeping your FI number out of the public is smart.
Glad you liked it, thanks!
Great work guys.
You are both a great inspiration, even though I'm a bit older than you, and my retirement definitely won't be "early" (or any time soon.)
As for people who want to know your net worth: don't tell them. That's your business, not theirs. There are too many goobers online to be handing out personal information.
Thanks very much!
You asked for some awesome hikes, here's a few I've done and would recommend:
-Milford Track & Routeburn Track in New Zealand (both are multi-day, you can tent camp, stay in cabins with stoves, toilets and running water, or pay extra for better cabins and they carry your stuff)
-Tongariro Alpine Crossing in New Zealand
-The Enchantments Thru-Hike in WA state (from the Stuart/Colchuck Lake Trailhead to the Snow Lakes Trailhead).
-the Goat Rocks Wilderness hike up to Gilbert Peak in WA state
Thanks, Liam! I really appreciate the list. I've heard lots about the Enchantments but not as much about the others. Will look into them all -Jason
Two thumbs up for coast FI. I thought I was taking a less stressful job but my personality has me working hard again! Ugh! BTW Mt. Whitney.
Definitely interested in tackling Whitney (and the JMT!) someday. Be sure to check out the show notes for a link to an interview about CoastFI if you've not heard it prior. twosidesoffi.com/ep50/
Thanks!
Thanks very much, Ram! We appreciate your support.
Chilkoot Pass Trail - 32 miles, sea level to headwaters of the Yukon River (6k ft). You'll want to train for it. I did it in 1980 when I was much fitter than now.
Thanks, Doug! I will check it out -Jason
Would love to see a deep dive video into Eric's Notion setup! As someone who wants to get into Notion, I love seeing people's setups!
Jason here - he's got a few Notion-themed videos on his personal/business channel and I've learned a lot from them: th-cam.com/users/Thirtybyfortysearch?query=notion
Cheers @lotrfan18, here's a few I've made on my setup (with links to download it): th-cam.com/video/nzqQHqPP0ds/w-d-xo.html and, th-cam.com/video/rOS7WwvjcQk/w-d-xo.html
Congrats on your 50th broadcast. How about a bloopers reel? I was recently offered (and accepted) an early retirement from my company, not retiring as early as many in the FIRE community, but will be retiring the day I turn 60, so still a win. There were many others in the company that were provided a similar offer, but it seemed that many of them were afraid to accept the offer and make the jump into retirement, I am guessing that many are actually in the position that they would be fine with retiring, but they have not been tracking their expenses to know they will be ok. I am sure there is another large group that live paycheck to paycheck no matter how much they make and will never be able to retire.
Love the show, love the content (subscribed) and absolutely agree, you DON'T need to share your actual FI number to be "credible". At least not in my book. Keep up the excellent work, I've already shared your channel and will continue to do so.
Me, similar age and I've "achieved" FI. My air quotes are due to me also being a business owner, one that loves what I do, and will continue to be a business owner into the foreseeable future as I'm passionate about the automobile (we do collision repair). So much so that I travel via car to most conferences vs planes. Would love to meet for a coffee one day, my treat.
Re: Hiking. Since we’ve FIREd, we’ve walked the Camino Frances (SJPDP- SdC and Camino Portuguese (Lisbon - SdC - Finisterre). It’s so addictive. In 2023 we’re doing the GR5 and GR65. We don’t camp - plenty of inexpensive accommodations, food and wines on the Camino routes. Highly recommend Efran Gonzolaz TH-cam channel on thru hiking.
Voyeuristic is a good word.
Regarding hiking, check the Tour du Mont Blanc: 110 miles but 30,000ft. You can sleep in a hotel every night although it's fun to stay in a hut a few times. You can get a luggage service to take your stuff to the next destination and only hike with a day pack. You go around the tallest mountain in Europe and get to go to France, Switzerland and Italy. Still challenging enough to make a it a memorable endeavor but less of a commitment than most through-hikes.
For something easier but still cool look up Hadrian's wall in Great Britain. Cross England West to East, no mountains, stay in pubs every night and you can still get luggage service.
Hands down the best financial education channel on YT. Love your format, appreciate the authentic and honest banter, and look forward to each and every episode. Congrats on hitting the 50-episode milestone and wishing you continued success and subscriber growth in the months and years to come!
Thanks so much for the kind words, J N. We truly appreciate your support.
Salt Creek in Canyonlands is epic and super interesting given the archeological sites. Highline Loop in Glacier is pretty amazing as well. Overland Trek in Tasmania also highly recommended.
Thanks! -Jason
I’m curious to hear what online fire calculators you would recommend. I’m personally a fan of the engaging data fire calculator.
Great work, guys. You share plenty! No need to apologize. I think the only thing people are curious about are rough totals and your withdrawal rate/asset allocation, both of which you share already. I think Jason's comment about figuring out what you get out of work that you'll miss is huge. It's something my wife and I think about a lot, but we don't plan to retire anytime soon , though it's important to keep in mind. BTW, Jason, being of similar age and "body composition" I would recommend Humphreys Peak, the tallest mountain in Arizona. Relatively easy as those go and one you can do ina day. Helps if you hang out in Flagstaff for a few days prior to adjust. As someone who's lived his entire life at more or less sea level, it was an adjustment.
Thanks, Jeremy. You might be surprised at some of the comments we receive... I appreciate the tip about Humphreys! -Jason
@@TwoSidesOfFI Sadly, I can imagine... Best of luck on your return to hiking!
Count me with those that really appreciate your show. I don’t need your actual net worth to find you credible. Your video and blog content is validation enough. I’m 57 and in much the same position as you both with our youngest still in high school. I didn’t realize it until I found your channel a year ago, but I’ve already reached my FI number. Spent the year convincing myself and my wife that it is true. Ironically, the downturn in the economy may have removed our last doubts as we are still beyond our FI number. Thanks for all you do.
Thanks so much for your support. Congrats on achieving your FI number! Best wishes in all that is to come
@@TwoSidesOfFISo, an update. I was RIF’d this week. It is like Christmas came early! I am so ready for this next chapter. Thanks to you both for all your great content.
@@aztecforlife7360 Generally we'd say sorry that you were RIF'd, but it seems like you are very ready for the next stage in your life - so congratulations! Best wishes to you in all things. Please keep us posted on how you're doing.
What about your historical savings rates and planned savings rates, respectively?
Hiking ideas: The Kerry Way and The Dingle Way in County Kerry in Ireland. My first guide in Ireland in 1996 was the man who put the Kerry Way together, Sean O'Suilleabhain (O'Sullivan), in Killorglin.
Thank you!
Hey Jason. I'm 48 and thru hiked the CT (Colorado Trail) in 2021. It's 500 miles and takes about 5 weeks. It's the most scenic trail in the country. If you can handle the altitude, the views at the top are worth every step. I think this trail would scratch your thru hike itch.
Thanks!
Great video I appreciate your sharing , but i must have missed if you guys follow the Bill Bengan 4% withdrawal rule . Thanks
Jason here - Thanks, Rick. I withdraw well below 4% presently and Eric plans to do the same. We've talked about the topic of Safe Withdrawal Rates in a number of episodes. Here's one: th-cam.com/video/ZXHh1gtO1lA/w-d-xo.html
Half way through the show (first time viewer) I said that guy looks familiar. Hey that’s the architect guy with great style!
Jason here - welcome to the channel! You are indeed right that it is Eric from 30x40 :)
"You get the penny" was pretty good, LOL.
Glad you liked it :) It's 100% true! -Jason
Huge fan of what you both are doing! The chubby FIRE part is really appealing! When it comes to disclosing your FI number or not is something I can relate to so well... I share my FI numbers, but do not share my full name/face because of exactly what you described... I would love to show my face and share my full name, but I cant for the safety of my family. There are a lot of bad actors.
Thanks so much for your support! We definitely all need to choose how to carry ourselves online
Hey, fancy seeing you here!!!
Im not gonna lie. I am so curious about your number too, but I agree. It's dangerous to reveal too much about yourself.
Thanks so much for answering my question! I really appreciate you guys!
As someone who is also planning for college expenses next year, I’m also wondering if you have any tips on how to manage the high costs of tuition, etc?
Thanks again for your great show!
P.S. Have you visited any National Parks? So many beautiful hikes. Maybe you can organize a group trip with your loyal followers. 😅
If the kid has good grades apply to a lot of schools. They will likely get a good scholarship somewhere that will more than make up for the application fees. Also do not be afraid to apply to schools because of the price tag. Especially the small private schools, etc. They tend to give a LOT of aid. Good luck. I have one down and one to go
It is great to be able to help your kids, but make sure they have some skin in the game. One way of doing that is to do what many companies do, such as offer to reimburse your kids tuition/fees based on their grades, such as 100% for A’s, 50% or 75% for B’s. Another is establish an amount you are willing to contribute, such as covering the cost for an In-state school, if they choose an out-of-state or private school then it is on their dime.
Great ideas! Thank you!
I could watch you 2 all day long 🤘🏻 You make that topic so interesting and sometimes you seem like an „old married couple“ 😜❤
Ha! Thanks!
You can and should be able to decide whether or not to disclose your FI number. I just wanted to second another top level comment to say that the FI number gives a general idea of a benchmark to what you've shared about your lifestyle. Personally, I'm not from a middle class background, I grew up lower class. I still don't really know what a lot of "regular" things should cost over a year, even having achieved a middle class income now. So more data points gives me a better idea. It's not really about *your* FI number for me but several in aggregate from community members. I can get them anonymously elsewhere, just with a margin of error because anons often do lie.
Cheers!
It's fascinating and addictive to listen to you guys. BTW, if anybody watched enough of your videos, they would have a very good idea of what Jason's number is. IMO it's $4.5MM -- give or take a few. But as you guys correctly put it, it would be (and should be) meaningless to others.
Eric, Is there a way I could see your possible futures video playlist? you have me curious and I would like to start my own!
Hi @chetjackson5244 (eric here replying from my 30X40 channel) here's the latest notion video I've made which includes links to download my template: th-cam.com/video/nzqQHqPP0ds/w-d-xo.html
Chet, there's a snapshot in this episode's show notes that shows some of the categories from the possible futures page: twosidesoffi.com/ep50/
Could you share what you guys use for bond exposure? (i.e., tickers would be helpful if you're using funds or ETFs)
Hi Chris, naturally this is not investment advice, and every situation is different. Be sure to consider what's best for your own circumstances as many factors play into these kinds of decisions. In our case, we each hold a mixture of total bond fund (BND or AGG) and intermediate term treasuries (like VGIT or FUAMX).
Congrats guys! I’m on board with you not sharing your exact net worth / FI number. I agree that only negatives can come from that as you guys don’t run an anonymous channel. Besides, the ones asking wouldn’t be comfortable sharing either!
Thanks, Sam!
Another great video lads, hike suggestion for Jason. Have a look at the Rae Lakes Loop in Kings Canyon. Hiked It solo in September and it was simply phenomenal.
Thanks, Craig! Glad to hear you liked it. Funny, we were just talking about how we hadn’t been to Kings in a number of years. I will look into that trail!
In a recent episode, you kind of dis'ed I bonds. Could you dive into this a bit further? I recently took money from my bond funds to invest in some I bonds. Eric said you need to invest in I bonds for 30 years, when really you only need to stick with them for 1 year. Yes, there is a penalty, but even with the penalty figured into your return after a year, it seems I stand to make more money on 10K in I bonds than a bond fund (I.E. BND @ -14% over the last year). What am I missing? Did I analyze incorrectly?...And this is a question separate from the dollar limitations on I bonds (yes, I know you are fairly limited on the dollar amt you can invest). -Thank you. I appreciate your content!
Thanks, @Name Withheld ...iBonds have their place (1 year lock-up, not 30) and they have been paying great rates in the current inflationary environment, but it's effectively a net zero after you take into account inflation. So, yes if bonds are down as they are this year you're doing better in iBonds, but once rates fall again so too does the rate on iBonds. And, it's only 10K (per ssn/business, etc.) which is quite a bit lower than what most ppl will want/need for a diversifying asset class and ballast as Jason/Eric use them. Here's a video we made discussing them: th-cam.com/video/qH04XSQFEE0/w-d-xo.html We made it as a reminder that there's a huge opportunity cost esp. for younger investors and those in a preFI situation!
Great Content! Thanks! Question: Most people in FIRE do not figure in Social Security. They usually say they can't count on it and if they get something, great and I guess it is tough to put a figure on it like 500k or 1m. Do you figure it in when forecasting cash flow? If not, how would you justify not figuring it in, especially for people over 50/55? It is one of those things that if they cut SS, we'll have more to worry about than money. When the government can't pay its bill, the #$%@ will hit the fan. Thanks!
Jason here - Thanks, Darrell. Deciding how to factor in Social Security is definitely an individual decision. For me, my modeling using covers scenarios from 0 - 100% of my projected SS earnings. Specifically, my current SWR Toolbox model uses a 50% funding. The nice thing about Karsten's tool is that you can put in the annual SS income when you think you'll start receiving it for you, and your spouse (if applicable).
I believe that anyone that is 55 or older can plan on the existing SS being available to them and can plan on it as part of their cash flow, the government is not going to take away or cut the program for those that are receiving or will soon be receiving SS. However for those that are less than 55 should expect that there will be changes, mostly likely an increase in the Full Retirement Age (70?) and further decreases for those that claim SS early. So for those on the younger side of FI do not trust your current SS projections.
What? You Dodgers! Ha.... Just kiddin' You both share so much of your journey with all of us, and to your point, your actual numbers are irrelevant. It's more important for each of us to figure out our FIRE numbers based on our individual scenarios. Thank you for everything you share. I share you guys with everyone I know, including my adult children. Thanks!
Thanks, Dianna! We greatly appreciate your support
I base my expectations on 8% returns. Which I think is very doable.
For nominal returns i.e. before considering inflation, yes. But looking at the past 200 years, in longer term windows of time (let's say 50+ yrs), real returns have been closer to 6.5 - 7% after inflation.
Hey Jason,
i am curious what's your reasoning to having a cash buffer of 2 years of expenses.
You rebalance twice a year so your cash buffer never should draw down blow 18 mounts of expenses because you refill it every 6 mounths.
Wouldn't one year be more than enough?
Not answering for Jason or Eric, but my reason for a larger cash bucket is to ride out the downturns. If you only have 12 months cash you could be forced to sell investments at a time when you would prefer not to. I am just entering my early retirement and am currently sitting on 4 years cash, even though my I am beginning my retirement with my net worth being 20% off its peak with having 4 years cash there is plenty of time for the market to recover before I will need to sell any investments.
1:02:59 why not say you will release the specific numbers in 80 years
I would never give a FI number. Everyone is different. Spend and expenses. No one’s businesses. People being noisy. Thanks for the video. It was Amazing.
Thanks, Greg
I knew it!!! What your FI number is would be the final question. It’s the ultimate question everyone wants to know. It boils down to how much money do you have. You just don’t really want your neighbours to know, otherwise you have what I call ‘Jan en alleman’ (basically Jeff and everybody else) come knocking at your door for a contribution. Very wise decision to not disclose the actual number.
Thanks! We appreciate your understanding and support
In Canada health care is free. Which really helps in retiring early. I understand you have to pay it till 65 and than is it Government funded? Is that correct?
Yes that's basically it
Many believe that Medicare (65+) in the US is free, but there are still costs to the individual, it is best to plan on monthly costs of about $500 per month, per person for healthcare costs, thus a 65+ couple in the US should plan on spending about 12k per year (today’s dollars) for healthcare.
@@bradk7653 wow thanks for the explanation. Still a large outlay that needs to be planned for.
@@grega4450 You’re welcome. Being in Canada is definitely different, here in the US many on the RE side of the FIRE community will find their healthcare costs are lowest in the years between working and Medicare, i.e. the years you can use Obamacare, where if you make yourself poor on paper your healthcare costs are mostly covered with the government subsidies.
My $0.02: your FIRE # is simple and knowing Jason’s or Eric’s has absolutely zero relevance to anyone.
TBH it’s a very personal question that I feel is borderline rude to ask.
Here’s a “fun” thought experiment!
Eric lives large thus wants $120K/year
Jason lives a modest life and wants $80K/year.
Using the 4% rule Eric would need $4M and Jason would need $2M.
Simple numbers & extremely vague but still gets to the point. How much do YOU need to be FI?
For me? I know my monthly expenses. Thus I know my number! I know where MY finances are today and when I plan to RE.
If 4% isn’t your bag (I’m more paranoid) then lean closer to 3%. Worst case you end up with more $ than you need. 😂
Who am I kidding we all KNOW Jason is a baller and lives like a BOSS. Sorry had to throw out the other alternative reality. Haha
We agree about the zero relevance! Ha! While my wife and I have elected not to disclose our numbers we live very comfortably. Not sure I'd go so far as "like a BOSS" but I'm doing well :) Thanks! -Jason
The people asking the number is like people asking for TLDR/TLDW. They want some magic word due to attention deficit disorder ;)
Right? We are on the same page
🙏 thank you great episode ….. re your figures…. I’m wondering if you would be willing to share the % of your pension income you have allocated for 1) food & bills 2) Fun money I have my figs but would be good to benchmark
Jason here - Hi Merry, thanks for the comment. I don't have a pension. That said, of the money I withdraw monthly roughly 75% is allocated for fixed costs (mortgage, utilities, insurance, etc), sinking funds for household expenses, etc. 25% is on the "fun side" of things, and includes dining out, entertainment, vacation sinking funds, giving, etc.
@@TwoSidesOfFI Thanks Jason really appreciate your reply. I’m currently aiming for 30% food & bills, 10% R&M on house, & 60% what I class as spending money & holidays. Your view is really helpful makes me think I have been over egging my fun money ….I find it difficult to know what will be enough when I’m thinking about the rest of my life post RE which ‘could be’ only a couple of years away - did you have trouble with your estimating pre RE and have you always felt like you got the %’s right?
Ha! I knew what the question would be and appreciate that you didn’t answer it.
Thanks, Kelly. It's nice that most commenters have been so supportive of this. As usual we get a mix of responses ;)
Try a hammock!
Jason here - They interest me and I'd welcome the chance to try one. I just haven't done so yet
What is "fire"? What does that word mean in the context of this channel?
Hi Mike, welcome to the channel! I’m this context, FIRE means Financial Independence, Retire Early. For more foundational content, we’d recommend some of our earliest videos, including
Financially Independent. Retire Early? Let's Discuss!
th-cam.com/video/5eS7zeUs5jU/w-d-xo.html
Hey, so, what's your net worth? LMAO just kidding. Thanks for answering my question, and for all you do.
Ha! Thanks for your support, Roberto
I would like to steal that question: if u had 50.0M what would your day to day be like? 😁👍🏼
Jason here - I’m stealing it too!
I was just listening to your podcast and wanted to mention I fired in sept 2021. My wife joined me in March of this year and we hiked the pacific crest trail as our first order of business! If you’re interested at all check out our TH-cam channel “Wandering North”! Only mentioning this as the topic of long distance walking came up and you expressed interest! Cheers!
Thanks for sharing! Will def check it out
Hike your hike
Always the best advice, William
I think telling us a Net Worth is between $2.5 million and $5 million is sufficient to show a life well planned, and lived, but still relatable.
Thanks! Glad to learn we are on the same page
I have asked this question before and it has been ignored...why not educate yourself on how to pick quality stocks? There seems to be a significant amount of time spent on everything else...this would help to alleviate the temptation of market timing, the annoyance at low bond yields...No?
29:24
Great content as always… Thank you.. I would appreciate your comments/thoughts on the real estate FIRE investment vs “traditional” investments…. I was persuaded to invest a small amount of money at the age of 35.. That number never changed. My circumstances did change, and i saved (in my bank account, yes I know that’s the worst thing you can do) whilst also paying off my mortgage as quickly as possible… I met the man of my dreams and we moved in together, so I let out my flat, which paid my mortgage. Almost 5 years ago I paid off my mortgage and bought a house - CASH. I let that out immediately and all of the income I put into a new investment. I did well at work, got decent bonuses and saved them all, along with any pay rise.. At the end of 2020 i sold my flat and managed to buy 4 houses CASH with the proceeds. I was selling in one country and buying in another.. This is how i managed to huge difference, but in the US you could buy in one state and sell in another to have a similar effect. My final property, number 5, was let out in April 2022. I resigned from my job May 2022 once I was convinced of my numbers and that I could live off the rental income (allowing for properties to be come vacant for periods of time as tenants moved in/out). I didn’t;t know about FIRE until about 18 months ago, and it’s amazing to realise I’m not alone.. The one thing that really does confuse me, is as follows. I fully understand FI vs FIRE, but I have heard soooo many people talk about not wanting to RE and the fact that they love their jobs.. That’s great, but then they are just working towards a normal retirement age surely, and some people even later than normal if they love their jobs?! I could talk for hours with you both, but thank you for helping me feel “normal”!! Love the show..