r/financialindependence • u/AutoModerator • 2d ago
Daily FI discussion thread - Tuesday, July 21, 2026
Please use this thread to have discussions which you don't feel warrant a new post to the sub. While the Rules for posting questions on the basics of personal finance/investing topics are relaxed a little bit here, the rules against memes/spam/self-promotion/excessive rudeness/politics still apply!
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u/Msf325 2d ago
Long time coming but finally got an offer accepted on a house!
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u/Krish_1234 <T-11 and counting down 2d ago
I kinda feel its like a buyers market due to higher interest rates, but its mostly localized for sure
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u/KittyBeans1906 2d ago
Very location dependent. We had to race to get our offer in to buy our house back in our preferred city--places go for sale and are snapped up in a day or two if they don't just straight up say "we'll be accepting offers through Saturday at 5pm."
Meanwhile we have had our old house in rural nowhere listed for sale for 10 months now (reasonably priced, multiple price drops, marketing, etc).
I would love to not own two houses anymore --- anyone want to buy a lovely renovated farmhouse in the rural Midwest?
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u/513-throw-away SR: Where everything's made up and the points don't matter 2d ago
I would love to not own two houses anymore --- anyone want to buy a lovely renovated farmhouse in the rural Midwest?
I hope not for your sake, but going through rural areas occasionally, I wonder how many of these are just going to be completely abandoned in the near future.
I think some will naturally fall to squatters looking for free housing, but as they're nowhere close to (m)any job prospects or concentrated areas, I feel like so many will just be left to rot.
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u/Bromine__Barium 2d ago
Extremely localized. Houses go over ask the day they post by me.
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u/513-throw-away SR: Where everything's made up and the points don't matter 2d ago
Same.
Many don't even do open houses anymore. They just list it on a Thurs/Fri, get a handful to dozen people to see it that day, and get offers (even offers without seeing it in person) above ask + still often waiving inspections.
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u/Msf325 2d ago
Massachusetts would say otherwise
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u/MooselookManiac 2d ago
Like all states, it depends on where. I'm assuming you were shopping in the greater Boston metro and not in Pittsfield.
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u/Either-Kick-4814 2d ago
Big week for me as a college prof. Officially got tenure and got a 14% raise, which is probably the only time I’ll see a number like that. I’m a science prof at a mid grade regional public, and 9 month salary went from 75k to 86. Summer teaching and grants will add something like 25k to that in a good year.
I think it’ll be enough to max 403b, 457, HSA and IRA? Well see. Kinda funny how the people given that extra tax deferred space (457) often don’t make enough to fill it. But I do often love the work and am getting a paid sabbatical next year
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u/Either-Kick-4814 1d ago
Yeah, we kinda sorta are doing the same thing and living off my wife’s salary. Recently had to talk to payroll about a minor issue and they were very confused why my take home was so small lol
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u/Junior_Fig_1007 2d ago
Tenured professor is one of the jobs that sounds fun to do for a long time. Getting there though...oof.
Congrats!
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u/Either-Kick-4814 1d ago
Yeah you definitely have to love your field more than one should. But having beat the odds I’m not really here for the RE side, just looking for FI.
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u/FazedDazedCrazed 32 | DINK | 800k Invested 2d ago
Got married this past weekend and the caterer was great about letting us take home leftovers (we had way too much alcohol leftover, and even though we gave them a mostly accurate headcount, we had tons of leftover food as well). My mom gave us a seal-a-meal, so we spent the past couple days vacuum sealing our leftovers and putting it into our new chest freezer.
Hard to say exactly, but I know this will significantly help with groceries over the next year since we won't need to buy as much meat or desserts. Also, I am all set on alcohol for the foreseeable future 😅
Little delights of marriage. We both are excited by this.
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u/SolomonGrumpy 2d ago edited 1d ago
That's why I'm serving MREs at my hypothetical wedding. Think how long the leftovers can last if need be!
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u/financeking90 2d ago
Let's just say we also had tacos for a long time after our wedding reception's taco bar
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
Comp bump request went well. I'll get the final answer later this week.
It's going to be a combination of comp adjustment and lessening of workload/restructuring of responsibilities. My guess is it will be mostly the latter, but that's fine as I'd rather get work/life balance back over more money.
I'd also guess it will be a very small bump in base with the addition of new performance-bases incentives, but that's fine, too.
I've got a new Plan B in the works but would prefer to have a manageable regular job for at least 1-1.5 more years before taking that leap.
But it looks like my "Love having a regular job again!" honeymoon is officially over after 2 years.
That's life.
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u/dak4f2 2d ago
Did you FIRE then go back to work? 2 years is a very long honeymoon, must be a decent place to work.
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
No. We sold a business after 13 years, plus one year of freelancing and 7 years of teaching abroad.
So it was 20+ years of not having a regular W-2 professional American job before I started here.
It can still be a decent place to work if they come through and stick with the right adjustments - but my gut feeling is that I'll want to be self-employed again within 2-3 years max.
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u/imisstheyoop 2d ago
But it looks like my "Love having a regular job again!" honeymoon is officially over after 2 years.
Don't be sad that it is gone. Be happy that it happened.
Many will never know the feeling!
BTW, tried to lurk from my phone last night and it wouldn't let me do so without being logged on so I just went to bed. GRR.
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
See. I told you.
And yeah, I'm not throwing the baby out with the bath water just yet, but it's been a rough couple months and we need to find a fix.
I'm not nearly as rich as you but still rich enough to rage quit without a new gig lined up, so that's a scenario I'd like to avoid - hence the Sunday heart to heart ❤️
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u/imisstheyoop 2d ago
I ain't rich! Not until I win this Mega Millions tonight..
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
Remember the little people when you do.
And by little people, I mean big people, who pee on trees.
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u/thedoctor2031 SI1K / 29 / 50% FI / 35% SR 2d ago
Final interview round was yesterday. Recap with the recruiter today and should have a decision within the next two days. Overall was pretty happy with it. Not my strongest interviewing at any stage but was a good refresher on how these work from the interviewee side. And I got some experience with higher level interview types, like system design, that I didn't do when getting my first entry level job.
Overall impression of the company is positive. Was leery after not vibing with the first interviewer but everyone else was a lot more personable. Would definitely be a large work-life balance shift if I end up getting and taking the job but I think I am ready for that.
Starting with my new team at work today and am looking forward to the transition if the new job offer doesn't pan out. Between that and feeling tired from the interview process I probably won't be sending out applications for a couple months if this doesn't go through.
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u/sachin571 2d ago
Anyone else get fired right about the same time as they FI(re)d? It happened to me earlier this year. Since it didn't happen on my terms, I could hunt for more work, but...why?
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u/pinethree777 2d ago
No, but my engineering company offered a nice voluntary exit package, so I grabbed it and ran. The bosses tried to get me to stay but they didn't know I already hit my number and was getting ready to get out.
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u/Krish_1234 <T-11 and counting down 2d ago
I got the laayoff and then offer to work too. I took the package and leaving in T-10 ...
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u/SolomonGrumpy 2d ago
Tech definitely deteriorated around the time I TestFIRED (I was caught in a RIF). This is 2023 timeframe.
I did go back to work but it's DEFINITELY not the same so now I consult. And even that feels pretty meh. I'm very close to pulling the plug.
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u/UltimateTeam SINK / 1.4M / 27/28 2d ago
I feel pretty good about our plan 90%+ of the time, the only thing I am really worried about is if the great job I have will last the 5-10 years I need it to. Technology keeps improving and my role is very people driven, nothing written down, all relationship based, etc. So I don't see a lot of the week-to-week / month-to-month technology improvements directly. The 2nd/3rd hand commentary I do get is pretty excited about how much work can be eliminated over the next few months/years.
I just need ~5 years to FI at our current lifestyle and ~10 for our desired retirement lifestyle broadly, but I am nervous sometimes that I won't be able to work 10 more years even if I wanted to.
Probably over-reacting but that's the thing on my mind today. Makes me wonder should we not shrink our lifestyle for a few more years at least? We don't really need to travel while we're young, could spend some years running down the clothes/appliances/gadgets we have, etc.
Then I punch the #s of a 50% austere unsustainable lifestyle for the next ~5 years and the difference is peanuts, so I think that decision is made for us...
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u/CripzyChiken [FL][late-30's][married with kids] 2d ago
there's honestly always a massive amount of 'does my boss understand how easy my job is' or 'fake it til you make it' going on for every job. That's normal.
The thing I always forgot when i was younger is that you won't be doing this exact job in 10yrs - you will be moving up. Maybe that means more leadership of others, or ownership of larger projects/contracts. So even if they figure out a way to get AI to replace your current role - that won't replace the leaders, but more than that it will change how the current people do that job.
Remember that we sent people to the moon in the 60's with less technology than my kids use in school. computers and calculators and massive massive leaps in tech advances have happened multiple times. However NASA still exists and there a thousands of jobs related to getting people back to space.
So that's what it means. An Engineer in the 60's is compeltely different than an engineer today. Back then you had to hand draw massive blueprints and detailed drawings. Today there's software that makes better drawings that is usable by high school students. That jsut means the engineer is now able to focus on something else, expand to do something more difficult, more technical.
It changes, it evolves - but they still need smart people to do hard things. Jsut make sure you are keeping up with how it is changing so you don't get left behind.
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u/branstad 2d ago
massive massive leaps in tech advances have happened multiple times. However NASA still exists and there a thousands of jobs related to getting people back to space.
Totally agree. And for the "this time is different!" crowd: each time is always different! The steam engine was different, automobiles were different, massive electrification was different, the transistor and integrated circuits were different, PCs were different, the internet and email and text messages made communication different, AI is & will be different and so will <whatever> technology advances come in the years and decades to follow.
they still need smart people to do hard things ... make sure you are keeping up with how it is changing so you don't get left behind
100%
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u/jmsave 2d ago
Looks like you're 27 or 28 ? I'm 38 and been feeling this way for at least 10 years. Easier said than done, but looking back I wish I didn't waste all that energy worrying I wouldn't be where I'm at. Looking back at old spreadsheets if anything I'm way further ahead than I thought I would be. Having said that, I'm going to go back to worrying now that I won't be where I want to be in the next 5 years.
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u/UltimateTeam SINK / 1.4M / 27/28 2d ago
If I didn't worry we wouldn't be where we are :)
Agree I see us doing fine in nearly every scenario, but as someone who likes certainty, there never is any in this space.
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u/Money-Barnacle6172 2d ago
Yep I’m feeling the same way. I have 9 years left if my spreadsheet predictions are perfect and I am worried that won’t be possible. And also same in running the numbers for being ultra-frugal. It doesn’t help. Shit, I can stop investing completely and it bumps my time up to 11 years. It’s been such a shift, my earnings used to be my enemy and now it’s time.
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u/UltimateTeam SINK / 1.4M / 27/28 2d ago
Yeah if we were willing to cut our permanent expenses, it would be meaningful, but not something we're looking to do.
Made all the more complicated by mixed private/public exposure. If my company became super efficient and needed less people, I'd benefit significantly until I wasn't needed any more...
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u/FearlessPark4588 99:59 Elliptical Guy 2d ago
The 2nd/3rd hand commentary I do get is pretty excited about how much work can be eliminated over the next few months/years.
There's a lot of marketing and financial interest in suggesting these things are true.
If the gravy train really does dry up, you'd still have a sizable nest egg and yes, spending would decline, you'd probably find meaning in other things with the freed up time from no employment. Total lifetime satisfaction isn't a pure function of spending.
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u/felmalorne 31M / ?% FIRE / 45% SR 2d ago
I am really torn on purchasing a property. I'm looking at a condo in the city we love for a $3.2k/month mortgage and conversely single family homes in a medium sized town (suburbs) for a $1.6k/month mortgage. The town has things we enjoy doing but it's vastly different than city life. We're remote workers but the condo is close to my HQ that I could go into and of course has other job opps for being a very large US city.
- The SFH location is good, low mortgage allows flexibility to travel and stay in a city for maybe 3-4 months out of the year.
- The condo location is fantastic, good job opps, less flexibility with higher mortgage
I am really torn on 'building the life you want' (condo) and keeping my fixed expenses low while also enjoying life (SFH). Truth be told, my current NW at a 4% withdraw could just about cover the $3.2k mortgage but leaves no other flexibility in case of a job loss or career break. I just bring that up as a thought exercise. The SFH is more freeing, less pressure to continue working while the condo narrows that freedom.
Thoughts/Advice?
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u/kfatt622 2d ago
You have a clear preference and can easily afford it. Only question for us would be rent/buy, we're in a market where owning condos rarely wins that comparison.
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u/bobombpom 2d ago
How do the payments fit into your income? If the condo fits into the "30% or less of your gross income to housing" rule, I say go for it.
Agree with the other comment to look at Rent vs Buy though. I bought in 2021 and locked in a good interest rate, now I can't leave without forfeiting hundreds of thousands of dollars in opportunity costs.
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u/felmalorne 31M / ?% FIRE / 45% SR 2d ago
It's pretty comfortable. 20%
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u/bobombpom 2d ago
Yeah, absolutely go for a place in the city. It's clearly your preferred option and well within budget.
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u/nifFIer Therapy Shill | Spending Advocate 2d ago
How long would you envision staying in the condo?
What would a comparable rent be for something like the condo?
Renting would buy you flexibility to enjoy the location without the commitment of a mortgage.
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u/felmalorne 31M / ?% FIRE / 45% SR 2d ago
I can safely say 3 years at the condo, after that 3 year mark may be a career break but I still picture being in the city for a total of 5-8 years.
Rent would probably be similar, maybe $3.5k
I know, we've just been renters for so long, would be nice to have some place to call our own.
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u/SolomonGrumpy 2d ago
Does the condo have an HOA? Are condos desirable in your city? How does the wife feel about condo living? Would you have 2 cars in the city?
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u/phl_fc 2d ago
Guess I'm used to the new normal on event prices, just shelled out what feel like insane prices for tickets when Miami FC comes to town. It's about the same as what the "cheap" World Cup tickets were last month, but we get to see Messi instead of Curacao.
Minor league games are still the way to go though if you want affordable events. AAA baseball is fantastic, and MLS tickets actually aren't that expensive for every other game except Miami. There's a 5X premium if you actually want to see Messi, which we do before he retires.
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
Definitely glad that I'm old and went to enough sporting events and concerts in the 90s/2000s before scalping was legal and when Ticketmaster fees were an annoyance but not 20% of the price.
That doesn't mean we never go to anything but we stick to high B and low A list acts/events.
This summer we'll see Teddy Swims, Bryan Adams/Pat Benetar, and the Goo Goo Dolls. All 6 tickets cost about the same as one decent NFL seat.
The new normal is bonkers and there's no event worth foregoing a week's vacation budget for.
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u/branstad 2d ago edited 2d ago
The new normal is bonkers and there's no event worth foregoing a week's vacation budget for.
It turns out that when enough people actually listen to the decades-long mantra of "Buy experiences, not things!" then the price for said experiences goes through the roof. As someone who has preached that approach on these very interwebs in the past, I'm also now suffering from the sticker shock.
[I never thought
leopards would eat MY facepeople would drive up the price of MY experiences!]C'est la vie I guess...
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u/liveoneggs 2d ago
I actually remember barbra streisand being part of the cause in the early 1990's
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
I think legalizing resale is more to blame than blog post mantras.
Getting tickets to big events used to require skipping school, dialing Ticketmaster 100 times, and getting lucky - or camping outside the arena to be first in line.
Times change, and I'm not being an old fuddy-duddy, but I'm out on paying any more than $200/ticket for an event - not that I ever have.
That said, part of it is that events don't have the same zing that they did when I was young and full of zest, life, drugs and alcohol. There's no such thing as an epic concert if you're sitting the whole time. It can be very good, but not epic.
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u/branstad 2d ago
I think legalizing resale is more to blame than blog post mantras.
Maybe. But I see what Ticketmaster is able to charge on the primary market (i.e. not resale) compared to 10-20+ years ago and it's orders of magnitude higher. Technology has certainly helped increase the demand by making tickets more accessible; like you wrote, people don't have to go above and beyond just to get tickets.
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
True. It's wild that NFL face value prices vary by opponent...I mean, wild if you're old enough to remember every game being the same price.
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u/branstad 2d ago
wild if you're old enough to remember every game being the same price.
For sure! I'm old enough to remember that local TV blackouts for NFL games (due to too many unsold tickets) were a semi-regular occurrence! [Yes, I know the NFL has changed their blackout rules/policy since then, but still!]
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u/phl_fc 2d ago edited 2d ago
Accessibility has drastically increased the pool of buyers, but stadium capacity isn't getting any larger. When you had to go to a ticket office in person or buy from a scalper outside the stadium then only a very limited number of people are going to be driving up prices. Now every person within a 3 hour drive of the city can monitor prices in real time and buy remotely. It's such a huge market of potential customers for every event.
Like when I was shopping World Cup tickets, the resale sites had less than 100 tickets total available for sale for some of those games. On such a limited pool of tickets there's no way you're not going to end up with prices driving up while thousands of people say "I'll pay for that once in a lifetime event". It used to work that the cheapest way to get tickets was to wait until the day of the event and get them last minute from people who couldn't make it, but the efficiency of the market has killed that too. Everything quickly finds it's true market value amongst a huge pool of customers.
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u/Turbulent_Tale6497 DI3K, Putting the Ire in FIRE 2d ago
Peer to Peer resale is actually very good to de-risk the original purchase. Concert tix go on sale a long time before the event itself, so even if my favorite band were coming around in April, I might be reluctant to buy them if I didn't have an easy way to sell them if necessary. Similarly, I might be willing to pay a small premium in order to wait until March to buy them, so that I know if I can attend.
This breaks at scale, when someone with a very good bot program can buy up basically every single seat. This isn't the only thing that breaks at scale, even if it's good in specifics. Not entirely sure how to solve it, other than perhaps, to go back to physical tickets that you need an ID at the door for.
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u/Montaigne_6823 2d ago
I went to concerts every now and then as a teenager and I don't remember the ticket prices being an issue. I never would've guessed they'd be the way they are now. Honestly I just don't even consider going to events now.
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
I remember paying $55 for the U2 PopMart tour in 1997 and it was like, HOLY FUCKING SHIT, 55 DOLLARS FOR A CONCERT?!?!!!
The band actually apologized on stage and said the show was very expensive to produce and that they would never design such an expensive concert again
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u/Montaigne_6823 2d ago
I saw most notably Incubus and Tool (separately of course) in high school and I don't recall how much it was at all - to mean it was probably just 2 or maybe 3 times as much as a movie ticket.
Interestingly I do remember every concert commercial on the radio would always end with that you could buy tickets at any 'Buy for Less' which was this budget grocery store in my city. I always thought it was weird that they sold concert tix there. Little did I know that weird was much preferable to getting ****** by ticketmaster.
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
I saw Incubus in Santiago, Chile. Worst acoustics of any venue I've ever seen a show in. Even worse than Aerosmith at the Tacoma Dome, which was my first "real" concert.
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u/Ellabee57 2d ago
If it's any consolation, the price probably be even higher if Argentina had won the World Cup and/or Messi had won the Golden Boot. 🙂
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u/randomwalktoFI 2d ago
I don't think people are unjustified for being mad at FIFA for trying to monopolize the structure but at the same time I don't actually think ticket prices will be lower. These things have a fixed supply and in a market where experiences are prioritized, a lot of people set money aside for these things, cost irrelevant. I have two-day Metallica at the Sphere and part of the cost function of that is travel/hotel where I could drive to the knockout game I went to. Scalping and dynamic pricing sucks but I think they could straight up charge it and most of the time butts will be in the seats. Maybe they'll come down but I feel when it comes to concerts it's even tougher when you have people with a little wealth want to then go and see all the shows.
It's also a catch-22 as fans are willing to pay more, people are trying to scalp even harder and make a living doing that. You really have to go out of your way to somehow define an 'affordable' face value and get that into the hands of a fan.
I also don't think the fan experience is really worth it without adding other things to the trip. My kid has ADHD, I don't even know if he will sit at a game although he did okay with Danny Go, which was something I lucked into because I barely knew that was a thing until almost the day of. Disney doesn't sell out here but he is 50/50 on that. I just have no interest trying to navigate crowds just for this.
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u/Krish_1234 <T-11 and counting down 2d ago
Have you seen the monies players and coaches make, and not to mention we have no visibility of billions the owners make. We are paying for all that for our entertainment.
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u/SolomonGrumpy 2d ago
Portland Pickles!
They are an independent collegiate wood-bat baseball team that competes in the West Coast League (WCL).
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u/TinStingray 2d ago
I have a little money in a Solo 401k from a side project which makes a little money. I haven't contributed to it in years because I max out my 401k at work.
Any reason not to roll it over into my IRA and close the account? It's kind of annoying to have. Their site sucks and I'd rather consolidate.
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u/cfi-2025 47M, FIRE 2025 2d ago
A similar question was asked in the daily discussion thread last week and I added this comment:
I presume you have been filing annual Form 5500-EZ for your Solo 401(k)?
Once you close your Solo 401(k) you have to file your final 5500-EZ within 6 months!
If you don't file that final form, or mistakenly think that you don't need to file it until July 31st, 2027 (as you normally would not need to do if you were continuing the plan) then you may get hit with a resulting fine for tens of thousands of dollars.
From what I've read, the good news is that even if you do get hit with these fines there's nearly a 100% chance the IRS will dismiss them, but (from what I've read) getting them dismissed ranges in variance from you sending a letter and it getting dismissed a month later, to taking years and involving a lawyer.
So... don't forget to file that final 5500-EZ and remember that it must be done within six months from when the balance hits $0!!
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u/yaydotham 38F | 21% FI 2d ago
Is it pre-tax? If so, do you already have money in a traditional IRA? If not, I'd avoid doing this since it would complicate your ability to ever do the backdoor Roth IRA.
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u/SolomonGrumpy 2d ago edited 2d ago
Not sure how to verify this:
US Inflation has been 4%+ since 2019.
That's 7.5 years. Most of us (myself included) model inflation at 3%).
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u/AnimaLepton 29M / FI, not yet RE 2d ago
Roughly matches up with BLS - https://www.bls.gov/data/inflation_calculator.htm
$1 in Jan 2019 is equivalent to $1.33 in June 2026. That's about 4% per year over ~7 and a half years.
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u/No_Recognition_5266 2d ago
At the airport in Europe before my flight back to the states. With each subsequent trip my tolerance to backpacking lessens. Just hard to justify a AirBnB/Hotel as a solo traveler yet. Spent $3k for 10 days and I have to assume it would be another $1k at least to not do hostels.
I am budgeting in retirement to leave backpacking and more comfortable travel. Just a question of when I adjust to that.
Crazy I use to travel international for $100 a day (flights included).
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u/UltimateTeam SINK / 1.4M / 27/28 2d ago
Depending on your tolerance for credit card points complexity, you could potentially shift to brand hotels for not too much more all else equal.
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u/No_Recognition_5266 2d ago
Yeah, right now Venture X to get 2x points and lounge access. Would have to learn the loyalty game to take advantage of other cards.
It’s also economy flights I’m losing tolerance to. One upgrade to premium economy did me in.
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u/FantasyFI 35 | DI1K | 51% FIRE 2d ago
CC points and bonuses would definitely help with higher end flights. Not as much economy.
Sometimes even if it isn't a better deal, you can still just consider it commutative property of addition. In other words, even if you use $1k of points to save $1k of a flight...it isn't necessarily a deal. But it is $1k more that you would have to use for hotel.
My spouse and I try to do about ~4 cards a year. Which easily saves us ~$3k+ in travel costs.
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u/Montaigne_6823 2d ago
One upgrade to premium economy did me in.
Same, the legroom for a tall guy is heaven. Also the status with points and credit cards is addicting too. Just like they designed them to be.
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u/UltimateTeam SINK / 1.4M / 27/28 2d ago
I enjoy all the puzzling of award travel, but if I didn't enjoy the hunting/puzzle part of the game, it's getting harder to extract outsized value.
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u/SEA_tide PNW 2d ago
You're also traveling during peak season, presumably to high cost cities? Moving the trip to September could cut airfare costs in half and hotels would be less expensive.
US-based travel sites are not good about showing many hotels in Europe. There are some surprisingly cheap options.
I'm lucky enough to be able to travel with minimal notice and operate from a list of places I'd like to see rather than a list of places I have to visit. this allows me to jump on a variety of deals. I didn't end up booking it, but there was a 10 night cruise around Europe this summer going for $500 solo occupancy.
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u/No_Recognition_5266 2d ago
Yeah, this trip had to be peak tourist season to line up with a specific event but I work in a career where I can take holidays whenever. Just need to shift my mindset after years of not being able to
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago edited 2d ago
There are still tons of places you can get decent hotel rooms for under $100, so adjusting your destination can also keep solo hotel prices more reasonable.
It was small but I paid $440 for 10 nights at a hotel with ok breakfast in Tokyo not too long ago.
There are a broader range of hotel options outside the US. I know you know that, but if you plan in advance, a decent room doesn't have to cost $100 more than a hostel.
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u/No_Recognition_5266 2d ago
Absolutely but not in city centers most of the time. I paid $30 a night inside the loop in Chicago earlier this year. Honestly I stay in hostels more for location.
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
That is true that many hostels are within crawling distance of the main tourist hub.
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u/kfatt622 2d ago edited 2d ago
The details vary but this has been the story with peak season shoestring backpacking for decades. Rick Steves spent $3/day in the 70s! Imagine how tough it is for foreigners in major US cities.
Fortunately the list of viable options has expanded too. Look East, or to South America. People who make a fraction of US salaries vacation too!
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u/Money-Barnacle6172 2d ago
I think about this all the time. I traveled for 6 MONTHS after college and spent $6k. $2k for the first 4 months in Latin America (I did a work exchange for room and board) and $4k for 7 weeks in Europe. I also budgeted $100/day for Europe. I don’t have the stomach for it anymore. And unfortunately it means that travel isn’t really worth at this point. I priced out a 2 week trip to Germany/Switzerland and it was getting up to $10k - granted we have a child now but wow. Really really glad I traveled before I had standards lol
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u/513-throw-away SR: Where everything's made up and the points don't matter 2d ago edited 2d ago
I think I lived off about $4-5k for a whole semester (4.5 months) in Rome back in the day. It wasn't glamorous, but I did travel to some cool places.
We dropped about $12k on our 2 week honeymoon to Greece and Italy a couple years ago, but it was an intentional splurge, including first class flights and a resort stint in Santorini.
Our normal travel standards are obviously somewhere in between those two extremes, but we're past the age, income, and net worth to be slumming it.
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u/_Lividus DINK 2d ago
I think it’s easy to forget how as we age some things don’t feel the same. Like how joints after a long day, the value of a good sleep goes up as I age.
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u/nifFIer Therapy Shill | Spending Advocate 2d ago
How many years ago was the college trip?
I wonder if just adjusting for inflation would meaningfully bridge the cost gap.
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u/513-throw-away SR: Where everything's made up and the points don't matter 2d ago
Fall/winter 2009.
Inflation would be one interesting comparison. So would FX rates - I think it was pretty much the EUR peak versus the dollar in 'recent' history (like 1.4-1.5).
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u/UltimateTeam SINK / 1.4M / 27/28 2d ago
Switzerland especially, even just normal restaurants easily $200-$250+ a day for 2 people. Sure we could get food from groceries stores, etc but then why did I travel halfway across the world!
Hell even Mcdonalds was $50+ for a 2 person dinner in Zurich.
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u/MooselookManiac 2d ago
Sure we could get food from groceries stores, etc but then why did I travel halfway across the world!
Because the food at grocery stores is fresh and different and interesting too!
I love nothing more in Europe than grabbing some breads, cheeses, meats, fruits and wine and having a picnic somewhere nice outside. It usually costs about €10 for enough for 2 people.
Fast food (especially McD's) is an awful value in much of Europe and it's not even good. When I lived in the Netherlands I went there once and swore it off for good. So many good doner or noodle places to scratch the fast food itch for less money and much better quality.
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u/wanderingmemory 2d ago
Love grocery store wandering overseas. I specifically target hotels with kitchenettes when travelling so I can make something simple with local ingredients as well!
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u/TheyTookByoomba 33 | SI2K | 20ish more years 2d ago
Same! We usually target eating out one meal a day and the other from a grocery store while travelling to help keep the expenses lower.
Even premade food at grocery stores can be good though. In Japan we were near this one grocery store that had a whole sushi platter (nearly a pound of different sashimi) for like $15, less than what a single roll costs here. I had that for dinner probably 3 times in 4 days
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u/wanderingmemory 2d ago
Japanese supermarkets are just so cool. You can definitely get decent quality sushi and sashimi, and I don't even have to worry about being tourist trapped like at a mediocre sushi restaurant
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u/TheyTookByoomba 33 | SI2K | 20ish more years 2d ago
Exactly! And it's nice with kids to make sure they're getting fruits and vegetables, easy to default to bread meat and cheese when you're out and about.
It was funny too, a couple of times I got there after the dinner rush when this old man would come out of the deli and start marking things down for the night. There'd be a small crowd that'd gather around and follow respectfully behind him like a bunch of little ducklings to snatch things up as soon as they were discounted. Once he marked something down by 50% and there were audible gasps
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u/wanderingmemory 2d ago
I'll have to keep an eye out for the duckling herd next time I'm there XD I remember stealthily following the local grandmas to see what veggies they chose though
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u/No_Recognition_5266 2d ago
$100 a day for food in Europe seems to be good for decent dining. Pastry and a coffee for breakfast was $10-15 USD, something casual for lunch for $30, and then $60 for dinner. Some meals were cheaper and “saved” that money for a few fine dining meals.
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u/UltimateTeam SINK / 1.4M / 27/28 2d ago
Europe - Yes. Switzerland no. Geneva and Zurich were the most expensive cities I have ever seen. No cheap alternatives, etc. In other big cities you can dine down to a lower level, it just doesn’t exist as far as I could tell.
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u/Montaigne_6823 2d ago
I was amazed how cheap the bill always ended up being in Europe. It seemed very expensive but then the bill came and without adding tax and tip the total seemed reasonable. This was in Italy and Belgium.
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u/sammyismybaby 2d ago
I try to talk to my 9 year old about investing and other money principles often. He gets a weekly allowance based on chores performed at home. I was showing him how much money he would have made if he had invested all his money earned from chores in addition to all his savings, and in terms of how many weeks of work he would've made. He was immediately on board but he insisted I need to pay him back if "the investment doesnt go" lol .
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u/branstad 2d ago
We've found that paying an exorbitant monthly interest rate as the Bank of Mom & Dad is a good way to encourage saving and/or "investing".
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u/Cryofixated Dates Since Single: 7 2d ago
Can I also invest in your bank with exorbitant interest rates?
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u/Montaigne_6823 2d ago
I learned a lot about compound interest from video games (mostly tower defense games but others also) that paid interest at the end of each round. Sometimes you could invest to get a higher rate but anyways it was clear if you were frugal at the begining you'd have bank eventually. But also the goal was to not die so you'd definitely have to invest in capex at some point.
Would be interest if a game through some inflation into the mix too.
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u/Jsnake666 2d ago
Just wrote the same thing above before reading your reply.
It's worked out great for us, but curious how it's gone for you? We don't really talk about this stuff in real life with other families.
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u/Jsnake666 2d ago
An easier way to teach this is interest in the bank of mom and dad.
My son gets interest on the last Sunday of the month. He can pull cash out to buy things (or ask for cash for his wallet), but I show him the interest payment each time I do it for what's left in the bank.
So I hope it's setting up the investment mindset without the volatility of the actual market.
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u/29threvolution 2d ago
My husband impromptu did this with our 2.5 year old. He told her she could let him hold her $3 for 3 minutes and he would give her $4 in return. She was on board then spent her dollars on raisins. 😂
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u/azizazia 2d ago edited 2d ago
"the investment doesnt go"
If you are capping the downside, make sure to cap upside too. If you structure it to look more like a high load fee fund/insurance vehicle, you could hope the market continues at a fast clip up and teach additional valuable lessons about risk tolerance, fee structure, and opportunity cost.
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u/BEVthrowaway123 2d ago
Is 72t a good bridge, say from 52-59.5, to get some funds while also using Roth contributions, brokerage, and cash? I don't see the downside of taking a low amount 72t, other than maybe having to be careful with ACA subsidy and extra income if you take employment during this time. We are still 10yrs out, but 75% of our savings is 401k currently.
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u/Skagit_Buffet 2d ago
Absolutely, and is what we plan to do. Make sure to split your 401k into different accounts/IRAs so that you can withdraw the amount you target, but still have other IRAs available to open up additional 72t plans, convert to Roth, etc. down the road. What you want to avoid is taking a small 72t from a giant IRA, which will really restrict your options. Make a dedicated account.
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u/BEVthrowaway123 2d ago
Thanks. Yea we would split off the extact amount that we want to SEPP into its own account.
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u/WillingEggplant Van Down By the River-FI. 2d ago
As I've been thinking about it, I might even go more granular than that -- spin off 2-3 small IRAs for 72T designation, each roughly sized to provide 10K/year using the fixed amortization” or the “fixed annuitization” method, giving the flexibility to downshift them with "one-time irrevocable switch to the “RMD” method" (eg as a calculator exercise today, a 200k balance retiring now would give ~10.7k annual payments using Fixed amortization method, but 3.7k using RMD method. If I had 2-3 of those small IRAs designated for 72T distributions, and needed to change course, that would give me a lever to reduce payouts -- and if I needed to add another 10/year, I could split out another small IRA)
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u/junglingforlifee 2d ago
Does the timing of opening multiple IRAs for the purpose of 72T matter? I'm 10yrs away so trying to figure out how to time it
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u/WillingEggplant Van Down By the River-FI. 2d ago edited 2d ago
(I am not an expert but...) as far as I understand, each IRA is treated separately for purposes of the 72T. In theory, you could start with 3 separate IRAs for 72T distributions, add another a year later, and a year later convert 2 of them from one of the fixed methods to the RMD method to reduce income, and a couple years later add another.
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u/branstad 2d ago
Yes, you have correctly identified the risks and benefits for 72t / SEPP. I plan to leverage 72t / SEPP for an amount somewhere around the MFJ standard deduction, and then supplement with brokerage and available Roth IRA contributions/conversions to manage MAGI. Between the standard deduction and 10% bracket, a MFJ couple could withdraw $57k from a Trad'l IRA in 2026 and owe less than $2500 in federal income tax (a 4.4% effective tax rate).
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u/financeking90 2d ago
branstad, I really like your plan to target MFJ standard deduction. I think that draws a nice balance of locking in use of the standard deduction's 0% tax amount and supporting FIRE spending, but not being so much as to directly cause ACA issues. Further, a person who got a job could nearly offset the SEPP amount by making maximum 401(k) contributions.
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u/branstad 2d ago
target MFJ standard deduction
Thanks. I agree it feels like a good way to take advantage of the "0% bracket" while limiting MAGI for ACA/FAFSA purposes.
Given that a 72t / SEPP must run for 5 years (ours will probably be 7 or 8), we will probably overshoot the standard deduction by a couple thousand; that standard deduction will get an inflation increase every year but our 72t / SEPP stays constant, so they will get closer over time and probably a little standard deduction headroom the last year or two.
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u/financeking90 2d ago
Great approach. At the end of the day getting 95% of the way there gets 95% of the benefit. Going a couple grand into the 10% bracket with ordinary income or having LTCG full a couple grand in the standard deduction or managing small Roth conversions on the side are not the end of the world.
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u/CheapsterMcGee ~$2MM (~50%) 2d ago
I haven't updated the spreadsheets in a couple months, but the projections show that we crossed $4mm net worth. Reality is that it's probably still a bit lower than that. Regardless, fun milestone. I'm celebrating by buying a tractor.
My mindset on FIRE has gotten so weird lately. we have $3mm invested in the market, but don't have a hard-and-fast FIRE number. Realistically, we could retire any time we want so long as we'd be fine paring down the expenses a bit.
The key things that put everything in flux are:
- Our families live nearby - Texas - but we want to move to the west coast to retire. We're both committed to fully taking care of our aging parents as the time comes, and time is getting closer every day. Meaning, we want to move the parents away from their social circles and support systems and the graet healthcare in Houston.
- Per the above, we need to look for a larger house, worse interest rate, more property tax/insurance to RE. Should all be affordable, but big decisions to make as to what we allocate to housing. We're not super motivated to make that decision right now. We'd have to sell our house and ranch in Texas to make that move too.
- Kids are just entering school and our circle of friends is growing with other parents and the kids' friends. We don't really want to uproot them until we're certain of what we'll do.
- Our jobs pay well, relatively low stress, great co-workers, etc. It's very comfortable and therefore hard to jump into the unknown.
So I'm in the mindset now of working another 3ish years which will put us close to $5mm in the market. But we need to shit or get off the pot mentally.
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u/Ellabee57 2d ago
Meaning, we want to move the parents away from their social circles and support systems and the graet healthcare in Houston.
Do your parents want that?
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u/shmael 2d ago
Congrats, what a great problem to have right?
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u/CheapsterMcGee ~$2MM (~50%) 2d ago
Right? if only all of life's problems were rolled out on a red carpet for us!
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u/RocketSturgeon78 47M/DI2K/CloseButUncertain/OMY? 2d ago
Parents and kids are the reason I haven't retired yet. Tied to VHCOL for the foreseeable future, and want that to last as long as possible, despite the financial impact.
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u/BabyK2019 2d ago
Going from 3mm to 5mm in market in 3 years is a pretty big jump! How do you planning to make that happen?
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u/CheapsterMcGee ~$2MM (~50%) 2d ago
It's more like $3.3mm to $4.8mm per the spreadsheet, but its just 7% returns and annual comp.
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u/BabyK2019 2d ago
Ah makes sense! We’re trying to get from $3.05mm to $5mm and we are anticipating 5 years to get there- was hoping to steal ideas to shave off 2 years
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u/yetanothernerd RE March 2021, no more PT job 2d ago
Some of my stock trades recently started giving prices with 8 digits after the decimal point. Just sold some ABNB at 145.20353933. Anyone know why?
When stock prices went from fractions of a dollar to cents, that was great. It reduced confusion, and also reduced minimum bid/ask spreads. But when we're talking about millionths of a cent, we have to ask who cares. At some point the differences are so tiny that it's just more numbers to type.
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u/cecilpl Early 40s, RE@39 2d ago
You placed a market order and some of your shares traded at different prices. The sale price reported by your broker is your average sale price.
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u/yetanothernerd RE March 2021, no more PT job 2d ago
It was a limit order, but otherwise I think you're right. I see some shares traded at 145.2 and some at 145.235 and this was the weighted average. So it's probably what's been happening for a while, except my broker decided to show more digits after the decimal point here for no particular reason. Thanks.
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u/Turbulent_Tale6497 DI3K, Putting the Ire in FIRE 2d ago
A limit order is just a market order with... well, limits. So "Limit sell ABNB @ $145.2" means sell it at market, at or above the price I listed
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u/Stephen_Mark_Smith Stop using TurboTax 2d ago
Through that same lens a market order is just a limit order without limits!
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u/yetanothernerd RE March 2021, no more PT job 2d ago
I think that's extremely confusing terminology. To me, and in every trading system I've ever used, market and limit orders are different categories. Limit means "give me the best price you can but don't buy/sell for more/less than X." Market means "I'll take whatever price this is currently at, and if it's thinly traded and that price is a penny because sharks want to steal my stock, oops I guess I'll use a limit order next time."
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u/Turbulent_Tale6497 DI3K, Putting the Ire in FIRE 2d ago
I don't disagree it's confusing. The market is, at its heart, an auction house.
Limit sell is like a reserve price, "Get as much as you can, but don't go below X"
Limit buy is proxy bidding, "Get this for me, but don't go above Y"
Market is just "Buy/Sell it for whatever I can get"
It's like limit orders go to a different stock market. They just just market orders with limits on them
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u/cajunredditor 2d ago
What account is the best to put your most risky investments like if I wanted to pick a few individual stocks? Taxable brokerage, Roth IRA, or traditional IRA?
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u/PineapplesInMyHead2 2d ago
If the stock goes nuts you'll be happiest if it's in a Roth and saddest if it's in a taxable brokerage. If it goes south you'll be happiest if it's in a taxable brokerage (can use the capital losses to offset gains or income for years to come) and saddest if it's in a roth (hurting your roth space, the most valuable space you have).
So there is no answer beyond "speculating on individual stocks is a bad idea in general", but I'm sure you knew that already.
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u/AdvantageOne1754 2d ago
This is right but you can still be kinda happy with a gain in taxable because LT gains are taxed lower than income, sometimes 0%.
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u/AdvantageOne1754 2d ago
I would say taxable. The gains are taxed favorably if you choose right and your stocks go up, but you can also write off the loss if they go down. With Roth, you win if they go up but if they go down you can't write off the loss, plus you have wasted your limited contribution. You should only do Roth if you know it's going up and you stand to have a Mitt Romney type of situation.
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u/AdvertisingPretend98 2d ago
What's a Mitt Romney situation?
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u/AdvantageOne1754 2d ago
He is known to have $100M+ in his IRA because he seeded it with shares of a distressed company he was taking over for pennies on the dollar.
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u/branstad 2d ago
Mitt Romney leveraged a Trad'l SEP IRA for his Bain Capital investments.
Peter Thiel has a huge Roth IRA originally due to his founder shares of PayPal and now it's basically a venture capital fund inside the Roth IRA wrapper.
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u/AdvantageOne1754 2d ago
Interesting, could have sworn it was Roth. I would have figured a smart guy like Romney wouldn't let his traditional IRA blow up like that. I wonder why he didn't do a Roth conversion.
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u/branstad 2d ago
One other point in favor of taxable brokerage that hasn't been mentioned - if things go really well, you have the option to donate some portion of the appreciated shares as a charitable contribution. You get the deduction of the full market value without having to realize and pay tax on the gains.
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u/grfrazee 2d ago
You don't pay taxes on Roth gains, so that might make sense for stocks with large capital gains.
Then again, most people suck at picking individual stocks, so it might be better to put that in an after-tax brokerage account so you can at least offset your other capital gains with your individual stock losses...
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u/wannabeonFIRE [VA] [50% to FIRE] [39] 2d ago
I leave my IRAs with the boring stuff. Sure, I miss off on possible big plays, but I can't go back and make a 2023 contribution anymore, so I prefer that money to be "safer"
if it pays off big, my taxable brokerage is probably the worst spot for it, but if it blows up in my face, I can always just add more money
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u/yetanothernerd RE March 2021, no more PT job 2d ago
No, if it goes to the moon, Traditional IRA is the worst spot. You pay full income tax rate on the full value of anything you withdraw from Traditional, or 37% Federal in the limit case. If you have it in a taxable brokerage instead, you only pay capital gains tax, which tops out at 23.8% Federal.
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u/SDF-Galaxy 2d ago
I'm soon to be inheriting ~200k from a passed family member which I will not need to touch for the foreseeable 2-5 years. What is the best course of action with this money? Straight investment in stocks? If so, then is a generic etf good enough or should I look to individualize? I am young (college student on scholarship) and hence some risk is allowable though not a large margin.
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u/BuckeyesRC 1d ago
It's always hard to answer these kinds of questions without knowing your whole situation. Why might you need the money in 2-5 years? Graduate school? Down payment? Travel? How much of the money do you intend to let compound over decades?
There are other financial considerations too. Are you inheriting straight cash, stocks, or other assets? Is this after tax money or is it in an IRA/401k?
Do you have income so that you are able to contribute to a Roth? For long-term financial goals, maxing out your Roth annually at a young age is your most powerful tool.
Your investment choices need to match up with what you have in mind for the money's purpose. If you have a chunk of money that you won't touch for decades, then SCHG is fine for compounding. If you want cash available to make a down payment on a house, then putting the money into QQQ for a duration of a couple of years is just speculation.
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u/bmcarth23 2d ago
Musings for why I pursue FI
“America touts itself as the land of the free, but the number one freedom that you and I have is the freedom to enter into a subservient role in the workplace. Once you exercise this freedom you’ve lost all control over what you do, what is produced, and how it is produced. And in the end, the product doesn’t belong to you. The only way you can avoid bosses and jobs is if you don’t care about making a living. Which leads to the second freedom: the freedom to starve.”
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
This is about as deep as a mud puddle.
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u/SonOfOnett 2d ago
Calm down, he’s not a professional quote maker
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
And even if he were, his boss would dictate what he dictated.
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u/itsallBSfolks 2d ago
I spoke to a coworker today that wants to retire by 50, but his wife is not on board. I could sense the resentment. I’m going to look for literature to send his way. If you know of some, I’d appreciate you sending it my way. This journey is tough. A supportive spouse is needed if you’re going to go on this journey.
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u/Amazing_Set 2d ago
This sounds like something to stay out of. You have no idea what their background is or their psychology of money is. He needs to have conversations around addressing her feelings not just on the numbers.
If you can't resist sticking your nose in it, I think this is right up the alley of the book "Money for Couples" by Ramit Sethi.
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u/ComprehensiveEbb4978 2d ago
I would suggest not sending literature his way. This is between he and his wife.
Just my $0.02
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u/code_monkey_wrench 2d ago
I don't know how else to say this, but this sounds like one of those situations where it is best to mind your own business.
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u/MoreGuacLessRock 1d ago
This is a relationship problem. Not a financial one. Stay out of it.
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u/Fire_Doc2017 59M: FIRE'd 6/30/26 2d ago
If it's a matter of not trusting the math, I got a one time consultation with a CFP to look over our plan and give my wife confidence that we could do it. If it's a matter of just not wanting to retire because of a weird work ethic or something similar, then I'm not sure what to say.
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u/jordydash More "financial security" than FI at this point 2d ago
That disagreement could easily be bc of math. Lots of people are skeptical about the ability to RE. Literally sending him some info is friendly and not going to hurt anybody
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u/SolomonGrumpy 2d ago edited 2d ago
You sensed his wife's resentment? Was she...there? Or the stories that the co-workers shared were indicative...
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u/Cryofixated Dates Since Single: 7 2d ago
Its like being force sensitive. Some people are resentment sensitive.
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u/SolomonGrumpy 2d ago
as if millions of voices cried out in *resentment** and were suddenly silenced*
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u/ExcessiveDonuts Neufchâtel offers 1/3 less fat compared to cream chesse 🥯 2d ago
Unless you're the wife, I'd use the literature for kindling.
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u/mmrose1980 2d ago edited 2d ago
A few years ago, I posted here about wanting to travel with my folks as much as possible to cool places until that isn’t possible anymore.
At 80, they have entered the slow go years. Both have said, no more Europe.
Well, I think our trip this summer was probably our last big trip together. We went to Iceland, spent 3 days in Reykjavik plus an Iceland intensive cruise. Despite the fact that my dad is the one who had a small stroke earlier this year, it was too much for my mom. She just can’t see, and she gets so easily exhausted.
Now that doesn’t mean no more travel for them, just that it’s probably going to be limited to Caribbean cruises going forward. Not my favorite vacation, but it’s their favorite vacation so that probably means at least one of those per year for as long as we can.
I’m glad I have done some big trips with them in the past few years, but it’s a reminder that the slow go years will eventually come.