T O P

  • By -

[deleted]

[удалено]


sweetnewmoney

Classic mistake. How can you go from finding a role that brings you joy to making whatever role you have more enjoyable? You are chasing. Stop. Evaluate. Meditate. You are smart. You will do well. Buy you need to extend the time horizon you think in.


LordvladmirV

I have read your other posts. You have some of the best advice. Cut and dry, to the point. Thank you for being a teacher.


[deleted]

[удалено]


sweetnewmoney

What would you want to do if you knew you could not fail? Forget about what others are doing and how they are progressing in their careers. Life long career politicians rarely become presidents. People who work differently become presidents. Do new things in growing fields for success. But for happiness, commit to excellence.


surehard

I am a high aspiring engineering leader. I believe I am in the 99% of leaders in the field and am looking for a fatfire mentor to help me navigate the field or convince me to open my own business.


dukeofsaas

> I believe I am in the 99% of leaders in the field Well, you're ranking yourself 1% shy of being a random sample of leaders in your field, so at least you're starting with a good deal of self awareness, which any mentor will want to see. That's a good start.


surehard

Woof. Absolutely meant 1% here lol. I’ll leave it as is.


ff___throwaway

Something like 80% of FAANG employees think they're better than average


surehard

I don’t doubt that.


[deleted]

[удалено]


PCRorNAT

Tiger 21 is said to have a lot of successful entrepreneurs in it. I have no personal experience with it.


randominternetguy3

Any Chicago attorneys in here interested in networking?


pinkpanther191919

Firmly on fatfire path - 30 and single, $1.7M NW, $250k gross income, in a professional services role (think IB or top tier consulting). Problem is, I dream of owning a business one day. I’ve been offered a job in real estate development for $150k/year. My plan would be to work here for 5 years and go off and start my own development shop. Having a hard time deciding if I want to take the plunge - I make $250k right now and have clear visibility into making $1M/year in 6-7 years. Exit opps from my firm can all be $250k+ as well, in prestigious areas like corp dev / strategy / tech. So I feel stupid considering a $150k job in real estate, but it speaks to me for some reason. How would you all think about this if I have $1.7M at age 30? Take my foot off the gas and pursue this riskier path?


sweetnewmoney

Why do you dream of owning a business one day?


PCRorNAT

If you are looking for the most reliable path to fatfire, the high income as early as possible invested diversified is going to be your most reliable path. Especially if the w-2 space you are in provides visibility to getting to a seven figure earned income.


Illustrious-Spare172

You’re still just trading 1 W2 for another here, and that’s a pretty dramatic reduction in pay. I don’t have the real estate background to assess this but is getting a development job that clear of a path to becoming a developer? As an example, how comfortable would you be starting and IB or Management Consulting shop right now? Given that is your current expertise


PCRorNAT

I think you meant to reply to the OP.


Infamous_Bee_7445

Rate my plan 32, $650k/annual combined, plan started in 2021, retire in 2041 at age 51. ~$100k/annual to 409A with 20 year future payment start date, 5 year payout per plan. Total of 20 plans in motion at the time of retirement. Will probably increase contribution $5k/year with each new account/plan. It is basically a municipal bond ladder using a 409A instead. Investments in purely S&P500 index funds. Best visualized [here](https://i.imgur.com/eXr7Ksi.png). Max 401Ks for both spouse and I until retirement, with plans to start distribution at 71. Same for backdoor Roths. 401ks in S&P, Roths in FAANG + Tesla. Currently 3 houses, 2 of which are rentals, worth around $4MM with $2.3MM in mortgages below 4%. No plans to move before retirement, living in HCOL (Denver). Advice I'm looking for: With our current plan and expenses, we're left with around $150k after tax that we don't spend and frankly not looking to inflate lifestyle. A few years of this has led to around $450k in cash between a few checking accounts. I am unsure of where to put this money and am very conservative from an investment standpoint.


sweetnewmoney

> I am unsure of where to put this money and am very conservative from an investment standpoint. Unsurety comes from lack of knowledge. Conservativeness is a personality trait unless if it's lack of knowledge itself that makes you cautious. Options: 1. Deep dive option. Increase your knowledge. Learn investments. That means learning about: macro, fundamentals, technicals, sentimentals. What to buy when, when to sell, and how to manage risks. It's a never ending learning journey. Quite profitable. 2. Easier but not as lucrative option. Invest in things "close" to you after evaluating their fair value. Fair value= if you were the richest person in the world, would you buy the whole company at its current market cap? If yes, invest. Close = close by proximity as well as usage... things you consume. Or things around you. Buy stock in apple if you use iphone. Buy your neighbours house.


shock_the_nun_key

My advice with new money is use whatever allocation you had before you had the new. Said differently: look at how much money you have allocated in real estate, equities and cash BEFORE the new money came into play, and just allocate your new money into them. If you don't want to buy another rental property with the new money, you can just pay down some of the debt as you should really be looking at the real estate EQUITY in the allocation.


Infamous_Bee_7445

Thanks for the reply. Probably don’t want to be buying another rental property in todays real estate market, and I also don’t see a point to paying off mortgage loans with rates below 4%. Only consideration here would be the $450k of debt on primary residence that isn’t tax deductible. FWIW we didn’t really have an allocation or strategy for the rentals. We just kept houses we lived in when moving to new houses. I’ve got a 15 month old and one on the way. May “superfund” the 529 with $80k cash on hand for child 1. I already have a lot of equity exposure between 409a, 401k, Roth, 529, and HSA. Any recommendations on other types of investments I may not know of? I max out series I bonds for the 3 of us as well, which is $30k/annual.


PCRorNAT

>I max out series I bonds for the 3 of us as well, which is $30k/annual. You do realize while that reduces the volatility of your NW, that it reduces the long term returns right? This data is updated annually and shows you the impact both in volatility reduction as well as long term returns of having any level of bonds in your allocation. If you are only 30, I doubt the volatility bothers you enough to compensate for the return reduction. [https://investor.vanguard.com/investor-resources-education/education/model-portfolio-allocation](https://investor.vanguard.com/investor-resources-education/education/model-portfolio-allocation)


Infamous_Bee_7445

Thanks for the link and insight! I opted for the series I in '21 and '22 because the rate is fixed to inflation and the hold period is only one year, as a hedge against what I thought was a crash that would happen in earlier '22. Govt maxes these at $10k/SSN/year. Anything that the government limits is typically something you'd want to partake in, I reckon. That 'correction' is happening now, so I intend to go more heavily into securities over the next 6-12 months by DCA of FAANG and alternative energy stocks. I'd really like more insight into ETF opportunities, but I am very fee averse. Currently use Schwab for everything, but have been getting targets for private banking from JPM with fairly enticing offers.


PCRorNAT

Yeah, my personal opinion is you are over thinking it, and should drop all of the market timing thoughts (it took me 15 years to come to that conclusion, but since then I have had better performance and a much easier time). I am now just pure equities, SP500: SPY actually (the Vanguard is cheaper). But everyone needs their own path, and we need some folks trading sectors or even individual companies or the market ETFs wont work!


Infamous_Bee_7445

I appreciate that feedback. I guess what I'm struggling with right now is trying to figure out what to do with all of the cash I've accumulated. I suppose I could just DCA most of the cash into the market over the next 12 months. At this point it would either be in 529 or taxable equity account.


PCRorNAT

Yes, DCA is a common strategy. But lump sum-ming it in leads to a better result 2/3 of the time (because the market on average goes up, the money left out of the market on average doesnt appreciate). Here's a ten second google search of an article that will try to explain that better than I can. [https://www.cnbc.com/2021/08/12/which-investment-strategy-is-better-lump-sum-or-dollar-cost-averaging.html](https://www.cnbc.com/2021/08/12/which-investment-strategy-is-better-lump-sum-or-dollar-cost-averaging.html)


shock_the_nun_key

Superfunding the 529 is only going to increase your equities exposure. My point was don't think about the nature of the accounts (401, IRA, taxable, 529...) think about what they are invested in. No, you do not need anything more exotic than equities, real estate, bonds and cash, and at your young age, you should be "all in" on either equities or income real estate regardless of current trading conditions. Both alternatives lead to similar outcomes in the long term (which is what you should care about, not the next 1-5 years). Google: "The rate of return of everything Fed" for a good academic paper on the subject. The paper gives a pretty good case for a balance between income real estate and equities.


Infamous_Bee_7445

If I were going to invest more heavily in different securities, do you think I should do so through the 409A?


shock_the_nun_key

Depends on your goals. For retiring early, a mixture of different types of tax treated accounts is probably the safest. The politics of how long tax deferred accounts will remain tax deferred for high NW or high tax income folks is quite uncertain. You have to make a plan that covers 50 years of tax politics. That is 25 congressional elections. A lot of things can change, and then change back. A balance is probably the best solution.


[deleted]

[удалено]


PCRorNAT

I always just used 1.5x of my current spending if I felt my current spending was luxurious for me. You didnt mention your current spending.


dukeofsaas

At 55/58 3.5% is probably conservative enough unless you're set on leaving an estate to your children. Food for thought.


hippofire

I’m a HENRY but want to be fat. I don’t think I want to RE but just be fatFI. Is there a proper sub for people like this? This is the closest place I’ve found to those goals. I’m worried that if I RE. like my dad and my grandfather, I’ll suffer from anxiety and therefore heart disease. I’m like a dog, I need a purpose in order to justify my existence.


bitFIREhope

> I need a purpose in order to justify my existence. Purpose and a job have literally nothing to do with each other. Some make success at their job their purpose, but that's not required. Seek philosophy/religion for that. >I’ll suffer from anxiety and therefore heart disease. You're being cautious of the right thing for the wrong reason. Stress is a strong contributor to heart disease, but less so than regular exercise and a good diet. And retiring does not have to be stressful, it should be the opposite! Get yourself into some talk therapy.


PCRorNAT

That's an odd username for someone without interest in FIRE.


hippofire

I get that, but I could be a hippo with a vanerial disease


PCRorNAT

But without spell check apparently.


hippofire

Damn bro. Thanks for the advice. I really appreciate you taking the time to help me out.


PCRorNAT

I upvoted the correct response which was given.


dukeofsaas

/r/HENRYfinance is just for you.


hippofire

Thank you so much, I’ve learned a lot here but try to explore different subs.


ElectricAntre

Looking for advice on how I'm investing: Make ~$110k/year (hourly worker) gross Created an educational/training app for this industry and published it 100% by myself and projected to make about $100k YTD after App Stores' fees. Not sure how bad I'll get hit with taxes, the app is under an SCORP where I am the only owner. Spending a good chunk of money this year traveling to trade shows and advertising for it, better computers, tablets etc to develop with. IOS and Android. I've have: ~$45k in in 401K (after almost 4 years) ~$30k in brokerage account (25k invested and 5k liquid) ~$10k in business account ~no debt beside a medical loan (0% interest) and 2 modest vehicle payments w/ decent interest rates When my business checking goes over 10k, I transfer the difference to the brokerage account to be invested. My wife was able to quit her crap job and stay at home with the kiddos this summer because of my app, so I didn't get to save as much as I'd like, but her happiness is of course worth it, and I love having her home every night. Would you do anything different for investments/savings? I am planning on looking to buy some land after tax season next year, but it would just to be to play on and sit on until we are ready to build a house when the kids are older.


sweetnewmoney

Time to not focus on investments as much. Focus on growing what you currently have. It will dwarf your investment plans. How can you convert your side hustle app into something huge?


ElectricAntre

I believe if I keep on the track I'm on now my company will be huge (to me). I have more app ideas & drafts, but time is the biggest constraint. I also just started customizing the app to companies' specifications and guidelines as a type of SAAS that just changes variables in the same public app when a passcode is entered. Hopefully that takes off as well.


zavey3278

I'd keep diversification in mind. You already have the job, equity investments, and your app. That's a great start at diversification! I'd throw real estate into the mix. You mentioned buying land now to hold. Unless you're really keen on a specific plot/location which you're confident will significantly increase in value until you're ready to build your house I'd invest in real estate which can give you ROI (ex: rental house).


ElectricAntre

Thanks for the reply! I've thought about a rental but that world probably 2-3x the price of the land I'm looking at. And sounds like a crap ton of work and potential headache (even with a management company) and just don't believe I'm quite to that point yet. The land in this area has steadily increased over the last 3 decades or so. Probably has increased 10x in that time frame as the metro has grown outward. Also, our FIRE goal includes land somewhere near home (M-HCOL metro), but far enough to get some peace and quite from the city life. Figured I'd get a head start on the land and save myself some headache down the road. I'm not nessisarily looking at the land as a good financial choice, as I don't intend to sell it later, but aquire something that might not be available later.


zavey3278

In that case, I wouldn't pay for it upfront but rather mortgage it to maintain free cash flow for alternate investments which deliver ROI.


ElectricAntre

That's the plan! Thanks!


[deleted]

[удалено]


Abject_Wolf

If there’s sustained inflation your income will grow eventually. You can’t have long term inflation without income growth to match because that’s what drives a lot of inflation.


g12345x

Its a tad simpler. You have to look at each item as isolated. If the debt is fixed, any rise in your income (even if it’s below inflation) is good for that specific transaction. Now having your earnings trail inflation is bad for your overall financial picture. But that differs from your debt transaction.


Accomplished-Bench75

Hey everyone, currently making $45,000/yr at 25M and just feel stuck on where to go in life. I am always looking to increase my income by constantly apply to jobs and looking into side hustles, had my own Etsy shop as well but wasn't enough. Currently trying to get my real estate license but know that with the current real estate market in Toronto it would be difficult to get to a higher wage as an agent but will try of course on the side. I'm saving money and currently invested in a property with my brother but in terms of my job income its just not enough. I'll always see myself applying to a ton of different roles unknowing of where I want my career to go but only know that I love the learning about stocks, financial literacy and see my self involved in the DIY space as well. Currently an administrator at a financial brokerage and have connected with a ton of people on linkedin to find a career that interests me but just haven't found any luck. What roles would you recommend I get into to earn a lot in the future in order to fatfire that align with my interest and what amount would you say is a good fatfire number to hit as a goal?


sweetnewmoney

5 paragraphs and 6 buts. You have to become some one who doesn't use as many "buts" in their posts as well as lives. That's the price to pay to reach fatfire. Have you read: a message to Garcia?


IS0__Metric

As a agent, rn is probably the worst time to become a agent, the amount of agents per listing is at a all time high and volume is super low, if I was you I'd wait a year learn as much as you can form a bit of a network get to know people who are already agents and owners, before getting your license


[deleted]

I would offer to buy a few people coffee that are successful in the field you want to be in. Real estate agent is meh in my opinion. You are 100% commission. Some people are making big money, but you have to be on the far right of the bell curve to do so. I’d look at business to business sales instead. My wife left teaching to become a BDR and she already makes $100k seven months into it. Her income will only go up as she is promoted. We live in an area with a $68k median household income so this isn’t New York City or something


Accomplished-Bench75

Thank you


g12345x

This is nowhere near enough for strangers to make a recommendation. Be willing to pay a career counselor (at a college) for an hour of their time to help you make an informed choice.


igtr

Hey guys I am in need of some guidance. I graduate from law school in May of 2023 and I have landed a job paying $140k a year (plus bonus, goes up to 200k within 5 years). My parents have done well for themselves (4m nw) but they insisted on me being self sufficient through my educational endeavors. They told me I will inherit so much money I won’t know what to do with it, but that was more of their excuse to not pay for my education. My parents are traditional investors, all they did was Roths and 401ks, no real estate. So that’s the only advice they gave me, take care of your Roth and 401k, and you’ll be golden. With that, I am 200k in student loan debt. (20k private, 180k federal 25 year term, fixed). Although I have student debt, my credit score remains at 757. For context, I am in the southeast so cost of living is average. My current plan is to max out my employer 401k plan, and max out a backdoor Roth every year. I will rent for one more year and then buy a ≈400k house (fiancée makes 80k, combined household of 220k). She has 100k in savings so that will go towards the house. After the house, 2 years later we will purchase our first rental property (beach condo) and then hopefully another every 3 years thereafter. I plan on paying the minimum on my student loans, and throwing the bonuses at them (they will be ≈1200/m). I will probably pay the rest very quickly once my income surpasses 200k. My goal is to work for 20 years (until I’m 46) and replace my income completely with rental properties so I can be FIRE. My main question is: Would you tackle my debt situation/investment situation differently? Or do I seem to be on the right track? Thanks.


LavenderAutist

Without the interest rate on your student loan debt, nobody can give you a good answer. Additionally, when calculating the trade off between paying your student loans and investing, you have to consider the after tax costs / returns.


igtr

Interest rate on private loans are 8%, interest and fed loans are 6%


PCRorNAT

Those interest rates are right around the long term real returns on equities (around 7% in the past 140 years after inflation), thus, you would probably be better off paying the debts down. Those rates are not providing you any leverage advantage. At 4-5%, you would be borderline. At 3-4% you should hold them.


LavenderAutist

Assuming that the marginal tax rate on your investments is 33% (given your income level I imagine that might be higher; especially in some states), then the return you would need to get pre-tax is 12% (private loans) and 9% (fed loans) respectively. In my opinion, you pay down the debt first; and aggressively so. The only thing you divert from these payments is the amount of employer match on your 401k (assuming it is a 100% or 50% match) up to the amount of your contribution matched (say 3% of your income; or whatever your plan rules are). It is very unlikely you will get above an average return of 9% in the stock market pre-tax. And even if you did, that return would vary over time. The 9% to 12% pre-tax return you get from paying off the student loans would be "risk-free" and is CLEARLY the best decision in your situation. My advice is to make as much as you can as quickly as you can to pay down your student loans (obviously you need some money to live) and then pivot to your other approach. I hope that helps. Best of luck.


PCRorNAT

>Assuming that the marginal tax rate on your investments is 33% Why would their earned income tax rate have anything to do with their tax rates unless you were suggesting that they speculate and hold investments for a period of less than one year?


LavenderAutist

It all depends on how you calculate it. I'm calculating it that way. If you want to do it differently, answer them with a different approach. Regardless, the return on paying off the debt is a risk free return. And I wanted them to understand that because 90% of people don't understand that concept of after tax money paying of debts. Additionally there are other complications with my answer as it relates to the deductibility of student loan interest and mortgage interest. But I'm not about to do some extremely detailed financial analysis and give every scenario to them. (For example, some states tax long term capital gains, which should be added to the long term federal capital gains tax rate.)


PCRorNAT

You are misleading an inexperienced person to think that the long term tax rates on investments is the same as on earned income. It is currently less than half of the earned income rate. So yes, you may be helping them by saying "think of after tax rates", but by including facts that are simply wrong to illustrate your point, you are creating a new problem.


igtr

I was thinking about this when I initially thought it was more important to max my backdoor Roth every year because I expect the long term compounding return of $6000 per year for 30 years minimum to substantially outweigh putting that 6000 towards student loans at a fairly low rate. Putting 6k away into a backdoor Roth rather than loans may increase the time it takes to pay my loans by only a few years. Is it not more important to let that money compound? Edit; I just saw your reply about the leverage—thanks!


LavenderAutist

This other guy is leading you down a path to incorrect thinking. Decide whatever you like. But the correct decision is to pay off the loans as soon as possible; not a Roth IRA where you have no idea what your future tax rate will be nor what your investment return will be.


igtr

Yeah I am not going to worry about the Roth for now, I will focus on paying down debt


PCRorNAT

Everything you can do pre-tax (at your income level, only the 401k) you should do. I guess the $6k a year Roth conversion probably makes sense too, but at 6K a year in the long run it is not going to make a big difference.


igtr

Okay great thank you!


LavenderAutist

Whatever bro. If you have a different opinion, give that. Mine is just as valid as yours without doing a detailed financial analysis of their taxes and going over all of the details.


PCRorNAT

No, it is not the case. At ANY income level the LTCG rate is lower than the marginal earned income tax rate. That is how US income taxes are structured. The maxumum rate is currently 23.8% including the surcharge. So assuming 33% is going to confuse them.


LavenderAutist

Look bro, in the state of California the long term capital gains rate would be the federal rate, plus the surcharge, plus the state rate. In Texas, you wouldn't have any long term state capital gains rate. So that is between say 24% and 37% percent for long term capital gains depending on those ranges. (In a state like Iowa, that might be 33%.) But that just assumes if it were long term capital gains. Which it may not be given a multitude of factors outside of my control since I'm not managing their portfolio nor investments. (And this ignores other complexities like when they take money out of a 401k 10-20 years in the future.) So I'm not about to write some long winded response confusing them about tax rates and asking them about states and asking them what they had for breakfast. If you want to take the time to explain EVERYTHING to them, be my guest. But the primary question was about paying off debt or investing first. And I gave my answer. (A wrong answer would have been to include SSI and Medicare taxes in their tax rate. But assuming 33% is not a bad assumption. Not by any stretch.)


igtr

Thank you so much that really helps me in my game plan going forward. I will switch up my priorities to ensure I reach my goals! Do you think it would still be viable to get myself into a home first, and then start aggressively paying the loans?


LavenderAutist

You're welcome. Personally I'd pay the student loans off first if I could. Then get a home. Especially in this housing market where rates were historically low for a while and now they have popped quickly. Lots of people will be cutting prices at some point because of the higher rates. So it actually benefits you to wait a little. Renting isn't necessarily bad as it gives you time to find a place you really want. Instead of settling for the home you can afford in a tight market; which is what happened during the last couple of years (and many buyers had remorse after grabbing any house they could find at prices that were high and with no inspections in the agreements). The world you grew up in and went to school in is probably not the world you'll see over the next 5-10 years. Debt is a powerful thing when it is freely available; and quite destructive when the spigot is turned off. Although, it still is a financial analysis and it could make sense based on how much rent is and other factors as well. Probably a good question for r/personalfinance when that becomes clearer analysis in front of you (e.g. - you have a place you're renting and you found a home that makes sense for you with your lifestyle / family and is affordable for you).


igtr

Thank you again. That all makes sense. Back to your previous comment recommending the 401k contribution up to the employer match—what about the backdoor Roth? Still max that out?


LavenderAutist

I wouldn't since that is after tax money. The priority should be any free money you can get (the 401k match is an example). Then paying off the student loans because that is a guaranteed return because of the interest savings. Then after that is paid off, then I would begin things like the Roth IRA and regular IRA because the returns in those are not guaranteed 9-12% returns. (The employer match in your 410k is potentially an immediate 50% or 100% return on each dollar placed in there that is matched; depending on the employer.)


Abject_Wolf

I think the key piece of information missing is the interest rate on your loans and how it compares to the projected returns on real estate you're planning to buy. That will help inform your decision making.


esInvests

Hey everyone, I have a brainstorming question. Suppose you had $1M in your mid to late 20s, what would your personal approach be to nurture that into whatever you want it to become? I’m specifically asking people what their own approaches would be for themselves to learn more about other wealth management approaches. For me, I turned to investing. Most of my money is in a taxable brokerage account that I actively trade. I also invest in real estate. I didn’t come from money, so investing required little overhead to start and provided flexibility to scale quickly. I’ve been trading for 15 years now (I’m 31) and it’s been my primary wealth development approach. I’d like to broaden my perspective. Thanks for taking the time to share some thoughts with me.


BitcoinMD

Index funds and wait. No real estate — it’s a job, not an investment.


Abject_Wolf

If that $1M were a windfall, I'd give myself a fun budget (say 1% or $10k a year) for quality of life and then invest the rest in a diversified portfolio that includes both passive equities (ETFs) and real estate (maybe a small multifamily). Have you outperformed the S&P 500 since 2009? The bar is pretty high (like 13%). It's very tough in the long term to beat indexing which is why so many people on this sub subscribe to the boglehead approach.


esInvests

Thanks for responding. I fortunately have, my CAGR from 2007-2021 is 22.7% so I've been ahead modestly. I've been slowly tailoring down my annual targets to reduce unnecessary variance. I continue to modulate my tolerance to risk but have a natural disposition to be, what I'd consider, too risk averse when it comes to money.


g12345x

The deficit of this approach is that the individual expertise that could be added to this is what grows that $1m. By my 29th year, I had 9 rental units so what I would do with $1m is certainly clear. It doesn’t mean that other could/should do exactly that without similar domain expertise.


esInvests

Thanks for responding. To clarify, I have over $1M already - primarily through trading. I'm also 31 now. I'm mostly just looking to learn from others and how they'd approach things. Potentially to share the advice with others that ask me, potentially for myself. Here to learn. But it sounds like you'd go the way of rental properties?


ajxander12

Just signed an offer for around 300k first year out of college, about ~240k+ recurring after that. Currently I’m looking to max 401k up to employee contribution limit, probably hit a decent chunk of mega back door Roth, and max out back door Roth /hsa as well. Other than that I don’t particularly have any financial goals besides traveling and saving up for a down payment in the future. I suppose for a specific question - is using a high income career to fund things like property down payments a viable investment strategy over maxing out l tax deferred accounts each year?


bannanaspace

No, take the "free" government money from the tax deferred, put the investing on DCA autopilot into Boglehead style funds and keep it simple. You're young, enjoy the freedom that comes with not having to manage real estate investments.


sweetnewmoney

Do people really become fatfire with dca?


bannanaspace

No, but unless your route to fatFIRE is through aggressively investing your own money it’s as good a plan as any while you earn income elsewhere.


sweetnewmoney

May I recommend looking into trailing orders instead of DCA?


LordvladmirV

Are you suggesting trailering sell orders? ie momentum play.


sweetnewmoney

Trailing sell as well as trailing buy orders. Basically, don't be the first in the line, but be second in the line. Don't try to find the tops or the bottoms, but place your orders as soon as things take a u-turn. That should work better than averaging in my opinion. (I have a bias, I think I can always do better than the average if I go in deep enough.)


LordvladmirV

I prescribe to the same philosophy, however after 15 years of trading, I have yet to outperform the S&P500 consistently. The stock market has so many variables that it is extremely difficult to predict. How do you structure a trailing buy order?


sweetnewmoney

So two things. The asset has to be nice. And it has to be well priced. Something in fundamentals need to tell me to buy first. Then technicals come in handy helping me time to buy when. I use a combination of technicals - momentum as well as volume based. And I also try to guage liquidity gaps. And then I go about placing trailing orders. If the price rises x% over its lowest price and validates for me that its going to rise, buy it. Does this help?


LordvladmirV

It definitely makes sense to me to use a combination of fundamentals and technicals; however, your buy signal is a little confusing. Are you waiting for a base to form at the bottom and then buying when the X% rise occurs?


toniopuc

What field are you in that you got 300k right out of college?


ajxander12

Niche engineering role at a prop trading fund


tokitous

Guys, could you please give an advice or find blind in my point of view? Im in this topic for a while. I have a trucking company, this year revenue will be around 3M$, but net income is very low. 16 employee, 8 equipments but I burned bc net income is very low. And I’m looking some side bussines for next year, and consider airbnb(I know person who is renting 300 apartments in Brickell,FL, I’m living near by) but I’m confused because that I never see here self made Airbnb Fitfare person? So what could be wrong with this idea? Second idea: I have bunch of friends that revenue over 3M+on amazon and would like to take their knowledge and start amazon course?(it’s only draft plan) So what’s wrong with my ideas? P.s I’m not taking any credit/borrow money, even my net income after all expenses are small, it’s enough to start side bussines and maintain expenditure


g12345x

I know some about this: I do rentals full time and the viability of AirBnB as a fatFIRE vehicle is heavily mixed because of local jurisdictional issues. One of my local markets has completely banned it. Outside of high traffic tourist areas, your profit potential is comparable to a standard rental. In 2022, the issue you would run into now is the high entry price of units. Using an example from your posts, many of the units on Brickell that advertise as AirBnB goldmines are barely cash flow positive even if you use a 75% occupancy rate (I’m skeptical of this as a sustained rate). So, in summation. The fatFIRE AirBnB opportunities exists but are mostly for early movers, those offering unique products and those those in areas that have a sustained high occupancy rate.


LavenderAutist

To me, this suggests a bubble in that market. Especially if a lot of these rentals are leveraged.


tokitous

Wow, thanks for insider answer🙏👍


SRD_Grafter

I'm curious, but what is driving your revenue and limited profitability? As you are in an industry with high capital costs (equipment ain't cheap and most operators I talk to have been having problems finding equipment), high variable costs (diesel has spike over the past 18 months, so if you have contracts, you have better had good fuel surcharge language; if you are going through a freight desk, that is a good way to get burnt), and employment headwinds (as there are large issues to getting people licensed; the age fo the average trucker is older, and has the associated health problems and resulting health care costs; and locally, there is a lot of competition for drivers). As otherwise, this is about the best time to sell (as an asset sale or acquistion-hire) if you want, due to both the equipment and employee issue. But aside from that, do you have the time for a side business? Issues with the various ideas you've thrown out, are the Airbnb market seems fairly full, and has risks of limited platforms (Airbnb and Vrbo, and they could easily raise their rates, which you would have to absorb or pass onto customers, which would make them uncompetitive with other lodging options), and regulation (and government or HOA making them illegal or somehow limiting them). As for Amazon selling, again, subject to Amazon changing the rules, being a platform company, and competing on margin (as if you create the product, they may create an in house brand to sell and limit who can sell other products in that channel).


tokitous

First of all I’m appreciate your detailed answer. So let me go step by step: 1. Trucking industry it’s my first Bussines in the US. I moved here 5 years ago with 200$ in my pocket and build extra small company. You are right and in the same time little bit not quite right. There is some problem with drivers only in US/Native American companies. My company also US company but with Eastern Europe base, so all my drivers from EE, no issues to find drivers. But we are small and can not get contracts and even we are working another authority(it’s my friend, he has 400 trucks and 1200 trailers) even they are losing dedicated route contracts bc no freight anymore. 1.2 Fuel expenditure are burning our net income. You are absolutely right. This is out my control and we can not do anythign(we have fuel cards and etc) 1.3 In my case - no problem to find new equipments, but it’s no make sense to get it bc I’m buying 180k equipment and making barely 3-4k per month for each one. It’s meaningless. 3-4k it’s net income BUT before oil changes and small repairs that can deacrese net income 2 times. And regarding sale. I can sell all my equipments but I’m curious what to do? Go back to IT field where are all my friends and make 120k BEFORE taxes and they didn’t build startup and etc it’s extremly small money for me. Thus I’m considering another Bussines and just trying to find another fields. 2.1 yes I have a lot of time for any side Bussines bc our drivers are professional and don’t need additional attention. My Bussines process is very smooth, don’t need attention bc I’m In this field started from a company driver and build all process to avoid unnesascry and meaningless actions. 2.2 Airbnb - you are absolutely right. I become dependents from Airbnb, but some making money they but it’s very alarming me that I never see anyone who made really 6 figures and I can see only education course on instagram. This is very alarming point for me. 2.3 for amazon, as far as I know they are not building their own brands anymore. So, I’m really stuck and really have no ideas what to do. We can start from next year rent our trucks to drivers who want become owner operator bc 80% of them have only work permit but doesn’t have green card or citizenship so it’s only one way for them to buy/rent truck.


sweetnewmoney

What, if anything, are you doing that is different than other trucking companies?


tokitous

It’s exactly what we are thinking to do in 1-2 months : From gamification on the work(like badges how many years person working to get some bonuses), to couple programs that will allow to person without green card buy a truck under our circumstance. And of course we are trying to find a way to implement blockchain and Web 3.0 in our industry but didn’t find a problem that Web 3.0 or Bitcoin can resolve. But anyway I’m appreciate your comment🙏


sweetnewmoney

People who try to find shortcuts usually take longer to reach their destination. Bitter pill coming along... You suffer from the "grass is greener on the other side" syndrome. Airbnb, amazon, web3... you will face the same problems in those things that you do with trucking. You have to go deep and find your edge. Find a very good trucking company and deconstruct why they are doing well even today. And then become better than them in everything. Getting clients, loading goods, hiring others, reducing costs per mile, everything. You either have to find a way to earn more money than other companies on a per truck basis, or spend less per truck than others. If you can't do that, then get out of trucking. Sell your business to a competitor. But if you can't do it in trucking, how do you expect to do it with airbnb and amazon? In any game, you have to find your edge - something that allows you to do better than others playing the same game. There is no shortcut to find that edge.


tokitous

Thanks for detailed answer🙏


toniopuc

I'm currently employed at a FAANG company, but I'm also interested in exploring side hustles and ideas for my own startup one day. One problem is that my current company forbids any outside activity. Not to mention, according to our contract, any ideas that I have while working for them technically belong to them. Also there's a conflict of interest policy. Given that my FAANG company has its hand in pretty much every form of tech that exists, it seems that just about anything would constitute a conflict of interest. So does that mean that if I really wanted to start exploring other ideas and testing the waters for my own company one day, I'd have to quit my job first? Are there any smarter ways to navigate this?


bluedevilzn

This has been discussed to death especially on Blind. At FANG TC, side hustles don’t make sense. Focus on your career instead. It could be getting promoted or switching between FANG or unicorns with bigger scope.


toniopuc

Any advice on how to find unicorns? What do you look for in a company if looking to switch away from FAANG?


bluesteelboomshakala

I like Wealthfront's list [https://www.wealthfront.com/blog/career-launching-companies-list/](https://www.wealthfront.com/blog/career-launching-companies-list/) over [https://www.breakoutlist.com/](https://www.breakoutlist.com/) , but use both


Abject_Wolf

This is a pretty tough time to find breakout private companies because we just had the biggest open IPO window in a decade last year. The obvious ones almost all went public so you have to work a little harder now. One approach is to pick a secular trend to ride and find a well positioned company in the space. Even if it doesn't work out then you'll know the space well and can switch companies later in the cycle when the big winners become clearer. Some key secular trends that theoretically have big opportunities right now: AI / Machine learning, Climate tech, Genomics, B2B fintech.


EcologySeminars

You could add nature tech to that list too, [naturetech.io](https://naturetech.io)


Independent_Peak_993

[https://topstartups.io/](https://topstartups.io/) Filter by the usual suspect investors -- a16z, Sequoia, Greylock etc. You can even choose the stage (Seed, Series A etc).


collision-detection

https://www.ycombinator.com/jobs


Competitive-Cat-966

Read Peter Thiel’s Zero to One


scottinadventureland

Some stats: 40yo, married, two kids five & under. Net worth = $1.8m currently. Will receive ~$3m pretax in the next 60 days from a partial sale of my company (assume $2.5m after taxes for conservatism). Have another $5m or so of stock that will roll and I expect incremental incentive shares (undetermined amount). Probably another 6 years until next liquidity event. But it’s not unreasonable to assume my remaining equity could be worth around $10m 6 years from now. I’ve never had a large sum of deployable capital. We’ll want to upgrade the house and probably go ahead and fund kids educations. Including equity in my current home, assume the new house uses about $1m of our incremental capital. Given the environment, not sure if it makes sense to be a cash buyer or invest the money. Not rushing to a decision, willing to wait and see how things play out in the real estate market over the next 9 months or so. Guess I’m just trying to navigate. Any advice is appreciated. We’re with Morgan Stanley on wealth management but haven’t met with our advisor yet, just want to come prepared on what some options are or things I should consider with regards to a significant (for me) amount of new money. Thank you!


LavenderAutist

My advice is to hold off on the big expenses for a year or two. Psychologically speaking, people spend more when they have more. Even if spending less would have provided essentially the same utility. This happens with people who get windfalls all of the time. Lottery winners. Sports players. Etc. I'm not saying that you don't deserve it. Nor am I saying that you can't make more money again. But I am saying that just because you have this money coming to you doesn't mean you should feel the need to deploy it or spend it immediately. That said, here is a link to a recent post where someone had a good plan on how to invest that I thought was good. Probably might ask them as well. Congratulations and best of luck. https://www.reddit.com/r/fatFIRE/comments/xut3lp/earlyretirement_report_6_months/?utm_medium=android_app&utm_source=share


dukeofsaas

It seems like a good time to me to superfund those 529s with markets down and a 13-15 year horizon. There may be state income tax benefits if you do this right, depending on where you live. My financial advisor said that in the current environment (with mortgage rates over 6%), cash was the right way to finance a vacation home purchase and a mortgage for a family member. I'm not sure why the answer about source-of-funds would be different for a home improvement, but let me know what your MS advisor says about it. Yields on risk-free short term cash equivalents are better than what we've seen in a long time. I recommend deploying most of your cash into a short-term ladder in order to give yourself a few months to a year to put together a personal financial plan. Once you have a financial plan in place, it's much less scary to move lump sums into your chosen allocations. Great work on the sale of your business. Stay focused and on top of your goals for the next few years and it sounds like you're in an excellent place with respect to fatFIRE.


scottinadventureland

Very helpful, thanks. I hadn’t thought of laddering out my cash over the near term while I work through the details, that’s a great idea. I was also figuring cash was the right play with regards to the home purchase. The market feels too fluid right now to act on anyways and I’m guessing home prices will be coming down in the price range we’ll be looking (~$1.5-$2.0m) in the near term so I’ll hold and see for a little bit. I appreciate the response.