Weekly FatFIRE Update (3/11/23)
Weekly summary of 12 millionaire net worth stories | Should you lower your FI number? | Freaking out with job loss - not if you're FI | Optimizing FatFIRE Roth conversions | & more |
Weekly Net Worth Updates / Stories:
This week we have 12 different net worth progressions / updates / stories. Clicking on the net worth number brings you to the original source of the data.
20s/30s:
$1,063,350 - [#74-NWS] - crossed $1 million at age 35
$1,570,000 - [#65-R] - Engineer/CPA post 8yr net worth on Reddit
$1,490,000 - [#67-ESI] - Investor (age 39) in ETFs, stocks and short-term rentals
$1,700,000 - [#75-BO] - created 2 financial goals at age 28 to achieve before 40
$1,900,000 - [#76-BO] - 2 physician couple starts off with negative ($638,000) net worth
$2,100,000 - [#71-BO] - 4000+ posts from 2 lawyer couple (age 38) with $2.1M net worth
40s:
$2,500,000 - [#72-R] - Military couple to retire with ~$200K annually in 2 years
$3,762,999 - [#69-NWS] - Paid off their home and saved $1M before 40
$6,043,657 [#70-NWS] - 1 insightful decision put them on a path to FatFIRE
50s:
$3,788,052 [#66-ESI] - Couple run a consulting business together - Twitter Post
60s:
$7,200,000 [#68-MU] - Salesman turns real estate investor in second half
$8,500,000 [#73-ESI] - Rocket scientist retires with several regrets
NWS - NetWorthShare | MU - Millionaires Unveiled | PoF - Physician on FIRE | ESI - ESI Money |
BO - Bogleheads.org | R - Reddit Profiles | TW - Twitter Profiles | BI - Business Insider
The FatFIRE subreddit (r/FatFIRE)
The FatFIRE subreddit is a community of individuals who are interested in achieving financial independence and retiring early with a high level of wealth. The subreddit covers a wide range of topics related to personal finance, investing, entrepreneurship, and lifestyle design. Below is a recap of two of the most popular topics this week with a quick summary snapshot from hundreds of comments received for each topic.
W-2 earner about to FatFIRE in 10 days
Should I beware or embrace the Ides of March? W-2 Earners path to FatFIRE ends in 10 days. [r/FatFIRE] - This reddit thread includes various comments from users who shared their experiences with retiring early, continuing to work, and finding enjoyment in their work. The original poster shared their plans for retiring in ten days. Some wrote congratulatory messages encouraging them to enjoy their retirement. However, some users pointed out that not all work is devoid of enjoyment. Some mentioned the importance of working with others and accomplishing goals, as well as belonging to a team. Another user shared that volunteering is a great way to find fulfillment, which led to a short thread about the benefits of volunteering.
Job loss (emergency funds and financial independence)
My husband lost his job. We're fine. But it's alarming to see how many people around us are freaking out on our behalf. [r/financial independence] - This Reddit thread is about financial independence and emergency funds. The thread was sparked by a post describing a friend who made six figures and yet had to open a GoFundMe for a $1,000 expense. This led to a discussion about the importance of having an emergency fund and being financially prepared.
The thread includes a variety of personal anecdotes and advice on how to handle conversations about money with others. Some users shared their own experiences with job loss and how their emergency funds helped them weather the storm. Others discussed the importance of not relying on others for financial assistance and being self-sufficient.
There was also a discussion about how to handle conversations about money with friends and family. Some users advised avoiding these conversations altogether, while others recommended having a few prepared responses for when people ask about your financial situation. The general consensus was that money is a touchy subject and that it's important to be tactful when discussing it with others.
Overall, this thread highlights the importance of being financially prepared for unexpected expenses and job loss. It also offers valuable advice on how to handle conversations about money with others.
Optimizing FatFIRE Roth Conversions
Roth Conversion optimization in Fatfire. [r/FatFIRE] - This reddit thread discusses various strategies for optimizing taxes on retirement accounts. The conversation covers a range of topics, including Roth conversions, real estate professional status, and carrying forward trading losses. Another suggestion was maintaining multiple account types and playing the withdrawal strategy on a year-by-year basis based upon potentially changing tax rules over time. Overall, the consensus among commenters is that there are no simple fixes to lowering taxes on retirement accounts. Optimizing rates and deferring taxes to later in life seem to be the most effective strategies.
Should you lower for FI number? One less year?
Anyone lower their FI “number” significantly to RE sooner? [r/FatFIRE] - This thread showcases a variety of perspectives and experiences when it comes to the topic of financial independence and early retirement. The conversation is driven by those who are seeking advice, insights or just want to share their personal experiences on the topic.
Some of the most prominent discussions revolve around the question of how much money is enough to achieve financial independence and retire early. While some users express a desire to retire as soon as possible, others argue that it's important to continue working to save more money and increase their financial security. They emphasize that a higher FI number would allow them to retire comfortably and pursue their interests without worrying about their financial stability.
Meanwhile, other users argue that the trade-off between retiring early and continuing to work is not just about the amount of money one has but also about the quality of life. They suggest that working in a job they hate is not worth sacrificing their mental and physical health.
Another interesting conversation is around the importance of planning for retirement. Many users assert that it's crucial to have a clear understanding of what one wants to do in retirement and create a plan accordingly. This includes identifying hobbies, activities, and other interests that will keep them engaged and motivated. Some users share their personal stories of retiring early, and they emphasize the importance of having a sense of purpose and fulfillment during retirement.
Overall, the thread highlights the complexities of achieving financial independence and retiring early. It shows that there are multiple factors to consider beyond just the amount of money saved, such as quality of life, personal fulfillment, and having a clear plan for the future. By sharing their own experiences and offering advice, users aim to help others make informed decisions about their financial future.
Ten Wilsons officially launched in February 2023
Thanks to all of you for being early followers of TenWilsons either on Twitter or Substack. We have been profiling the net worth progression of people in their 20s, 30s, 40s as they become millionaires and multi-millionaires (76 profiles so far!). As we build this in public and in the interest of transparency (just like the folks that are sharing their net worth publically), we will be providing a monthly snapshot of TenWilsons stats from both twitter and substack. Feel free to follow along as well as provide feedback/comments on what information or segments you like most and what you would like to see more of. Thanks! tw
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