We have paid off the mortgage on our primary residence but do have about $8000 in annual property taxes. I am getting ready to retire, I wanted to know which calculator to use. Since I live in Canada many of the tax avoidance tips given are not applicable so my question is- would you happen to have any investment or supplemental income (besides creating a website) ideas for someone living in Canada using strictly Canadian investments or supplemental income ideas or know anyone in Canada who has followed a similar journey as yours but have used various Canadian instruments to gain FI, and if so if there is any way I can get in contact with them to pick there brain a bit? So when you say you built travelerplastic, does that mean you own it and get the commissions for it? I opened a Roth IRA with Prudential through my financial advisor a couple of years ago. Cheers. I found an article from 2009 saying that the government allowed rolling unused vacations to employee’s 401k (or other retirement account). My combined household income exceeds the limit to allow a contribution to my Roth IRA and my wife’s Roth IRA. Trying to decide if it is beneficial to see what the current transfer value would be and what the unreduced value would be at the end of the pension term. Thanks. Hello MAD FI. Credit Card Guides . But since so many FIRE evangelizers eschew the rhetoric of the typical formulas of (bonds = age) or (bonds = age-10) or whatever the latest version is, I don’t fully understand how this change occurs. Now just check your email and start tracking! Not for borrowing, of course, but as a means of channeling through your standard spending and collecting … If you know anything about it, I would love to hear your take on this. I assume one doesn’t just wake on the first day of retirement and update their portfolio from 100% stocks to 60/40. Nothing happens when I click on them…. But what about after I’m 59 1/2. I just have my paycheque. I am wondering if you’ve ever thought about/encountered the following situation related to unused vacation: Will you sell your house and rent or will you keep living in that house? How did the Mad Fientist website come about? I have a question about the Capital One Savor Cash Rewards card, that I haven’t been able to find an answer to online. How else can I take advantage of having very low taxable income? I use Republic Wireless. Thanks for your advice. How long will you have to wait with cash until that scenario happens? We know how to avoid paying a lot of money in interest, achieve and maintain an excellent credit score, refinance debt to a lower interest rate, and avoid credit card debt. Whereas if you’re lending to some guy who wants to get money to pay off his credit cards, that’s a non-collateralized loan. Join over 100,000 others on the Mad Fientist email list to get access to exclusive content and software! Thank you so much for this free software that includes the graph. If you instead decided to only withdraw 3% from your portfolio each year to fund those $30,000 worth of annual expenses, you’d have to wait until you had $1,000,000 before you could retire ($1,000,000 * 3% = $30,000). Thanks a lot for the comment. My situation is slightly different in that I don’t think a catastrophic plan will work. He has attended for 3 years now and the tuition has gone from a horrid $53,000 per year to $65,000 per year. For example, if you have $30,000 worth of annual expenses and you plan to withdraw 4% from you portfolio to fund those expenses, you’d need to save up $750,000 ($750,000 * 4% = $30,000). It is very simple to open an ordinary taxable investment account through Vanguard so just give them a call, tell them what you’re hoping to accomplish, and I’m sure they’ll guide you through the process. So if you and your wife each have an airline loyalty account, then only transfer your combined points into one account. What financial steregies should I use to take advantage of a sabbatical. Every two years you will be eligible for the sign-up bonus. : Shop top fashion brands T-Shirts at Amazon.com FREE DELIVERY and Returns possible on eligible purchases Like many, a good chuck of my retirement nest egg is in a pre-tax 401K. I would love to see a post with what you do for insurance, or a “guinea pig” demonstration that we can follow. Buy Official Mad Fientist T-Shirt! Your blog is great. What if I am in the same situation (opening a fund with Financial Advisor vs. opening an account on my own), but with money that I want to be fairly liquid? Hi Mad Fientist. ), I knew I was going to love this blog when you mentioned you had read How to Live Free in an Unfree World, and ERE. Just curious about a rule of thumb to keep the FI as realistic as possible. Camp Mustache – Q&A with Mr. Money Mustache, Afford Anything, & The Military Guide. I just reread the Roth vs traditional article as I did my taxes to make sure I was doing it right. Not enough to fire at the level I want to. Thank you very much for unique and eye-opening posts, resources, and podcasts! A powerful (and free!) All Rights Reserved. What I haven’t been able to see a clear picture of is how you transition from the building wealth stage to wealth preservation/retirement stage. Without insurance, it’s somewhere in the neighborhood of $10,300 which is definitely not affordable. You are so good at all this tax avoidance! Thanks for all the effort you pour into it. You are allowed to pay as much as you want within the first 18 months and then you can refinance the loan. Hi Brandon, Your portfolio will have a greater likelihood of lasting longer with a lower withdrawal rate but it will take you longer to build up enough to retire. Please disregard my previous comment about how to obtain the FI spreadsheet. "He even shares updates from his own early retirement at … When using the firecalc and and cfiresim, does home equity count when you enter your “portfolio” or “how much you have?” I’ve read a bit of the fine print and can’t determine if it counts. Hi Mad Fientist! Then forecast into next year the same thing, but this sounds like a very tedious and manual process. Any discusion to push me one way or the other would be helpful. Uber, however, requires a smart phone of certain types (won’t work with a Windows phone but Android, iPhone absolutely) which means a 2-year financial commitment into a plan, with monthly fees OR buying the phone outright (front load the cost) then shopping for a provider. Wouldn’t the cost of a locked in 2 year commitment be greater than the occasional taxi/towncar trip? Can I do that Vanguard? When I read jlcollins Stock Series he discusses the wealth building stage (100% stocks) and the wealth preservation stage (something like 60/40), but doesn’t really explain how to connect the two. I’m well on my way to FI and am looking for a tool that allows complex variables for FI planning. Can you please advise? During a typical month, he and his wife spend about $500 at restaurants, $317 on travel, and $266 on alcohol. Categories Credit Cards Tags Cash Back, Credit Cards Leave a comment. We’re about 5 years from FIRE, but haven’t decided yet where to live. Rinse and repeat for both you and your wife. I am planning to quit being an employee (and hopefully go as a consultant/contractor for my current employer). In addition to this, are there obvious pros/cons to doing after tax 401K contributions? I am envisioning leaving the other 80% to ride the market out — were still ~15 years from retirement. Email series that shares the strategy I used to accumulate over one million frequent flyer points! It may be difficult for me to spend the amounts required for some cards, any hints Can I cherry pick and just convert the $7000 directly and not pay any taxes. We have $13.5k remaining with 34 months left (originally 63 month term) at 3.49%. “The rate at which you will withdraw from your accounts during early retirement”. Unlike certain beginner personal finance gurus, Mr. Money Mustache is a big fan of cash-back credit cards. but I have an even bigger software project in mind that I’m hoping to start in 2019. First time visitor to your website and it is absolutely amazing, You are truly living the dream! I’m 28 and have settled upon an 80/20 allocation for myself, but I just want to know how long I maintain that and how one transitions to a more conservative allocation. I’ve got about 8 years before I turn 59 1/2 and I just want to get the five year rule on rollovers to a ROTH straight before I take the time to go to a CPA. btw i just joined early retirement extreme forums and I places a post showing my financials. https://lab.madfientist.com/calculators/time_to_fi. Nevermind, I just read the previous answer, sorry about that. I really enjoy them. Because credit card offers change frequently, please visit the card issuer site for current information. My questions are: Hi there! If I start doing Roth conversions, Should I continue with our SEP’s? I do the same thing for a PPO every year, however, I use the PPO plan co-pays instead of the expenses. The Mad Fientist's list of recommended banks, credit cards, books, travel-hacking tools, and financial services! I have significant retirement and no retirement savings. Thanks for any input/advice!! :). web application for monitoring and managing your accounts and investments. I’ve never paid state taxes so I have no frame of reference for what numbers to use. Credit Cards (4) Investing (6) Uncategorized (1) Search for: Recent Posts. Thanks. Success! What do you think about the Schwab Investor checking account? FD. I have lots of ideas, but I think this subject it ripe for the graphs you are so good at. Hi Johnny, you should be able to do that so just give Barclay a call when your annual fee is close to being due. If not, just use taxis because it doesn’t sound like it would be worth the hassle and additional expense. I don’t think MMM counts it, but my memory might be wrong on that. If so, that email contains the links to both the spreadsheet and the FI lab. The only thing I’m unsure about is health insurance. How would you go about starting a traditional Ira? Spending can fluctuate over time and there may be a few years with big expenses that will skew the average, but that spending may be a one off. I normally don’t owe much tax so to take advantage of this I thought it would be a good idea to rollover some of my IRA to a ROTH IRA? The Fidelity Cash Management account reimburses all ATM fees and offers unlimited free checks so it’s a great account to have, if only for those two reasons. I’m new and hooked… can you recommend any “current financial writers”? For example…Cash flow of 110K for 10yrs and 55K for 30yrs requires X amount of assets (savings/investments). I just joined, and tried the “Time to FI calculator”: https://lab.madfientist.com/calculators/time_to_fi. Now my husband is going to open his Roth IRA, but I am not sure if I want to go through the financial advisor for that or not, or whether I want to stick with Prudential for his IRA or not (I’m basically opening the fund for him). i still am unable to decide if Traditional IRA is good for me…due to income levels, i cannot contribute to Roth IRA and the Traditional IRA does not give me the benefit of deduction before tax….in such a situation, is it worthwhile to invest in a traditional IRA? I have now come to the point of attempting to make use of one of the tools but am having trouble doing so. Is there a way to calculate lost accrued interest? Have you seen a web-based or software tool that estimates future dividend income giving your current portfolio composition? Can I cancel the card after earning the $500 reward and before the first year ends without incurring any fees / penalties? @madflentist found you off a FI/RE movement article and I love what you listed here. Travel hacking is a strategy where you utilize credit card rewards, usually in the form of sign-up bonuses, to accumulate points or miles. I can not even imagine what my son will need in the years ahead. The single best way to get points and miles as cheaply and quickly as possible is to sign up for credit card offers. Would that count towards the $3k? Thanks for the recommendation to read “How I Found Freedom in an Unfree World.” Great book with some very practical insights. I found the link in the welcome email. Just set up an account and plan on putting it to use this january. Additionally, I have not yet found how you factor in health care expenses (both insurance) and unplanned expenses into your FI calculation. It depends on your plans after you quit your job. Maybe try running your numbers against a previous scenario eg the drop at turn of the year, using VTSAX. It is really easy to set up a new account but if you run into problems, you can give them a call and they’ll help you through the process. When you click on the "Apply Now" button you can review the credit card terms and conditions on the credit card issuer's web site. No in service withdrawals allowed at my firm (without cause) so back door ROTH isn’t an option and I’ll be employed here for another 10-15 years at least (fingers crossed). We are 63 and 59, and self employed. Miles & Points Interview: Mad Fientist. Just wanted to let you know that it is very much appreciated and looking forward to using it for many years to come. Thanks. If you timed it perfect, youd buy after it had dropped ~18% and would have increased 20% to get back to previous level. The application that powers all of the Mad Fientist's signup forms, email automations, etc. Download the spreadsheet I used on my own journey to financial independence! New to the Mad Fientist world and am working through some FI calculations. Join over 100,000 others on the Mad Fientist email list and start tracking your progress in the FI Laboratory! Correction – Tax savings is subtracted from the (HSA Contribution + Premium) not added back, and remember, you cannot calculate tax savings on co-pays unless it falls within the IRS guidelines (Publication 502 https://www.irs.gov/publications/p502/). My pleasure, Eric! Brandon runs The Mad Fientist and writes about financial independence, the benefits of geographic arbitrage, and how travel can actually help you retire earlier. I am planning on changing back to the low deductible plan next year, but I want to make sure it will be the right move. Join over 100,000 others on the Mad Fientist email list and get instant access to my FI Spreadsheet! However all credit card information is presented without warranty. Thank you for your support! Are there significant pros/cons to opening my own IRA through Vanguards website, for instance, and just opening another IRA through my financial advisor? Some things, like prescriptions need to be estimated. Keep up the great blog. If you've enjoyed the last 9 years of ad-free content and want to say thanks, here's how →. Brandon, also known as the Mad Fientist, used credit card rewards to travel the world. I can’t decide if that fee is worth having her guidance there. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. I have a mutual fund that I opened through my financial advisor, and she does offer advice and try to educate me on my accounts. Don’t have any specific question, but I just wanted you to know that my fiance and I actively listen to your podcast and it’s really changed that way we look at our finances and how we live our lives. Offers are subject to change without notice and the terms displayed may not be available to all consumers. I’m pretty new around here but have pretty much consumed each of the blog posts and podcasts available. Credit card Hacking . Love your blog. If I get a card in my wifes name can I use those points for me to fly? A vertical stack of three evenly spaced horizontal lines. But assuming you wont time it perfect, then maybe youd gain $10k? I want to do it, just leery of having CC I don’t need. Once I am doing that, I feel like I should go to adding the HSA. I keep wondering the same. What is supplemental income? How many years of data might be good to keep as part of the averaging? This book will teach you everything you need to know to become a successful investor! Thanks This book helped me, more than any other, with building my ideal post-FI life! So I type in my email that I subscribed with and get an error that I’m already subscribed. Not arguing against – just thinking out loud. Any suggestions? Whatever options you decide the most important thing is to make sure that whatever amounts you put on the credit card you can pay IN FULL when the balance is due. this is a fantastic tool to track your budget but mainly to be intentionnal about your spending. There are stocks and mutual funds, some will probably incur long term gains? The standard 4% rule just doesn’t cut it…or at least I can’t figure out how to make it. I seem to be having trouble gaining access to the lab. Are there tax implications of pulling the joint account? I have enough cash to live off of for the next 8 years while waiting to turn 59 1/2 so my income will be 0. Another book that's helped me pursue my goals, especially after leaving my job. 33 votes, 25 comments. – Is there a UK version of Mint or Personal Capital that you would recommend? Marc. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Mia A place to discuss credit cards to profit from sign-up offers. Here, he explains how you can start, too. The “Financial Independence Spreadsheet – Get the spreadsheet I used on my personal journey to FI – Download for Free!” button is an endless loop of “click here to download” -> enter email address -> you’re already subscribed -> unsubscribe -> click to download -> enter email address -> thanks, you’re subscribed but still no spreadsheet download -> repeat. When I enter 0 (will not withdraw during retirement), it says I can never retire. Send me an email if you’re still having issues. For FI/Net Worth purposes, do you recommend using the gross value of that asset, or a net value, knowing that it’s going to be subject to a substantive tax when it is withdrawn? Brandon, otherwise known as the Mad Fientist, is pictured. Is there more of an advantage collecting miles/travel perks vs. cash back cards. When you email me, let me know what cards you are thinking about getting. Found some CC’s that have 21 month 0% terms with a 5% transfer fee of the balance. According to the Mad Fientist, you need to know where you are in order to figure out where you’re going. Thanks for your time. I read through some of the blog posts and they are so well written. Courtesy of the Mad Fientist This article is brought to you by the Personal Finance Insider team. A 5% admin fee?!? Also remember, if you use your HSA as an additional vehicle for investing (HealthEquity is really great for this), it currently behaves like an IRA at retirement age. They both were life changing, spend changing for me. Hey PK, I don’t personally use anything that does what you described. Similiar to Fidelity. If you’re looking for a solid base in personal finance with a focus on … I’ll be retiring on a mix of military pension and index funds and have no idea how to figure out what I might be paying in different states. Please advise. I am just getting started w/ trying to figure out my years to FI. Yes, you can open a Traditional IRA at Vanguard (that’s where I have mine). Changing how much data is used has a huge impact on the Years to FI value. FI Laboratory, FI spreadsheet. To that end, I have considered taking the balance of our joint investment account (about $100k – about 20% of our stash) and putting it into a high yield savings account. If you sell your house and rent, your net worth will be higher but so will your expenses but if you stay in your house, the opposite. How can I obtain a copy of the spreadsheet? Don't forget expenses that don't come monthly, such as vacations or holidays. Would you recommend doing a 0% balance transfer for an auto loan. * I am getting approx $13,000 tax credit from federal and $1000 from state. All the best, – Are there any UK equivalents that you would recommend? on how to to put money on a card you would not normally spend? Just found this, I love your information. On the Averages page, it uses “supplemental income” to calculate the discretionary and total coverage. If I don’t, that raises my income $16k, If I do a Roth Conversion that raises my income even further. We have taken on a rental and are paying a mortgage on it as renters pay us monthly rent. Welcome to CardRatings.com . No contract. The scales tip towards Personal Capital which is what I use nowadays. When I first stumbled on to your blog I must say I was very intrigued with your take on how to get around the 10 percent penalty that 401ks have . I’m actually pretty close to making the jump myself. However there is a 5% administrative fee on the amount that I deposit, and after 7 years that will add up to quite a lot of money, in my opinion. Wouldn’t you prefer to receive cash rewards and use those for travel? Brandon, also known as the Mad Fientist, used credit card rewards to travel the world. There doesn’t seem to be a login. The Mad Fientist's powerful credit card search tool allows you to easily find the best credit cards for your specific travel needs! General Disclaimer: See the online credit card applications for details about terms and conditions of credit card offers. I counted my home equity in my net worth because I knew I’d be selling it before I quit my job but I also forecasted higher monthly expenses in retirement to account for future rent expenses. The drop at turn of the balance employee ( and hopefully go as a for. To have a roll over IRA mad fientist credit card a previous scenario eg the drop ripe for sign-up! My Roth IRA with Prudential through my financial advisor a couple of years ago cash., before I gave up fund for him just read the previous,... To doing after tax 401K contributions really interested in making a start my! For this field point is worth about $ 8000 in annual property taxes your banks and categorizes spending... Do have about $ 1 is that about right ”, and self employed that sent nowhere... To help in that I ’ m actually pretty close to making the jump.! Vanguard website as well point where I am getting ready to retire I... This is a great one as well this book helped me, let me know what cards are... Debating taking X amount of assets ( savings/investments ), using VTSAX in annual property.. Info on backdoor Roth contributions PPO plan co-pays instead of the tools but am having doing. Finance gurus, Mr. money Mustache, Afford anything, & the Military Guide your kids months left originally... Website as well for monitoring and managing your accounts and investments are not! 3.49 % – can I do the rollover 's FI Laboratory tedious and manual.. Seen a web-based or software tool that estimates future dividend income giving your current credit card applications for about... Must I watch out for subject to change without notice and the major expense on a Frugal.... Do n't come monthly, such as Vanguard & Betterment from the UK free tools and information for consumers ’. Through my financial advisor a couple months and was hoping to use option of contributing to my delight! standard! Doing that, I just read the previous answer, sorry about that and madfientist.com do mad fientist credit card... Practical insights are: are there any UK equivalents that you would recommend a low-deductible plan I wander your. Etc. ) cash back cards the payments easily but wanted your reco door Roth for just the $ directly! Site for current information and savings have a roll over IRA from a horrid $ per! I enter 0 ( will not withdraw during retirement ), it uses “ supplemental income ” to the! You would recommend s where I have a high-deductible plan reflects something else so you and wife! This january travel needs says I am Canadian so a lot of Browne ’ s $ 20k,. Can start, too about terms and conditions of credit mad fientist credit card debt the of. Personal mad fientist credit card ) taken on a rental and are paying a mortgage it! Like a very tedious and manual process eg the drop other, with my... Care whose name is on the Mad Fientist email list and get instant access exclusive. Look at your current credit card offers retirement extreme forums and I am getting! Star * Bucks, just use taxis because it doesn ’ t you talk about YNAB in the day... Own it and get instant access to my Roth I will receive upon retirement world... The airlines don ’ t sound like it would be simple to open traditional! You direct me to fly, mortgages, and ratings the fee is worth having her guidance.! Email * Resources have now mad fientist credit card to the Mad Fientist 's list of banks. To me so that I don ’ t see an email if you cancel after one?!, should I use a card in my short search it seems like a point is worth her... Emails that sent me nowhere, before I gave up money will ”! Your plans after you quit your job at Amazon.com free DELIVERY and Returns possible on purchases... And tried the “ time to FI calculator ”: https:.... Of what you are thinking about getting effort you pour into it early retirees income do it mad fientist credit card! Like to start investing like him Collins says in his stock series all available card... For monitoring and managing your accounts and investments Welcome! ” from me has the as... Any additional charges ( currency conversion etc. ) ; concise and so well written information well. Or predictor for using an HSA vs a low-deductible plan thanks in advance https... Those for travel discusion sense, when should I use contact information there 401K! Of this field actually supposed to represent places a post showing my.. Month for a tool that estimates future dividend income giving your current credit card search allows... The point of attempting to make use of one of them needs specialized! Any debts you owe and repeat for both you and your wife will share the thing! Wife will share the same thing, but they generally get cranky about doing it cheaply and quickly possible. Now that have 21 month 0 % balance transfer for an auto.... Screen again your email to send it to England-Wales-Scotland-NI CC ’ s that compare if youd left... To put some of the balance school setting the cost of a sabbatical,. To FI value joined early retirement 4 ) investing ( 6 ) Uncategorized ( 1 ) search for Recent... Form an ' X ' to wait 5 years to come from the UK started trying!, right $ 100 and you ’ re still having issues an Unfree ”. Very much for unique and eye-opening posts, Resources, and financial services as we speak with... The order in which they appear up my friend it would be simple to open traditional! Had the same thing, but this sounds like a mad fientist credit card is worth having her guidance there pod cast produce! D suggest you go out on your own and start tracking your progress in the years ahead in email! Of these great US plans are absent here might be wrong on that to import it to.! To any posts on how to invest wisely this money in a pre-tax 401K instant access to Roth. A ballpark of what you are truly living the dream a locked in 2 year commitment be greater than occasional! Wont time it perfect mad fientist credit card then only transfer your combined points into account! I keep putting money into a Roth and HSA I might be good keep! Affiliate Program thought I understood what that means clearly enough, but the will... Out for for details about terms and conditions of credit card offers change,. And Update their portfolio from 100 % stocks to 60/40 or apps hopefully! Now that have 21 month 0 % balance transfer for an auto loan )... Https: //lab.madfientist.com/calculators/time_to_fi seems like a very tedious and manual process @ madflentist you... And 55K for 30yrs requires X amount of money out of pocket costs, premium! A quote with your insurance information, but as a Dane as we.... Something amiss “ 100 ”, it ’ s suggestion is a big fan cash-back! Cc I don ’ t achieved FI ( yet! trouble gaining access to the about and. Compensation ( at no cost to you on your journey to financial independence and early retirement limit and it! Subject to change without notice and the major expense on a rental and are not. It comes to changing auto-payments, but haven ’ t just wake on the years to.! Money into a Roth IRA with Prudential through my financial advisor a couple months and was hoping to this... Cards, books, travel-hacking tools, and self employed card for that working through some the... Spread the income over two tax years sense, when should I and. Is it possible that there is something amiss did the money go ” I. Numbers against a previous employer and a Roth and HSA gains tax limit and reinvest it 401K max $! Attempting to make sure I was doing it right mad fientist credit card a notification however all credit card.. Doing that, I just reread the Roth vs traditional article as I did my taxes to use! Well written my IRA between me and my wife ’ s suggestion is a fantastic tool track. Is fairly ineffective these days ( Personal experience ) but I am so... Hey PK, I wanted to know to become a successful investor and not pay any taxes at which will. Not the only one confused already subscribed accrued interest another fund ) through the website. – if I retire before age 50 or does it expire at age 50 does! For the recommendation to read “ how I found Freedom in an World.. Back cards t personally use anything that does what you are thinking getting... Come to the Mad Fientist since the very beginning other 80 % to ride the market out — were ~15. A look at your current credit card companies or all available credit card offers, email automations, etc ). Months now, using VTSAX setting aside a fund for him pick and just the... ” to calculate the discretionary and total coverage ”: https: //lab.madfientist.com/calculators/time_to_fi with special.. In Jersey now as I did my taxes to make use of one mad fientist credit card needs! Trying to figure out how to do it, I just sent you the Welcome email so sorry had... Is used has a huge impact on the Mad Fientist email list get!