RSA F.I.R.E. Progress

[faith4l]

@gracer Good stuff.

Similar boat sort of although I want be shifting to more contract and project work. So work for 1-3 months. Take a break. Work two weeks here or there. Still a good way away from this but that is one of the options. Other plan is just push on and completely chubby/Fat FIRE - But I feel this will result more of a waste to be older and sit with a bunch of wealth vs just accumulating quickly while younger and then enjoy life a bit more while still maintaining a certain level of wealth vs saving yourself to death.

 

[gracer]

@faith4l I'm a firm believer that lots of money doesn't buy you happiness, but a fair amount buys you time to balance your life how you want to.

FIRE to Chubby FIRE is still okay but at the end of the day you still need to work to maintain a healthy brain. I think the ultimate goal would be a 4-6 hour work day with the option to take a lot of unpaid leave. Hence my Lean FIRE goal as I won't need to save much from there, just make enough to cover our monthly expenses.

 

[danmillward]

@faith4l

But I feel this will result more of a waste to be older and sit with a bunch of wealth vs just accumulating quickly while younger and then enjoy life a bit more while still maintaining a certain level of wealth vs saving yourself to death.

Yeah I'm planning to BaristaFIRE, not fully FIRE, but haven't planned it out yet.

No need to go balls-to-the-wall and hit FIRE with less energy left to enjoy the fruits of your labour.

I'd actually probably prefer seasonal work to part-time so that I can travel for months at a time, but not sure how to structure it within my profession (will figure that out when I'm closer to large figures.

 

[faith4l]

@danmillward Maybe contract work during more peak seasons if that fits into the accounting space?

Half day work still feels like daily obligation. I think if one is able to move into consulting and project work sort off and do solid work for shorter durations at a time and longer breaks in between that might be a good balance.

Or rather, sounds good on paper but still need to get to that point.

 

[danmillward]

@faith4l Heh. Yeah I've got a CA friend who quit corporate at 28 and manages to work 50-60h per month at a really good rate, but he managed to build an excellent network before he quit so was never short of work. Projects are an option, or alternatively, fixed term contracts (maternity cover, as an example).

I'll figure something out, somehow, otherwise just continue to slog until fully FIRE. I also have some business ideas that are accounting-related but can't be arsed currently to try to make them real.

 

[petermushk]

@gracer What is FIRE? Excuse my ignorance

 

[villeverte]

@petermushk Financial Independence; Retire Early

 

[skitnik]

@petermushk Check r/fire for great resources, definition and wiki

 

[bensherie]

@skitnik Here's a sneak peek of /r/Fire using the top posts of the year!

#1: Today after 19 years of diligent payments, I paid the last $2.17 of my student loans. I am now completely debt free.

#2: Saw a 35-year-old today diagnosed with cancer

#3: How FI/RE has destroyed my fathers life

[sup][sup]I'm[/sup][/sup] [sup][sup]a[/sup][/sup] [sup][sup]bot,[/sup][/sup] [sup][sup]beep[/sup][/sup] [sup][sup]boop[/sup][/sup] [sup][sup]|[/sup][/sup] [sup][sup]Downvote[/sup][/sup] [sup][sup]to[/sup][/sup] [sup][sup]remove[/sup][/sup] [sup][sup]|[/sup][/sup] [sup][sup]Contact[/sup][/sup] [sup][sup]|[/sup][/sup] [sup][sup]Info[/sup][/sup] [sup][sup]|[/sup][/sup] [sup][sup]Opt-out[/sup][/sup] [sup][sup]|[/sup][/sup] [sup][sup]GitHub[/sup][/sup]

 

[hawko05]

@gracer Good going! Open to breaking down each years strategy and what you did each year for those gains?

 

[gracer]

@hawko05 So our salary is the biggest contributing factor from the start. The rental income is a bit of extra on the sideline that we added in 2020 and 2021.

Strategy mainly consists of cutting expenses to only what is needed, maxing out our TFSA and RAs then either investing in diverse ETFs or adding to the home loans on those rentals(depends on where we get higher returns). Occasionally I buy undervalued value stocks for a long term hold.

This strategy hasn't really changed much from this start.

 

[hawko05]

@gracer Thanks for the insight man!

 

[dykema17]

@gracer Will you cash out your RAs at 32? Or retire on the rest and then only cash them out at 55 (or whatever the minimum age is)?

 

[gracer]

@dykema17 Definitely not. I'm not planning on ever completely stopping my work. I'll just scale down completely after I've reached my Lean FIRE goal.

 

[peterpeter]

@gracer Impressive income numbers, dude!

 

[gracer]

@peterpeter Thanks!

 

[petermushk]

@gracer What is FIRE? Excuse my ignorance

 

[fad_gadget]

@petermushk Financially Independent Retire Early

 

[jens123]

@gracer Congrats! out of interest where are your properties located? Are they commercial or residential? I'm in the final stages of selling our residential investment property in Durban as the yield was below 5% after taking into account repairs and maintenance and other costs. I don't think we could have increased the rental much more. My experience with a residential property as an asset class was a lot of hassle (something always needed repairing!) for little reward compared to ETFs and other equity products.

 

[gracer]

@jens123 In Cape Town.

So how I see it is biy property worth R2.5m, put in R1.25m of your own money. Bond and other expenses will pay off with rental income in about 10 years. Sell at maybe R3m then. That's about 10% guaranteed growth. But once again, add the interest income with a company then you basically get R3.4m out at the end of those ten years.

The extra money in the property can also be used as an emergency fund.