Mr. 1500 here again for at least one more Monday…
Last week, I complained about my life. I’m busy as all hell and am not enjoying the way things are going right now, so asked what I should do.
Your comments were pretty great. From them, I deduced two things:
- You’re all a lot like me: I have an idea though to help us all out. Come join me on FI Island (FIsland?)
- I need to calm down.
Financial Independence (FI) types are overachieving Type A’s
May from Messy Money chimed in:
I am feel like I have been burning the candle at both ends. I have stressful and hectic life at times.
Prudent Pound had this to say:
I’m convinced that most people who are focusing on early retirement are “completer/ finisher” personality types who are great at setting goals and getting things done. I have a constant list of things to do in my mind and I’m not able to relax until the tasks I have for that day are done (plus normally a few more). This makes for a very stressful life at times – as you’ve found, it’s often impossible to get it all finished – or at least not without significant sacrifice!
Randy from My Shiny Nickels works his ass off too:
I feel your pain. I was working 60 to 65 hours a week at my job.
Andrew from Living Rich Cheaply:
My wife just mentioned this morning that we need a weekend for our weekend.
Sigh. This is how every weekend feels lately.
FIsland
I have a solution. Let’s all spend a couple weeks on an island for some forced relaxation. I’ll call it FI Island or FIsland for short:
- On FIsland, we’ll sit around and drink out of coconuts.
- We’ll walk on the beach and frolic in the water.
- We’ll read and commiserate.
- We’ll chat about life and money.
- We’ll hatch business ideas.
- We’ll compose business plans on our solar-powered Macbooks.
- We’ll pull 24 hour hackathons where we’ll code up our new business.
- We’ll seek venture capital.
Wait! Stop! I’ve regressed! FIsland is starting to sound like my normal life again. Get me off this cursed archipelago!
Lord of the FIs
It’s going to be difficult for us Type A’s to turn our lives down a notch. I can easily see how FIsland could quickly degrade into a Lord of the Flies (Lord of the FIs?) situation. The following will make no sense if you have not read the book:
“They obeyed the summons of the conch, partly because Mrs. PoP blew it, and she was intelligent enough to be a link with the adult world of authority….”
I need to calm down
Your suggestions were stellar:
Reader Joy:
Take a full day from start to finish (24 hours) to do absolutely nothing, every week. Allow yourself the privilege to enjoy this day. Zero work for the entire family.
Joy, this sounds pretty awesome and I’ll do it, but not until our vacation in June. No way I can sit still right now…
Reader Carlton:
…for your question, it seems to me like the biggest thing is that all the stuff you listed is obligations to others. Obligations for your job or for your family in some way, heck, even this blog I am sure feels like an obligation with all these people who expect posts. Again, since I am single this might not apply to you, but the number one thing I do is always take some time for myself.
He is completely right, I make no time for myself. I need to start though.
Prudent Pound had a good recommendation:
One of the best things I realised is that deciding NOT to do something is just as valid a way to “complete” a task as actually doing it – and gives me an equal sense of relief of something off my plate.
Done by Forty had this to say:
Something has to give. Writing usually is pretty low on my list of priorities, compared to work, time with friends and family, etc. The fact that is pays $0 makes it an easier decision.
Finally, Reader Alasdair had my favorite comment:
Planning for the future has its place, but you should never give up your Todays for some hoped-for Tomorrow.
This last one hits home because I find myself living in the future constantly. I need to settle down, read a book and enjoy life every once in a while.
Bogged down in blog slog
Blogging is what has to slow down right now. I’m not going to stop completely, but I’m not going to stick to my regular posting schedule either.
- I’m going to post the 10 Questions every other Saturday from now on.
- The rants are especially hard to write, so I’ll move it back a notch there as well. Mrs. 1500 has one lined up. Anyone want to guest rant?
$275,000 (today’s question)
Oh yeah, I’m supposed to ask a question too. Last week, I rolled over a 401(k) worth about $275,000. Tomorrow, I’ll tell you what I did with the money. Today, I’d like you to tell me how you would invest it.
VTSAX. I did this with my 401k and a pension rollover. No thinking and I’m not touching it for 29 years anyways!
Chris @ Flipping A Dollar recently posted…White and gold? Blue and black?
^^^ What he said!
Fervent Finance recently posted…How much house can you afford?
Well, 1/6 of it will be in the ETF version of VTSAX; VTI.
Any reason for ETFs vs mutual funds? The fees are identical for the $ amount we’re talking about… Is it because they’re close to stocks (with the trading rules)?
I don’t like having to put in a set price vs having to put in a set dollar amount.
Chris @ Flipping a Dollar recently posted…White and gold? Blue and black?
With the Fed poised to begin incremental interest rate hikes, I’d keep the money in short-term CDs for now. Interest rate hikes will result in declines in the overall stock market, and those declines translate into buying opportunities. Also, rates on CDs will increase as the Fed rate hikes take effect.
I need to come up with a better name..
Ruhroh, this guy thinks he knows what the markets going to do in the short term. Everybody run!!!
Chris @ Flipping A Dollar recently posted…White and gold? Blue and black?
This person thinks I’m a guy, how narrow-minded!
Awesome (gender neutral) smack down!
Ha, I think that Longterm reader and Chris are both right. In addition to those rate hikes, valuations are pretty crazy now (http://www.multpl.com/) and the bull market has been running for a long time. However, I don’t like the idea of trying to time either. So, I’m dumping it all in.
I’m hoping that a correction does come soon though since I’m throwing $5,000/month in via the 401(k).
Ah, the old “pick on him instead of discussing his points.”
It’s raining here today. Therefore the stock market will go up/down.
Chris @ Flipping A Dollar recently posted…Comment on White and gold? Blue and black? by Dollar Flipper
Glad to hear you have a plan to slow down a little. I am working on the exact same thing myself (slowing down / creating better balance).
Kara @ The Daily Whisk recently posted…10 Reasons to Love Carnations
Thanks Kara!
You’re close to Vegas, so my guess is that you cashed out and put it on black.
Done by Forty recently posted…Middle Class Wealth
Ha! If anything is true about me, it is that I HATE gambling.
I agree with Chris for the exact same reason…definitely would put it all into VTSAX, as I’ve done in the past with rollover 401(k)’s.
I’m curious to see what you’re going to do with your rollover. Not a lot of people realize you can roll it over into things other than marketable securities. My guess is that you might be thinking about a ROBS (Rollover as a Business Startup) given your situation? Just a thought 🙂
I’m sticking with Vanguard funds, so not doing anything exotic. I had no idea you could start a business with the funds either. Wow.
And 1/6 of the money is in VTI (ETF version of VTSAX).
I would hope investing it in VTSAX, but a new Tesla Model X with optional hover mode would be awesome.
A flying Tesla? I’d sign up for that in a second!
Well I’m glad you decided to slow stuff down.
As per your question I would drop all funds into VTSAX ( I believe that is the total stock fund for vanguard) risky maybe but because of my age I can be that risky… Or so advisors sy.
Also I would love to guest post rant and submit some new 10 questions. For me the blog also took back seat as I adjust to my new work schedule.
I’m so glad interacting with the community take less time commitment and only requires organizing coherent thoughts in 50 word or less as apposed to 500 or more
The Roamer recently posted…One More Year Syndrome
Sure Roamer, submit your questions and guest rant! Regarding the latter, go crazy! Don’t hold back!!
I would buy a new motorcycle, oh no, sorry wrong thought!
We are actually inclined to start buying some dividend stocks, the rest would probably go towards some Vanguard of IShares ETF. Guess the split for $275,000 would be about $125,000 into dividend stocks (or a dividend focused ETF) and the remaining $150,000 into the VTSAX (or similar) as noted in previous comments a couple of items.
Mr. FSF recently posted…Motorcycles and Expenses
Ha, funny you mention motorcycles. I was just looking at Speed Triples on CL the other day. Perhaps some day, but not now.
Glad to hear things are getting better! And, I think your trip to FIsland hit the nail on the head – a lot of us pushing towards FI think that once we get there, all our problems will be solved.
I think the answer is a sort of Matrix-like saying: You’ll know you’re ready for early retirement when you no longer need to retire.
No clever additional investment advice here. Do what they said! Just chiming in to say: Yes, slow down if that’s what you need. We’ll still be here reading when you do post, even if it’s less often! 🙂
Our Next Life recently posted…will money become a source of tension?
I agree. Mrs. POP is definitely the one who figures out that she should use the shell. Maybe you should watch the Lego Movie (everything is awesome?) rather than spend so much time reading heady young adult fiction.
Mrs. Pop could totally run the island! I hope that she has read the book so she knows that this is an honor and I’m not making fun of her.
Leg Movie is great!
Yeah, that last Stephen King book…
I find that going on a walk, with or without my dog, and not listening to a podcast, music etc. really clears my head.
I’ll go with the same answer as everyone else, VTSAX, although I might put 20% into the Vanguard total bonds fund.
I would do a guest rant about House Hunters and other HGTV real estate shows. You can see my email, I think, so let me know if you are interested.
Walking is the elixir of life. Every senior I know that is doing really well takes long walks.
I would do the unthinkable and let it sit in mostly in cash/money market for a while until better opportunities presented themselves.
Or if you invest on both sides of the market I would get a little short delta (directional risk) exposure.
I would however sell some ‘out of the money’ puts on the SPY ETF that were at least 8-10% away from current prices. And I would do it on a down day in order to capture inflated premiums due to FEAR.
This would just be at prices that I was interested at getting long (i.e nibbling). For example, you can go out and sell July ’15 $190 puts for $1.85 right now ($185 per contract). They currently have a 81% probability of expiring worthless.
Your break even between now and expiration (95 days from now) would be $190 – $1.85 = $188.15.
Your break even also represents your effective long price if you were forced to take ownership of the stock. With a current price of $209.5 that gives you a margin of safety of $21.35 or 10.2% of downside protection.
Full Disclosure: this is exactly what I have been doing all year round. Holding over 50% cash and just selling far out of the money puts.
Gen Y Finance Guy recently posted…The First 6 Months of Blogging – By The Numbers
I knew you would say this! 🙂
Valuations are high, but if (when) things come crashing down, I’ll find ways to dump more in.
Pretty soon you will be able to write my responses for me if I am consistent enough with my thoughts.
Cheers!
Gen Y Finance Guy recently posted…The First 6 Months of Blogging – By The Numbers
Well $275k isn’t quite enough to buy an Island (although you could twist my arm to buy the Islands of Investing for that amount!), so I’d put the $275k into some solid dividend paying stocks, then force yourself to use the dividends each year to spend on holidays. The 1500 holiday / relaxation fund! May not give the best financial returns but could be a great personal investment nonetheless.
I think slowing down the blogging a little is a great step – it’s pretty hard work to keep up this pace, and I can’t see your readership or quality suffering one bit!
Cheers,
Jason
Jason@Islands of Investing recently posted…That liberating feeling of selling your bad investments
Yeah, 275K would NOT buy much of an island. It could buy some crazy adventures though.
I have the same weekend problem. My significant other complains about it. I’ve always got 20 projects that need to be done.
In terms of the money, no harm in putting it to work in slow increments. Valuations are way up and you already have some huge dollars in the market. Like you, I’m also a fan of a simple mix of VXUS and VTI.
Adam @ AdamChudy.com recently posted…How to Graduate College Debt Free – Part 1. AP Classes
“In terms of the money, no harm in putting it to work in slow increments.”
Too late. Should be an interesting ride though!
Glad to hear that you are slowing down…We can all use a break!!!
As for the money, I’d buy $275K in gold bullion. Precious metals are the best investment out there!!!
But seriously, I agree with most other folks and I’d buy a boat load of VTSAX and maybe a little VTBLX to “smooth out the ride” (can you tell that I also read a lot of JLCollinsNH too?)…maybe an 90/10 split.
Phew, I thought you were serious about gold for second. I personally hate it!
Some of the money is going to the ETF version of VTSAX (VTI), but not all…
What to do with $275K. Hmmm what a wonderful problem to have. You could buy a 2015 Lamborghini Huracan LP 610-4. I hear they hold their value. LOL.
I might have a rant in me……
A Huracan would be awesome for about 30 minutes. Then, I’d feel really bad about the whole thing.
Rant away Messy Money!
That’s tough. I would buy whatever is undervalued at this time by going through low P/E companies across North America. A lot of Canadian banks, US and Canadian oil companies appear to be attractively valued at this time. Considering severe fluctuation of the market, I may want to invest 1/6 of money every month waiting for a perfect opportunity. Harder part is patiently waiting. Hahaha
BeSmartRich
BeSmartRich recently posted…Do you know how much your CEO make? (US edition)
I am on the VTSAX like so many others – at least 80-90%, maybe 10% total bobpnd, 10% other (more intl?).
I like this island idea.
How about Dr. Doom for a rant!?
Hmm, how about taking a small fraction of the money and fixing up this darn kitchen and spending the rest of on a small island that I can hide away in for the next 25 to 30 years.
Investing…that’s not for me…
Amanda S @ Passionately Simple Life recently posted…Meaningful Spending
Honestly, I would go with Betterment. They have a super simple rollover process and I’ve thoroughly enjoyed their service so far.
That or property investment with that chunk of change. $275,000 in VTSAX and the like is too domestic for me. I like a foreign tilt and I think Europe especially is cheap and won’t be depressed like this for very long.
Mr. FI recently posted…Freedom Now vs Freedom Later–Or–How Much Pain to Sustain?
Love the idea of the FIsland!
My version would be a bit more chilled out than yours though 😉
I have to say that I am very impressed with your blog posting schedule and that you keep to it. I haven’t managed to keep any kind of schedule and just tend to have a vague goal of posting at least once a week, but really I just post when I feel like it/get time to write something. And I don’t even have any kids! Where do you find the time man!? Have you mastered the art of 1 hour sleep?
Anyway a slow down on posts sounds like a good idea, we’ll still all be waiting here for the next one don’t worry 😉
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