Let's begin with some definitions:leanFIRE: Retiring on just enough to exist. You may have to:eat dog foodlive in a musty basementkeep the thermostat at 55 in the dead of winterBut you don't have to work.fatFIRE: Retiring with way more than you need. You can:go to Taco Bell every night for dinner (skip the $.99 menu and go for the big-ticket items!)enjoy … [Read more...] about When leanFIRE Goes To fatFIRE: Lifestyles Of The Dirty And Smelly
Financial Independence
Withdrawal Strategies Part 2: Roth Conversions, Health Care, And College
Yesterday, I wrote a post about my withdrawal strategies and there were some comments about Roth IRA conversions that have me reconsidering my strategy:The Physician on FIRE and Done by Forty echo this strategy:I had mentioned that one of my goals was to draw down 401(k) accounts before age 72 to reduce the hit from Required Minimum Withdrawals. I had planned to … [Read more...] about Withdrawal Strategies Part 2: Roth Conversions, Health Care, And College
Money Withdrawal Strategies (Keeping The Tax Man Away)
Money is a precious resource that must not be wasted. It isn't easy to collect those dollars, so they should be saved, invested, and spent with maximum efficiency and thoughtfulness. Between investing and spending comes withdrawals. Since most of us have money tied up in multiple accounts, it makes sense to take money out strategically so your tax bill is minimized.UPDATE: … [Read more...] about Money Withdrawal Strategies (Keeping The Tax Man Away)
Backup Plans For Backup Plans
The world has become a strange, foreign place; unlike the one I'm accustomed to. I was at the grocery store a couple of days ago and it was packed. There was a line of people that ran the length of the store. The shoppers were waiting to get to the dairy section which was empty.Yesterday, I took a walk to Main Street which is usually a thriving place on weekends. Stores … [Read more...] about Backup Plans For Backup Plans
Getting Rich With A Mortgage
I bought my last home in 2013. I could have paid cash for it, but instead, took out a mortgage and invested the rest. Today, I tell you how it's worked out.Getting Rich With A MortgageOne of the great debates in the FIRE space is whether you should pay off your mortgage. By not paying off mine, I'm in the minority:Most would say that they like the peace of mind … [Read more...] about Getting Rich With A Mortgage