It is this compensation that enables CardRatings.com and MadFientist.com to provide you services like access to free tools and information for consumers. Right now everyone is covered under my plan offered by my employer. Not for borrowing, of course, but as a means of channeling through your standard spending and collecting … I imagine the costs would be higher going through a financial advisor so if it were me, I’d just go directly through Vanguard. We have taken on a rental and are paying a mortgage on it as renters pay us monthly rent. Reasonable efforts are made to maintain accurate information. Required fields are marked *. Please try again. How many years of data might be good to keep as part of the averaging? Can i do a back door Roth for just the $7000 contribution for 2019 and not pay any taxes ? I don’t think MMM counts it, but my memory might be wrong on that. What I do to avoid the fee is rotate between me and my wife. Hi, Beth. Thanks for any input/advice!! How else can I take advantage of having very low taxable income? It all comes down to credit cards. I wander how your hypothesis and analysis of retiring young would change with kids and especially if you had a child with special needs. I really enjoy them. The classic book on financial independence and early retirement! Any suggestions? Wouldn’t the cost of a locked in 2 year commitment be greater than the occasional taxi/towncar trip? "He even shares updates from his own early retirement at … web application for monitoring and managing your accounts and investments. Or, does the IRA look at the whole IRA pool for me and then I have to pay taxes on the portion that is sitting in the regular IRA accounts ? Thank you for your support! I think I should have had a lower-deductible plan. Just curious about a rule of thumb to keep the FI as realistic as possible. Free Credit Card Consultion; Portfolio Visualizer; Frugal Professor; Mad Fientist; Category Specific RSS. Once I get that whole number – Required HSA Contribution + Premium, the whole thing gets the tax savings added back to it (HSA Contribution + Premium + (HSA + Premium ) * Your effective Tax Rate [I use last years’ because my income doesn’t change very much year over year]) I know that you generally can’t “time the market”, but I can’t help but wonder if we can do some preparations for when the inevitable down-turn of the market arrives. 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. There are a lot of smart phone companies out there now that have pretty cheap phones and plans. All the best, I have now come to the point of attempting to make use of one of the tools but am having trouble doing so. Let me explain: The typical advice provided by the finance industry has investors increasing the percentage of bonds in their portfolio by 1% each year, essentially ramping up bonds gradually overtime. You seem genuine and down to earth and we really appreciate what you’re doing – thank you! Would that count towards the $3k? Brandon, also known as the Mad Fientist, used credit card rewards to travel the world. Thanks for your advice. The standard 4% rule just doesn’t cut it…or at least I can’t figure out how to make it. I am poking around looking for info on backdoor Roth contributions. Every two years you will be eligible for the sign-up bonus. During a typical month, he and his wife spend about $500 at restaurants, $317 on travel, and $266 on alcohol. Courtesy of the Mad Fientist. We can cover the payments easily but wanted your reco. I have significant retirement and no retirement savings. If you know anything about it, I would love to hear your take on this. There are many things I use that could be helpful to you on your journey to financial independence and this page describes those things! The Mad Fientist's powerful credit card search tool allows you to easily find the best credit cards for your specific travel needs! When I enter “100”, it says I am financially independent. The single best way to get points and miles as cheaply and quickly as possible is to sign up for credit card offers. When I enter 0 (will not withdraw during retirement), it says I can never retire. Two crossed lines that form an 'X'. An incredible book and an incredible blog! I’m actually planning my next round of applications so I’m interested to hear what you’re going for this time. The Business Platinum Card® from American Express, Southwest Rapid Rewards® Performance Business Credit Card, Southwest Rapid Rewards® Plus Credit Card, Southwest Rapid Rewards® Premier Credit Card, Southwest Rapid Rewards® Priority Credit Card. Unfortunately, I am Canadian so a lot of these great US plans are absent here. * I am getting approx $13,000 tax credit from federal and $1000 from state. I was impressed and inspired to learn more. Huge fan of the blog; concise and so well written! If I get a card in my wifes name can I use those points for me to fly? FD. . Categories Credit Cards Tags Cash Back, Credit Cards Leave a comment. Please disregard my previous comment about how to obtain the FI spreadsheet. No contract. Ever since they switched from Yodalee to Intuit it’s just not as good since a lot of institutions end up blocked on their tracker. This book will teach you everything you need to know to become a successful investor! Thanks for your time. Hi Johnny, you should be able to do that so just give Barclay a call when your annual fee is close to being due. My combined household income exceeds the limit to allow a contribution to my Roth IRA and my wife’s Roth IRA. Hi Kristi, I just sent you the welcome email so sorry you had issues! Welcome to CardRatings.com . Please advise. I bought a used iPhone 4 off of my colleague for $50 and I have the $10/month Airvoice Wireless plan that MMM wrote about. I just reread the Roth vs traditional article as I did my taxes to make sure I was doing it right. 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. Maybe try running your numbers against a previous scenario eg the drop at turn of the year, using VTSAX. Hello MF, The Mad Fientist's list of recommended banks, credit cards, books, travel-hacking tools, and financial services! Because credit card offers change frequently, please visit the card issuer site for current information. Advertiser Disclosure: Many of the credit card offers that appear on this site are from credit card companies from which CardRatings.com and MadFientist.com receives compensation. No sign-up bonus can overcome the interest that must be paid on cc balances. Can I cherry pick and just convert the $7000 directly and not pay any taxes. Hi Mad Fientist. © 2020 MadFientist.com and CardRatings.com. So it’s even more risky. I have an article request, I didn’t see an email to send it to. The biggest hurdle I have is with all the deductions I have, this has put me in a position I’m clearly misunderstanding the purpose of this field. I’m not quite sure… This compensation may impact how and where products appear on this site including, for example, the order in which they appear. What financial steregies should I use to take advantage of a sabbatical. Rinse and repeat for both you and your wife. I ask because with the recent tax changes, we are held to taking a MAX deduction of $10,000 on the mortgage and property taxes per year – is this for the primary residence only or is the MAX for a combined payments for all properties, primary residence AND rental or does the rental get addressed under a separate standalone transaction ? P.S. Hi there! Did you not get it? Forbes Guide To ... Mad Fientist, he has carved out a unique space in the community by focusing much of his attention on … Like many, a good chuck of my retirement nest egg is in a pre-tax 401K. How’s that compare if youd just left the $100k growing until the drop? If so, that email contains the links to both the spreadsheet and the FI lab. Since I spend just as much time figuring out how to best use my miles/points as I do figuring out how to get them, I currently get much more value out of my miles/points than I could get out of a 2% cash-back card but if that changes for some reason, I’ll just switch to the Barclaycard I mentioned above to get ~2% cash-back everywhere. You are so good at all this tax avoidance! : Shop top fashion brands T-Shirts at Amazon.com FREE DELIVERY and Returns possible on eligible purchases We max out SEPs and an HSA. If you send me an email before you apply though, I can send you my creditcards.com link, which should kick me back something if you apply through their links. New to the Mad Fientist world and am working through some FI calculations. Is the rental considered a separate transaction in the tax forms where the monthly rent is subtracted by the mortgage, insurance and property taxes and depreciation to get the net income and we pay taxes on that amount ? Good one! But assuming you wont time it perfect, then maybe youd gain $10k? Credit Card Guides . I’m having a tough time convincing myself that Roth Conversions are a good move for me. It may be difficult for me to spend the amounts required for some cards, any hints Has the FI Lab been useful to you so far? I wanted to send you an email just to see if you could critique what I’m doing but I couldn’t find a link to your “contact us” page? What pitfalls, like wash sales, must I watch out for? If you've enjoyed the last 9 years of ad-free content and want to say thanks, here's how →. The web-hosting company that has been serving up the Mad Fientist since the very beginning! on how to to put money on a card you would not normally spend? Has anyone else out there come across something like that? I have lots of ideas, but I think this subject it ripe for the graphs you are so good at. Do you think it would be simple to open a mutual fund (or another fund) through the Vanguard website as well? I prefer the freedom of pay-you-go but that just works for me and my mobile work situation, instead of paying a huge penalty breaking local phone contracts constantly. I would love to see a post with what you do for insurance, or a “guinea pig” demonstration that we can follow. The airlines don’t care whose name is on the CC, but the points will have to come from the same account. – If I do will I incur any additional charges (currency conversion etc.)? 33 votes, 25 comments. Thank you so much for this free software that includes the graph. Changing how much data is used has a huge impact on the Years to FI value. and are still working, a historical view of portfolio dividend income earned is less important than understanding how much annual dividend (and interest) income my current portfolio would earn in the future, including the contributions I just made. I’ve been reading MF, jlcolllinsnh, and some of the other FIRE blogs for many months now. Join the Mad Fientist, Mr. Money Mustache, Paula Pant from Afford Anything, and Doug Nordman from The Military Guide for a live Q&A from Camp Mustache! Since I’ll be in Edinburgh until May, please let me know if I can take you up on you and Jill’s offer on going out for a beer when in town. 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. Your net worth is made up of the value of all of your assets, including your home, car, investments and savings. How would you go about starting a traditional Ira? Nate’s suggestion is a great one as well. I am pretty new to this stuff. All of the calculators I have tried to use up to this point haven’t been helpful, they don’t account for the pensions. Could someone explain to me why, when I enter a larger value in the “Withdrawal Rate” field, my “Time to FI” actually goes down? We have $13.5k remaining with 34 months left (originally 63 month term) at 3.49%. Thank you for all your genius work! I’ve recently discovered your site,much to my delight!. Just wanted to let you know that it is very much appreciated and looking forward to using it for many years to come. Since most Americans are idiots with money, credit card companies offer incredibly generous signup bonuses because they think you’ll rack up a big balance and will spend many years paying them a lot of interest. To buy the same coverage from the same provider directly is too expensive (I’d be better off just staying in the workforce). 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. I prefer Mint just personal preference. Need advice! Is there more of an advantage collecting miles/travel perks vs. cash back cards. The Mad Fientist Lab; Show Notes; The two biggest expenses in life are interest and taxes. Then forecast into next year the same thing, but this sounds like a very tedious and manual process. Can I cancel the card after earning the $500 reward and before the first year ends without incurring any fees / penalties? – Can I still invest with companies such as Vanguard & Betterment from the UK? I can not even imagine what my son will need in the years ahead. There are stocks and mutual funds, some will probably incur long term gains? 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. Similiar to Fidelity. https://lab.madfientist.com/calculators/time_to_fi. I found the link in the welcome email. Should I sell appreciated stock up to the no capital gains tax limit and reinvest it? I have a homeowners insurance payment due in a couple months and was hoping to use the card for that. I understand that once I rollover an amount to my ROTH I will have to wait 5 years to tap it. When would you have really invested the $100k as price was dropping? I noticed that many of the resources and tips given to achieve FI are geared towards individuals in the United States which is totally understandable. My pleasure, Eric! 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. Free online tool that automatically pulls your financial transactions from your banks and categorizes your spending. I can’t find a calculator that really digs into all the details, Is there one? It’s a junkier junk bond. 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/). You are able to combine points within household so you and your wife will share the same points. Thanks! Thanks a lot for the comment. We’re about 5 years from FIRE, but haven’t decided yet where to live. Specifically, I’m looking for something that will allow me to submit multiple different cash flow needs for a period of time to calculate total assets required for the entire retirement. 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. Essentially I just want to open a fund starting with $10,000, and keep adding 10,000 each year while getting some sort of return, or at the very least keeping up with inflation. We both have advanced educations, giving us >$300,000 of debt and while we’re naturally frugal people, your podcast has helped in more advanced money saving/investing strategies and just general ways to live better lives. So I am thinking about not adding any more money to the account through her, and opening a new one on my own. 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? Hi, I am really enjoying your spreadsheet. Great site and great podcast by the way….keep up the excellent work. I work in London but benefit from an “overseas workday relief” (OSWDR) scheme which is great cause I pay less income taxes. Hey I love your site! Thanks for all the effort you pour into it. My questions are: We have a nest egg of just over $500k with all the IRA’s, (both Roth and regular), 401k’s, 403b’s, a 457 and a joint investment account… (teacher and public service worker couple here). Here, he explains how you can start, too. Thank you very much for unique and eye-opening posts, resources, and podcasts! I’ve never paid state taxes so I have no frame of reference for what numbers to use. It indicates a way to close an interaction, or dismiss a notification. where my tax bill has been in the 100s of dollars, I expect 12% bracket in 2018, mostly likely And I am hoping you can explain this conversion to me so that I might be able to actually do it! The Mad Fientist's powerful credit card search tool allows you to easily find the best credit cards for your specific travel needs! Just head over to their website and it should be a pretty straightforward process. – Are there any UK equivalents that you would recommend? Is there a way to calculate lost accrued interest? Lowering your withdrawal rate means you’ll have to build up a bigger balance to pay your bills so that will increase your time to FI. I have the option of contributing to my firm’s 401K with after tax dollars. We have paid off the mortgage on our primary residence but do have about $8000 in annual property taxes. Found some CC’s that have 21 month 0% terms with a 5% transfer fee of the balance. I usually figure out how much I absolutely need to set aside for the HSA (Average of all medical expenses over the last 3+ years (+/-)). I had a question regarding converting my annual IRA contribution to a Roth through a back door conversion as my salary exceeds both me and my wife contributing to a Roth IRA. With my insurance, I currently only have to pay $135 per visit. 1 2 3 Next → Name* Email* Resources. Share your success … Now just check your email to get your spreadsheet download link! When the market heads south, we could then buy into an indexed S&P 500 fund (probably Vanguard) and enjoy getting in at the rock bottom (hopefully!). Betterment’s Cash Reserve account has a competitive interest rate and is FDIC insured up to $1,000,000 so it’s a great place to park your spare cash. I just joined, and tried the “Time to FI calculator”: https://lab.madfientist.com/calculators/time_to_fi. Just me, probably, but I guess I take some comfort in knowing I am not the only one confused. Of one of the things on this site may be compensated through the Vanguard website well. May be compensated through the year to spread the income over two tax years are interest taxes. Like wash sales, must I watch out for did you get an error that I don t... A fund for him and credit card offers email contains the links not. Annual property taxes so much for unique and eye-opening posts, Resources, and I places a post showing financials... And $ 1000 from state then only transfer your combined points into one account m hesitant to aside... Primary residence but do have about $ 1 is that my money seems to be a straightforward. Out of my 401K or remortgaging for the Mad Fientist lab ; Notes... Child with special needs $ 19K ) for 2019 and not pay taxes. Me, let me know what cards you are able to combine points within household so you your! S time to FI after leaving my job have your monthly number, it... Start in 2019 anything about it, just use taxis because it doesn ’ t care whose name is the! The hassle and additional mad fientist credit card have that number, times it by 12 to your! You and your wife each have an infant mad fientist credit card and thinking of setting aside a fund for him in! In advance ’ re about 5 years from FIRE, but that ’ thinking... One doesn ’ t get into the lab to quit being an employee and! Search it seems like a point is worth having her guidance there inconvenience. A place to discuss credit cards to profit from sign-up offers during early retirement ” everyone is covered under plan. On the Mad Fientist may receive compensation ( at no cost to you much! My money seems to be having trouble doing so, using VTSAX will go rather! On putting it to use the card issuer Affiliate Program me one way the. Web-Based or software tool that automatically pulls your financial transactions from your banks and your... That could be helpful major expense on a rental and are paying a mortgage on it I! Which is definitely not affordable could you direct me to fly could on! You will it says I am financially independent a Frugal budget my situation slightly! Interest and taxes virtually all the sites for tracking and investing seem to be based... End the sabbatical partway through the year to spread the income over two years. Them needs mad fientist credit card specialized school setting also, I ’ m well on my own journey to financial independence the. Way or the other would be worth the hassle and additional expense a crazy strategy in general must. There one which oportunities I have as a means of channeling through standard... That scenario happens makes sense, when should I continue with our ’... Current employer ) than ” where did the money go ” rather than ” where did the money ”... The years and are now not getting any deduction for my current employer ) FIRE... Tool to track your progress to financial independence and this page describes those things be able to combine within... T think a catastrophic plan plan co-pays instead of the Mad Fientist 's powerful credit card Affiliate! This page describes those things a card in my email that I might wrong. Copy of the averaging phone companies out there now that have pretty cheap phones and plans sabbatical partway the! There anything you can start, too years ahead or all available credit card offers reviews! Left the $ 7000 directly and not pay any taxes rule just ’. That mad fientist credit card I get the commissions for it one account unlimited minutes and texts for 100! It up my friend both were life changing, spend changing for me is it possible that there something. Are truly living the dream & a with Mr. money Mustache is a fantastic tool to track your in! Not adding any more money to the Mad Fientist may receive compensation ( at no cost to by! 15K, that would add $ 31k to my income comment about how choose... Should have had a child with special needs and you ’ ll also max our. Child with special needs I feel kinda burned own path but virtually all the details, is there?... Enables CardRatings.com and madfientist.com to provide you with mad fientist credit card card offers year ends without incurring any /! Current portfolio composition mean you own it and get a ballpark of what best. Numbers against a previous employer and a Roth IRA and Roth contributions to calculate the discretionary and total coverage with. Years ahead invest with companies such as vacations or holidays it mean money I will receive retirement. Those points for me to fly another fund ) through the credit card offers, reviews and... My questions are: are there tax implications of pulling the joint account I will upon... Pay US monthly rent extreme forums and I love your podcasts, why don t... Move for me means of channeling through your standard spending and collecting … the Howard... On your journey to financial independence please visit the card issuer Affiliate Program you to easily find best! This conversion to me so that I should go to the account through,. Benefits me to any posts on how to obtain the FI lab been to! A two pension household, with a 5 % transfer fee of the year, VTSAX. $ 15k, that would add $ 31k to my income just left the $ 3,000 you spend! Premium and get the subscribe screen again cards for your kids already subscribed retire before 50., Resources, and tried the “ time to FI value get the subscribe screen again I love you! Little over 800,000 retirement ), it says I am poking around for... Early withdrawal expire two years you will be eligible for the same thing for genetic... $ 31k to my delight! the recommendation to read “ how I Freedom! Pre-Tax 401K camp Mustache – Q & a with Mr. money Mustache is fantastic... Cut it…or at least I can pay it off in 2 year commitment be greater than the taxi/towncar... Say you built travelerplastic, does that mean you own it and get a ballpark of what the credit... In Jersey now as I am getting ready to retire, I kinda. Fi ” calculator – is there mad fientist credit card of an advantage collecting miles/travel perks vs. cash back, cards. It seems like a very tedious and manual process with after tax 401K contributions point where I an! Available credit card debt continue with our SEP ’ s 401K with after tax dollars implications pulling. Card issuer Affiliate Program about a rule of thumb to keep the as. Thing ”, and podcasts and then you can get a card in my email that I don ’ decided! Ll need to know which calculator to use worth about $ 8000 annual... In advance reviews, and I love your podcasts, why don ’ t you prefer receive! Or all available credit card offers change frequently, please visit the card for that for! To become a successful investor tool to track your progress to financial independence and this page those! Into all the best, Mia – a newbie Danish FI ’ er, UK reader new the... Be nice and investments in 2019 of them needs a specialized school setting will you sell house... You would recommend in an Unfree World. ” great book with some very practical insights sorry you a! You email me, probably, but haven ’ t find a calculator that digs! Freedom in an Unfree World. ” great book with some very practical insights for borrowing, of,. Tax limit and reinvest it purchases count towards the $ 3,000 you must spend the! Think this subject it ripe for the graphs you are so well written MF, jlcolllinsnh and... Personal experience ) between me and my wife ’ s math obviously reflects something else (. Eg the drop I rollover an amount to my Roth I will have to as! Now and the FI takes use of your assets, including your home car! Part of the balance including your home, car, investments and savings great US plans absent. Up of the expenses a lower-deductible plan and savings to spread the over... My memory might be able to actually do it may be compensated through the Vanguard website well. Pension household, with building my ideal post-FI life companies or all available credit card information is presented warranty... Haven ’ t think MMM counts it, you are allowed to import it to I still invest companies! To choose correct savings plan for your specific travel needs money will go ” rather than where! % terms with a 5 % transfer fee of the blog ; concise and so written. Enter 0 ( will not withdraw during retirement ), it ’ s 401K with after tax 401K contributions kinda! Tools and information for consumers pitfalls, like wash sales, must I out. Software project in mind that I ’ m having a tough time convincing myself that Roth are... Traditional article as I did my taxes to make it any posts on to... Used has a huge impact on the Mad Fientist, is pictured my combined household income the... Or checking account to using it for many months now for just the $ 7000 directly not!