Did you make any of the same mistakes as we did? More importantly, do you agree that Jason has awful taste in cars? We'd love to hear about your own financial mistakes and the lessons you learned along the way. If you missed part one of this series, you can check it out here: ua-cam.com/video/syAIUE4P-7o/v-deo.html
I would have said Jason has excellent taste in cars with both the tesla and the thunderbird. But I change my vote based on the new evidence of the Saturn.
As much a personal decision, but I would vote for not paying off the mortgage early with such low rates. Unless you have all other tax advantaged savings maxed - IRAs, 401ks, HSAs, 529s (if applicable), etc., I would hold off on extra payments on the principal. Especially if you plan to sell and retire elsewhere.
@@noraz12 Fair enough. It was a practical car for a time when I was trying to maximize my savings rate! It turned out to be a sound financial choice albeit a decidedly non-stylish one. Eric will be pleased with your response. -Jason
@@noraz12 Personally, I could hardly agree more - and as you heard, I'm not paying one cent extra on my mortgage each month. The Money Guy Show is on the same page, as low interest rate debt is the very last category to be addressed in their "Financial Order of Operations" (link below). But they also agree that once you're in your 40s or older, you can make an emotional argument to pay off mortgage debt. www.moneyguy.com/wp-content/uploads/2020/09/FOO-deliverable-4.pdf
What I enjoy about this channel (and the comment section) is showcasing that each FIRE journey is completely different. Some paths are very cost-cutting, others in high-income producing. It's so interesting.
Thanks! We agree with you 100%. Stay tuned for more stories from people on their own FIRE journeys! Reading the comments is one of our favorite things about this show. We learn so much from what people are willing to share.
Fellow Mainer here. Really happy that I came across your page. You all have been so helpful in sharing your stories. I've enjoyed hearing that I'm not alone in many of my decisions, and that there is still light at the end of the tunnel. Thank you so much.
The feeling of 100% debt free has been surprisingly priceless - emotionally. I’ve recommended it many times and everyone whom I suggested it to and have followed through have also been surprised how liberating it was for them too. 👍😎👍
Thanks for sharing, Joel. As he mentioned, Eric certainly felt that way with respect to paying off the mortgage. We are emotional creatures after all, and the knowledge that you're completely debt-free is powerful stuff!
Appreciate y’all’s commentary and life experiences. Lots of channels give advice only and learning about experiences resonates with me more on my FI journey. With big purchases you live and learn and only hope to not repeat if it was a dumb decision.
Thanks, Elizabeth! Many deem it a simple answer (no), but for others, FAs clearly have value. There is certainly merit to the idea of using FAs for specific needs @ hourly consulting basis, even if an AUM approach is not attractive. Like most things, one size definitely does not fit all - and, yesterday's answer may not be the same today - or tomorrow...
Lol. This ep made me laugh! I’m with Jason: I refi our house 30 year low interest mortgage. Using the $ to invest/save for retirement. We know we won’t be in the Bay Area post-retirement. The equity in a few years will be enough to buy a good house somewhere else.
Jason - great story - despite Eric's booing from the cheap seats --- I believe it shows an engineer's recognition of downstream / interacting effects that make the series of choices "mistakes" --- every manufacturing snafu i ever saw was not a single error - but became a mistake by other decisions, usually made not even by the same person (see family in this context) that snowballed. nice ... subtle ..... PS - Jason - great taste in cars - got a great deal in 2009 when nobody was buying cars - for a Prius ; after I had been driving a $2500 (bought off a friend's fleet) Mercury Sable for 10years 😃 PPS - i'm (way) over 45 and I will be finishing off a small mortgage 5 years early just because i want to - Money Guys are correct -- i like the idea of the cashflow and will have enough to do what i want at that point.
Just wanted to show some appreciation and gratitude for providing excellent quality videos and resources with reaching and maintaining FI. I've learned a lot from your videos and resources (helpful blog links, rebalancing tool, discussing items to consider) that I wouldn't normally thought about in the subsequent future, or known to look for on the internet. I find the down-to-earth style approach (instead of a formal advisor-like discussion) and hearing about the peaks and valleys encountered throughout your guys' financial journey, both enriching and entertaining. Look forward to watching more of your videos (also they have good rewatch value too IMO).
We also paid off our very-low interest mortgage in March 2020. Although the math may not have made sense (vs. investing the money), the peace of mind over the last few years made it worthwhile. Luckily I also maxed out my annual 401k contributions that same week at the bottom of the market. No regrets..
Tesla statistically is the safest car in the world. Most cost effective when you take into account cost of maintenance and gas etc. on top of that they hold there value better than any other car manufacturer. He bought a jeep, ever middle aged man in America ether owns a jeep or a truck…
..... so between the 4th stage and 5th stages of wealth the navigation blind spot is not to get out 'the money gun and start spewing it around' .... LOL .... glad I watched the trailer! I just found your channel and will have to go back and binge watch some ideas about decumulation and how to work with financial planners. Until i 'was retired' from my 2nd to last job i did a complete DIY self-directed portfolio up to 5 years ago. Since then and going into next year I think my advisors have kept me a lot more risk-adjusted given my return orientation - and i will keep the blanket handy for one more year. Any thoughts on going to a fee-based vs AUM financial advisory firm? Great channel !!
Jason here - Hi Kevin, thanks for the comments. So glad you found us! At the time in my life when I signed up with them, an AUM advisor was a great fit. I had some financial complexity to deal with and they were great with that. And given the pace of work I was in at the time, I knew it was unrealistic for me to be in a lead role w.r.t. my portfolio. So AUM was great in terms of the easy access I had to regular consulting. But for someone much more engaged in their finances and certainly for someone with simpler portfolio needs, hourly/fee-based (fiduciary, of course) financial planning will often be a better fit. It's also true that you need to model out your money needs. If you're in a position such that the typical ~1% AUM fees would be so detrimental to your portfolio vs. your anticipated expenses, that option wouldn't make any sense. It's a very individual decision despite the groupthink you often find online that suggests there's never a time where a financial planner makes sense.
I was young and got out of stocks in my 401k after the dot com bust....the good part is that I didn't have my account drop in 2008 financial mess. I slowly increased my exposure to the stock market though after that, but I think if I just kept investing through thick and thin in index funds I would have a lot more than I do now.
Eric - that loan forgiveness boondogle was a terrible bait/switch to non-program loan servicers ---- it was a huge thing showing the power of banks etc..... hope it is implemeted properly so a DeVos type Dept of Education administrator can't cotinue the mismanagement.
As touched on in your final comments, would be interesting to hear your thoughts on how you envisage feeling as the money runs out towards the 'end'......like if you make it to the "worst-case" 50 years EITHER with a ton of money left, or nothing at 80
That’s a great question! My thought is that based on the modeling I’ve done, I should see a harbinger of either extreme in advance. My actions would of course differ based on which! I imagine I’ll feel rather concerned if it’s the bad case and will need to make adjustments to spending / income to manage that. On the other hand, I’d love to have the “problem” of heading towards the high end of possibilities! I’d look forward to setting up charitable donations and familial giving in that case, for sure. -Jason
@@TwoSidesOfFI have you seen any modeling software or library which takes into account your 'success rate' if you course-check/correct a withdrawal rate (not a static SWR) at particular points in time or using other portfolio decision rules. I would think someone would have had to integrate perhaps a bayesian calculation in the financial model literature -- but have not seen it even in Guyton's articles. PS don't you think that usually the 'problem' is heading towards the higher end of life balances - can always set up a DAF or something ....
@@kevinkanter2537 Jason here - cFIREsim allows you to select from quite a few WR scenarios, including those with course correction. And yes, I agree -and that 's a great problem to have. Fully agree on the value of DAF and other charitable giving. Thanks for the comment!
Jason here - RAV4 Hybrid. It was for a variety of reasons, not the least of which was really low inventory in CA and price gouging. The TM3 is still our main car but the RAV4 has been great for back roads trips, Hone Depot runs, and when 4WD was needed. Prime is a great car though!
Those are rookie numbers. You guys need to work harder on your mistakes! 😂. I lost 800k GBP (about $1m USD)… drum roll… loaning money to family… would have thought those old sayings like “don’t loan money to family and friends” actually exist for a reason! Expensive lesson. After burning another 100k on legal fees to bankrupt the thieves, I’ll be lucky to get about 3p in the pound. I had already semi retired, so this forced me back to work for the past 5 years… I’m about to escape the rat race again imminently at 43, so not the end of the world, but a diversion I would rather not have had!
Wow! Yes, I recall one of my former work colleagues from Singapore explaining to me how much licensure and vehicles cost there. Big difference for sure! -Jason
Forget about Long term care - People who enter long term care live miserably and die. Who came up with this idea of extending a miserable existence unnaturally and expensively. I plan to stop seeing the doctor after I turn 70 and not bother about unnatural treatments
Did you make any of the same mistakes as we did? More importantly, do you agree that Jason has awful taste in cars? We'd love to hear about your own financial mistakes and the lessons you learned along the way. If you missed part one of this series, you can check it out here: ua-cam.com/video/syAIUE4P-7o/v-deo.html
I would have said Jason has excellent taste in cars with both the tesla and the thunderbird. But I change my vote based on the new evidence of the Saturn.
As much a personal decision, but I would vote for not paying off the mortgage early with such low rates. Unless you have all other tax advantaged savings maxed - IRAs, 401ks, HSAs, 529s (if applicable), etc., I would hold off on extra payments on the principal. Especially if you plan to sell and retire elsewhere.
@@noraz12 Fair enough. It was a practical car for a time when I was trying to maximize my savings rate! It turned out to be a sound financial choice albeit a decidedly non-stylish one. Eric will be pleased with your response. -Jason
@@noraz12 Personally, I could hardly agree more - and as you heard, I'm not paying one cent extra on my mortgage each month. The Money Guy Show is on the same page, as low interest rate debt is the very last category to be addressed in their "Financial Order of Operations" (link below). But they also agree that once you're in your 40s or older, you can make an emotional argument to pay off mortgage debt.
www.moneyguy.com/wp-content/uploads/2020/09/FOO-deliverable-4.pdf
@TwoSidesOfFi is it better to lease or buy vehicles? sounds like you provided additional info regarding the vehicle weight.
What I enjoy about this channel (and the comment section) is showcasing that each FIRE journey is completely different. Some paths are very cost-cutting, others in high-income producing. It's so interesting.
Thanks! We agree with you 100%. Stay tuned for more stories from people on their own FIRE journeys! Reading the comments is one of our favorite things about this show. We learn so much from what people are willing to share.
Fellow Mainer here. Really happy that I came across your page. You all have been so helpful in sharing your stories. I've enjoyed hearing that I'm not alone in many of my decisions, and that there is still light at the end of the tunnel. Thank you so much.
Thanks for the kind words, Danielle. We really appreciate your support!
The feeling of 100% debt free has been surprisingly priceless - emotionally. I’ve recommended it many times and everyone whom I suggested it to and have followed through have also been surprised how liberating it was for them too. 👍😎👍
Thanks for sharing, Joel. As he mentioned, Eric certainly felt that way with respect to paying off the mortgage. We are emotional creatures after all, and the knowledge that you're completely debt-free is powerful stuff!
@@TwoSidesOfFI But it is not just emotional. When our department got laid off from Siemens, it was a huge benefit not having to pay the mortgage.
Appreciate y’all’s commentary and life experiences. Lots of channels give advice only and learning about experiences resonates with me more on my FI journey. With big purchases you live and learn and only hope to not repeat if it was a dumb decision.
Thanks, Matthew! So glad to learn that you're enjoying the channel. We appreciate your support.
Great content. I like the discussion around having a financial advisor vs not having one. Very informative.
Thanks, Elizabeth! Many deem it a simple answer (no), but for others, FAs clearly have value. There is certainly merit to the idea of using FAs for specific needs @ hourly consulting basis, even if an AUM approach is not attractive. Like most things, one size definitely does not fit all - and, yesterday's answer may not be the same today - or tomorrow...
I’m enjoying your shows. It is funny how I relate to both of you in different ways. Keep up the conversations!
Lol. This ep made me laugh! I’m with Jason: I refi our house 30 year low interest mortgage. Using the $ to invest/save for retirement. We know we won’t be in the Bay Area post-retirement. The equity in a few years will be enough to buy a good house somewhere else.
What can you invest in safely that is > than the mortgage interest (2-3%) yet < than risky stock (7-10%)?
Jason - great story - despite Eric's booing from the cheap seats --- I believe it shows an engineer's recognition of downstream / interacting effects that make the series of choices "mistakes" --- every manufacturing snafu i ever saw was not a single error - but became a mistake by other decisions, usually made not even by the same person (see family in this context) that snowballed. nice ... subtle .....
PS - Jason - great taste in cars - got a great deal in 2009 when nobody was buying cars - for a Prius ; after I had been driving a $2500 (bought off a friend's fleet) Mercury Sable for 10years 😃
PPS - i'm (way) over 45 and I will be finishing off a small mortgage 5 years early just because i want to - Money Guys are correct -- i like the idea of the cashflow and will have enough to do what i want at that point.
yes, I'm going backwards and watching videos and Eric does come across as shady sometimes lol
LTC worst case plan is to use the sale of the home to fully fund those end days.
Just wanted to show some appreciation and gratitude for providing excellent quality videos and resources with reaching and maintaining FI.
I've learned a lot from your videos and resources (helpful blog links, rebalancing tool, discussing items to consider) that I wouldn't normally thought about in the subsequent future, or known to look for on the internet. I find the down-to-earth style approach (instead of a formal advisor-like discussion) and hearing about the peaks and valleys encountered throughout your guys' financial journey, both enriching and entertaining. Look forward to watching more of your videos (also they have good rewatch value too IMO).
Cheers, we really appreciate the kind words + generous show of support!
Many thanks...Eric + Jason
We also paid off our very-low interest mortgage in March 2020. Although the math may not have made sense (vs. investing the money), the peace of mind over the last few years made it worthwhile. Luckily I also maxed out my annual 401k contributions that same week at the bottom of the market. No regrets..
Peace of mind is worth a lot, isn’t it?
It does feel good to pay off mortgage!
Saturns were amazing. I miss those cars.
Tesla statistically is the safest car in the world. Most cost effective when you take into account cost of maintenance and gas etc. on top of that they hold there value better than any other car manufacturer. He bought a jeep, ever middle aged man in America ether owns a jeep or a truck…
Excellent point
..... so between the 4th stage and 5th stages of wealth the navigation blind spot is not to get out 'the money gun and start spewing it around' .... LOL .... glad I watched the trailer! I just found your channel and will have to go back and binge watch some ideas about decumulation and how to work with financial planners. Until i 'was retired' from my 2nd to last job i did a complete DIY self-directed portfolio up to 5 years ago. Since then and going into next year I think my advisors have kept me a lot more risk-adjusted given my return orientation - and i will keep the blanket handy for one more year. Any thoughts on going to a fee-based vs AUM financial advisory firm?
Great channel !!
Jason here - Hi Kevin, thanks for the comments. So glad you found us! At the time in my life when I signed up with them, an AUM advisor was a great fit. I had some financial complexity to deal with and they were great with that. And given the pace of work I was in at the time, I knew it was unrealistic for me to be in a lead role w.r.t. my portfolio. So AUM was great in terms of the easy access I had to regular consulting. But for someone much more engaged in their finances and certainly for someone with simpler portfolio needs, hourly/fee-based (fiduciary, of course) financial planning will often be a better fit. It's also true that you need to model out your money needs. If you're in a position such that the typical ~1% AUM fees would be so detrimental to your portfolio vs. your anticipated expenses, that option wouldn't make any sense. It's a very individual decision despite the groupthink you often find online that suggests there's never a time where a financial planner makes sense.
Great content. Keep them coming.
I was young and got out of stocks in my 401k after the dot com bust....the good part is that I didn't have my account drop in 2008 financial mess. I slowly increased my exposure to the stock market though after that, but I think if I just kept investing through thick and thin in index funds I would have a lot more than I do now.
Eric - that loan forgiveness boondogle was a terrible bait/switch to non-program loan servicers ---- it was a huge thing showing the power of banks etc..... hope it is implemeted properly so a DeVos type Dept of Education administrator can't cotinue the mismanagement.
As touched on in your final comments, would be interesting to hear your thoughts on how you envisage feeling as the money runs out towards the 'end'......like if you make it to the "worst-case" 50 years EITHER with a ton of money left, or nothing at 80
That’s a great question! My thought is that based on the modeling I’ve done, I should see a harbinger of either extreme in advance. My actions would of course differ based on which! I imagine I’ll feel rather concerned if it’s the bad case and will need to make adjustments to spending / income to manage that. On the other hand, I’d love to have the “problem” of heading towards the high end of possibilities! I’d look forward to setting up charitable donations and familial giving in that case, for sure. -Jason
@@TwoSidesOfFI have you seen any modeling software or library which takes into account your 'success rate' if you course-check/correct a withdrawal rate (not a static SWR) at particular points in time or using other portfolio decision rules. I would think someone would have had to integrate perhaps a bayesian calculation in the financial model literature -- but have not seen it even in Guyton's articles.
PS don't you think that usually the 'problem' is heading towards the higher end of life balances - can always set up a DAF or something ....
@@kevinkanter2537 Jason here - cFIREsim allows you to select from quite a few WR scenarios, including those with course correction. And yes, I agree -and that 's a great problem to have. Fully agree on the value of DAF and other charitable giving. Thanks for the comment!
Jason, did you buy the RAV4 Prime or the RAV4 hybrid non plug-in?
Jason here - RAV4 Hybrid. It was for a variety of reasons, not the least of which was really low inventory in CA and price gouging. The TM3 is still our main car but the RAV4 has been great for back roads trips, Hone Depot runs, and when 4WD was needed. Prime is a great car though!
I love this channel ❤️
Thanks!
loving your content!
We actually ran a profit on our wedding.
Well done, Robert!
Those are rookie numbers. You guys need to work harder on your mistakes! 😂. I lost 800k GBP (about $1m USD)… drum roll… loaning money to family… would have thought those old sayings like “don’t loan money to family and friends” actually exist for a reason! Expensive lesson. After burning another 100k on legal fees to bankrupt the thieves, I’ll be lucky to get about 3p in the pound. I had already semi retired, so this forced me back to work for the past 5 years… I’m about to escape the rat race again imminently at 43, so not the end of the world, but a diversion I would rather not have had!
Wow. So sorry to hear you went through that but so glad you’re nearly out the other side! Thanks for sharing and best wishes to you in all things.
@@TwoSidesOfFI some of us like to learn our lessons the hard way… 😁
Saturn #1
that jeep would cost USD200,000 in singapore!
Wow! Yes, I recall one of my former work colleagues from Singapore explaining to me how much licensure and vehicles cost there. Big difference for sure!
-Jason
Forget about Long term care - People who enter long term care live miserably and die. Who came up with this idea of extending a miserable existence unnaturally and expensively. I plan to stop seeing the doctor after I turn 70 and not bother about unnatural treatments