Financial Independence Thread

[confettiflyer]

What if you stop paying for your timeshare? Do they use your house for collateral like a HELOC?

The timeshare will foreclose just like any other deeded property. State law will dictate if a deficiency judgement is allowed. In FL, not allowed. In CA, it’s a one-action state so a lender has to choose non-judicial (fast, but no deficiency judgement) or judicial foreclosure (takes forever, but you can peruse deficiency).

Credit will be trashed and listed as a foreclosure.

This is why you see lots of $1 timeshares on eBay or timeshare swapping sites.

You can actually buy foreclosing timeshares at auction in FL online. Kinda neat (never done it).

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[RXDOC1986]

The timeshare will foreclose just like any other deeded property. State law will dictate if a deficiency judgement is allowed. In FL, not allowed. In CA, it’s a one-action state so a lender has to choose non-judicial (fast, but no deficiency judgement) or judicial foreclosure (takes forever, but you can peruse deficiency).

Credit will be trashed and listed as a foreclosure.

This is why you see lots of $1 timeshares on eBay or timeshare swapping sites.

You can actually buy foreclosing timeshares at auction in FL online. Kinda neat (never done it).

Time share is definitely a scam, now it's called fractional ownership or Vacation Point System. We have been to several timeshare 3-hour hard sells, never bought in.
But, here is a positive timeshare story, My mom and dad visited THE timeshare capital of the eastern seaboard, Myrtle Beach, and purchased a two week June stay back in 1985. That is where we would meet up every summer, me and my kids. my sister and her kids. Every June for 25-30 years, until my dad passed away in 2019. Wonderful memories, with family. The timeshare is still there, we can't sell it, don't want to go there without dad, and Myrtle Beach is a dump. Every June we get a statement, we now owe a few Thousand dollars in fees, for a place my parents paid $10,000 for in 1985 dollars. My parents (my mom now) will probably owe thousands of dollars in fees as the years go by.

 

[mentos]

Time share is definitely a scam, now it's called fractional ownership or Vacation Point System. We have been to several timeshare 3-hour hard sells, never bought in.
But, here is a positive timeshare story, My mom and dad visited THE timeshare capital of the eastern seaboard, Myrtle Beach, and purchased a two week June stay back in 1985. That is where we would meet up every summer, me and my kids. my sister and her kids. Every June for 25-30 years, until my dad passed away in 2019. Wonderful memories, with family. The timeshare is still there, we can't sell it, don't want to go there without dad, and Myrtle Beach is a dump. Every June we get a statement, we now owe a few Thousand dollars in fees, for a place my parents paid $10,000 for in 1985 dollars. My parents (my mom now) will probably owe thousands of dollars in fees as the years go by.

3 hours omg. We went to a one hour time share presentation for free tickets to a snorkeling activity. It wasn't worth it at all. I'm never wasting my time again with those. The saleslady was pissed that we didn't buy. She had the biggest rock on her finger I've ever seen.

 

[RXDOC1986]

3 hours omg. We went to a one hour time share presentation for free tickets to a snorkeling activity. It wasn't worth it at all. I'm never wasting my time again with those. The saleslady was pissed that we didn't buy. She had the biggest rock on her finger I've ever seen.

Yes, 3 hours +, but it was for a 2 BR villa at Marriot Resorts near Disney World, for 2 nights. They ask you to bring credit cards and checkbooks. They are true professionals, start off slow and relaxed. Then they tag team you, two then three people. They are entertaining and comical, if you are strong willed and unyielding. I whip out my watch, set a timer for 3 hours, inform them right off, I am never going to buy a timeshare. They then put on a show, there are drinks and snacks. After hour 3, they are exhausted. I never lead them on, keep telling them I will never buy!
Hey it's a $250/night villa, you make it work.

 

[confettiflyer]

Yeah, I hear these timeshare presentation horror stories and I thank my lucky stars I’ve never gone through one. Yeeks.

 

[Dred Pirate]

Yes, 3 hours +, but it was for a 2 BR villa at Marriot Resorts near Disney World, for 2 nights. They ask you to bring credit cards and checkbooks. They are true professionals, start off slow and relaxed. Then they tag team you, two then three people. They are entertaining and comical, if you are strong willed and unyielding. I whip out my watch, set a timer for 3 hours, inform them right off, I am never going to buy a timeshare. They then put on a show, there are drinks and snacks. After hour 3, they are exhausted. I never lead them on, keep telling them I will never buy!
Hey it's a $250/night villa, you make it work.

I did something similiar in Vegas - 3 nights at Hilton Grand Vacations -I paid $199 and also got a $50 Hilton gift card - so out $150 for three nights. I didn't set my watch (I love that idea) but straight up told him that I have zero interest in buying and it is up to him if he wants to waste my time. He was a nice dude and was like "I get it, let me have you talk to my buddy" - I am pretty sure that was his way of dumping me bc he knew the end result. Told this gut the same thing - I actually got to leave a little early (like 80 min instead of 90). That being said, one of my friends has like 4 time shares - I have used them a couple of times for a cheap transfer fee bc he knows he can't use them all.

and yes PS- Dirty Myrtle is a dump.

 

[Dred Pirate]

So just to clarify: when you’re on vacation/traveling, do you?

1.) grocery shop and cook your own meals?
2.) dine out at local restaurants and experience the food and culture?
3.) dine out at cheaper/generic restaurants (ex: fast food, chains)?

I rarely eat out when I’m “home”. But when I’m traveling, my behavior is totally different.

for me it depends. Usually we are more of a adventure type travelor vs the all inclusive.
Local Beach trip
1. I make breakfast in the condo
2. Simple lunch (sandwiches or leftovers)
3. Out of supper

Travel to the Carribbean or Europe
1. Light breakfast at hotel I make or they have
2. Lunch - something quick and simple and cheap - it is functional, not an "experience"
3. Dinner - sit down dinner someplace on the nicer side, but never extravagant

 

[sunnyandseventytwo]

for me it depends. Usually we are more of a adventure type travelor vs the all inclusive.
Local Beach trip
1. I make breakfast in the condo
2. Simple lunch (sandwiches or leftovers)
3. Out of supper

Travel to the Carribbean or Europe
1. Light breakfast at hotel I make or they have
2. Lunch - something quick and simple and cheap - it is functional, not an "experience"
3. Dinner - sit down dinner someplace on the nicer side, but never extravagant

I would lose 20 pounds if we travelled together.

 

[grizzlesgrizzlies]

You must be a youngster.
Hey, it was sort of like Golden Corral, but not as elegant! The cheapest steak/buffet you could find.

Golden Corral is more elegant than the Sizzler? Yikes maybe I'm glad I never went to one

 

[RXDOC1986]

Golden Corral is more elegant than the Sizzler? Yikes maybe I'm glad I never went to one

Hey, I was a newlywed, finishing P4 year, with a bank balance of $18, making $4.25 / hr at the VA, Sizzler was the place to go!

 

[libra08]

It is too late for the new grads to find financial independence but if you had graduated between 2008-2012 and with little debt, you were given a golden ticket to true financial independence. Assets from real estate to stock were dirt cheap. The Fed was pumping out money left and right to stabilize and then grow the economy. The more risk you took, the more money you would have made. But those days are long gone. The money printing machine has finally ran out of ink. Now money can’t be printed without inflation.

 

[Z-Qualizer]

… Now money can’t be printed without inflation.

Yeah true, but they’ll still do it. They’re just taking a break right now. You’ll see.

 

[libra08]

Yeah true, but they’ll still do it. They’re just taking a break right now. You’ll see.

100%. During the “good times” companies like CVS were borrowing money left and right. Commercial real estate was doing the same. They took out variable loans and now they can’t refinance as planned because interest rate is at 22 year high.

How about all of these banks that gave out 30 year mortgage at 2.75%? These loans are underwater.

The Fed will eventually have to choose - inflation or companies and banks filing for bankruptcy? I believe they will choose the former.

 

[storyhill2]

How far are you from reaching financial independence? Meaning the point where you can do without working if you don’t want to.

I am in mid-thirties and if I can keep my current job for next 15 years; I should be able to retire (around age of 50).

Now it won’t be luxurious retirement by any means. But it will be comfortable enough where I can maintain my current lifestyle.

How far are you from meeting your financial go

Just crossed $1 mil at 40. Going until I'm at $3 mil.

is that your retirement account at 1 million? That's great. I'm 41 and just hit 1 million net worth. Retirement is 400k of that.

 

[lord999]

I always find it interesting that most of the people I know who could easily retire, spend at their usual rates, and not run out of money choose not to do so. Selection bias, yes, but also the same habits that got them in that position usually are circumstances that are habitually sustainable.

I’ll never stop working. But someday, I’d like to work down the street here if I could do it without crunch. I would like an occupational hobby.

Functional Game Tester Job - Activision

Activision - Functional Game Tester

www.leaderboardjobs.com

 

[mentos]

It is too late for the new grads to find financial independence but if you had graduated between 2008-2012 and with little debt, you were given a golden ticket to true financial independence. Assets from real estate to stock were dirt cheap. The Fed was pumping out money left and right to stabilize and then grow the economy. The more risk you took, the more money you would have made. But those days are long gone. The money printing machine has finally ran out of ink. Now money can’t be printed without inflation.

This BMB??

 

[libra08]

This BMB??

BMB to you too, buddy.

 

[Splenda88]

It is too late for the new grads to find financial independence but if you had graduated between 2008-2012 and with little debt, you were given a golden ticket to true financial independence. Assets from real estate to stock were dirt cheap. The Fed was pumping out money left and right to stabilize and then grow the economy. The more risk you took, the more money you would have made. But those days are long gone. The money printing machine has finally ran out of ink. Now money can’t be printed without inflation.

We will never have those days again.

 

[mentos]

BMB to you too, buddy.

Welcome back. Did you ever sell your NIO?

 

[libra08]

Welcome back. Did you ever sell your NIO?

What nio?

 

[libra08]

We will never have those days again.

Long gone…out of everyone I know only my classmate, my sibling and I took advantage of cheap asset prices

 

[Splenda88]

Long gone…out of everyone I know only my classmate, my sibling and I took advantage of cheap asset prices

My cousin took advantage and has retired since then. Paid cash (~300k) for 3 houses in south FL and has been living off the rent proceed since 2009.

I am always amazed when physicians in SDN are saying 2 mil plus a paid off house is not enough to retire when I know people who retire with much less.

I am just hoping something similar will happen in 2024/25 with interest rate being that high.

 

[libra08]

My cousin took advantage and has retired since then. Paid cash (~300k) for 3 houses in south FL and has been living off the rent proceed since 2009.

I am always amazed when physicians in SDN are saying 2 mil plus a paid off house is not enough to retire when I know people who retire with much less.

I am just hoping something similar will happen in 2024/25 with interest rate being that high.

It is never enough but when you get older time is more precious

 

[mentos]

What nio?

Come on man we all know it's you, no need to pretend.

 

[libra08]

Come on man we all know it's you, no need to pretend.

Okay?

 

[Sparda29]

My cousin took advantage and has retired since then. Paid cash (~300k) for 3 houses in south FL and has been living off the rent proceed since 2009.

I am always amazed when physicians in SDN are saying 2 mil plus a paid off house is not enough to retire when I know people who retire with much less.

I am just hoping something similar will happen in 2024/25 with interest rate being that high.

$2 million over how much time? Over 50 years? Leaves a budget of about 40k a year. Can someone retire off that? Yeah, but it's not gonna be the type of retirement where you are travelling 12 times a year and travelling in first class and staying at 5 star hotels.

 

[mentos]

$2 million over how much time? Over 50 years? Leaves a budget of about 40k a year. Can someone retire off that? Yeah, but it's not gonna be the type of retirement where you are travelling 12 times a year and travelling in first class and staying at 5 star hotels.

I would hope that $2mil earns more than $0/year for 50 years.

 

[PharmtoCS]

$2 million leaves you $80,000/year with a 4% withdrawal rate. Not a bad amount, but still LeanFIRE if you plan to live in a high cost of living area.

 

[Splenda88]

$2 million over how much time? Over 50 years? Leaves a budget of about 40k a year. Can someone retire off that? Yeah, but it's not gonna be the type of retirement where you are travelling 12 times a year and travelling in first class and staying at 5 star hotels.

It's 80k/yr with 4% withdrawal rate. Without a house payment, that plenty of money.

 

[libra08]

$2 million over how much time? Over 50 years? Leaves a budget of about 40k a year. Can someone retire off that? Yeah, but it's not gonna be the type of retirement where you are travelling 12 times a year and travelling in first class and staying at 5 star hotels.

Even $40 k a year….you get to retire and enjoy life at a young age.

 

[Splenda88]

I’m trying to build a dividend portfolio. Goal is to take home 100k/year from dividends in next 10 years, then retire and work small amount.

JEPI. ~10% rate.

My friend has been collecting nice dividend with JEPI.

 

[Sparda29]

Even $40 k a year….you get to retire and enjoy life at a young age.

Is the home already paid off or are you not accounting for that? Leaves no budget for nice vacations, high end cars, etc.

 

[libra08]

Is the home already paid off or are you not accounting for that? Leaves no budget for nice vacations, high end cars, etc.

Already paid off.

Some people need to go on a vacation because they are so stressed out from work. If they don’t have to work, then they don’t need a stress reliever. They get to enjoy the simpler things in life.

 

[Sparda29]

Already paid off.

Some people need to go on a vacation because they are so stressed out from work. If they don’t have to work, then they don’t need a stress reliever. They get to enjoy the simpler things in life.

And some people need to go on vacation because they want to see the whole world.

 

[libra08]

And some people need to go on vacation because they want to see the whole world.

You can live comfortably in most places around the world on $40 k/year.

The median salary is only $54 k and after taxes, it is around $40 k. You can’t live on $40 k even after paying off your house?

 

[mentos]

You can live comfortably in most places around the world on $40 k/year.

The median salary is only $54 k and after taxes, it is around $40 k. You can’t live on $40 k even after paying off your house?

He lives in NYC.

 

[libra08]

He lives in NYC.

That means he would have already fully paid off his expensive NYC home

 

[libra08]

40k is not much for two people. Especially when they are used to living off of 300k+ assuming two spouses making pharmacist money.

$40 k for one

 

[mentos]

That means he would have already fully paid off his expensive NYC home

25% of the 40k would still go to property taxes, insurance, utilities, maintenance etc.

The property taxes for this modest house were $8100 in 2020. Don't know how much it is now but it goes up every year.

8206 10th Ave, Brooklyn, NY 11228 | Zillow

8206 10th Ave, Brooklyn NY, is a Single Family home that contains 1376 sq ft and was built in 1925.It contains 3 bedrooms and 2 bathrooms.This home last sold for $1,035,000 in December 2023. The Zestimate for this Single Family is $1,038,100, which has decreased by $6,297 in the last 30...

www.zillow.com

 

[Sparda29]

You can live comfortably in most places around the world on $40 k/year.

The median salary is only $54 k and after taxes, it is around $40 k. You can’t live on $40 k even after paying off your house?

Not if I include vacations. Business class airfare for 2 adults, 3 kids, and nice hotels are expensive. Also property taxes (assuming house is paid off), Long Island has some of the highest property tax rates in the country.

53 Colony Lane, Syosset, NY 11791 | Zillow

53 Colony Lane, Syosset NY, is a Single Family home that contains 3016 sq ft and was built in 1955.It contains 6 bedrooms and 4 bathrooms.This home last sold for $1,190,000 in December 2023. The Zestimate for this Single Family is $1,219,400, which has increased by $14,610 in the last 30...

www.zillow.com

Taxes $15000 in 2021.

 

[Sparda29]

He lives in NYC.

Long Island, taxes are even higher.

 

[libra08]

Not if I include vacations. Business class airfare for 2 adults, 3 kids, and nice hotels are expensive. Also property taxes (assuming house is paid off), Long Island has some of the highest property tax rates in the country.

53 Colony Lane, Syosset, NY 11791 | Zillow

53 Colony Lane, Syosset NY, is a Single Family home that contains 3016 sq ft and was built in 1955.It contains 6 bedrooms and 4 bathrooms.This home last sold for $1,190,000 in December 2023. The Zestimate for this Single Family is $1,219,400, which has increased by $14,610 in the last 30...

www.zillow.com

Taxes $15000 in 2021.

Sell the $1.2m house so that is $3.2m…$3.2m x 2 = $6.4m for two. You can then travel the world and stay at expensive hotels

 

[Splenda88]

I will live in TX

1922 Kessler Point Pl #TJGL73, Katy, TX 77493 | Zillow

1922 Kessler Point Pl #tjgl73, Katy TX, is a Single Family home that contains 3625 sq ft and was built in 2023.It contains 5 bedrooms and 5 bathrooms. The Zestimate for this Single Family is $609,900, which has decreased by $2,487 in the last 30 days.The Rent Zestimate for this Single Family...

www.zillow.com

 

[RxPreceptor]

Already paid off.

Some people need to go on a vacation because they are so stressed out from work. If they don’t have to work, then they don’t need a stress reliever. They get to enjoy the simpler things in life.

And some people need to go on vacation because they want to see the whole world.

I’m pretty sure this is a want and not a need…EnGliSh

plenty of budget friendly ways to blow off stress, learn self/enlightenment (whatever the hell you choose to call it)

 

[Sparda29]

I will live in TX

1922 Kessler Point Pl #TJGL73, Katy, TX 77493 | Zillow

1922 Kessler Point Pl #tjgl73, Katy TX, is a Single Family home that contains 3625 sq ft and was built in 2023.It contains 5 bedrooms and 5 bathrooms. The Zestimate for this Single Family is $609,900, which has decreased by $2,487 in the last 30 days.The Rent Zestimate for this Single Family...

www.zillow.com

Skip biz class man

No other way to travel on long flights. It's not worth it on flights shorter than 5-6 hours. But if you're planning on going somewhere like Dubai, Singapore, Japan, etc, save up for business class.

 

[PharmtoCS]

There are much cheaper ways to vacation. You could go on a road trip or camping, or take a flight to Latin America where you don’t necessarily have to stay in an all-inclusive resort.

 

[mentos]

No other way to travel on long flights. It's not worth it on flights shorter than 5-6 hours. But if you're planning on going somewhere like Dubai, Singapore, Japan, etc, save up for business class.

You need to start signing up for credit card bonuses. I haven't paid for a flight in like 15 years.

 

[Sparda29]

You need to start signing up for credit card bonuses. I haven't paid for a flight in like 15 years.

I did. Just got Amex Platinum and Gold last month. Wife has Chase Sapphire, I also got the Emirates Skywards card, Alaska Airlines, and Citi American Airlines card.

Even with all the points, I don't think it's enough for 2 adults and 3 kids.

I found some issues when trying to use the points. I don't think it's possible to merge the points all together. And also, some fares are not eligible for booking via points.

The last trip I booked was via Qatar Airways. Even though they are part of the same group as Alaska Airlines and American Airlines, I couldn't use my points on Qatars website, it forces you to book via American or Alaska however there are dates that you cannot book.

 

[Splenda88]

These numbers are eye opening.

One needs to have a net worth of only 1.03M to be in the top 5%. That seems to be low.

A huge gap between the top 1% and the top 2%.

Are You Rich? U.S. Wealth Percentiles Might Provide Answers

See the U.S. wealth percentiles and what Americans think is the magic number for them to be considered rich in 2023.

www.kiplinger.com

 

[mentos]

These numbers are eye opening.

One needs to have a net worth of only 1.03M to be in the top 5%. That seems to be low.

A huge gap between the top 1% and the top 2%.

Are You Rich? U.S. Wealth Percentiles Might Provide Answers

See the U.S. wealth percentiles and what Americans think is the magic number for them to be considered rich in 2023.

www.kiplinger.com

That doesn't surprise me considering the average American can't cover a $400 emergency. It takes discipline to save up $1mil.