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My Path to Financial Independence as a Software Engineer

software.rajivprab.com

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Re: My Path to Financial Independence as a Software Engineer

#171

Post by oblio »

cutler wrote: post #144
darkwater wrote: post #127

Earlier quoted context omitted.

So you have to not enjoy the best years of your life and spend time and energy keeping track of investments to... get bored as hell later because your brain is so used to just work and save and nlt enjoying life that you will feel guilty spending that money? I want to retire at 55 but I'm really skeptical about the FIRE community, especially by the ones in their 20's

Yeah, can't imagine this guy's conversation on a date. Oh, wait - having a partner is an additional expense so out of the question.

Having a partner doesn't have to be an expense.

Living expenses tend to grow slower than incomes, as incomes go up.

You don't pay 200% rent for 2 people, but for sure you can earn 200% with 2 people.

Re: My Path to Financial Independence as a Software Engineer

#172

Post by smileysteve »

anm89 wrote: post #116
supernova87a wrote: post #109

Here's 2 questions for the "FIRE" crowd. 1) To stop working when you hit a certain number seems to me to be falling into the faulty logic illustrated in Freakonomics -- when a taxi driver works every day towards a certain $ figure, he suffers on crappy days (keeps on driving to little benefit) when fares are just not coming, and cuts off his earnings on great days where business is pouring in like crazy. Instead, you…

It only makes sense if youve got something else you want to do. Id venture almost none of the FIRE crowd end up sitting in front of a tv eating microwave dinners for 60 years because they retired. I mean maybe thats what some people want and more power to them but thats not what FIRE is about

> end up sitting in front of a tv eating microwave dinners for 60 years because they retired.

For a 21st century kick, we have superfood protein smoothies now. They're better for you, have less taste, can be consumed on the go, and are better for the environment.

Re: My Path to Financial Independence as a Software Engineer

#174

Post by dogma1138 »

berdario wrote: post #130
mmarq wrote: post #101

Earlier quoted context omitted.

In the UK, the stronger drag on wealth accumulation for the poor is the absurd taxation on the middle incomes (50K+), especially given the very low level of service of public schools, healthcare system, childcare, etc…

Agree that the stronger drag is the cost of childcare, but the poor don't earn 50k+ In fact, if you earn 50k as a single without dependants (or if you are a couple with 2x50k income) you're definitely richer than the majority of folks. Also, the UK tax system is incredibly generous to high income folks: 40k+ tax exempt pension contributions, 20k ISA allowance, 12k cgt allowance. It means that you can accumulate a goo…

You start to lose your income tax allowance at £100K that more than offsets the CGT tax allowance and puts you in a hidden 60% tax rate.

Childcare is expensive as fuck and you lose your childcare allowance at £50K in fact if you share a household with anyone who claims it and you earn more than £50K they’ll deduct that from you…

Living on wealth in the UK is as easy as in the US I would agree to that perhaps even easier since there are no property taxes and probably even more tax schemes to leverage than in the US but getting to that point under PAYE even whilst earning well above the median wage isn’t easy especially if you want to have children and have to live in London for that pay.

The main issue is just how depressed many of the wages in the UK are and thus just how narrow the tax base is.

Re: My Path to Financial Independence as a Software Engineer

#175

Post by zimzam »

supernova87a wrote: post #109

Here's 2 questions for the "FIRE" crowd. 1) To stop working when you hit a certain number seems to me to be falling into the faulty logic illustrated in Freakonomics -- when a taxi driver works every day towards a certain $ figure, he suffers on crappy days (keeps on driving to little benefit) when fares are just not coming, and cuts off his earnings on great days where business is pouring in like crazy. Instead, you…

> don't have a burning desire to sit around with no activities for 5 days a week.

Who said anything about “no activities”? They said they wanted to retire not go to prison.

Re: My Path to Financial Independence as a Software Engineer

#176

Post by WastingMyTime89 »

mgaunard wrote: post #91
Xenoamorphous wrote: post #72

Earlier quoted context omitted.

450k as a team lead? I’ve never heard of that. In itjobswatch.co.uk highest median salary for London is around 200k.

The good jobs aren't going to be advertised on whatever website this is, they use headhunters. Also at this level you enter into a negotiation with the business stakeholders, compensation package is tailored to each profile and opportunity.

I like how people always feel the need to shift a discussion on actual salary that normal people experience to a few job mostly in finance negotiated directly with key stack holders to pretend things are comparable.

Let’s forget that salaries in Europe are ridiculously low to focus on the handful of people who might get an extraordinary position - still paid less than an equivalent one in North America nevertheless - and pretends its doable and everything is fine.

Re: My Path to Financial Independence as a Software Engineer

#177

Post by smileysteve »

Retric wrote: post #7
gmanis wrote: post #3

Very well done. The best part is that a modest 4% return on net worth/investments will yield about 100k a year which is a very good amount for most people.

Living off 4% works in retirement because you can in part live off principle. In early retirement it’s not going to work out nearly as well because you get the reverse of dollar cost averaging, removing money in down markets is more expensive than in good ones. You need either dramatically reduce spending when your portfolio is down or to live well below the expected returns.

But in the Us, you are currently free of 7.5% payroll tax and your income tax caps to 15%. Plus, you no longer need to save 15% of your income for retirement.

The most expensive early retirement tax in the us is health insurance.

Re: My Path to Financial Independence as a Software Engineer

#178

Post by yulaow »

supernova87a wrote: post #109

Here's 2 questions for the "FIRE" crowd. 1) To stop working when you hit a certain number seems to me to be falling into the faulty logic illustrated in Freakonomics -- when a taxi driver works every day towards a certain $ figure, he suffers on crappy days (keeps on driving to little benefit) when fares are just not coming, and cuts off his earnings on great days where business is pouring in like crazy. Instead, you…

I have so many hobbies I could occupy (happily) maybe 10 lifetimes before getting remotely bored. Why spend the only one I have "working" for others?

Re: My Path to Financial Independence as a Software Engineer

#179

Post by charlesdm »

bjornsing wrote: post #51

> Disclaimer: I acknowledge that I’ve been very privileged, especially in the educational opportunities I’ve had. This might sound reasonable from a US-centric perspective, but to me it reads like utter nonsense. The main privilege here is access to the US labor market and tax policy. There are no stories like this one where I live (in Sweden). Absolutely none.

Most self employed in Europe have access to similar tax policies. You could think about and approach things differently to attain a similar result.

I live in Belgium with similar high income tax rates to Sweden, but I know quite a few people that I grew up with who have done very well. Better than his story. All mid 30s and all came from nothing. Even as an employee. No excuses, man.

These stories might not be listed in the newspapers, but that does not mean there are none.

Re: My Path to Financial Independence as a Software Engineer

#180

Post by oblio »

mgaunard wrote: post #91
Xenoamorphous wrote: post #72

Earlier quoted context omitted.

450k as a team lead? I’ve never heard of that. In itjobswatch.co.uk highest median salary for London is around 200k.

The good jobs aren't going to be advertised on whatever website this is, they use headhunters. Also at this level you enter into a negotiation with the business stakeholders, compensation package is tailored to each profile and opportunity.

And this applies to 0.0001% of people, at best, so in practice it's not actually attainable.
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