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Would you continue working if you were a millionaire? If you had enough in your retirement/brokerage accounts to live comfortable in “barista FI?”
Adam from Minafi.com joins us on the podcast today to dive heavily and nerdily into saving for financial independence.
Adam is a developer, FIRE blogger, Dance Dance Revolution pro, and brokerage account guru (the good kind of guru). We chat about…
- “Millennials” vs “Gen X” vs “Generation C”
- How traveling around Florida playing DDR led Adam to his current career
- Withdrawal Rate 101
- How to avoid taxes/fees!
- “Letting Loose” with cryptocurrency investing 🙂
- and more…
Adam has a wonderful blog, and is incredibly knowledgable when it comes to FIRE. Enjoy this episode!
One more thing first…
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Additional, you should probably join us in the FIRE Drill Community private Facebook group. Because, well, it’s awesome. And we talk money. And travel. And independence.
Show notes and links from today’s episode
- On Trajectory -> Today’s wonderful sponsor and awesome personal finance check-in tool 🙂
- Adam’s FIRE blog: Minafi.com
- Adam’s Q3 Investment Report:
- DDR! (woot woot!)
- Generation C
- Fat FIRE? Makin’ sweet income in retirement.
- Vanguard
- Go Curry Cracker
Key takeaways from our chat with Adam from Minafi!
Hold on to your pajamas, we DID talk about a whole lot of super nerdy personal-finance FI enthusiast lingo in this episode…including advanced tax strategies between IRA/401k and brokerage accounts, etc.
1 – Tax loss harvesting in one sentence
“When you lose money, you realize the losses on your taxes and that helps you in the future when you gain money to offset that.” – Millennial Boss
It’s not the simplest of financial concepts, so J thought it apt to include a “nutshell” explanation for newbies, etc.
Example 1:
- One of your investments loses $5,000 in the market this year.
- You decide to sell a different investment that performed well in the market, resulting in a $5,000 gain.
- These “wash,” and you would have $0 capital gains (for tax purposes)
Example 2:
- One of your investments loses $20,000 in the market this year (ouch, sorry about that)
- You can “carry forward” part of this loss each year for the next few years.
Read up more on tax loss carries here.
2 – Focus on debt first, then worry about learning all these brokerage account strategies
If you still have student debt, you should crush that first before worrying about optimizing your brokerage funding.
It’s not just a financial/money thing, it’s a freedom and options thing.
3 – “Take advantage of what you have when you have it.”
Adam is technically a millionaire, so we posed the question: “Why are you still working at your full-time job?”
He could be some sort of “barista FI” this minute. But he continues to work.
Why?
Adam is in his highest earning years, and sincerely enjoys what he does.
Though there will likely come a point in the future in which he’d quit even a job he enjoys and gets meaning out of, the next job he takes (whether for himself or Starbucks) will likely…
- pay less
- stink more
Why not take advantage of this situation? He has a high-paying job that he enjoys, and is in no hurry to quit to pursue other ventures.
So he saves. We love it.
Questions? Like or dislike? Leave us a comment!
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