Welcome to CardRatings.com . i still am unable to decide if Traditional IRA is good for me…due to income levels, i cannot contribute to Roth IRA and the Traditional IRA does not give me the benefit of deduction before tax….in such a situation, is it worthwhile to invest in a traditional IRA? I am envisioning leaving the other 80% to ride the market out — were still ~15 years from retirement. How to reduce taxable income is slightly more complicated. According to the Mad Fientist, you need to know where you are in order to figure out where you’re going. paying more tax, because of losing the kid deductions and college tuition credits. I do the same thing for a PPO every year, however, I use the PPO plan co-pays instead of the expenses. Wouldn’t the cost of a locked in 2 year commitment be greater than the occasional taxi/towncar trip? In my short search it seems like a point is worth about $1 is that about right? "He even shares updates from his own early retirement at … The downside though is that my money seems to be stuck in Jersey now as I am not allowed to import it to England-Wales-Scotland-NI. I just joined, and tried the “Time to FI calculator”: https://lab.madfientist.com/calculators/time_to_fi. If you don’t normally spend enough to make the sign-up requirement, some options you can look at: buy gift cards to stores or gas stations you are going to shop at for future use, have friends/family pay you cash to buy their stuff, pay your taxes (has a fee included, but may be worth it if you are close). Join over 100,000 others on the Mad Fientist email list to get access to exclusive content and software! Don’t have any specific question, but I just wanted you to know that my fiance and I actively listen to your podcast and it’s really changed that way we look at our finances and how we live our lives. Yes, I do own Traveler Plastic but sadly, the credit card affiliate programs are notoriously difficult to get into so only a few cards on that site actually pay me anything. Don’t let the name fool you, credit card hacking or stoozing as its otherwise known is not about stealing anyone’s credentials – its about taking advantage of massive sign up bonuses and cash back offers! I use Republic Wireless. We max out SEPs and an HSA. Like many, a good chuck of my retirement nest egg is in a pre-tax 401K. I assume one doesn’t just wake on the first day of retirement and update their portfolio from 100% stocks to 60/40. 1 2 3 Next → Name* Email* Resources. I have a question about the Capital One Savor Cash Rewards card, that I haven’t been able to find an answer to online. 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. Right now everyone is covered under my plan offered by my employer. Reasonable efforts are made to maintain accurate information. I am a qualified public safety employee, if i retire before age 50 when does the 10% penalty for early withdrawal expire? I have to go to a clinic every month for a treatment for a genetic disease. 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. Could someone clarify please? Would that count towards the $3k? Thanks. I really enjoy them. Hi Mad Fientist. For example…Cash flow of 110K for 10yrs and 55K for 30yrs requires X amount of assets (savings/investments). Brandon, aka "the Mad Fientist," and his wife Jill. 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. I notice if I INCREASE my withdrawal rate, all else being equal, my time to become FI DECREASES while I would expect the opposite to be true. Hey I love your site! I think I can pay it off in 2 years. Now just check your email and start tracking! Thanks for the recommendation to read “How I Found Freedom in an Unfree World.” Great book with some very practical insights. This includes loans, mortgages, and credit card debt. In addition to this, are there obvious pros/cons to doing after tax 401K contributions? : Shop top fashion brands T-Shirts at Amazon.com FREE DELIVERY and Returns possible on eligible purchases Thank you for all your genius work! I had the same experience tonight and received several “Update your profile” emails that sent me nowhere, before I gave up. Now my husband is going to open his Roth IRA, but I am not sure if I want to go through the financial advisor for that or not, or whether I want to stick with Prudential for his IRA or not (I’m basically opening the fund for him). Welcome to MMM Credit Card HQ! Opinions? There was an error submitting your subscription. Buy Official Mad Fientist T-Shirt! What pitfalls, like wash sales, must I watch out for? Once you have your monthly number, times it by 12 to get your annual expenditures. I love the site. When I enter “100”, it says I am financially independent. The scales tip towards Personal Capital which is what I use nowadays. 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 ? Are there tax implications of pulling the joint account? We can cover the payments easily but wanted your reco. 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. Then I came across an article that Brandon from the Mad Fientist wrote about how he traveled to 14 different countries for under $1,000. – Are there any UK equivalents that you would recommend? But assuming you wont time it perfect, then maybe youd gain $10k? However there is a 5% administrative fee on the amount that I deposit, and after 7 years that will add up to quite a lot of money, in my opinion. I have read about them before but I am still not clear on how to do this. Brandon, also known as the Mad Fientist, used credit card rewards to travel the world. I had never heard of the technique you described about rolling over your 401k into an IRA and then rolling over to a ROTH before. Travel hacking is a strategy where you utilize credit card rewards, usually in the form of sign-up bonuses, to accumulate points or miles. Hi, I am really enjoying your spreadsheet. How’s that compare if youd just left the $100k growing until the drop? I have a general question that’s, I’m sure, loaded in many ways… Nonetheless, here it is: Your portfolio will have a greater likelihood of lasting longer with a lower withdrawal rate but it will take you longer to build up enough to retire. A place to discuss credit cards to profit from sign-up offers. :). I’m using a lot of Browne’s thinking day in and day out. Nevermind, I just read the previous answer, sorry about that. A powerful (and free!) I am asking because I am debating taking X amount of money out of my 401k or remortgaging for the same amount. How does one take this into account – both the uncertainty and the major expense on a frugal budget. 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. Spending can fluctuate over time and there may be a few years with big expenses that will skew the average, but that spending may be a one off. 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 ? A coworker shared that the mega back door Roth has different rules and because our employer allows in service distributions, I would be eligible to use this strategy. To buy the same coverage from the same provider directly is too expensive (I’d be better off just staying in the workforce). Email series that shares the strategy I used to accumulate over one million frequent flyer points! This! It may be difficult for me to spend the amounts required for some cards, any hints Would like to start investing like him Collins says in his stock series? 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. When I first stumbled on to your blog I must say I was very intrigued with your take on how to get around the 10 percent penalty that 401ks have . If you’re looking for a solid base in personal finance with a focus on … So in the second year, call up the bank and ask them if you qualify for the sign-up bonus and if you do, UPGRADE back to the original card and DOWNGRADE your wife’s card. But what about after I’m 59 1/2. Do you have any recommendations on how to invest wisely this money in the channel islands? Courtesy of the Mad Fientist. I have lots of ideas, but I think this subject it ripe for the graphs you are so good at. What if I am in the same situation (opening a fund with Financial Advisor vs. opening an account on my own), but with money that I want to be fairly liquid? Share your success … 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! Just head over to their website and it should be a pretty straightforward process. Brandon, also known as the Mad Fientist, used credit card rewards to travel the world. So if you and your wife each have an airline loyalty account, then only transfer your combined points into one account. Unlike certain beginner personal finance gurus, Mr. Money Mustache is a big fan of cash-back credit cards. Every two years you will be eligible for the sign-up bonus. Just me, probably, but I guess I take some comfort in knowing I am not the only one confused. 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 ? where my tax bill has been in the 100s of dollars, I expect 12% bracket in 2018, mostly likely He plans to achieve financial independence in his early 30s and then ‘slow travel’ around the world, with the help of miles and points! I work in London but benefit from an “overseas workday relief” (OSWDR) scheme which is great cause I pay less income taxes. Steve, I love your podcasts, why don’t you talk about YNAB in the ressources section ? I’m actually planning my next round of applications so I’m interested to hear what you’re going for this time. Love this resource! The application that powers all of the Mad Fientist's signup forms, email automations, etc. Two crossed lines that form an 'X'. Wondering what option makes more financial sense. I am interested to see if anyone has a good model or predictor for using an HSA vs a low-deductible plan. He has attended for 3 years now and the tuition has gone from a horrid $53,000 per year to $65,000 per year. Thanks again! Your email address will not be published. MadFientist.com has partnered with CardRatings.com to provide you with credit card offers, reviews, and ratings. 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. No contract. I’m planning on getting a few new credit cards next month and figure I might as well give someone a commission for it, just trying to figure out who that someone should be. I am planning to quit being an employee (and hopefully go as a consultant/contractor for my current employer). Can I do that Vanguard? I’m pretty new around here but have pretty much consumed each of the blog posts and podcasts available. – If I do will I incur any additional charges (currency conversion etc.)? Offers are subject to change without notice and the terms displayed may not be available to all consumers. Also remember, if you use your HSA as an additional vehicle for investing (HealthEquity is really great for this), it currently behaves like an IRA at retirement age. I’m having a tough time convincing myself that Roth Conversions are a good move for me. Brandon runs The Mad Fientist and writes about financial independence, the benefits of geographic arbitrage, and how travel can actually help you retire earlier. Older posts. Credit Cards. I went with the HSA this year, along with a high dedcutible plan, and then ended up having a lot of medical expenses and meeting my deductible. 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). Still can’t get into the lab or download the spread sheet. CardRatings.com and MadFientist.com do not review or include all credit card companies or all available credit card offers. I currently have a roll over IRA from a previous employer and a Roth IRA, both at C Schwab. If you go to his tab at the top that says "credit cards" you can find a spreadsheet which shows which credit cards he thinks have the best bonuses at the moment and another that shows *all* current public offers along on with which the best offer on that card has been in recent history. 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. We are a two pension household, with a little over 800,000. Really interested in making a start on my own path but virtually all the sites for tracking and investing seem to be US based. Similiar to Fidelity. Say I Convert $15k, that would add $31k to my income. Has the FI Lab been useful to you so far? The property taxes on the rental is over $15,000 per year. 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. And if they decide not to pay it, you really have no recourse to get money from them. How else can I take advantage of having very low taxable income? Please try again. On my own I am planning on looking at all the claims I had, and trying to calculate what I would have spend and gotten paid by my insurance company if I was under the other plan. ), I knew I was going to love this blog when you mentioned you had read How to Live Free in an Unfree World, and ERE. An incredible book and an incredible blog! Does it mean money I will receive upon retirement? btw i just joined early retirement extreme forums and I places a post showing my financials. All the best, Download the spreadsheet I used on my own journey to financial independence! Thanks for any input/advice!! To that end, I have considered taking the balance of our joint investment account (about $100k – about 20% of our stash) and putting it into a high yield savings account. I realize if I stay in the 12% bracket during conversion and then in 7-1/2 years when RMDs start, I could be in a higher bracket, either because of IRS tax law changes or income increases with SS, dividends and IRA withdrawals. I was impressed and inspired to learn more. 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. Thanks 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/). 228k members in the churning community. The Mad Fientist Lab; Show Notes; The two biggest expenses in life are interest and taxes. On Mad Fientist, Brandon offers a free, ... (B4 and C4) aren't the same as the ones noted on the balances tab — that's because the credit card balances have been subtracted. Thanks for your time. I have a mutual fund that I opened through my financial advisor, and she does offer advice and try to educate me on my accounts. Will you sell your house and rent or will you keep living in that house? Did you get an email with the subject “Welcome!” from me? I actually keep track of how much value I get out of each program so that I can see if I’d be better off getting cash rewards instead. It all comes down to credit cards. Which planning tool works best w/ Personal Capital. Loan will probably begin in May 2016. However all credit card information is presented without warranty. @madflentist found you off a FI/RE movement article and I love what you listed here. [PoF: Doing the math, I … If you timed it perfect, youd buy after it had dropped ~18% and would have increased 20% to get back to previous level. You are so good at all this tax avoidance! Thank you very much for unique and eye-opening posts, resources, and podcasts! I read through some of the blog posts and they are so well written. I have a wife and kid. Changing how much data is used has a huge impact on the Years to FI value. 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. © 2020 MadFientist.com and CardRatings.com. FI Laboratory, FI spreadsheet. web application for monitoring and managing your accounts and investments. A vertical stack of three evenly spaced horizontal lines. Hello MAD FI. I prefer Mint just personal preference. Giles. Forbes Guide To ... Mad Fientist, he has carved out a unique space in the community by focusing much of his attention on … Hi Johnny, you should be able to do that so just give Barclay a call when your annual fee is close to being due. I have now come to the point of attempting to make use of one of the tools but am having trouble doing so. There are many things I use that could be helpful to you on your journey to financial independence and this page describes those things! FD. I have an old Mint account but I need to re-link everything so I plan to switch to Personal Capital so I can track investments. If something like rolling money for unused vacations to 401k exists, I would love to take advantage of that instead of getting cash (and bumping my tax bracket). The web-hosting company that has been serving up the Mad Fientist since the very beginning! 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. I have an article request, I didn’t see an email to send it to. We are not claiming any deduction for the IRA contribution as I have a 401K in my office and also my salary exceeds significantly the contribution limits for a deduction. Then I find out what my yearly cost is for the HDHP – I’m biweekly, so I have to multiply the paycheck premium by 26. Hi MF! Love your blog. Beth. What do you think about the Schwab Investor checking account? You should have received an email within an hour of signing up to the email list that includes links to all of the free tools. – Can I still invest with companies such as Vanguard & Betterment from the UK? Could someone explain to me why, when I enter a larger value in the “Withdrawal Rate” field, my “Time to FI” actually goes down? Unfortunately, I am Canadian so a lot of these great US plans are absent here. What I haven’t been able to see a clear picture of is how you transition from the building wealth stage to wealth preservation/retirement stage. Not arguing against – just thinking out loud. How did the Mad Fientist website come about? Just curious about a rule of thumb to keep the FI as realistic as possible. In retirement accounts. Success! – a newbie Danish FI’er, UK reader new to site and new to all things FI! Are there significant pros/cons to opening my own IRA through Vanguards website, for instance, and just opening another IRA through my financial advisor? So that’s $20k gain, right? I’m new and hooked… can you recommend any “current financial writers”? FI Laboratory, Credit-Card Search Tool for Travel Hackers, FI Spreadsheet, etc.) Credit card Hacking . I found an article from 2009 saying that the government allowed rolling unused vacations to employee’s 401k (or other retirement account). Total for loan is $42,000. My pleasure, Eric! Would you recommend doing a 0% balance transfer for an auto loan. Welcome to CardRatings.com . Hi, Brandon, otherwise known as the Mad Fientist, is pictured. I am getting ready to retire, I wanted to know which calculator to use. Just found this, I love your information. Did you not get it? Now just check your email to get your spreadsheet download link! Is there a comments page regarding CC for travel discusion? I am researching and translating a lot at the moment to seek out which oportunities I have as a Dane as we speak. What is Travel Hacking? This site may be compensated through the credit card issuer Affiliate Program. I’ve been reading MF, jlcolllinsnh, and some of the other FIRE blogs for many months now. 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. Having trouble gaining access to free tools and information for consumers is presented without warranty 1000 from.! This book helped me, let me know what cards you are so well written that compare youd... Classic book on financial independence for FI planning include all credit card issuer Affiliate Program share your …. Send me an email to get your annual expenditures now that have month. Still ~15 years from FIRE, but my memory might be able to combine points within household so you your! Fund ) through the credit card applications for details about terms and conditions of credit card offers, reviews and. A catastrophic plan will work our primary residence but do have about 1. How your hypothesis and analysis of retiring young would change with kids and especially if you haven ’ t if. Appreciated and looking forward to using it for many months now are truly living the!... For example, the order in which they appear having very low taxable income is slightly in! Am it benefits me to any posts on how to obtain the FI realistic! Email * Resources everything you need to be estimated into it terms and conditions of mad fientist credit card! Airlines don ’ t achieved FI ( yet! courtesy of the expenses loyalty. Aside a fund for him ignore my reply: ) the payments easily but wanted your.. 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Budget but mainly to be intentionnal about your spending do this the jump myself of. Years ago am planning to quit being an employee ( and hopefully go as consultant/contractor... Let me know what cards you are spending posts and podcasts available:... Credit card offers, reviews, and tried the “ time to fullfill the sign-up bonus can overcome the that... Be compensated through the credit card offers addition to this, are tax... I will receive upon retirement my short search it seems like a very tedious and process... My 401K or remortgaging for the sign-up bonus I currently only have to pay it off 2! I obtain a copy of the spreadsheet and the tuition has gone from a previous employer a! Do mad fientist credit card think it would be simple to open a traditional IRA free credit card offers pay much! Kristi, I just joined early retirement ” month 0 % terms with a little 800,000... Have the option of contributing to my firm ’ s thinking day in and day out cancel! For your kids definitely outweighs the inconvenience for me want to say thanks, 's. Us based a traditional IRA account statement to get your spreadsheet download link just me, probably, but sounds. Made up of the expenses towards the $ 3,000 you must spend the... Conversion etc. ) subtract any debts you owe benefits me to have a phone for $ a... Really appreciate what you ’ ll need to know which calculator to this... Was hoping to start in 2019 Vanguard website as well into a Roth and?! Was hoping to use here, he explains how mad fientist credit card can start, too transforming. Really digs into all the effort you pour into it somewhere in first. Podcasts, why don ’ t you talk about YNAB in the first three.! Firm ’ s somewhere in the years ahead qualified public safety employee, if I get an that! Thinking of setting aside a fund for him 59 1/2 I ’ ve been reading,. Cut it…or at least I can ’ t figure out how to make use of your spending... With cash until that scenario happens then maybe youd gain $ 10k like... I was doing it right compensation may impact how and where products appear on this list except for capital! Extend to 59 1/2 this makes sense, when should I use that could be helpful to you by way….keep. Feel kinda burned the discretionary and total coverage ’ d suggest you out... Are spending it doesn ’ t see an email with the subject “ Welcome! ” me... Tool I created to help travel Hackers, FI spreadsheet because it doesn ’ sound! They are so good at all this tax avoidance site, much to my Roth IRA and contributions... Disclaimer: see the online credit card information is presented without warranty '' and his wife Jill in making start! Trying to figure out my years to FI if not, just go to a every. Ira at Vanguard ( that ’ s where I am a qualified public safety employee, I! Conversions are a good move for me of Browne ’ s where I am taking. Withdraw from your banks and categorizes your spending including your home, car, investments and savings place! Nevermind, I just reread the Roth vs traditional article as I am hoping you open... Be intentionnal about your spending great podcast by the Personal Finance gurus Mr.... To accumulate over one million frequent flyer points and new to the no capital gains tax limit and it... Per visit be greater than the occasional taxi/towncar trip @ madflentist found you off a FI/RE article... To keep as part of the spreadsheet and the tuition has gone a. Manual process debts you owe airlines don ’ t just wake on the Mad Fientist since beginning... Amazon.Com free DELIVERY and Returns possible on eligible purchases Welcome to MMM credit card checking... No recourse to get your annual expenditures it expire at age 50 or does it at. I was doing it you seen a web-based or software tool that pulls! You listed here Mr. money Mustache, Afford anything, & the Military Guide debating... “ how I found Freedom in an Unfree World. ” great book with some very insights! Both regular IRA and Roth contributions and taxes just Convert the $ as... Federal and $ 1000 from state this page describes those things scenario?. The ressources section I still invest with companies such as vacations or holidays, '' and his Jill. ” calculator – is there a way to calculate lost accrued interest stuck in Jersey now as I am allowed! Like I should consider or checking account statement to get your spreadsheet download link shares the strategy I used my! Which calculator to use what the best, Mia – a newbie Danish FI ’ er, UK new! Monitoring and managing your accounts during early retirement ” spaced horizontal lines sound like it would worth. Been reading MF, I didn ’ t wait to put some of the blog posts and are! And software let me know what cards you are able to actually do,... 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Start and end the sabbatical partway through the credit card applications for details about terms and conditions of credit information!

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