Time to say hello, and thank you! Like most others I've been lurking around on Jacob's blog and this forum for a couple of months now, and finally feel like I have the time to actually introduce myself. But first, thanks everyone for sharing your Journals, your personal journey towards ERE/FI, and even sharing very personal information and challenges that you're facing along the way. It is very inspirational and motivating to read all the different updates and I'm amazed by the variety of nationalities, ages, life "stages", and living situations that are represented here.
So, just a humble thank you for sharing - to all of you.
And with that, I of course feel like I should contribute myself!
When I first ran into Jacob's blog... And I'm not even entirely sure how that happened. I must have read about Financial Independence etc., and coincidentally stumbled upon Jacob's ERE blog. First, I just found Jacob's writing style very humorous and like the ERE thinking. There was a certain connection there that I caught right away - the frankness and cut to the chase style is awesome (e.g. FAQ: "I don't believe you can live off of 7K a year"... Jacob: "Is that your problem or mine?"). Haha, anyway - it wasn't till later that I found that Jacob is in fact Danish. Which, I for some reason do find pretty cool since I'm Danish myself... All of a sudden it made sense to me why this guy has awesome humor. And of course, I expect being Danish will automatically make it easier to achieve ERE superpowers.
So to the quick intro here.
I'm a Danish guy, 30 years old. I live in Atlanta, GA. I've been here for some 5.5 years.
I finished my Master Degree (International Marketing) in Denmark, and moved straight to the US where I have been working for the same company since then... I've climbed the corporate latter pretty quickly and do consider myself very fortunate to sit in a good position today. I make relatively good money, but of course, money isn't everything... Wait.. what? But, now with this ERE/FI I'm thinking about money 24/7 !
Anyway, I'll shed some more light on the work situation later.In general I have some interesting challenges ahead of me that I will share with you, and I'm hoping you guys (the ERE peeps) can help a little with some advice - In fact, I know you can... The main challenges are around: Long term planning, Investment Opportunities, Career Track, and Relationship stuff...
1) Long Term Planning
I am currently on an H1B visa and have plans of relocating to Europe (Amsterdam) for my current company within the next 6 months, but, the plans are not very solid yet... But, regardless of the final details my H1B will expire in about a year's time, so something will happen on this front that will mean I am moving to Europe. In reality the current plan is Amsterdam, but it could end up being Denmark as well...
So, it makes it a bit challenging to make long term investment decisions. Example; I would LOVE to invest in Rental Properties and am confident that I actually can excel within this field. I've been exposed to the "business" for years since my Dad has always had rental properties and has been trying to involve me as well... He's much more of the street wise and practical person, whereas I'm way more analytical and have helped him on the financial side of assessing properties... With great outcome. We are actually a pretty good team together and he still hopes we can "team up" and work together on this... However, I moved to the US. He lives in Denmark. So, my involvement has purely been from an advising perspective so far.
Back to the main issue. I cannot really invest in Rental property on my own here in the US with the short time horizon I currently work under. Even though the US real estate market has MASSIVE potential compared to the Danish, its just not wise to invest long term when I don't expect to be here for that long...
So, in general, I'm a little challenged here. I want to make sound long term decisions. But its tricky. Even when it comes to 401K decisions, tax issues... It sucks to be in an "in between" stage, and not many people are able to advice on tax implications between different countries... And maybe I will always have this issue. Because I love moving to new countries and take on new challenges. I will likely keep doing this for the years to come...
So far, I've lived in Denmark (of course), then moved to Germany for a year. Back to Denmark. Then moved to he US. I now plan to move to Amsterdam... And, I have a feeling that a next move could be to an Asian country if I'm looking 3-5 years out... That's another long story. I'll probably get into that as well.
I just need to come to terms with the fact that I will always be "in between" different countries and their tax laws... But, that cannot inhibit my main goal of FI. So, how do I best build a long term portfolio that can count on no matter where in the world I am ? Maybe I'm overcomplicating things... Anyway. Lets stop here, I'll take it up in a personal journal later
2) Investment opportunities
OK. So, do to my current position (and hard work) I have some pretty unique investment opportunities in front of me... But, they tie into the point below (Career track). I'll try to keep it short for now;
Opportunity A, is to invest a large sum into the company I currently work for. We were acquired a few months back by a group of VERY ambitious individuals. They are well known in my industry, and they have very serious growth plans incl. involving VC in the next phase, and several additional acquisitions for the next couple of years, and a clear exit strategy in 2019... Basically, the plan has been presented to me in detail. It looks solid and I trust this group of individuals can pull it off. I've been invited in to invest at least 100K now, and if the plan succeeds the outcome looks very promising.
That being said, I also have to be realistic. The plan may NOT go as they foresee, and likely wont. The investment is also pretty significant for me, I would be putting almost all my eggs in one basket, and then *hope* that I can cash out in 2019... Now, that sounds like doing the opposite of what any sound Financial advisor would say right? Diversify, diversify diversify... And now, I'm considering putting it all on RED... or black... You get the point. Big opportunity for sure, but also risky.
Should I instead take my money and invest it cleverly into a PP, Rental Property etc etc. (where, I will produce passive income).
I am also considering opportunity B, which is my "own" creation. I'm working closely with another US based company through my current position. They are slowly entering the European market, but have a massive potential there with their current IP. But, this company is relatively small and clearly needs help and they also need "boots on the ground" in Europe to realize their potential. I recently helped them close a significant deal in Europe, and upon celebrating this win with two of the current three owners, lets just say we joked around and toyed with the idea that they definitely need a person like me to build up their business in Europe. Long story short: I've been putting together a draft proposal... My intention is to propose to them that I will invest in the company, become a partner, move to Europe and head up this division. They would be able to accelerate their potential significantly. No doubt. And I know for sure they are interested in this.
But... I'm a little torn between opportunity A and B.
I don't have money enough to invest fully into both... I think.
If I go with opportunity A, I'm tied to a company where I am already feeling burned out. I seriously need new challenges. But, this opportunity may have the biggest potential in terms of NET VALUE in 2019. But, I would be tying my money into an investment that will not produce passive income during those years aaaand, the "cash out" plan may not even work out by 2019... I mean, we could be in a new down market by then that could postpone their acquisitions etc., and eventually I could be tying up my money till who knows when...
Going with opportunity B is the most FUN one, and the one that excites me the most. New challenges, much bigger ownership portion, but overall.. This company will not have nearly the same value potential as opportunity A...
3) General career track
In general, I'm somewhat burned out... My current job SHOULD be fun and it used to be. I'm sure that's why I've also been able to get me to where I am now. On paper I am in a great position and make good money. But, its no longer fun and that concerns me. We already did have challenges before we were acquired, but now, going through a merger phase is just putting new layers on op of everything, new reporting and BS that takes time away from the fun stuff... I'm leading a team and I am supposed to BE the motivator here... That's kinda difficult when I am not excited myself
Sometimes I've played with thought of just pulling the plug, sell all my crap, and travel to some remote cheap place and recharge for a good period.
I've always been very competitive and love challenges. But right now I just don't have that "fire" in me. I know its in there though. But staying in a rut of working 50, 60 hours a week makes it difficult to even spend time on thinking about alternative career tracks. So, I'm aware that I need to make a change here soon.
So, either I need such a break at some point. Or, I find a new job... Or, I jump into investment opportunity B above
Not sure yet.4) Relationship
Oh yes, and then I managed to find my lovely GF in Denmark when I was home for Christmas back in December. So, out of nowhere I am currently in a serious long distance relationship. LOL. I had never thought I would be in this situation. I don't have an issue with this as such, in fact I am very very happy and truly believe that I have found the one. Buuuuut, until I actually do make a move back to Europe, a long distance relationship is not exactly cheap if ya know what I mean... I've flown my GF to the US two times already, and I've been in Denmark and Thailand to see her (Thailand was vacation) between January and now... That's been costly. And for now she still has 1.5 years of education to finish up in Denmark - my plan is to move to Amsterdam... So, while I do get closer to her then Amsterdam-Denmark is still going to be a challenge to deal with
So apart from my unique distance challenges, I just also do find it interesting how other ERE people are dealing with their significant others. After getting into the FI/ERE momentum I have of course become even more aware of how I spend my money... And have cut my spending siiignificantly already - already with the first signs of challenges for my GF to understand the sudden talks about not wanting to burn up money.
So those are my main challenges... But also some important ones to get sorted out, in order to plan and realize a solid FI/ERE track.
On the spending side. Well, I've always been pretty frugal, but, I did fall into the career spending trap here in the US. In my studying days I lived off of nothing, always made significantly more money than my peers on the side. But then, with my job here in the US I fell right into the trap of spending increasing in parallel with increased income... When I look back at the last couple of years... Holy shit I could have saved up some serious money if I had not left my brain back there somewhere...
But, that's the past - and from here, 100% of my focus will be on cutting spending and investing thoughtfully. Its time to make the money work for ME
Despite my spending detour over the past few years, I did manage to save 36% in 2012 (annualized), 47% in 2013, and 46% in 2014. So that's not terrible, but, could easily have been a lot more.
Since I stumbled upon this ERE site in May, I've increased my savings rate to 61% in May, 60% in June, and July is on track for the same right now.
This is just based on my pure net salary vs spending. In the same period I did increase my 401K contribution to 25% of my salary, so the true savings rate is even higher.
I'll start reporting on this in more detail in a Journal. I love Excel, graphs etc., - so this is a perfect audience to report to, on a subject that friends (and GF) usually find incredibly boring
Wow, that turned into a long introduction. If you made it all the way till here, good job
Lets end this, I'm Happy to have "met" you guys, and I'm looking forward to get to know all of you better!
Happy 4th July !
Jande
