Chicago81's Journal

Where are you and where are you going?
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chicago81
Posts: 307
Joined: Sat Feb 04, 2012 3:24 pm
Location: Chicago, IL

Chicago81's Journal

Post by chicago81 »

I've been reading these forums for many years, and I've been a member for only the last couple years. I guess I'm a little "late to the game" to start a journal, since I'm already well underway toward ERE. But I wanted to start a journal thread for myself anyway. :)

Something of significance happened this past week that I'd like to write about. For the first time in 16 years, I am now living without an automobile! I've never driven an expensive car -- always driving used (paid for in cash!) cars. But lately, the city of Chicago seems to have "declared war" on owners of automobiles. A few years ago, they put up traffic light cameras to send out automatic tickets to people who run red lights or roll through a right turn on red (while at the same time, reducing the yellow light times to the extreme legal minimum of 3 seconds.) This year, they started putting up speed-trap cameras. I received one of those notices in the mail because I was driving 36mph on a 4 lane (2 in each direction) divided road! Hah! Combine that with the aggressiveness of other drivers, the extremely high gas tax in Chicago, the high insurance rates here, high cost of parking anywhere, cost of city stickers, etc -- It was not difficult to make the decision to get rid of my car. (I actually gave it to my parents. My father is very handy, and he is fixing up the car, and my mother wants to drive it when he is done fixing up all the minor problems with it.)

I'm now relying on public transportation for commuting to work and traveling around the city. (I do walk a lot -- usually if the weather isn't too bad, and my destination is within a mile or so.) I have some observations about my first week using public transportation. There is a lot of good, and bad.

The good: It's cheap! I can pay for a whole month of unlimited bus and CTA train rides for $100. Furthermore, I should be able to pay for that with pre-tax dollars, bringing the effective cost for me down to $67 per month based on my federal and state tax rates. A little over $2/day for unlimited transportation? Bargain! It's also very extensive. I can get a train or bus anywhere in the Chicago area. There are great phone-apps that help me efficiently navigate the system, and track bus and train times.

The bad: When the system is running fast, it is fast. But sometimes, it runs slow. And the slowness compounds on itself... Slow trains leading to missing bus connections and having to wait longer. They also haven't seemed to figure out yet that the public schools are back in session and there are huge crowds of students, which the bus routes seem to be unable to adequately handle so far. Furthermore, the payment processing system "Ventra" is pretty terrible. The card readers are very slow to read the fare-cards (can take up to 5-6 seconds sometimes -- which is a big deal when there are 30 people waiting to board the bus at rush-hour.) Their website is also quite unintuitive. I transferred money from my employer's payroll into my account, expecting to buy my 30-day pass with pre-tax dollars. Unfortunately, their "system" decided to charge my credit card for the pass, instead of my existing pre-tax balance on their system. Calling them up on the phone did not resolve the issue -- the representative was very understanding and apologetic and said she "would be very frustrated too if it happened to her", but there was "nothing she could do about it, their 'system' would not let her reverse the charge to the credit card." Lame. Their website would not let me remove my credit card info from their website either... but it would let me change it -- so I changed it to some old pre-paid debit card that has long since been drained. Next time I need to buy the 30-day pass, I am just going to call them and request they fund it from the 'pre-tax' balance. (I guess this turned into kind of a rant...)

But on the whole, I'm fairly happy with my choice to ditch the car so far. We'll see how I feel after a month or so :)

I guess that's enough for now.

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GandK
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Re: Chicago81's Journal

Post by GandK »

Our family went down to one car when I left the work force. It definitely takes more planning, but in our case, the savings has been more than worth the additional hoops we jump through. I hope you will find it so too.

I took the bus for several years and when we switched from monthly passes to rotating 30 day passes there were all kinds of headaches. I had to start timing the purchase of bus passes so that if I had days off, the pass wouldn't go over those days. "Okay... I'm off the second full week of November, so when my current pass expires I will pay cash for six days, then I'll be off, then I'll activate a new pass." That sort of thing.

I think once you get the hang of everything, including the best times and places to buy your passes, you'll feel much better about your decision.

Good luck!

chicago81
Posts: 307
Joined: Sat Feb 04, 2012 3:24 pm
Location: Chicago, IL

Re: Chicago81's Journal

Post by chicago81 »

At the beginning of the week, I looked at the weather forecast, and it showed that there might only be a few more days of nice weather in Chicago, before it starts to turn cold and wet. I decided to take several days off this week to enjoy some free time. I imagine this is what it will feel like every single day, after I pull the ERE "trigger" ;-) (And what do you know... today it was 45F degrees and raining, as I walked outside!)

Some thoughts and reflections on this:
- I had time to run all my errands, do chores, and many things I had been "putting off" for lack of time/energy.
- I was able to take things at a slow pace, and enjoy. à la "Stop and smell the roses"
- Really enjoyed walking along the shore of Lake Michigan in the park. With many other people at work, I had the park nearly "all to myself"

What a great way to spend life. One day, this is how it will be for me, every single day :D

anyway . . . . .

I suppose I will use part of this journal to periodically track my progress to ERE, and keep myself honest, and possibly receive constructive criticisms from others...

Code: Select all

ASSETS:
248K - Non-tax-advantaged brokerage account, invested in dividend paying stocks
30K  - Roth IRA, investment changes based on my mood. Currently in Gold ETF
10K  - 401K Roth, Invested in SP500 index fund
203K - 401K Traditional, Invested in SP500 index fund
220K - Real estate liquidation value.  Condo I live in, plus one rental condo.
3K   - Cash/Checking

LIABILITIES:
1K   - Tenants' security deposit

NET WORTH: 713K

By many standards on this forum, I could already be "retired". My expenses are quite low. I am, however, in a relationship with someone who spends a little bit more. (Not a lot more. My partner is very frugal compared to most americans, but not quite as frugal as I can be.) I don't view this as a bad thing. I think it allows us to maintain balance in life and in our relationship. We spend a little bit more on entertainment and travel than I otherwise would on my own. But at the same time, I am finding that I do enjoy some of these activities occasionally. Consequently, I want to retire with enough passive income to support a higher level of spending than I am currently at. Maybe I'll post a journal entry soon that details my income and spending. My savings rate is fantastic, in my opinion.

chicago81
Posts: 307
Joined: Sat Feb 04, 2012 3:24 pm
Location: Chicago, IL

Re: Chicago81's Journal

Post by chicago81 »

Been a while since my last update. I haven't felt like posting much lately. Things have been very rocky lately for my relationship with my partner (probably soon to be ex-partner.) We've had some arguments over the past several weeks.

My partner has several stressful things going on in his life right now (some of which are completely self-induced complications/problems, some of which aren't), and I've been extremely supportive emotionally and financially at every step of the way. Despite my support, he's not handling the situation well. He would very often become extremely frustrated at me and "take it out on me", using any minor thing I did/said as a trigger to lash out at me.

I am not a very confrontational person, and I usually will just listen, and try to shrug it off. I'm a pretty easy-going person. But I reached a breaking point during one of the recent episodes. I burst out and explained how hard I was working to make this relationship work, and I reminded him of how supportive I've been through his struggles. Perhaps I was a bit harsh, because I also mentioned how some of his issues were self-induced from very poor decisions by him.

After about a day of not speaking with each other, he apologized for how he has been treating me. He said I deserved better than him (???) and that he doesn't want to continue the relationship. We still love each other, and I expressed that I did not want to end the relationship. Despite that, he said he is going to look for another place to live. Even still, he hugged and wept together for quite some time.

I still love him and care for him so much, and I am feeling very sad right now.

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GandK
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Re: Chicago81's Journal

Post by GandK »

I'm sorry. I hope things get straightened out soon.

El Duderino
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Joined: Mon Oct 27, 2014 12:24 pm

Re: Chicago81's Journal

Post by El Duderino »

Sorry to hear you're going through some relationship troubles right now as well. I'm no one to give advice on that matter, so I'll keep my comments related to the other bits in your journal.

First, congrats on cutting the car cord and well done on amassing the bankroll you've currently got! Impressive!!!

What's your goals on stretching that nice day you had off into perpetuity? (i.e. when are you planning to pull that ERE trigger)

I got nabbed by one of those red light cameras during a trip to Chicago for a Cubs game and was seriously annoyed. Tactics like those (speeding cameras everyone and shortened yellows) have been pretty thoroughly proven time and time again to be ineffective at reducing traffic accidents and just serve to line the pockets of city governments.

chicago81
Posts: 307
Joined: Sat Feb 04, 2012 3:24 pm
Location: Chicago, IL

Re: Chicago81's Journal

Post by chicago81 »

Thanks for the well-wishes.
First, congrats on cutting the car cord and well done on amassing the bankroll you've currently got! Impressive!!!

What's your goals on stretching that nice day you had off into perpetuity? (i.e. when are you planning to pull that ERE trigger)
I'm unclear right now what my goals are for pulling the trigger. I think am targeting the goal of having a paid off primary residence, with approximately 2-3K/month in completely passive income (probably from dividend paying stocks.) I flip-flop back and forth between thinking I want to live long term in a condo in a city (Chicago or other large city), or in a more rural setting with a larger house, land, gardens, etc. My mood changes almost daily, and although I have given it it considerable thought, I don't think I'm any closer to making up a decision. The unclear status with my (ex-?) partner also makes it hard to nail down my goals, because if we are able to work things out, then it will be our combined decision instead of only my decision.
I got nabbed by one of those red light cameras during a trip to Chicago for a Cubs game and was seriously annoyed. Tactics like those (speeding cameras everyone and shortened yellows) have been pretty thoroughly proven time and time again to be ineffective at reducing traffic accidents and just serve to line the pockets of city governments.
Yeah, in my 10+ years in Chicago, I've received one red-light camera ticket, one moving violation from a police officer, and one from the brand new speedtrap cameras. They don't even hide the fact that it is all about revenue. The notices in the mail have the return address "Chicago Department of Revenue".
On going car-free in Chicago - Maybe it's not the frugal option available, but UberX did a huge push to show that taking an UberX is better in Chicago than owning a car for a lot of people. http://blog.uber.com/DitchYourCar
I think that you'd have to be cautious of would be surge times, so it wouldn't necessarily be that helpful during the crowded times.
That sounds interesting that an on-demand driver service could possibly be competitive with someone owning their own car! I still think I'll be taking the trains and busses though most of the time :)


---

Update on the relationship stuff:
We talked a bit more, and the heart of the matter is, he isn't happy living where he is right now. (We are both crammed in my small paid-off condo.) He was used to living alone for many years in a larger place. This has been causing him a lot of frustration, and he has been taking it out on me. The short term plan is for him to find other living arrangements until this summer when his tenant's lease is up, and he can move back into his condo. We'll re-evaluate our relationship after we both have more space. It's not the most cost-effective solution, but he feels that it is necessary. I'm going to support and help him every step of the way, and ultimately I hope we can continue our relationship, even if we just need to give each other some space for a while. Enough of this for now, I don't want this topic to dominate my journal.

---

Updates on savings and progress to retirement:
The equities markets have had some wild swings lately! Wish I would have taken advantage of the opportunity to buy more stocks when they fell a bit last week. Unfortunately, I didn't pull the trigger. The primary reason is, I am staying a little bit more cash-heavy right now because of uncertainty of the future of my job. There is an impending acquisition of one of our biggest competitors. There is expected to be a lot of redundancy in headcount, and we are all sure that there are impending layoffs in the near future. On the bright side, I recently learned that the managers have been told that the "standard severance policies" from past layoffs will continue. (Two weeks paid severance for each year of service, plus a few months of company paid COBRA coverage. I have 10 years in! That would be 20 weeks of pay, plus unemployment benefits.) In light of this "good" news, I will probably start buying more stocks soon.

I'm currently not adding any funds to my Roth investments, because I'm in a fairly high marginal tax bracket. Additionally, I've already hit the 17,500 IRS limit on contributing to my 401k, so the only additional contributions for the rest of the year (or the rest of my employment) will be a few hundred dollars every other week from the company "match".

Code: Select all

ASSETS:
251K - Non-tax-advantaged brokerage account, invested in dividend paying stocks
30K  - Roth IRA, investment changes based on my mood. Currently in Gold ETF
10K  - 401K Roth, Invested in SP500 index fund
202K - 401K Traditional, Invested in SP500 index fund
220K - Real estate liquidation value.  Condo I live in, plus one rental condo.
10K  - Cash/Checking

LIABILITIES:
1K   - Tenants' security deposit

NET WORTH: 722K

Tyler9000
Posts: 1758
Joined: Fri Jun 01, 2012 11:45 pm

Re: Chicago81's Journal

Post by Tyler9000 »

chicago81 wrote: I flip-flop back and forth between thinking I want to live long term in a condo in a city (Chicago or other large city), or in a more rural setting with a larger house, land, gardens, etc. My mood changes almost daily, and although I have given it it considerable thought, I don't think I'm any closer to making up a decision.
Welcome to the suburbs! :D

It sounds like I have similar tastes to you -- maybe you can try exploring the gray shades between the two extremes. The best housing location I've had was on the Peninsula in the Bay Area. Our rental house in Redwood city was a 15-minute walk from a nice downtown area, a 30-minute walk from mountain trails, a 30-minute drive from the ocean, and a 45-minute train commute to downtown San Francisco. We had a nice, small yard but still felt close to everything. Of course, the price of said house was prohibitive in the long-run.

When we moved to Austin we had a goal of looking for a similar location. Where we landed isn't quite on the same level, but it's 80% there at 20% of the cost.

chicago81
Posts: 307
Joined: Sat Feb 04, 2012 3:24 pm
Location: Chicago, IL

Re: Chicago81's Journal

Post by chicago81 »

It's been nearly a year. Time for an update to the journal I suppose! :)

On the car-less front: Things are going mostly great. There are occasional unpleasant experiences on public transportation, but overall I am satisfied with it. I certainly don't miss paying to fill up at gas stations! ha ha ha ;)

On the relationship front: The relationship is over. It didn't end in a nasty way, but it certainly ended. Now that it has been nearly a year, I am much happier and my life seems a lot less complicated and a whole lot less stressful. It is actually a big sense of relief to be out of that situation!

On the living situation front: I ended up moving out of the old place a couple weeks before Christmas'14. I bought another condo. This one is near downtown Chicago. Locked in 3.875% interest on a 30 year fixed mortgage. (It's about a 2.6% interest rate if you consider the tax deductibility of it at my marginal rates.) I am extremely happy with the new place. I am close to nearly every train line imaginable! I can walk to anything. At this low rate, I am not inclined to accelerate payments to the mortgage. I would much rather prefer to invest.

On the finances: Not great, but not bad either. When I purchased the new condo, I used a previously-untapped equity line on one of my other condos to finance the 20% downpayment on the new condo. I've pretty much spent the majority of the calendar year 2015 paying off that credit line. It now has a zero balance. Since I had been paying this down, I didn't really invest much more in the stock market (except for kicking the max 18K into the 401k for 2015.) Now that the equity line is paid off, I will begin slowly buying more stocks again in my brokerage account. The value of the brokerage account right now isn't much different than from a year ago, due to the market being fairly rocky over the past couple months and the lack of adding additional funds.

On the employment front: My employer keeps acquiring other companies and laying people off. I think they've done layoffs about every quarter, for the past year and a half. Morale/sentiment around here is really bad. I am almost completely apathetic about my job right now. The pay is spectacular, so I stick around, but my heart is definitely not in it. For the folks who are "impacted" by layoffs, they are offering nice severance packages (a couple weeks of pay for every year of service at the company.) I've got over 11 years in now. I waffle back and forth between wanting them to lay me off, or not. I really just don't give a damn about it anymore. The only things that motivate me to stay are the severance potential and also to avoid the potential unnecessary stress of having to hunt for a new job (if they keep me around when all the dust settles... if it ever does.) If I can ride it out for a few more years, I'll be FI, so it won't matter. (Technically, I could be FI now if I chose a lower spending lifestyle. This probably also contributes to my apathetic mindset.)

chicago81
Posts: 307
Joined: Sat Feb 04, 2012 3:24 pm
Location: Chicago, IL

Re: Chicago81's Journal

Post by chicago81 »

I've found that lately I've been hating my job even more than usual. I have visions of pulling the plug all the time.

Am I FI yet?

Turning 34 years old next month.
240K - Pre-Tax 401k
10K - Roth 401k
33K - Roth IRA
3K - HSA
270K - Individual brokerage account
2 Rental condos owned without mortgage. Could probably sell both and walk away with 200K after transaction costs.

Primary home is a condo, worth probably 290K. Mortgage 225K on it, mortgage payments (PITI) and HOA dues about 1800/mo.

I probably could sell all my real estate in Chicago, buy a home in a LCOL area, and be FIRE, right? Hmmm.

El Duderino
Posts: 177
Joined: Mon Oct 27, 2014 12:24 pm

Re: Chicago81's Journal

Post by El Duderino »

Sounds as if that's definitely a viable option for you!

How much higher is your COL now compared to where you might want to be located when you're FIRE?

If they're swinging the ax regularly at work, could you step into the blow without making it obvious?

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Chicago81's Journal

Post by thrifty++ »

chicago81 wrote:I've found that lately I've been hating my job even more than usual. I have visions of pulling the plug all the time.

Am I FI yet?

Turning 34 years old next month.
240K - Pre-Tax 401k
10K - Roth 401k
33K - Roth IRA
3K - HSA
270K - Individual brokerage account
2 Rental condos owned without mortgage. Could probably sell both and walk away with 200K after transaction costs.

Primary home is a condo, worth probably 290K. Mortgage 225K on it, mortgage payments (PITI) and HOA dues about 1800/mo.

I probably could sell all my real estate in Chicago, buy a home in a LCOL area, and be FIRE, right? Hmmm.
Wow awesome! That's such a war chest. I would love to be in your position. I would totally think that's a realistic option for you to ditch the job.

IlliniDave
Posts: 3876
Joined: Wed Apr 02, 2014 7:46 pm

Re: Chicago81's Journal

Post by IlliniDave »

chicago81 wrote:I've found that lately I've been hating my job even more than usual. I have visions of pulling the plug all the time.

Am I FI yet?

Turning 34 years old next month.
240K - Pre-Tax 401k
10K - Roth 401k
33K - Roth IRA
3K - HSA
270K - Individual brokerage account
2 Rental condos owned without mortgage. Could probably sell both and walk away with 200K after transaction costs.

Primary home is a condo, worth probably 290K. Mortgage 225K on it, mortgage payments (PITI) and HOA dues about 1800/mo.

I probably could sell all my real estate in Chicago, buy a home in a LCOL area, and be FIRE, right? Hmmm.
I definitely can sympathize. I like my job pretty well and they pay me a lot of money (relative to the niche in society I came from). But, it seems that things are winding down and I'll be faced with a decision to either leave work, do something here that will degrade or eliminate any sense of job satisfaction, or relocate in hopes of finding something comparable. I'll probably do the former.

If I'm doing the math right, if you sold out you'd probably have about 535K non-retirement and 286K in retirement/HSA. A small house in a LCOL area might set you back say $80K, so you're at about $455K/$286K. If you weren't intending any paid employment you could have $1,500-$1,800 per month (pre-tax, as applicable) to live on for a long time (might have to look at SEPP withdrawals from the retirement accounts at some point). Certainly doable based on the evidence of others here. Ultimate answer depends on if you could parlay that into a lifestyle you are satisfied with.

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