Giskard's Journal - slingin code to reach FI

Where are you and where are you going?
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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

Lucky C wrote:
Sat Jan 06, 2018 12:24 pm
Some options are:
- Stick to your current allocation knowing that you'll probably have to work longer or work part time after "FI" to be safe
- Adopt a more diversified portfolio with a lower US allocation since international equities are cheaper
- Go even more extreme with no US stocks, US bonds, or European low yield bonds (further reduce risks of low expected return but be less diversified)
- Become a trend-follower to limit drawdown but still be exposed to short term volatility, whipsaws, etc.
- Buy slightly out of the money SPY put options, which are relatively cheap since VIX is at historical lows, but are really only insurance and will most likely end up being worth $0

I am not advising for or against any of these options. These are just a list of the options I have considered over the past year or so as I have been faced with the same risk of hitting a major setback while being so close to FI. ....
So what option did you end up doing? I am already pretty internationally diversified. I have large positions in BABA, NVO, and Tencent for example, and I also have large positions in emerging markets and Ex-us ETFs. My largest positions are still in US tech stocks, which worries me, but earnings growth on GOOGL and FB seems insane to not take part in.

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

TopHatFox wrote:
Sat Jan 06, 2018 11:54 am

Maybe you could consider bumping up the amount in your Savings and Checking accounts?
I have started this actually, but damn it feels like such a waste to have a hunk of money just sitting around in a checking account that doesn't even yield 1% !! Anyway, thanks, yeah the job can be stressful. And I saw you were talking about switching careers in your journal. I think there can be a very big difference between companies in a given industry, at my current job the culture is pretty laid back. It actually feels sustainable, there are tech jobs that are.

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

Update 4/6/2018 - just a stupid rant about life

Kinda crazy but my net worth is actually lower than it was last update (currently at 390K). The reason of course being the recent stock market volatility due to Trump's tarifs and whatnot. But as we all know this is a long journey and setbacks happen; the future is not certain.

I usually try to keep these positive but I just want to let out some negativity (rant begins here). I hate Minnesota, I fucking hate the cold, and I fucking hate the midwestern passive-aggressive bullshit. I wish I hadn't moved here and taken this stupid job. It's hard to admit but there it is. I have to stay a bit longer too, or I need to pay back my sign-on bonus and it will cause all kinds of stupid tax complications if I have to do that.

I literally started to count down the days to when I can leave. I made a webpage and it ticks down the seconds.

Also I'm in my late twenties now and everything is different. People my age are getting married and having kids. Now dating is weird. I haven't gotten laid in a while because I guess I need to re-learn how to date properly at my age. Everyone is super flakey and ghosts each other all of the time. Was it always like that? Fuck, I don't know. I think I have to learn how to properly meet women now, I can't just go to a house party, get drunk and meet randoms like I used to do.

Ok what are some positives? Well I have been going to the gym religiously and now I don't look twiggy 16 year old anymore. I actually put on some weight and some muscle, that is a new thing for me (still a long a way to go, but I have a start). I used this time in the winter to learn how to do machine learning so potentially my next job could be WAY better. I am so happy I moved away from my home town, it forced me to grow a lot as a human. But I made a mistake in where precisely I moved to.

I guess in general I stopped focusing on getting FI and I started focusing on fixing things in my life directly. I stopped caring about my savings rate as long it is above 50%. I stopped caring about that asshole I went to school with that works at Google now and makes 350k a year. I stopped caring that I am somehow content with being single and get bored of relationships after a month and fuck them up when normal people get married and stay together for years. I stopped caring about that shit. I mean, I am trying to.

/rant

Edit: I was just in a bad mood, it is not that bad. Things are fine. I wrote this in the middle of a blizzard in April when I just wanted to be outside.
Last edited by giskard on Tue May 22, 2018 10:31 am, edited 1 time in total.

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

5/18/2018 - money updates

Update: 415k networth. Job is going fine (boring-ish). Bought a small condo (goal is to live there a year or two, fix it up, rent it out, move on).

It is summer now and the weather is great. I am very frustrated with the pace things are going at work because I am doing a lot of interesting things but there is no hope of being promoted or given more responsibility. Once I get the condo and expenses settle and build up cash savings again I will consider quitting to consult or freelance full time.

I know, I have been saying that for a while now. But, I will have my expenses very low and basically be living a car-free lifestyle in this neighborhood. I really think I will be in an excellent position to consult full time. Even if I still work for big employers I may double my take-home if I bill by the hour and do short contracts. I keep raising my FI targets but I think with my expenses at about $1500 a month, I will be set soon.

Ideally I would like to be able to spend $2000 a month, which equates to 600k, but I am sure I can make up the remainder adjunct teaching or just doing short consulting gigs. Realistically I will need to add $300 dollars a month at least for health insurance.

Fitness
In other news, I know I posted about this in the health forum, but I have gained about 10 to 15 lbs over the past 6 months or so and built up some strength. I started doing 5x5, and increasing calorie intake. At first I was not eating enough but slowly I have learned you really need to pack on the calories and protein to see results.

I took progress pics and I am honestly disturbed by how thin and weak I looked just a few months ago. Which is crazy because I was still rock climbing very often at decently hard grades, and biking very regularly. Maybe just too much cardio and not enough food? Interestingly I can't climb much harder now. And I wonder what will happen in another 6 months?

Bro
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Re: Giskard's Journal - slingin code to reach FI

Post by Bro »

What composed the bulk of your diet for your weight gain over the past 6 months? Any lessons learned with regards to food preparation and consumption?

As a single man, I am always looking to glean insights as to how others shop and prepare food. I tend to eat the same things over and over for an extended period of time and then shift to something different for another period.

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Re: Giskard's Journal - slingin code to reach FI

Post by 2Birds1Stone »

I'm a bit confused.

You hated Minnesota winter and couldn't wait to move, so you bought a condo and plan to stay for a few more years?

Have you thought about how to enjoy next winter, now that you're staying?

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

Bro wrote:
Fri May 18, 2018 5:42 pm
What composed the bulk of your diet for your weight gain over the past 6 months? Any lessons learned with regards to food preparation and consumption?

As a single man, I am always looking to glean insights as to how others shop and prepare food. I tend to eat the same things over and over for an extended period of time and then shift to something different for another period.
Ah sure. So it was a lot of: eggs, oatmeal, baked chicken and various greens, milk, yogurt, cottage cheese, beans and rice. Sometimes I would do red beans + rice lean turkey and make a chili. Basically supplementing with whey protein everyday as well. Barely ever eat out but usually something like chipotle.

I experiment a lot with Indian spices, hot sauces, sriracha, ect to keep things from getting boring. I also eat soylent for lunch pretty often, which should tell you something about my tolerance for bland food, so I'm probably not exactly an exemplar of variety.
Last edited by giskard on Sun May 20, 2018 10:50 am, edited 1 time in total.

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

2Birds1Stone wrote:
Sat May 19, 2018 6:43 am
I'm a bit confused.

You hated Minnesota winter and couldn't wait to move, so you bought a condo and plan to stay for a few more years?

Have you thought about how to enjoy next winter, now that you're staying?
Yeah I'm an idiot. But I am stuck here another year for work (mostly because I want to be, because things are going well even if I am bored at times) so I decided to buy a thing I could turn into a rental property rather than blow another 15 or 20 grand on rent downtown again. Rent is just so high here it didn't make sense. I'd rather eat a bullet than live in the suburbs so I opted to make a financially better decision and just deal with working through my own personal issues that I have here, which I should be doing anyway (and not whining).

I have been thinking about the winter a lot actually. I have a lot of outdoor summer hobbies but nothing for the winter. I am going to try ice-climbing this winter and I am going to get a fat-tire bike for winter mountain biking. Another thing I am considering for the winter is enrolling in some kind of classes.

Next winter I am very tempted to get a real-estate brokers license since that may be a good part-time post FI career which would lower the cost of accumulating rental properties in the future. It takes a while to do the classes so that would be a good winter thing, and it could ultimately be good for networking around here.

Not go on too long but, the more I do the math the more I like the idea of buying one property a year for the next 5 or 10 years and then have a small portfolio of rentals. I am happy that I have built up a decent equity portfolio but I would prefer to have some property as well. It would become a nice part time job, and it would supplement my reliance on equity markets after my W2 period. And the easiest way to acquire these is now, while I still have a W2 job. And if I don't end up doing that, well, now I have a cheap place to live.

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Re: Giskard's Journal - slingin code to reach FI

Post by 2Birds1Stone »

Woohoo! Fat tire biking is amazing, and a lot of fun in the summer too. Glad you're thinking about it now, the best time to get anything you need for winter playtime is in the summer too.

Smashter
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Re: Giskard's Journal - slingin code to reach FI

Post by Smashter »

Hey Giskard -- my wife and I have Minneapolis on our short list of places to move in the next year or two. Can you expound a little more on the pros and cons, from your perspective? If there are any pros, haha.

I'd be working in technology sales, DW as an executive assistant, if that matters. No kids.

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

Smashter wrote:
Mon May 21, 2018 11:02 am
Hey Giskard -- my wife and I have Minneapolis on our short list of places to move in the next year or two. Can you expound a little more on the pros and cons, from your perspective? If there are any pros, haha.

I'd be working in technology sales, DW as an executive assistant, if that matters. No kids.
Sure yah no problem. I moved here for work and I am staying here for work and business opportunities after. The pros are that economy is super strong, low unemployment, and ton of fortune 500s here, pretty strong tech scene. Good airport, and fairly central. Actually has public transport that is good. Bike lanes everywhere. My idea was that this is a great town to be a software consultant in and make a home base, and I think this is still true.

Another pro is that for basically being a large city with all of the benefits of that, it is not that expensive. Real estate is affordable to regular people unlike in many large cities. The city is amazing in the summer, stuff to do every weekend and beautiful. The con is that you are still in the Midwest and all of the BS that comes with that.

The downside is that it literally snowed 1.5 feet the last weekend in April. Traffic is always terrible because they squeeze road work into the summer months OR it is winter and the roads are snowy.

Another huge downside in this state is taxes. If you are a high income earner you will be taxed a lot. Every type of tax is high, this is blue state. Minneapolis is also liberal to the point of being annoying. I am pretty socially liberal but sometimes I turn on MPR (Minnesota public radio) and just turn it of because the ridiculous stuff they discuss. Like aggressively talking about "check your privilege" stuff and how white men are terrible, ect. Honestly, I am a white male and I find it all pretty alienating and disturbing but Idk I guess that is happening everywhere that is very liberal.

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Re: Giskard's Journal - slingin code to reach FI

Post by Smashter »

Thanks for all the details. I can deal with a bad winter and off-putting politics, so it's sounding really good to me right now.

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

10/23/2018 Quick update

OK a lot changed in the 6 months or whatever since I last updated this. I switched from being an employee to being a contractor. I started working from home. I started brainstorming new business ideas. Made a lot then lost a lot in stocks. I have a pretty regular and serious girlfriend now.

Why don't I just go over my current financial situation?

Total current net worth: 433K
Stocks: 204K
IRA: 162k
Cash: ~$20k

Monthly Income (September): $11,051
Monthly Expenditures: ~$3,000

Monthly Expense breakdown:
  • Health Insurance: $300
  • Mortgage: $750
  • HOA: $255
  • Electricity: $22
  • Car insurance: $65
  • Condo insurance: $20
  • Internet: $35
  • Cell Phone: $25
  • Food: ~$400 a month (I am eating a heavy bulking diet)
  • Hobbies / road trips / gas: $1200 (did some climbing / hiking trips + got gear)
Updates on lifting / weight gaining:
current weight: 162 lbs
Deadlift: 250lbs
Squat: 210 lbs
Bench press: 165 lbs.

I am pretty OK with these numbers. Obviously would like to see increases here across the board, but that is what goals are for!


Extra thoughts..


In general I am making a lot more money than I used to, however I am spending more. I have to buy my own health insurance, and I feel free now to go buy nice merino wool clothing for camping and climbing, and splurge on rock climbing gear. But at the same time because I am making more, I am actually still saving much more.

Hopefully I will get this out of my system in a month or two, but this month... I already bought more climbing gear and clothing (!). I can rationalize it and say it will last a very long time and can be resold for almost the same amount, but the same cannot be said for the expensive outdoor clothing. But this winter I am going to make the most of the harsh Minnesota winters, so I am OK with buying nice wool clothes for outdoor trips.

FI Progress

I feel like I am in a sustainable spot now. I really like working from home. I get more work done, and have more time to do the things I want too. That, and I like contracting, both for the pay and flexibility. I figure if I contract another year or two, and then cut down my hours a whole lot that will be my plan to finish FI. At that point I would either continue to work fewer hours or a while, or stop altogether and work on starting some small software business. Just depends on how things go. Right now though, I am laying the ground work for that transition to happen very very soon.

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Re: Giskard's Journal - slingin code to reach FI

Post by prognastat »

Nice progress, without the hobby spending the rest of your spending puts you at about 84% savings rate so as long as it does come down a bit the savings should go really fast.

Good job on keeping up the exercise too.

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

prognastat wrote:
Wed Oct 24, 2018 10:05 am
Nice progress, without the hobby spending the rest of your spending puts you at about 84% savings rate so as long as it does come down a bit the savings should go really fast.

Good job on keeping up the exercise too.
Thanks! Yeah that is really good once you do the math. My goal is usually to hit 75% and I only really feel like I failed when I get below 50% savings rate.

In the short term to me a 50% savings rate is this: for every day I work It means I buy a day of no work. I can feel happy about that trade at a basic level.

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Re: Giskard's Journal - slingin code to reach FI

Post by prognastat »

Well depending on the growth of your portfolio you're getting more than 1 for 1 even at 50%.

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

Updates 1/24/2019

So In December the market fell a lot and I think I lost about forty thousand dollars on paper. This month I gained back about 20k of that. The phrase "emotional rollercoaster" comes to mind, which honestly I think I have just started on: 2019 will probably be worse. As I write this today my net worth stands at about 460k on paper. But now I like to think of that as a plus or minus 20 percent approximation, because honestly any given month of the year, it probably could be.

I am a contractor now and only get paid hours I work. So having taken time of in November and December, it really impacted my income. In October I made in 17k, and in December I only make 10k. This month I will make about 9k. Some of that is also due to starting 401k contributions, but still, it is very choppy!

I did buy a condo in June because it was cheaper than renting and I thought it would be fun to fix it up a bit, and it would give me a good excuse to buy tools, and learn things and have projects in the winter. Well, all of that is coming true now. I would like to start by telling everyone that getting smooth seams when dry-walling is harder than I would have expected. Actually perhaps all finish work is harder than I expected.

Long term, I do expect that one of the ways I live off of assets will be through real-estate. So, at 29, I am happy to start getting a better understanding of construction, repairs, remodeling, and real estate in general. Before I started this current contract I am on (and ended up working 40 to 50 hours a week) I was even considering getting a broker's license. But I think for now it makes sense to continue to learn about construction and repairs. Ultimately, for me, it is a bit hard to really understand a problem or domain deeply unless I have some skin in the game, and now I do.


Some stats for December 2018
income: $10429
spending: $3141
month end net worth: 434k
weight: 170lbs
deadlift pr: 260lbs


Recent stock purchases (mostly influenced by recent volatility):
- various vanguard ETFs
- BlackRock
- Taiwan Semiconductor
- Apple
- Morgan Stanley
- Lazard
- Phillip Morris
- Goldcorp - they have a buyout offer so this is merger arb
- FNMA, FMCC - new head of FHFA is causing speculation here.
Last edited by giskard on Thu Jul 02, 2020 9:27 am, edited 1 time in total.

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Viktor K
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Re: Giskard's Journal - slingin code to reach FI

Post by Viktor K »

Glad to have you back. No need to be embarrassed <3

prognastat
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Re: Giskard's Journal - slingin code to reach FI

Post by prognastat »

Well welcome back, no need to feel embarrassed though. I would say it was for the most part an interesting discussion with a large variety of opinions and experience even if it did turn somewhat contentious.

Congrats on still trending up in NW despite recent volatility.

How have things been on the health side of things?

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giskard
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Re: Giskard's Journal - slingin code to reach FI

Post by giskard »

prognastat wrote:
Fri Jan 25, 2019 12:56 pm
How have things been on the health side of things?
Eh, not bad, still working out very often. Recently just hit about 170lbs, and I think I basically bulked up and reached my goal weight now. Happy to move into maintenance mode for the most part. One obvious side effect of bulking up by about 35lbs over the past year is that I am now worse at climbing than before! I suppose the next goal is to continue to build strength while staying the same weight!

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