Seppia's journal

Where are you and where are you going?
Seppia
Posts: 1059
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: Seppia's journal

Post by Seppia » Tue Sep 10, 2019 6:59 am

August update

Vacation

My wife's parents own a small apartment in the french alps that they use mostly during ski season.
It was empty and we love summer in the mountains (more peaceful, fresher, less people), so we jumped on the opportunity and went hiking for 10 days.

DW and I are always grateful for the life we have.

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Work

It looks like I'll be getting the chance to expand my role. This should happen any day now, and the move to asia is now 99% likely. I'd like some official confirmation but nothing still.
The end result should be more work, more money and more stress, but also the chance to learn something completely new.
Overall positive, especially because I'm very happy at work in spite of the long hours and incessant travel.

Health

Unfortunately, work is absorbing a lot of my energy, and as a result weight is out of control. I'm now 203lbs (92 kg).
I don't seem to be able to be 100% disciplined/focused in multiple aspects of my life: when work takes center stage, I let go on the eating/exercising.
I know it's 100% stress related as I consistently lose weight when on vacation

Money

Another decent month with 70% savings rate in spite of some vacation expenses.
YTD SR is at 79%, end year goal is still to be at 70% and stretch goal at 75%. It may be feasible if I have no unexpected exenses.
Dividends YTD have covered almost 85% of expenses. I expect this number to be lower at year end.

I am continuing my slow move towards defensive.
Cash stash is the highest it has been in two years (absolute value) and is now up to 17.5% of NW (excluding my small apartment).
All the stocks I've bought in the last 4 months are considered "defensive" stocks.

anesde
Posts: 73
Joined: Wed Jan 09, 2019 8:32 am

Re: Seppia's journal

Post by anesde » Tue Sep 10, 2019 4:32 pm

Breathtaking pictures!

I work stupid hours and travel quite a bit for work as well. One thing that’s helped me is setting up fitness challenges with my childhood friends who I’m still close to. We don’t live on the same continents, much less the same cities, but I’ve found it to be a great way to keep in touch plus provide a competitive atmosphere that helps in staying in shape.

Our first challenge was 50 burpees a day for 100 days. It’s easy, quick and can be done anywhere. The added bonus of being spread over the globe is that our group chats come in at all hours. So sometimes I would wake up in the UK and see that my friend in LA did his challenge while I was sleeping so it provided some motivation to get off my ass and do them.

Current challenge is a daily 6 min of kettlebell workout, 40 pull-ups, and 1 mile run. We use a google spreadsheet to track and send ridiculous messages to each other whenever someone is falling behind. Perhaps something similar would help you stay on track?

classical_Liberal
Posts: 950
Joined: Sun Mar 20, 2016 6:05 am

Re: Seppia's journal

Post by classical_Liberal » Tue Sep 10, 2019 11:53 pm

I'm not sure if it's your personality (ie very optimistic?) or if you have simply crafted a great lifestyle, but I love all of your updates and pictures. Do you really ever want to retire for what you've got going on? I mean, I'm not suggesting you start spending more money or anything, it just seems like you're so happy in your current situation.

Seppia
Posts: 1059
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: Seppia's journal

Post by Seppia » Wed Sep 11, 2019 1:22 am

@anesde: that's a great idea thanks for the suggestion!

@c_L: when planning ahead I tend to be very conservative/pessimistic, but when looking back and "in the moment" I'm definitely a half glass full kind of person.
This said I am very happy now, a great 180 turn compared to a couple years ago where I really did not enjoy my job for a few different reasons.
I know this could change any time though, as there are many factors outside of your control.
Right now I have everything going for me:

a boss that trusts me/respects me and that doesn't micro manage too much
I am responsible for an area with great potential for growth that remained untapped for many years prior to my arrival, and I like the guys on my team
Said area happens to be beautiful
A great brand
I am handsomely paid and travel policy is generous

Some of the above are things that will not change, but a change of boss for the worse could have immediate negative effects.

So long story short, it's clear to me that I'm not going to quit anytime soon should things remain as-is, but I'm happy I'm saving north of 2/3 of my income anyway, just in case.
I am not exactly wired as an hardcore ERE practitioner. I could "retire" in a few months on a barebone expense plan, with a reasonable margin of safety (below 2.5% WR*), but I have expensive hobbies if measured by the standards of this forum. Mostly scuba diving and international travel.

So I'll probably hit "my number" somewhere between 5 and 7 years from now (even if I keep moving the goal posts further every year, in perfect OMY syndrome style), but my situation gives me the added EFF-YOU attitude to be able to fight any stressful situation

*In italy, we have a 0.2% wealth tax on all financial assets, plus dividends are taxed at 26%. So an american "4% WR" really corresponds to 2.8% for us.

wolf
Posts: 900
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Seppia's journal

Post by wolf » Wed Sep 11, 2019 10:27 am

There is luckily (not yet) a wealth tax in Germany.
We do also have a tax on investment income (either dividends or on the profit when selling). The tax is also around 26%.
And isn't there already a financial transaction tax in Italy? Probably there will be one in Germany as well.
Due to the progressive tax on any income there is an income level, on which you do not have to pay taxes. It's around 9k€ in Germany. And if you add (assert) expenses on health insurance on that you can earn around 12k€ income tax free (including investment). Is there something like that also in Italy? Or do you have to pay the same tax rate on investment (dividend?) income regardless the amount of your annual income?

Seppia
Posts: 1059
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: Seppia's journal

Post by Seppia » Wed Sep 11, 2019 11:04 am

Dividends are taxed 26% regardless of income.
One of the 1737737373728292938 injustices of the worst tax system I've ever known (another great one: ETF sales don't generate plus and minuses that can be compensated with plus and minuses from stocks).

henrik
Posts: 759
Joined: Fri Apr 13, 2012 5:58 pm
Location: EE

Re: Seppia's journal

Post by henrik » Fri Sep 13, 2019 1:34 pm

Is your tax situation going to improve by moving to wherever it's going to be in Asia?

Seppia
Posts: 1059
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: Seppia's journal

Post by Seppia » Fri Sep 13, 2019 3:46 pm

:P It definitely should

anesde
Posts: 73
Joined: Wed Jan 09, 2019 8:32 am

Re: Seppia's journal

Post by anesde » Fri Sep 13, 2019 6:18 pm

Seppia wrote:
Wed Sep 11, 2019 11:04 am
Dividends are taxed 26% regardless of income.
One of the 1737737373728292938 injustices of the worst tax system I've ever known (another great one: ETF sales don't generate plus and minuses that can be compensated with plus and minuses from stocks).

Ouch, that sucks. I thought the US was bad by not letting you combine “passive” gains/losses (from rental income) with “investment” gains/losses (from stocks, ETFs, etc). Word choice always irked me because the revenue stream I derive from my “passive” rental was a hell of a lot more active then the “investment” income from dividends. One was a few hours of research on the internet in my pajamas whilst the other was 4 months of project managing the renovation of a house.

I also hate the US citizen tax on worldwide income which falls under the category of “we do it because we can” and ex-pats don’t get any sympathy from anyone. The worst however is that your non-US citizen spouse (or green card holder, or even visa holder) is subject to US tax if you declare “married filing jointly”. Granted it doesn’t apply if you don’t but still - getting taxed from a foreign government without having any say or benefit from said government is beyond crazy to me.

Asia should be much better for you. Effective tax rates in both Singapore and HK are less than 15%.

Seppia
Posts: 1059
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: Seppia's journal

Post by Seppia » Sat Sep 14, 2019 1:58 am

anesde wrote:
Fri Sep 13, 2019 6:18 pm
I also hate the US citizen tax on worldwide income which falls under the category of “we do it because we can” and ex-pats don’t get any sympathy from anyone.
IIRC the first $90k earned abroad will not be subject to tax, so not too bad.
anesde wrote:
Fri Sep 13, 2019 6:18 pm
Asia should be much better for you. Effective tax rates in both Singapore and HK are less than 15%.
8-)

slowtraveler
Posts: 772
Joined: Sun Jan 11, 2015 10:06 pm

Re: Seppia's journal

Post by slowtraveler » Sat Sep 14, 2019 2:50 am

$103,900 free of federal taxes. *

Including a full 401k: 19,000** excluding any match, Standard deduction: 12,000
Dividends/long term capital gains: 38,600***
Total: 173,500 tax free for a single filer

You can push this to 210,500 if you are maxing the 401k limits that include matching as the maximum total is 56,000, plus 6,000 to 62,000 if you're over 50**. Dont forget a defined benefit plan for further tax free income.

Unfortunately, you will still be paying social security on some income and medicare on all your income.

* https://www.irs.gov/pub/irs-pdf/p54.pdf
** https://www.irs.gov/retirement-plans/pl ... ion-limits
*** https://www.irs.gov/instructions/i8615

henrik
Posts: 759
Joined: Fri Apr 13, 2012 5:58 pm
Location: EE

Re: Seppia's journal

Post by henrik » Sat Sep 14, 2019 3:55 am

Seppia wrote:
Wed Sep 11, 2019 11:04 am
(another great one: ETF sales don't generate plus and minuses that can be compensated with plus and minuses from stocks).
anesde wrote:
Fri Sep 13, 2019 6:18 pm
Ouch, that sucks. I thought the US was bad by not letting you combine “passive” gains/losses (from rental income) with “investment” gains/losses (from stocks, ETFs, etc).
A common way around this is to do your investing in a holding company. Whether it makes sense obviously depends on personal circumstances and local tax rules. Using a holding company can also give you more flexibility in terms of residence - the company can "stay behind" or be established in another state/country in the first place.

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