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The main concern is that the US gets hit with a bout of hyperinflation (or at least serious inflation). The US economy is very fragile right now - with significant debt burden, less workforce participation, aging workforce, etc... We also live in a world where tiny changes have huge impacts...

What are people doing regarding diversification of currencies? Seems like a lot of turmoil in the FX market and keeping all your money in USD is a big risk. Not sure what is best market to diversify into though.

Sorry. It was ignorance. 1:4 is only during the day. Overnight is 50%. Still could make some decent money using margin with such low interest rates. Just not with as much borrowing.

Interactive Brokers offers margin of 1:4 at 1.6% interest rate. Seems like there should be some low risk method to make money on the spread. Does anyone do this? Sounds like you can invest $100K and borrow $300k. Then if you can earn 2.6% you make $3K on your $100K of cash + $2.6K from the...

So I lost my job about 5 months ago (see previous thread) and I've decided to take some time off from work and see how the FIRE'ed life is. Although my networth now is around $650k (all liquid stocks/bonds/cash) and clearly not enough to really FIRE for life, I figure 30 is a fine age to take...

Thanks for all the comforting words. This forum is actually one of the first places I went to for comfort as I knew I could count on the good people of ER. I've had a few hours today to think about it some and thankfully am doing pretty well. It was a job I actually did like and one that I...

Another job gone. 30 years old, single, and $600K of mostly liquid net worth. What is the next step in life? :( --- edit --- title should have said "your services..." as "my services..." in quotes wouldn't make any sense...

Investing in skills when you are young and learn as much as possible even at the risk of looking dumb. Salary early on is not as important as salary later on.

Thanks for your response, although I don't think you really added much to the conversation. (Except for insults.) I don't know why you think posting something like this to the internet is so foolish? I find the internet to be a great place to speak with like minded people. I don't think I am...

It depends. Do you already own a tent?

It's a difficult thing to discuss I think. Especially things like current net worth. (Let's be honest, most of us talk more freely about our net worth on these forums than to any people in our non-virtual lives.) Someone also mentioned earlier how "frugal" is considered "not sexy" to women...

I wonder why that is. I originally started on the path to FIRE because I wanted to have the time to pursue my own dreams rather than being tied down to a job. If you had a near unlimited amount of wealth why not spend it like water? Why live in a modest home if you can easily afford the large...

OK - But let's say that a high maintenance girl (who was good in every other way) also came with a dowry of say $2m-$3m? Would you take that deal? What number would it have to be. It would be weird marrying someone wealthy and essentially making the last 10 years of frugal living moot. Not...

Thanks Mulligan - that is exactly the type of relationship I am scared about.

I wish it were only so easy to find someone that matches exactly what you are looking for. I do value marriage and kids so I would like to finally settle down soon. It is difficult/impossible to find someone that is perfect. I have found in life that rich girls are generally better educated...

I've been gearing for a life of FIRE over the last 10 years. I'm now 30 and have a net worth of $600k. I would say it was some work to get here, but honestly once you are used to LBYM, maximizing income, and investing wisely, it hasn't really felt like a sacrifice. It's a way of life I enjoy...

Hard not to be conservative in this environment. I'll take capital preservation over returns any day of the week.

I'm in the north east. I've thought about and research investing in housing. Based on my analysis I've decided to hold off on it. My primary reasons are: 1) I don't think people factor in the cost of repairs enough when doing return analysis. (Or maybe I am just too conservative.) 2) I...

Last time I updated was Jan. 2011, now it's July 2012. So it's 1.5 years of salary.

My understanding is it increased as follows over 18 months: $340K + 135K (salary after tax) + 25K (5% annual return on 340K portfolio) - 25K (expenses) = $475K

I was just saying in terms of net worth growth verse salary. If I were earning $500K and my networth grew $100K it would not be very impressive. That I've been able to grow the networth by $130K on a ONLY salary of $120K is what I meant. Just showing the effects of LBYM.

Last time I updated was January last year. "Currently 27 years old and single. Net worth of $340k ($350k liquid assets (cash/stocks/bonds), $10k of debt). " Now I'm 28 and net worth of $475k (490k liquid assets), $10k debt). Frankly I am pretty amazed at the speed of wealth accumulation I've...

I guess I actually should have made the thread about changes in taxes in general. Regardless of whether the tax increase is directly related to the new healthcare or not, it will definitely play a major role in FIRE planning. I think it could make sense to sell any long term winners by the...

The increased taxes due to Obamacare (coming in as early as 2013) is also going to but a wrench in the whole ER planning :( What ObamaCare Means for Your Taxes - SmartMoney.com "Right now, the maximum federal income tax rate on long-term capital gains and dividends is only 15%. Starting in...

I think that is kind of ridiculous... Why shouldn't we be able to comment about the effects this law change has on ER such as that it might favor leaving the work force earlier, and that it significantly benefits those that have preconditions? It also devalues that importance of staying healthy...