Is This a Part of Your FIRE Plan?

[@TwoSidesOfFI]

Do you have an IPS or an investing plan? If so, how do you find it most useful? If not, why not? Let us know in the comments below.

[@sherrymiller5487]

As one who is already retired, I totally agree with Jason’s detailed plan. I believe this type of structured, planned reevaluation is very important once you’re retired! Thanks to both of you for sharing your discussion with all of us!

[@TwoSidesOfFI]

You’re welcome, Sherry. Glad you found this useful.

[@davidatkinson5396]

Jason, thank you for sharing your IPS. I enjoyed comparing it to my own and finding many similarities. I also attach a list of all my various cash and investment accounts with descriptions of their purposes, account numbers, beneficiaries, etc., mainly for the benefit of my spouse and children.

[@TwoSidesOfFI]

Glad it was helpful!

[@ccw39]

Love the ideas in this episode! I need to think about crafting my own.

[@TwoSidesOfFI]

Thanks! Let us know what you come up with

[@blazerjeremy8960]

Thank you for making these videos! Very Helpful.

[@TwoSidesOfFI]

You’re welcome

[@nelsonang]

Eric, the person who has to execute the IPS might be your future self who may have forgotten one or two of the bread crumbs on the journey 😊 awesome episode as usual guys! thanks 🙏

[@TwoSidesOfFI]

Cheers, Nelson (Eric here)...reminds me of the Field Notes tag line, "I'm not writing it down to remember it later, I'm writing it down to remember it now."

[@alanyoung159]

I was like... that's a lot of pages! Very Good and detailed!! I love it!!

[@TwoSidesOfFI]

Thanks! If you checked it out, it's really only 2 pages - despite the text Eric put up on the screen :)

[@alanyoung159]

@@TwoSidesOfFI yeah, after checking it out, that's what i noticed lol

[@FrugalFactor]

Maintain your course. Stick with your business plan or IPS. My plan has two numbers, one that ensures all basic expenses are met, taking into account taxes and (expected) inflation. The other number includes all our annual expenses, plus expected travel and an extra amount (The plus Fund) for the first 10 years of retirement. I am ready to leave my main employment, but may continue for the next two or three years. It all depends on work conditions. I have watched my Plus Plan FI number vanish. But the basic plan is not a problem. You need a plan that you are confident to stick with. What happens if the market drops away a month after you think your FI? Are you going the change your plan? I have learned changing plans is dangerous and costly. Also, you have a business you can return to! I don't :-) Thank You for another excellent video!

[@TwoSidesOfFI]

Thanks for sharing. We're glad you enjoyed the ep. It's a good idea to think in terms of a 'dignity floor' of basic expenses plus extras. We also don't disagree with you re: market drops post-FI. By then cash reserves are in place and the model of course assumes / contemplates future volatility. -Jason

[@patriciagolding7092]

This was so interesting! I was really inspired to make an IPS for my husband. Thank you!

[@TwoSidesOfFI]

Thanks, Patricia! We're so glad you found it useful.

[@jacksmith2911]

Thank you for the PDF file of your ISP. I am using it as a template for mine. I have been putting off doing one at all. Using yours has motivated me and will save me a lot of time.

[@TwoSidesOfFI]

You're welcome, Jack! So glad you're finding it useful.

[@EBsDenStudio]

Great episode, thanks for the IPS description and explanation (justification 😂), I think it is a good idea, just to keep the information in black and white to remind us about it, keep on with your episodes, thanks!

[@TwoSidesOfFI]

Thanks, Enrique! We're glad you liked it

[@MoxyDave]

I didn't have a plan until about 10 years ago. I've lucked into most of my wealth by simply following the old boomer steps. If I had not started a 401k at 25 and bought stock from my large Fortune 500 employers at a discount I would not have any investments at all. 10 years ago I decided to actually learn about finances and I quickly began to realize just how lucky I was. The real truth here is that we need this education in K-12 so kids come out of High School literate in finance and business. Regarding an IPS specifically, I do not have one but I plan on making one soon. Mine will be short and sweet. It's a great consideration for those picking up where you left off; I probably should write a will as well 🙂

[@TwoSidesOfFI]

Thanks for sharing. Definitely no requirement that it be lengthy! And yes, estate planning is a great idea as well. kzbin.info/www/bejne/nnfQgHysa8prn6s

[@shea2415]

Woohoo! Get hammered... with questions

[@TwoSidesOfFI]

And we did!

[@andreadaroz9673]

I had so much fun with this episode! First of all, I must admit - I am an Eric type of person haha - “do I need this?” It seems quite overwhelming to me to add this additional “shore” on top of all things that I need to get done - BY THE WAY, it was so funny to see Eric’s reactions throughout the reading of each section - his face was hilarious!!! Having said that, I kind of get the value of this exercise. Does it mean I am going to do that? Nah - will probably copy and paste Jason’s plan and pretend that I am smart enough to have developed it by myself! Seriously, perhaps this seems overwhelming only because I am still too busy to think about something else other than throwing myself on my couch after 12-14 hours of work per day - hopefully my state of mind will change once I have more time available. Great episode as usual! Thanks guys.

[@TwoSidesOfFI]

Glad you enjoyed it, Andrea! Eric is definitely the funnier of the two of us :) Cheers, Jason

[@gurrrrlish]

Thanks for sharing... very useful info

[@TwoSidesOfFI]

You're welcome!

[@scotth7293]

This is critical if you are doing your own investment decisions. It’s your “accountability partner”. It’s the same reason I pay my advisor. To keep me from going to 100% equities when I don’t really need to.

[@TwoSidesOfFI]

Great way to put it, Scott! Thanks for sharing.

[@davidatkinson5396]

Nothing will test your risk tolerance like our current market conditions. It is one thing to say you are comfortable with a 70/30 allocation, it’s another to find yourself still buying equities (or doubling down) when the market is down 20%. I realized that I am, in fact, very comfortable with that allocation. BTW, as Jason said, I allow my IPS to remain a living document. I was hesitant to raise my asset allocation from 60/40 to 70/30, but I had to be honest with myself that I was more comfortable with the more aggressive allocation even though 60/40 is promoted as the more ideal for my proximity to retirement.

[@shawn4692]

Even if the analogy to 2008 holds up and it's as bad as 2008, from here, you can expect a 7% annual return on your stocks including dividends over the next 5 years. I think right now people just have alot of fear, but even if we get a total meltdown those with a 5 year horizon or later are sitting pretty buying now.

[@TwoSidesOfFI]

We're just as bullish as anyone, but returns are never guaranteed, right? Best wishes to all of us!

[@davidatkinson5396]

@@TwoSidesOfFI Oh, now you tell me!

[@andyd102]

Hi guys. As always love your vids! Two comments for future content. I would love an encore with Karsten’s views regarding current portfolio drivers of portfolio valuations and future returns and his take on that and application to his toolbox model. Also interestingly I recently got a comment regarding a meetup group I wanted to join. To set the stage I am in my mid fifties and am retired early, or so I think, and reached FI in my late forties. Interestingly I wanted to join a FIRE group, and posted a comment of folks really retired not just on their way to it. I got a reply after a few months that I am actually very late to FIRE in my fifties rather than in my thirties and how I would not enjoy the meetup group as they were “superior” having reached FIRE in their thirties and I was “Late” to the game, Ie FIRL. At first I was like how dare you etc…But then I thought about it and maybe he’s got a point! What makes FIRE, FIRE so to speak, or what is the E or early in FIRE really mean? Love to hear your perspective!

[@TwoSidesOfFI]

Jason here - Thanks, Andy. I think your first reaction to the FIRE group was more in alignment with my feelings. We talked about this in our chat with Fritz, and I think anything prior to the average retirement age is early - and particularly if you've taken deliberate steps to achieve a FI target. Sounds to me like you need a better circle of FIRE-minded people.

[@andyd102]

@@TwoSidesOfFI Hi Jason, thank you for your reply. I watched Fritz's episode as well as the one with the money guy show gang. I think it came up there as well...I just found it interesting and I thought I shared. It was just a comment that me think and percolate. Sounds like a fun topic. Its not a wrong perception as some are following the gospel of mr MMM's who it seems has invented the FIRE term i guess. Thanks for the link I will check it out!

[@JO091715]

I’m considering the back door Roth and thus am curious about where I may find some info on the Roth conversion strategy decisions metrics?? Did I miss a show on this?

[@TwoSidesOfFI]

Hi Joe, while both of us have made backdoor Roth IRA contributions at times over the years, we've never done a show on it before. This is a commonly discussed topic so any of the personal finance or FIRE subreddits would be a good starting point. This article is a good starting point to which we've referred people in the past. www.investopedia.com/terms/b/backdoor-roth-ira.asp

[@KetchumAllCollectibles]

Just found you guys recently and you are constantly referring to "Carsten". Where/how do I find the conversations with them?

[@TwoSidesOfFI]

Welcome! Here’s a link to the episode with Karsten Jeske: What the FIRE Community Gets Wrong - Talking with Karsten Jeske kzbin.info/www/bejne/kImrmWSdqbRkoqM

[@KetchumAllCollectibles]

@@TwoSidesOfFI ah it was right in front of me. Slowly picking through some of the backlog and missed that one. Thanks! Really enjoying the content so far. Working towards FI selling pokemon cards as we speak 😆

[@wineguy68]

@jason I see in your IPS you do not do automatic reinvest in any accounts except HSA. Is there a reason your do automatic reinvest in your HSA? I've been letting divididends go to cash and then doing reallocation to keep the HSA in rough allignment with the same fund allocations I have in tax advantaged accounts. Keep in mind we are not drawing from our HSA and don't plan to for 10-15 years. Also thanks for sharing the IPS. I used it to provide a little more organization to our plan. While we did have a written plan I like how this is organized a bit better. The one section I added to the IPS was a work-in-progress section, things we're doing to bring our allocations in allignment with our goals, fixing things like tax inefficient fund holdings, over exposure to individual stocks etc.

[@TwoSidesOfFI]

Oh good - a question with a simple answer! :) The reason that I automatically reinvest in my HSA is that I hold hold a single total market fund in there (FSKAX). And you're very welcome! Glad the IPS was useful to you. I like the idea about a WIP section as well. Thanks for sharing! -Jason

[@StevenWhetten]

I wonder what the difference in medical costs will be when medicare/ social security kicks in at 65?

[@TwoSidesOfFI]

Good question. We can only talk about those costs as they are today. A lot could change over the years until then…

[@dev2594]

Thought we were going to discuss Intrusion Prevention Systems lol

[@TwoSidesOfFI]

Those sound serious!

[@ivecadit]

Eric, just think of the IPS as an Architectural "Parti" organizing the thoughts and decisions behind your retirement plan. Your retirement plan is like contract documents, and you of all people should understand the importance of the Parti, right Eric? LOL

[@TwoSidesOfFI]

Cheers...but, a good Parti is also self-evident, right?

[@trevorpennington924]

Ship Sankie 😂

[@TwoSidesOfFI]

Chip Sankey was a visualization pioneer!