The Intersection of FIRE and Disney

[QueenIsabella]

I have to admit--Christmas is my Achilles heel! I'm sure a therapist could, with time, sort out the mess of my poverty-stricken childhood, long, boring hours spent at Grandma's, my Christmas-hating mother, and my Christmas-loving dad. But the fact is, every year, I want my kids to have the best Christmas ever. So, I tend to over-do on the presents. Also on the food and Christmas baking (I think that's more me being Italian). I'm aware that I go overboard. DH is aware that I go overboard. Even the kids have figured out that I hate to deny them anything they want for Christmas.

On the good side, I do, actually, turn the kids down for some of their holiday requests (no Apple Watch for you, DD24!). Even though I buy too much, I don't completely wreck our finances. Part of it is that we have 4 kids, and they spend a large part of their lives sharing stuff, so I like to make them feel special, 2 days out of the year (Christmas and their birthdays). And of course I shop sales, get boxes and wrappings on 12/26, and so forth.

So, no good holiday budget tips from me! In fact, if you see me offering Christmas budget tips, you're best bet is to run away. Come back and see me in the new year.

 

[peabody58]

Achieved FIRE almost 5 years ago at age 57. We set multiple 5 year plans the last 15 years, slowly lowered our spending to our retirement budget, and paid off all debt. Worked all the OT/Holidays I could and stashed it all into the retirement account. And now 5 years later, we still haven't touched our retirement accounts, and cash flow remains on the upswing. SS at 62 starts next month!! We moved from IL (hi taxes/cold/flat) to a 55+ communitee outside Atlanta (warm, affordable, great location for active living).

In regards to Disney, we bought into DVC in 2010 as pre-payment for future vacations. We also purchased several AP vouchers and NE+ tickets as a cost hedge against future price increases. Wish we had bought more, but such is 20/20 hindsight.

Transition from 'saving' to 'spending' mode has taken a while as we cautiously inch into our 60's. Our health and happiness are way better and we are loving being seenagers! Now if only some grand children would happen!

 

[Mome Rath]

... my dad works with each grandkid to do a charitable donation in their name (giving is very important to him, and he wants to educate them about how to choose a charity that will both address an issue that the kid cares about and use the donation effectively).

That's a really good idea; when I do something like that I never think about just talking it over with the person before I pick a charity... I don't know why I never thought of it, but definitely would change how I go about it now.

 

[Starport Seven-Five]

I hope everyone got a good laugh (or cry) out of this one:

 

[Carol_]

A lovely Cyber-Monday to all my fellow DisFIRE thread participants. So, I have to ask; what role do big holidays like Christmas play in your FI/RE strategies, or do they impact it at all? Do we have black Friday/cyber Monday deal hunters in the group, or do you refuse to play that game? Do you look for gifts or deals on regular daily use items? Do you wait all year to deal shop, or if it just happens to hit at the right time take advantage?

Further, how do you handle Christmas/holiday time? Is it a time for a lot of gift giving? How does your fam handle who you buy presents for and how much you spend? Do you think your holiday spending is impacted by FI/RE plans? Do you feel guilty for buying presents across the board? lol I just think a conversation about it all would be interesting.

To answer my own questions; it does take a chunk of change to buy presents for both sides of my little family (and it's "funny" because my husband and I don't have kids, so we have more people to buy for on each side than anyone else does) so it is something I think about, and some years frugality wins out and we don't spend much, but other years it's like; let's pile it on! lol And in those years it does make me feel somewhat guilty. Now, of course, we don't do debt and try not to be frivolous and it won't really impact the end result of our FI/RE plans... but it's something I reflect on every November/December.

I'm a black Friday/cyber Monday stalker, so I do wind up buying the bulk of my presents during sales, so that does help, but it does then stack up the spending during the end of the year. And, as a mild minimalist I try to figure out things people will actually use, so that plays a role on what we buy who. I enjoy giving gifts as long as it is something that the person wants and will actually use.

My beloved asked me what he could buy me for Xmas, as he was at the store... I told him I wanted a $6,700 plot of build able land I found on the inter web today. I think he liked that idea.

 

[Carol_]

I hope everyone got a good laugh (or cry) out of this one:

This killed me. “Oh company x basically finances anyone with a pulse.”
May as well say Payday loans are great! Or
Let’s get a title loan to pay for DVC!
Everything’s magical. It’s Disney.

 

[MickeyMouseCD524]

This killed me. “Oh company x basically finances anyone with a pulse.”
May as well say Payday loans are great! Or
Let’s get a title loan to pay for DVC!
Everything’s magical. It’s Disney.

I didn't like how much they were pushing DVC for millennials. I understand the appeal and the reasoning but they don't know what their lives are going to look like in the next couple of years will they be married? Will they have children? Will they still be traveling to Disney as often? And then to bring up the "just take out a loan" really rubbed me the wrong way.

 

[Starport Seven-Five]

I didn't like how much they were pushing DVC for millennials. I understand the appeal and the reasoning but they don't know what their lives are going to look like in the next couple of years will they be married? Will they have children? Will they still be traveling to Disney as often? And then to bring up the "just take out a loan" really rubbed me the wrong way.

I didn't even consider this angle but you're 100% correct. A fairly large portion of millennials haven't purchased a home, had children, and/or gotten married yet so there are huge life changes coming. Committing a 5 figure sum to a timeshare (plus interest) is putting the cart before the horse.

 

[QueenIsabella]

This killed me. “Oh company x basically finances anyone with a pulse.”
May as well say Payday loans are great! Or
Let’s get a title loan to pay for DVC!
Everything’s magical. It’s Disney.

I couldn't get through the whole thing. It wasn't even close to being a balanced view of why this might or might not be a good idea. I'm not morally opposed to DVC ownership or anything--I think that, for some, it could be a reasonable purchase. But, you ave to go in with a clear-eyed view of actual expenses. Sure, you can finance points and pay them off in 7 years. But, there are other expenses (which maybe they mention later on, I bailed at ~5 minutes in). You're still paying for travel, tickets, meals, and maintenance fees. As Starport Seven Five mentioned, people's needs and wants change with time, as they move for work, marry, have a family. Sure, taking your kid to WDW is hugely popular, but maybe now you need twice as many points for larger accommodations.

I'm going to sound like a cranky old bat here, but before you spend $$$ on decades worth of vacations, get a decent job, move out of your parent's basement, and pay off your student loans. Once you're on your feet and stable, THEN evaluate if this is a good idea.

 

[MickeyMouseCD524]

I didn't even consider this angle but you're 100% correct. A fairly large portion of millennials haven't purchased a home, had children, and/or gotten married yet so there are huge life changes coming. Committing a 5 figure sum to a timeshare (plus interest) is putting the cart before the horse.

I just think it would’ve been important for the DIS to address that angle of it. I’m not trying to judge how millennials decide to spend their money. If you want to buy DVC instead of paying for a house or a car that's your decision and it's your money so go for it! But the episode felt very skewed towards "go buy now" and not "this is a big decision and yes it's a lot of money but millennials shouldn't feel like they can't buy if they want to". It all felt very sales pitchy to me.

 

[MickeyMouseCD524]

Just curious to know what everyone's FIRE goals are for 2020.

We're currently saving towards a down payment on a house and are hoping to add at least $12k more to the fund this year. In addition to uping our 401k contributions another percent or two. And adding another $7k to our emergency fund.

 

[bernina]

Just curious to know what everyone's FIRE goals are for 2020.

We're currently saving towards a down payment on a house and are hoping to add at least $12k more to the fund this year. In addition to uping our 401k contributions another percent or two. And adding another $7k to our emergency fund.

Awesome goals!!!

We're about 10 years out from my retirement and maybe 12 or so for DH (if he works for so many years we get ~$17k/year towards healthcare costs).

Main goals are to max both 401k plans and Roth IRAs as well as our HSA (we try not to use the money and instead invest in a stock fund). Research investment options for the $10-$20k extra we have in our emergency fund (or just dump it into our current brokerage in VTSAX). I'd also like to see if there's something more strategic we can do for 8 yo DD's college fund (currently our Roth IRAs are earmarked for that). Can't believe it's almost 2020!!

Happy Holidays to all, wishing you a happy, healthy (those 2 are most important), and prosperous New Year!

 

[peabody58]

Reached FIRE 5 years ago at age 57. Now we're both 62 and loving the addition of SS to our income stream. Our FIRE goals are to travel more, spend more on our toys (DW: Sewing stuff, me: drums and band stuff), and stay healthy.

I applaud all of you who are actively setting goals. That is how we did it. Set rolling 5 year goals for 15 years before FIRE which along with fiscal focus and shared communications, afforded us the opportunity to FIRE. Get debt free, never leave money on the table, and enjoy the process. Tomorrow will be here really soon!

 

[Killer Fish]

Plans for 2020 include opening 529 for baby #2 when born in February and starting a VTSAX account with bonus in March. Already doing max 401k myself (roth 401k for first time in 2020) and my wife is close to max. Also will be putting money aside for nanny for baby #2 for 8 months.

For those that are already adding to your VTSAX do you just do it once a month or it is set to auto deposit?

 

[Starport Seven-Five]

Not changing up much from a financial standpoint as we're kind of in the "grinding it out" phase. Targeting 100k NW increase. That will be largely dependent on market returns though.

Actually have been doing more options trading (unusual in the FI community) but it's with such small amounts of money that it doesn't add up to anything. Doing it to prove theories and learn right now.

 

[RamblingMad]

For those that are already adding to your VTSAX do you just do it once a month or it is set to auto deposit?

I put enough into my 401k to get matching. The investment choices and fees are terrible, so I rather invest in my own account.

I need to rethink this for next year now that my broker doesn't charge commissions anymore. I'm more of a VOO or QQQ investor than a VTSAX. I usually move money into my investment account, invest in a one or three month treasury, think about what I want to do, and then allocate the capital. I do have treasuries maturing today, but I really don't know what I want to buy, so I'm just rolling them over on Thursday for another month. I'll figure this out at the end of January. I'm not in any rush to allocate right now. I usually just evenly split between the two. I keep my fixed assets at 30% right now, and I keep my REITs at 10%. I also have a small allocation in Wells Fargo preferred that I was able to buy under par. This year I had a good opportunity to get into both BX and UNH very cheaply, so I built those positions. I like how BX is ran. And the political risk gave me a good buy in for UNH, which is also really well run. I'll eventually sell those off and allocate into VOO or QQQ. But I'm in no rush.

What I also need to think about is my small position in IEFA. I wanted some international exposure, but I don't think this was the right choice. I've been in it for 2 years, and I've made about 2% annualized for the last two years. Between a strong US dollar and the ECB keeping rates negative, I don't think this was a good place to allocate capital. I'm considering selling some time in Q1.

 

[AmyAnne]

I put enough into my 401k to get matching. The investment choices and fees are terrible, so I rather invest in my own account.

My investment options through my 401(k) are not great either but my thinking is that the tax benefit far outweighs any better return I could get investing elsewhere.

 

[RamblingMad]

My investment options through my 401(k) are not great either but my thinking is that the tax benefit far outweighs any better return I could get investing elsewhere.

I give up a year or two of returns by being taxed today, but then I limit my tax exposure to capital gains and dividend tax rates. If I lock up my money in a 401k, then when I have to pull it out, it comes out as ordinary income, and I will have paid up to 1% in annualized fees. And I will have limited investment options. I can see this making sense if you have low fee options. I don't. The fees eat up my tax benefit.

 

[georgina]

Congress passed and the president signed the SECURE act. Several changes to retirement account rules. The one most affecting us personally is that they raised the age to 72 for mandatory IRA withdrawals. Also changed the rules for inherited IRAs, money has to be taken out within 10 years instead of the beneficiary stretching it over their lifetime.

 

[SouthFayetteFan]

Just curious to know what everyone's FIRE goals are for 2020.

Well - I'm prepared to share a HUGE accomplishment this evening. I just pushed submit on our MORTGAGE payoff! Through a bunch of Chase URs that I cashed out, I am sitting heavy on a cash position. Paying this mortgage off has been a major financial goal for us for the past 5 years. Roughly 5 years ago, I lost my job in a very surprise situation with a corporate buyout. Amazingly, some tremendous earning opportunities came about as a result of that with a transition "stay-on" bonus, severance pay (twice), and a new job. A subsequent transition "stay-on" bonus ensued from there a couple years later and all of this combined with general frugality, meant there was a lot of excess cash flow occurring.

(Side note: If you are in some sort of visible sales/mgmt role, it is imperative that you develop great working relationships with all the misc vendors and other professionals you encounter. My work at fostering those relationships provided numerous job opportunities from the moment my situation opened up. It was nice to be in demand, and I recognize that while a lot of work went into that, there was also a component of being blessed there as well).

While I could have invested this excess cash flow, and from a purely "numbers" perspective it would've made sense to do that (in retrospect)... I chose the guaranteed return of paying down debt. We first eliminated an auto loan and then went to work on the mortgage. For me, this meant two major things: 1) a guaranteed return in avoiding interest and 2) lower obligations in the event of a future job loss situation.

With our mortgage out of the way, we could now live off of $20k annually if necessary. Essentially, my dependency on a job for basic living expenses is over. I could FIRE right now if I wanted to cease all misc spending & quit all kids activities. I don't plan to do that, but it's nice to know that it is an option, lol!

As far as 2020 goals go: we will once again max out 401k, IRA, HSA (which we've done for many years running now) and then seek to begin accumulating some liquid investments. The power of goals is just amazing my friends!!