Early Retirement Extreme Forums

1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
1/1/2020 - 3.2%

6/1/2020 - 2.52%

Getting spending down to ~1.64 x JAFI has been very helpful in bringing this down.

duplicate

classical_Liberal wrote: ↑

Thu Mar 12, 2020 8:37 pm

I was at 5.1%WR on 1/1/20. Now 5.8%.

4.3% Wild year!
Although some of this is from a full 12-months of semi-ER and reduced spending as a result.

classical_Liberal wrote: ↑

Sun Jun 07, 2020 1:28 pm

4.3% Wild year!
Although some of this is from a full 12-months of semi-ER and reduced spending as a result.

That's a way better reason than a larger pile of money.

@2B1S
Agreed. Not totally sure how it keeps happening though. I wish I was more confident it was permenant.

2020 YTD: 0.82%

If I could stick with my budget I would be able to hit 0.5%

@thedollar, you may have one of the lowest WR on this forum. Pretty sure Jacob is in the same ballpark. I can't even imsgine getting sub 1%. (Then again, said that about sub 3% when first discovering ERE).

@thedollar: Wooha, 0.82% and 0.5%! Very good.

We're at 3.6% ttm (not counting the one-time closing costs of the new house).

Future (say now till next 12 years): expenses will go up due to higher house expenses, kids college. But I expect NW will also still increase in the next few years so ouw SWR might stay about the same.

@2Birds1Stone @rube

Obviously it's pretty safe, but I just want to clarify that it's not based on skills on my part in the sense that my expenses are currently around 3 x JAFIs (target spending is around 2 x JAFIs) for a single person. Also, just an observation, at this level it's really hard to gain 0.01 percentagepoints say from 0.50%->0.49%, and there are pretty much only 2 things that have an impact on the SWR; market developments and spending. Of those two spending is of course the only one that can be controlled - just to point out that spending is ridiculously important.

1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
1/1/2020 - 3.2%

7/1/2020 - 2.37%

@thedollar, totally get it re: spending. My WR% has been dropping like a rock since I left my job in September simply due to spending going lower month over month. It opened my eyes to how much easier it is to do that vs. accumulating more assets. Not to mention the resilience of being able to find just about any job to cover low expenses (even 2-3 JAFI's).

Historical:

01/09/2012 (starting work) - ~190%
01/04/2013 - 109%
01/04/2017 (pinnacle to date before buying house in cash) - 9.1%
01/04/2020 - 67.8%


Latest:

26/07/2021 - 61.0%

1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
1/1/2020 - 3.2%

8/1/2020 - 2.15%

12/01/2018 - 32.97% [$750,000 * 0.04 = $30,000 / $91,000]
04/30/2019 - 20.34% [$600,000 * 0.04 = $24,000 / $118,000]
05/22/2019 - 17.78% [$600,000 * 0.04 = $24,000 / $135,000]
11/12/2019 - 16.90% [$600,000 * 0.04 = $24,000 / $142,000]
04/30/2020 - 15.21% [$600,000 * 0.04 = $24,000 / $157,800]
08/06/2020 - 12.44% [$600,000 * 0.04 = $24,000 / $193,000]
12/02/2020 - 7.19% [$600,000 * 0.04 = $24,000 / $333,900]
01/01/2021 - 6.81% [$600,000 * 0.04 = $24,000 / $352,200]
07/03/2021 - 4.96% [$600,000 * 0.04 = $24,000 / $484,000]

Savings rate has been higher in recent months dues to decreased spending in food costs and 'other'. Still leaving at $600k expected as I need to prove several months of consistency first to feel confident enough to lower this.

Edit for Dec 2020: I'm including my Spouse's invested monies as part of the pool. Also market gains have been ridiculous from 08/06/2020 to 12/02/2020.

Overall impressed with the progression so far...

1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
1/1/2020 - 3.2%

9/1/2020 - 1.95%

@2Birds1Stone

Awesome progress.

Is it mostly down to NW increase or slashing spending?

thedollar wrote: ↑

Tue Sep 01, 2020 2:24 pm

Is it mostly down to NW increase or slashing spending?

Long term it's been a healthy combination of both. Since January 1 of 2020 the spending has dropped off a cliff.

Edited to add: I posted a long term TTM vs NW chart on the last page in response to an inquiry from Lemur.

1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
1/1/2020 - 3.2%

10/1/2020 - 1.76%

1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
1/1/2020 - 3.2%

11/1/2020 - 1.6%

10-04-16 - 235% (discovering ERE)
10-04-17 - 36%
10-04-18 - 13.9%
10-04-19 - 11.2%
01-29-20 - 9.3%
11-09-20 - 7.1% (3.7% temporarily until I find a new job and return to original spending level)
05-18-21 - 5.7% (3.1 temporarily again since I just quit my job after 2 months of employment)

1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
1/1/2020 - 3.2%

12/1/2020 - 1.4%