560 Days Till Freedom

Where are you and where are you going?
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Frugalchicos
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Re: 2Birds1Stones' Musings

Post by Frugalchicos » Fri Aug 17, 2018 3:51 pm

I just read your entire journal ( I like it because we have similar goals and plans). Hey, the city where your parents have the condo in Poland seems beautiful!

I am curious about your assets allocation for the next months until you retire. Are you thinking in investing all your money in an Index Fund? I saw you are holding a lot money in cash...

Just wondering since I am driving myself a little nuts about how I should proceed in order to be "safe" before pulling the cord in 21 months. We currently have 140K in a low index fund (90% stocks, 10% bonds), 60K in 401K and retirement account and 105K in home equity (we will sell before moving and gradually invest the money in stock market)

jacob
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Re: 2Birds1Stones' Musings

Post by jacob » Fri Aug 17, 2018 4:52 pm

@Frugalchicos - Safe from what is the question?!

Since you're planning to leave the country within 2 years, your primary concern should be tax optimization/minimizing exit-taxes. At least that's how I think about it. I'm realizing that I've set my financial roots deeper in the US than is warranted given the present political climate, so my focus is on reducing my liability for a tax-slam even if it means giving up the pursuit of finding a greater fool given the present financial climate.

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Sat Aug 18, 2018 6:52 am

@c_L, yes an adventure vehicle!! Not only would it provide a fun project, it would be a good learning experience, and eventually a vehicle that we could sleep in/camp out of on extended road trips vs. paying for hotels/AirBnB/etc. In the event of sudden job loss, we would be set to go on an adventure at very little cost. I surmise that we could easily live <$2k/month in the van full time.

@frugalchicos, I started following your journal last year for the very same reason :) Rzeszow is indeed a beautiful city! Not too far from Krakow and the incredible hiking in Zakopane/Bieszczady mountains. You are also a stones throw away from Lviv, Ukraine which is one of the cheapest places to visit on the planet.

Here is the exact breakdown of assets right now. This excludes my vehicle equity (which I will sell at time of quitting job)
Image

The plan is to continue to max out 401k/Roth IRA and invest regularly in taxable brokerage account. I plan to keep ~25% of my assets in CD's/treasuries/High interest MM accounts while I continue to work. With an 80% savings rate, the sleep well at night vs. ROI factor is not enough to get my to invest that chunk in highly valued equities right now.

It's more of a mental thing for me. Knowing I have a few years expenses in easily accessible cash helps me take on more risk in my 401/Roth/Taxable accounts, which are ~90% stock/10% bonds.

Upon retirement I plan to spend down a good chunk of that cash first, using a draw down strategy from Michael McLungs "Living Off of Your Money".

@Jacob brings up great points about taxes. This is an area I haven't really planned much, if we more to SE Asia/Poland, I have to learn about the tax implications.

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Tue Aug 28, 2018 10:58 am

A lot has happened since my last real update.

I started the new job and am really looking forward to seeing how it all unfolds in the coming weeks, months, etc. Getting used to the different culture, people, processes, etc......like my colleagues at first pass, at least the few I've met.

Looks like I won't have time for a project while the weather is nice. Cycling, MTB, running, hiking, etc have been keeping my plenty busy between travel/work/time with SO. Maybe in the winter we will look into it more closely, once I get settled into the new job and SO as well.

My weight is down to 197.0 and I am going to have to replace the majority of my professional wardrobe. Most of the things are worn and/or fit me when I was 40lbs heavier. Looks like I will be taking a trip to the thrift store to try my luck with dress shirts. Suits will have to get purchased over time in the coming months, but my jacket size went from 44 to 40, and pants from 36 to 31/32. I'm done trying to lose weight, although it's inevitable when I do something like I did over the weekend (ride 55+ miles in ~3 hours).

I've loosened the purse strings a bit, and am not so focused on small day to day (non recurring) expenses. At this point I will be tracking spending without any real budget. My monthly nut is so small relative to my income that savings rate being 75% vs. 80% will make little to no difference at this point.

Looking forward to monthly recap post over the weekend, till then, take care my silent followers.

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Viktor K
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Re: 2Birds1Stones' Musings

Post by Viktor K » Wed Aug 29, 2018 10:44 am

Sweet success on the weight loss man, congrats.
2Birds1Stone wrote:
Tue Aug 28, 2018 10:58 am
My monthly nut
Interesting way to put it.

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Sat Sep 01, 2018 1:06 pm

August Financial Update

Assets
$104,600 CD/MM
$122,200 401k
$88,700 Taxable
$54,700 Roth IRA
$11,600 Ag
$12,100 Vehicle Equity
$19,900 HSA
$8,800 Au
$422,600 Total Assets (+$7,400)

Spending
$550 Rent/Utility
$92 Grocery
$95 Gas
$239 Entertainment
$100 Depreciation
$50 Cell
$75 Travel
$25 Health
$130 Misc
$90 Gifts
$1,446 Total Spending

Income
$3,300 Salary
$390 401k
$533 HSA
$1,250 Commission
$300 Other
$5,773 Total Income

75% Savings Rate

$19,412 - Actual expenses, last 12 months (currently 21.77X, or 4.59% WR)
$15,300 - Actual bare-bone, last 12 months (currently 27.62X, or 3.62% WR)

Current 4% WR = $16,904

Monthly Combined Tracking

$3,625 - Combined Spending
$7,880 - Combined Income

54% Savings Rate

Combined NW = $519,000 (+$8,400)
Combine Spending = $40,200 (based on last 12 months)
Combined WR = 7.75% (12.9 x annual expenses)

Musings

The market giveth and the market taketh. This month was no different. Overall a decent month all things considered. My income was low because I only got paid for 2 weeks from old employer, and my new one won't pay me till the middle of Sept. My spending was decent thanks to being away for a full week. September will be up quite a bit with 6 month insurance premium due.

My monthly fixed spending is going up due to commuting costs and lack of HDHP at work. it will be offset slightly by the fact that I'm no longer carrying SO on my health insurance. She's on the NYS ACA exchange silver plan.......which is going to save me quite a bit in taxes.........but offset on the taxes due to lack of HSA access.

Burned through some cash and padded the taxable account this month. I don't really have access to any pretax accounts till 2019 gets here. Will be hoarding cash and making regular brokerage account investments for the rest of the year.

I'm sure no one will catch this, but I lowered the values of my precious metal holdings significantly. I am only counting the spot value of the underlying metal, and no longer counting a premium for the type of PM it is. I do have a large portion in coins that fetch quite a premium over the spot price, but in a pinch I can't expect to get that. That's why my NW only looks like it went up by $3.2k from last month, but in reality it's $7k+.

Happy Labor Day weekend! Hope everyone is relaxing :)

PoorButWealthy
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Re: 2Birds1Stones' Musings

Post by PoorButWealthy » Sat Sep 01, 2018 1:32 pm

Congratulations on your FI-progress! Everything seems to be going very well :)

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Sat Sep 01, 2018 8:48 pm

Thanks PBW, at this point the financial stuff is mostly on autopilot. I'm more interested in expanding my knowledge, self sufficiency, improving health & fitness, and figuring out life after work.

Today I did my longest bicycle ride of 2018. 65 miles in 3h 45m, burning a whopping 2600 calories.

I also woke up really light today @ 195.6, and my bodyfat is about 10-11% now. I don't want to lose any more weight. Tomorrow and Monday I plan to feast :)

Other than that I continue to learn at work, the honeymoon phase will be over before I know it, and then it's perform or get managed out. I need to last till at least next May 1, so performing is not choice, but a necessity.

classical_Liberal
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Re: 2Birds1Stones' Musings

Post by classical_Liberal » Sat Sep 01, 2018 8:56 pm

2Birds1Stone wrote:
Sat Sep 01, 2018 8:48 pm
Other than that I continue to learn at work, the honeymoon phase will be over before I know it, and then it's perform or get managed out. I need to last till at least next May 1, so performing is not choice, but a necessity.
Such pressure for someone at a 4.59% WR! Hopefully hormesis :D

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Sat Sep 01, 2018 9:05 pm

classical_Liberal wrote:
Sat Sep 01, 2018 8:56 pm
Hopefully hormesis :D
I had to Google that one! I'm curious how I will handle things and how it will all pan out. By May 1 I'll have 401k/Roth maxed for the year and finally hit my 40 SS credits. So if I'm not going to pull the plug now, I might as well do everything I can to stick around till at least then.

You're due for an update yourself ;)

Seppia
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Re: 2Birds1Stones' Musings

Post by Seppia » Sun Sep 02, 2018 4:19 am

Congrats on the weight loss, what an amazing achievement.

On the financials side, well, I have to say reading yours and many other journals in the last few days (like wolf's) have pushed me to tighten the belt.

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Fri Sep 07, 2018 3:03 pm

Thanks Seppia, despite my efforts to eat more and stop the loss, it's been continuing to drop due to busyness from new job and high activity levels.

Wrapping up my 3rd week at the new job today, and boy does time fly! So far so good.

I posted a few weeks ago regarding loosening the purse strings a bit, and I've done just that. Today I took a coworker out to lunch ( he paid last time when we were still employed at our old employer). Took my SO out for happy hour last night, and had a really nice time, without thinking what everything would cost. Signed up for the Marriott rewards CC and paid the $95 annual fee, since I'll be staying with them quite a bit for work in the coming months. Despite all of this, my spending will not be too crazy because I don't have all that much time to spend money on stupid shit. I have no interest in typical consumerism, so I'm not buying possessions or spending on things with a recurring cost.

Next week I'll be in Texas for more training. Meals paid for, so personal spending will be limited to a drink or two with new coworkers after work. Trips like these save money on groceries, gas, and entertainment back home =P

It looks like I'll be able to come in just under $20k for 2018 spending, now to continue that trend through 2019 while increasing income to $150k+ (gross).

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Sun Sep 16, 2018 8:03 am

Texas was good, ate all of the food and drank all of the beer.

Good weekend so far.

Friday I went into NYC to meet up with an old group of friends from the grade school era of my life. We all worked together at an Ice Cream shop and despite our varying ages, stayed friends for the last 15-20 years. We try to get together once a year.

Yesterday I jumped right back into road cycling with my longest ride ever, 73 miles in 4:38, burning over 3,000 calories

Woke up 200.2 lbs today, so still quite a ways to go before I get back to pre-trip weight. I expect to level off and would like to stay in the 196-198 range indefinitely.

Today we are meeting my dad for Brunch in Nassau. Looking forward to catching up as it's been a while.

Crushed weights on Friday and today. Felt soft after a week of not lifting/cycling/running......speaking of running....I'm racing a 5k next week and haven't ran in over a month, yikes!

September is going to be my most expensive month of 2018....

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Mon Sep 17, 2018 12:19 pm

Some mental accounting that will hopefully help get my asset allocation to where it should be......and to mentally let go of my giant e-fund.

I've decided to include my CD's in my portfolio, rather than my "cash" holdings or emergency (FU) fund. Hopefully this leads to higher overall stock allocation due to the CD's counting toward my fixed income/bond holdings.

According to Personal Capital, my allocation now looks something like

45.0% US Stock
29.7% Fixed Income
17.8% International Stock
7.5% Alternatives

And my EF is down to ~$50k from ~$105K

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Tue Sep 18, 2018 7:41 am

Weight as been sustaining in the 202-203 range with my 7 day rolling average at 200.1.....and likely climbing a bit before leveling off.

This morning my SO was hitting legs at the gym and I decided to join her. I haven't done a squat or deadlift in 18+ months, and I knew I would be terribly weak. I miss powerlifting, it's just that I've been doing so much cycling and MTB that I don't want DOMs to hamper my rides. I'm going to squeeze in 1 squat/deadlift session in per week and slowly build my way up to a respectable big 3 total.

Week 1
Squat - worked up to a triple with 225 (estimated 1 RM = 250)
Deadlift - worked up to a triple with 275 (estimated 1 RM = 315)
Bench - Worked up to a paused 235, which felt harder than expected!

Starting total - 800lbs @ 200.1lb body-weight

slowtraveler
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Re: 2Birds1Stones' Musings

Post by slowtraveler » Thu Sep 20, 2018 8:52 pm

Bench> Squat???

I have this too. Lol. Back problems lead to me avoiding squats for years. Now I just do front squats. I'm still getting back into it but you're strong than me at the moment.

Good to see all the progress in health and wealth you're making.

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Fri Sep 21, 2018 6:54 am

slowtraveler wrote:
Thu Sep 20, 2018 8:52 pm
Bench> Squat???

I have this too. Lol. Back problems lead to me avoiding squats for years. Now I just do front squats. I'm still getting back into it but you're strong than me at the moment.

Good to see all the progress in health and wealth you're making.
Right now my bench is probably stronger than my squat, but that should change with regular squatting (I hope, lol)

I put up 245x3 on bench yesterday, so estimated 1 RM is 255, I will see how squats feel, and maybe work up to a rep with 275 during next session.

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Sat Sep 29, 2018 5:50 am

September Financial Recap

Assets
$109,600 CD/MM
$122,600 401k
$88,500 Taxable
$54,700 Roth IRA
$11,700 AG
$12,000 Vehicle Equity
$20,200 HSA
$8,700 Au
$428,100 Total Assets (+$5,500)

Spendings
$550 Rent/Utility
$113 Grocery
$152 Gas
$280 Entertainment
$100 Depreciation
$135 Travel
$670 Insurance
$20 Health
$80 Misc
$33 Gifts
$2,145 Total Spending

Income
$6,890 Salary
$346 401k
$7,236 Total income

70% Savings Rate

$19,337 - Actual expenses, last 12 months (currently 22.14X, or 4.52% WR)
$15,300 - Actual bare-bone, last 12 months (currently 27.98X, or 3.57% WR)

Current 4% WR = $17,124

Monthly Combined Tracking

$2,995 - Combined Spending
$9,343 - Combined Income

68% Savings Rate

Combined NW = $526,100 (+$7,100)
Combined Spending = $39,500 (based on last 12 months)
Combined WR = 7.51% (13.3 x annual expenses)

Musings

September flew by extremely fast. Between the new job, travel, and a lot going on personally......it's been a blur.

Our combined spending dropped this month, and reflected nicely in the combined savings rate. Looking at the combined picture, it's clear that we are still quite a ways from being FI as a household, despite how close I may be individually =P

SO checked the ERE book out from the library to reread, she's really embraced the whole thing. We've been talking quite often about our sabbatical and slow travel plans....and seem to be on the same page regarding backpacking, van life, and extended stays in SE Asia and Eastern Europe.....the most likely trajectory has as hitting eject in mid 2020 still (sooner if my job turns toxic, later if we continue growing fast and my stock options could get us to 100% FI).

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Sat Sep 29, 2018 1:14 pm

@Classical_Liberal had introduced me some years ago, to the concept of buckets for a semi/mini RE approach.

I took all of our assets in the combined spreadsheet and put them into three separate buckets.

1) Cash and cash equivalents that could be used to fund the near term FIRE adventures (sabbatical etc)
2) Taxable Investments, which could be drawn down intermittently, used to refill bucket 1, and generally fund the next 3 decades
3) Retirement accounts, primarily 401k/Roth IRA's which we would try to let grow in the background for the next 3 decades. If these get too big vs. bucket 1 and 2, Roth contributions can be withdrawn and a Roth conversion pipeline started to top off bucket 2.

The goal would be to never let bucket 1 get to $0, and to live off of bucket 2 + part time or intermittent work, and leave bucket 3 alone.

Based on market returns, change in lifestyle desires, or whatever life throws at us, we can always go back to work and accumulate more assets, or if things go into runaway mode, never work again, and just about anything in between.

Right now this is how we are lookin...

Bucket 1 $77,200 2.0 Years
Bucket 2 $165,900 4.4 Years
Bucket 3 $283,300 $944 Per Month

Over the next 6 months we will be adding exclusively to bucket 2 and 3.

2Birds1Stone
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Re: 2Birds1Stones' Musings

Post by 2Birds1Stone » Sat Oct 06, 2018 11:11 am

Work has been crazy the past week or so, and only getting crazier with travel for the rest of the month. I'll be flying and away from home 10 days between now and then. I'm not used to so much travel, and neither is my SO used to me being away for extended periods. On top of the travel, I've had to put some long days in the NYC office at the end of this past week.....12+ hour days + 3.5 hour round trip commute.

Flying to the midwest on Sunday for 4 days/nights......maybe I'll get to relax a bit haha.

My eating has gotten less mindful and as a result the weight has crept back up. 202.0 this morning with 7 day average @ 201.9.....we were all the way down to 195 on 9/10/18. Not only that but sitting in the office and train so much vs. my previously very active lifestyle while working from home.......burning way less non exercise calories.....and less time for exercise on top of that.

I have to make sure this is temporary as I am new and have to train and shadow a ton. Once I am cut loose on my own, I will set boundaries or let them FIRE me.

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