Gilberto de Piento's Journal

Where are you and where are you going?
User avatar
El Duderino
Posts: 164
Joined: Mon Oct 27, 2014 12:24 pm

Re: Gilberto de Piento's Journal

Post by El Duderino » Wed Mar 23, 2016 7:42 am

what's got you down man? bummed from the finish to the vacation? Where'd you go?

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Thu Mar 24, 2016 8:28 pm

what's got you down man? bummed from the finish to the vacation? Where'd you go?
Thanks for asking. I went to a few countries in Asia. I'd like to say more but I'm concerned about anonymity.

Partially I think I was down from the finish to the vacation. I was ready to go home but going back to normal life is kind of a downer. Also, I went to a place where I've never been before and it was interesting and fun and a good cultural experience but it there was never any magic. It's been a long time since I've felt any "wonder" and I miss it. Also, when I posted I was just coming to the realization that I spent about $2000 on a vacation. It never felt like I was spending that much but somehow it still really piled up.

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Thu Mar 24, 2016 8:39 pm

I went to a free financial advisor through the credit union recently. Actually a pair of them. The first walked through my spending with me. He was helpful but we didn't find much to get rid of. He was hunting for dinners out, car payments, etc. and was very skeptical that anyone could have a $12 phone bill. :)

The second advisor was more about investments. The problem is that she didn't understand the way that my tax deferred account can be used and also thought that vanguard adjusts index funds to account for how they predict the economy will do over the next year (this is against the basics of what an index fund is).

I think they would have been really helpful for someone with no idea where the money was going so I don't want to discourage anyone from an advisor, just be sure to do your own thinking.

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Fri Apr 01, 2016 8:33 am

March 2016

A three paycheck month plus the stock market improving offset the last of the vacation spending. There were also some car repairs. Still looking for a better car but being patient looking for the right war rig.

Hoping to get spending under the $1800 goal, maybe under $1500, next month. All this spending results in some ugly time to FI numbers.

Expenses
Auto & Transport 165.7 Had to fix something on the car. Thankfully it was easy work as car repairs go.
Business Services 17.98
Groceries 113.02 Very low spending but only due to half of food being categorized under "Travel."
Internet 63.29
Laundry 20
Mobile Phone 12.23
Mortgage & Rent 960
Shopping 9.8
Travel 988.38 I could break this out but its not worth the trouble.
Total -FI 2350.4

Income
Paycheck 275.72
Amazon 137.04
Google 130.85
Checking 0.77 Didn't have enough debits to earn the higher interest rate. I set up a reminder in my calendar to check this at the end of the month from now on so that I can buy some food or gas if needed to meet the requirement.
Gift 34.47
457b 6000 Boom!
Total +FI 6578.85

Savings 4228.45
% Spent 36%
% Saved 64%


SWR 20%
SWR with IM Income 18%
Years Remaining 31.4
Years Remaining Including Interest 12


"The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails."
William Arthur Ward

Image

Image

Image

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Mon May 02, 2016 8:01 am

April 2016

Although the numbers are my worst ever I do have a few things to be positive about:
1. I bought a different car, which is mostly why the numbers are so bad. It was $4500 and I sold my old car for $1200 for a total cost of $3300. Over time this should save money (as well as provide transportation I can count on) by not requiring so many repairs and getting significantly better gas mileage. I considered breaking the car expense into two or three months to avoid having it make my calculations and charts go crazy but decided against it. I really need to get back to low spending so I'm including the entire price in April to get it behind me.

2. I received notification that my pension fund is up to $48,000 in it. I've been ignoring this since I can't access it until age 55 but given the size its becoming a part of my plan. I'm still not including it in my calculations though. If I could cash it out and invest it elsewhere I would.

3. I've been applying to jobs. I'm not sure if this will go anywhere but it's worth a try to find out what my market value is.

Expenses
Alcohol & Bars 11.59
Auto & Transport 3644.36 (car purchase, tax, title, license, etc.)
Auto Insurance 321.16 (this happened to fall into April)
Business Services 42.14
Clothing 35.91
Gas & Fuel 77.58
Groceries 185.66 (not bad!)
Health & Fitness 147.09 (getting back into a sport and needed gear)
Internet 63.29
Mobile Phone 12.25
Mortgage & Rent 960
Restaurants 18.41 (not bad!)
Trade Commissions 7
Total -FI 5526.44

Income
Paycheck 158.49
Amazon 135.38
Checking 19.67
Gift 8.75
457b 4000
Total +FI 4322.29

Savings -1204.15
% Spent 128% (if the Auto & Transport expenses are removed this is a respectable 56%)
% Saved -28%
SWR 35% (if the Auto & Transport expenses are removed this is a respectable 12%, my lowest ever)
Years Remaining -59
SWR with IM Income 34%

"The price of being a sheep is boredom. The price of being a wolf is loneliness. Choose one or the other with great care."
- Hugh MacLeod

Image

Image

Image

NickHalden
Posts: 60
Joined: Wed Nov 04, 2015 3:48 am

Re: Gilberto de Piento's Journal

Post by NickHalden » Mon May 02, 2016 8:48 am

"The price of being a sheep is boredom. The price of being a wolf is loneliness. Choose one or the other with great care."
- Hugh MacLeod

Brilliant.

That car purchase killed your statistics but I suppose that is also part of FI-life. Perhaps you could work with a rolling average.

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Mon May 02, 2016 9:46 pm

I do calculate a rolling average but I like the feedback that a month at a time calculation gives me. A 12 month rolling average would give a more realistic view of what's going on but month by month causes me to work harder at making sure each month is a good one.

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Wed Jun 01, 2016 9:03 am

May 2016

Not bad by normal standards but not good enough either. I've really got to pull it together and get back down to $1500 - $1800 spending.

I did get a raise which will amount to about $252 per month - taxes. In a normal (non 457b, non three paycheck month) this puts my savings upper limit at 67%. Things would have to get Jacobean to hit that though.

Expenses
Alcohol & Bars 24.56
Auto & Transport 51.7 (repairs/maintenance on the new car)
Business Services 158.34 (domains renewed, have to spend money to make money)
Cash & ATM 140 (I'm not sure what this is. Cash & ATM is creeping up as a problem again, need to stop this.)
Charity 89.94
Gas & Fuel 122.08 (drove to a wedding)
Groceries 205.71 (not bad!)
Health & Fitness 51.7 (gym)
Internet 23.29 (sharing this with two other people)
Mobile Phone 12.25
Mortgage & Rent 960
Restaurants 7.91
Shopping 6.45
Sports 9.5
Travel 393 ($110 is passport renewal. The rest is wedding expenses and I'm not sure what else. Ugh.)
Total -FI $2256.43

Income
Paycheck 1753.74
Amazon 147.85
Google 155.17
Checking 16.47
Gift 120 (Not really a gift. I remember putting cash in the bank but I don't remember what from.)
457b 2062
Total +FI $4255.23

Savings $1998.8
% Spent 53%
% Saved 47%
SWR 18.9%
SWR with IM Income 16.4%
Years Remaining 27.6
Years Remaining Including Interest 11


Jim Bennett: "I've been up two and a half million dollars."
Frank: "What you got on you?"
Jim Bennett: "Nothing."
Frank: "What you put away?"
Jim Bennett: "Nothing."
Frank: "You get up two and a half million dollars, any asshole in the world knows what to do: you get a house with a 25 year roof, an indestructible Jap-economy shitbox, you put the rest into the system at three to five percent to pay your taxes and that's your base, get me? That's your fortress of fucking solitude. That puts you, for the rest of your life, at a level of fuck you. Somebody wants you to do something, fuck you. Boss pisses you off, fuck you! Own your house. Have a couple bucks in the bank. Don't drink. That's all I have to say to anybody on any social level. Did your grandfather take risks?"
Jim Bennett: "Yes."
Frank: "I guarantee he did it from a position of fuck you. A wise man's life is based around fuck you. The United States of America is based on fuck you. You're a king? You have an army? Greatest navy in the history of the world? Fuck you! Blow me. We'll fuck it up ourselves."
From The Gambler (2014) https://www.youtube.com/watch?v=xdfeXqHFmPI

Image

Image

Image
Last edited by Gilberto de Piento on Wed Jun 01, 2016 9:31 am, edited 1 time in total.

User avatar
El Duderino
Posts: 164
Joined: Mon Oct 27, 2014 12:24 pm

clarification

Post by El Duderino » Wed Jun 01, 2016 9:25 am

Hey Gilberto, it's nice to see your good progress, particularly on the consistently high % saved.

I had a couple of questions for ya because I like the charts you've got, but I'm not sure I really understand them. What formula are you using to come up with Theoretical Investment Income? Also, what does SWR with IM Income mean?

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Wed Jun 01, 2016 9:55 am

Thanks!

Most of the numbers I report are from the Akratic/M741 spreadsheet I downloaded when I first joined here.

Theoretical Investment Income is the total assets I can apply to early retirement (457b, checking, Vanguard) * 4.5% theoretical interest / 12 months per year.

For example this month: (assets * 4.5%) / 12 = ($143,202.72 * 0.045) / 12 = $537.01 per month in theoretical investment income.

SWR with IM income is my “safe” withdrawal rate if I subtract my actual internet marketing (google + amazon) income I received that month from my expenses before calculating SWR in the usual way with (expenses * 12) / total assets. The internet income is slowly sinking since I don’t work on it anymore so it’s probably not that relevant but I find it interesting to calculate.

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Tue Jul 05, 2016 10:44 pm

June 2016

An uneventful but solid month. Percent saved and SWR are looking decent again after a couple of rough months.

I managed to not need to buy any gas this month which is kind of cool. I thought this might be a record but it has happened before.

Expenses
Alcohol & Bars 23.18
Auto & Transport 166.36 (bought some low mileage wheels/tires/covers on craigslist to replace worn out tires)
Business Services 56.91
Cash & ATM 140 (some travelling, not sure what else. Need to get this back under control.)
Clothing 62.79 (unfortunately not everything can be found at the thrift store)
Gift 20
Groceries 178.66
Health & Fitness 51.7 (gym)
Internet 63.29 ($40 of this is covered by neighbors)
Laundry 20
Mobile Phone 12.25
Mortgage & Rent 960
Pharmacy 15.8
Total -FI $1770.94

Income
Paycheck 3349
Amazon 90.13
CafePress 71.56
Checking 17.75
457b 124
Total +FI $3652.44

Savings $1881.5
% Spent 48%
% Saved 52%
SWR 15%
SWR with IM Income 13%
Years Remaining 14.6
Years Remaining Including Interest 8


"People wish to be settled; only as far as they are unsettled is there any hope for them."
Ralph Waldo Emerson

Image

Image

Image

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Thu Jul 21, 2016 8:02 am

I hit a net worth of $150,000 today! If you include my pension I'm at $200,000. I haven't been paying much attention to net worth since savings rate and SWR are more telling but it's still a fun milestone. :)

It took me eight years to get to $75,000 but only two and a half years to get to $150,000.

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Fri Jul 22, 2016 8:22 am

As an update to the previous post, I should say that I also paid off $75,000 worth of student loans during that first eight year period.

User avatar
cmonkey
Posts: 1610
Joined: Mon Apr 21, 2014 11:56 am

Re: Gilberto de Piento's Journal

Post by cmonkey » Fri Jul 22, 2016 9:47 am

Nice job! Paying off debt is such a slow way to build net worth compared to investing. It'll get even quicker in the coming years.

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Sat Jul 23, 2016 12:57 pm

Thanks! I'm really hoping the curve starts bending upward at some point.

jennypenny
Posts: 5784
Joined: Sun Jul 03, 2011 2:20 pm
Location: Stepford USA

Re: Gilberto de Piento's Journal

Post by jennypenny » Sat Jul 23, 2016 3:01 pm

Gilberto de Piento wrote:Most of the numbers I report are from the Akratic/M741 spreadsheet I downloaded when I first joined here.
What spreadsheet is that?


Hang in there! You'll hit that hockey stick. You'll know you're close the day your money earns more than you do.

vraxxos
Posts: 42
Joined: Tue Mar 24, 2015 8:36 am
Location: UK

Re: Gilberto de Piento's Journal

Post by vraxxos » Mon Jul 25, 2016 6:18 am

http://seekingalpha.com/article/313294- ... ompounding

"The first $100,000 is a b!tch" according to Charlie Munger.

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Wed Jul 27, 2016 8:25 am

What spreadsheet is that?
viewtopic.php?t=2557

User avatar
Gilberto de Piento
Posts: 1082
Joined: Tue Nov 12, 2013 10:23 pm

Re: Gilberto de Piento's Journal

Post by Gilberto de Piento » Wed Jul 27, 2016 8:25 am

"The first $100,000 is a b!tch" according to Charlie Munger.
Ha!

User avatar
cmonkey
Posts: 1610
Joined: Mon Apr 21, 2014 11:56 am

Re: Gilberto de Piento's Journal

Post by cmonkey » Wed Jul 27, 2016 11:23 am

jennypenny wrote:You'll know you're close the day your money earns more than you do.
I believe you'd be far beyond at that point and will have worked longer than needed. I think she meant the day your money earns more than you spend. ;)

That first 100K is definitely hard. I am not there yet, and it feels longer since I am split between 3 accounts.

Post Reply