Western Red Cedar's Journal

[Western Red Cedar]

@2B1S - Thanks for that response - really helpful! I realized I hadn't actually clearly defined a target asset allocation for the end of the glide path. It would probably be somewhere between 90-10 and 95-5 based on the minimal amount of cash I'd be comfortable with. As I mentioned upthread, I'm still in the early stages of thinking through and articulating my drawdown strategy, so it is great to get some feedback to help clarify my thinking. For years I wanted to keep things as simple as possible, but now I'm exploring some options to increase my margin of safety (at ERE levels).

ERN just released another post yesterday, in the SWR series. The 4% rule is back

This post reflected how I've been thinking about this downturn. It was almost a bit of relief to see things come back to earth while I'm still working and investing. Ironically, 4% on my spreadsheet looks like 3% in December 2021 Two steps forward, one step back....

[lightmyfire]

Hi Western Red Cedar,

Quick question - why are you planning on the Roth conversion ladder for your 457? Aren't all of those funds accessible? Is that for tax purposes?

[Western Red Cedar]

Quick question - why are you planning on the Roth conversion ladder for your 457? Aren't all of those funds accessible? Is that for tax purposes?

It is primarily for tax optimization. Those funds are accessible after separating from my employer before 59.5, though withdraws are taxed as income. My general strategy is to convert up to the standard deduction to my Roth IRA while we slow travel and are not making any additional income for at least a year or two. I figure I should take advantage of that opportunity while it is available as we could very well earn income in the future. I could also simply withdraw it and invest it elsewhere, but I would prefer that it keep growing in a tax advantaged account.

I think there is also a case to be made to maintain funds in a 457 to later withdraw from to optimize ACA subsidies and stay off of medicaid (if that is what one desires). I figure I'll take the first year or two to make conversions and reassess at that point. Ideally, I'd like to convert (and spend) most of that account prior to 65 when I'll receive additional income from my pension and SS. However, if it is a choice of leaving it in my 457 or moving it to an after-tax brokerage I'd probably opt to leave it in the 457.

[Western Red Cedar]

I've been feasting on plums from my parent's garden over the past couple of months. Down to the last five or six which I look forward to eating this week. Every time I put a big bowl of plums in the fridge I think of William Carlos Williams:

This Is Just To Say

I have eaten
the plums
that were in
the icebox

and which
you were probably
saving
for breakfast

Forgive me
they were delicious
so sweet
and so cold

-William Carlos Williams

[ertyu]

they do look really good

[RoamingFrancis]

He's one of my favorites. Reminds me of Gary Snyder in how he uses such simple but image-rich language. I love this one too:

XXII
from Spring and All (1923)

so much depends
upon

a red wheel
barrow

glazed with rain
water

beside the white
chickens.

[7Wannabe5]

His stories about working as a general physician in rural setting are also well worth reading.

[Western Red Cedar]

@ertyu - They were quite tasty! Lots of peaches and grapes from their garden this year as well.

@RF - that was actually the poem that introduced me to William Carlos Williams. I first read it in high school. When I went to college, the city I lived in had a large mural on the side of a brick building with that imagery, and I walked by it multiple times each week. Often in the rain.

@7W5 - I don't think I've read those, so I'll keep my eyes open and check out my parent's library. Rolf Potts once mentioned in an interview that Williams decided to remain in the US when many of his literary peers were moving to France and Europe to pursue their art. It was a difficult decision for him and he was, in a sense, bucking a trend by deciding to remain in place and pursue a more orthodox life as an artist. The decision to stay on the east coast helped refine his approach to writing and his view of the world.

That anecdote impacted me. As someone drawn to a nomadic life and wanderlust, I try to remind myself that similar opportunities present themselves out my back door.

[mountainFrugal]

For finding more adventures and noticing things close to home... How to Be an Explorer of the World by Keri Smith was a fun read. You can pick up a used copy for like $4 if your library does not carry it.

[Western Red Cedar]

Thanks for the suggestion @mF. Beau Miles (https://beaumiles.com) and Alastair Humphreys (https://alastairhumphreys.com) have provided some nice inspiration for alternatives to long-term vagabonding and exploring your local area. It seems more sustainable not only from an environmental perspective, but perhaps more importantly, from a personal perspective (i.e. relationships, community).

[Western Red Cedar]

November Update:

Financial - NW 428,710 (Increase of 26,702). The markets certainly popped a bit last month. It was nice to see the overall NW bounce back a little, though I'm bracing myself for continued declines over the next 9-12 months. I'm still figuring out what to do with excess cash. I plan on pulling the trigger by the end of the year on some kind of treasury or cd ladder. We are down to one income for the next few months so I'll be covering the household expenses.

I signed up for another credit card last week as I think I'll have some expenses (medical bills, new tires) that will help cover the 3 month minimum spend. The signup bonus should be worth $800 in cash or up to $1400 if I want to play the airline transfer game. Apparently it had been over two years since signing up for my last card. I dabbled in credit card hacking for a bit 4-5 years ago, but I found it took up a lot of headspace and didn't really enjoy jumping through some of the hoops. I'm also not a big fan of hitting some of the minimum spends. These days I'll just sign up if I know we have a major expense coming up. That seems to be every other year.


Physical - I've been spending a lot of time in the gym lately. The weather has turned recently so it will be harder to get out on my bike. I hit new PRs on many of my lifts week after week in October. It felt really nice and I'm feeling stronger. I'm glad I started tracking everything in a notebook as I can look back and see my progress, and make sure I continue to push myself. It's been a little weird psychologically as I'm at one of my higher weights. I definitely have a lot more muscle mass and try to not to be influenced too much by a number on the scale, but I am now slightly over a BMI of 25. I've gained about 9 pounds in the last two months, so I've been kind of flirting with bear mode. A lot of that is a lazy diet and the impact of a few weeks on vacation. I've also been hanging out with friends most weekends which usually includes excessive amounts of very delicious, but very unhealthy spreads of food and drinks. I think I'm going to try to go on a cut over the next couple of months. Not necessarily an ideal time with the holidays, but I'm not taking it too seriously. Lifting, cycling, walking and hiking are my healthiest personal outlets and help me deal with work stressors.

I've started tracking my macros again and I'm trying to make sure I get at least 100 grams of protein. That is pretty hard to do without eating meat or dairy, but I'm occasionally able to hit that. I'm not vegan/vegetarian, but I've been more proactive about leaning toward a plant-based diet for health and environmental reasons. I usually also roast a chicken every 7-10 days to try to hit my targets, and use the bone broth to make a big pot of lentil and potato soup. I also eat some salmon or tuna fish a couple times per week. For a while I was actively trying to eat before workouts to ensure I had enough energy to maximize gains. The last week or so I've started fasted lifts, and haven't really noticed a difference. I'm probably going to continue with the fasted lifts on my lunch break because it works for my schedule and works well for a cut.

Report from the Shire - I went up to the family homestead in early October with some hopes I might find some Chanterelles. Once I got to the cabin I realized it was probably going to be too dry, but I tried my luck down near the creek and wetlands in a wetter part of the property. I took my dad with me, and while we spotted some different varieties of fungi, the Chanterelles were a bust. Nonetheless, we used it as an opportunity to do an informal survey of the new 10 acres they acquired last year and to see if we could identify the property corners. I'm able to see the parcel lines and access my general location with GPS on Google maps, which my dad hasn't quite figured out yet on his phone. We both got a better feel for the property, found a couple of the corners which were marked by a logging company in the late 70's, and talked about a couple potential building sites. I was also able to stop by my parent's garden on my way back home and harvested a bunch of plums, peaches, grapes, and kale - so the urban foraging produced some yields.

I was planning on going back up for a long weekend on Friday to see if I'd have any more luck foraging after some heavy rains, but missed my window as they received about a foot of snow on Thursday evening. Right before the snow fell my dad was able to meet with a crew and get their secondary well running. The previous owners of the 20 acres they purchased a few years ago had put in a surface-water well, but never actually got it running. I've encouraged my dad to look into it over the years, as it adds a lot of value to a rural property. He finally found a contractor who was comfortable getting down in the well, getting the pump set up, and setting up the electrical box. The initial plan is to use it for irrigation, but we'll eventually get the water tested to make sure it is actually potable. It comes from the same draw that a neighboring cabin has been using since the 20's, so it should be good. I don't think it was very cheap (maybe 7k), but my dad is pretty happy putting money into the shire.

Close Encounters with Climate Change - I drove over to Seattle in early October. I had an opportunity to spend a few days with family. It was great staying with my brother and his family. On the way over, I drove through some pretty heavy smoke, and it felt like I was driving through a wildfire for about an hour as I was going through the mountains. This was one of the driest summers west of the cascades and it was a bit surreal to see wildfires in October. The air quality was really bad for the few days I was there. Another grim reminder of the new normal .


Outdoor Adventures and Serendipitous Encounters - I was out for a hike in early October. I started chatting with a random guy on an old mountain bike. Our chat turned into a 90 minute conversation - maybe more - about all kinds of ERE related topics. He was retired but worked as a professional investor, including a number of years for the board that manages my pension. He also owned his own bicycle shop for a short period, and dabbled in real estate investing. It sounds like he mostly just bicycles, gardens, and tinkers in his shop these days. I'm not sure he actually even uses the internet, or owns a cell phone. As I was wrapping up the conversation he gave me his address and told me just to stop by if I wanted some spare bike parts, or wanted some pointers on bicycle maintenance. I get the feeling there are quite a lot of ERE-compatible folks around, they are just busy doing cool shit IRL.

A few weeks later I was out on a 35 mile bike ride on a beautiful autumn day. At one point I noticed a couple guys cutting up some pretty large logs on a portable sawmill. I thought about stopping to ask them about their setup and operation as I'm quite interested in portable sawmills, but they looked pretty busy so I kept riding. On the way back I noticed one of them was still working, so I crossed the highway and introduced myself. I ended up talking to him for about 20 minutes, and he showed my how he had built much of the sawmill himself. He was a machinist and had built a frame for the mill on an old trailer which he got for free from a friend. He had built an engine from another couple pieces of equipment and was cutting up a really nice, large cedar log he had fished out of a local lake. Here are a couple photos:





I was cutting it close in terms of getting back to town before dark. As I hopped back on the highway and headed toward the rail to trail I found a train sitting at a crossing. I had dealt with this once before and was able to ride across a bridge, scramble down a bank, and scamper across the tracks. Not ideal, and it wasn't really an option this time as there was a sizable creek now. I waited for 30-45 minutes, then finally decided to ride back on some rural country road and meander my way back to town. I was in a foul mood, but quickly appreciated the opportunity for exploring a new route. The last 45 minutes of my ride were on a new road at sunset, riding by an interesting collection of farms, gravel pits, rural houses, fields, industry, and forests. It was a nice reminder to put myself out there and embrace apparent obstacles.

[Western Red Cedar]

December Update:

Financial - NW 453,702 (Increase of 24,992) Almost back to where we started at the beginning of the year. It feels nice to be hovering around this figure, because even after subtracting my pension contributions from the NW I am confident we could live pretty comfortably on a 4-5% SWR. I was pleasantly surprised as I was updating my spreadsheet to find out DW qualified for a state program that is providing part of her paycheck while she is out on leave. So, we aren't quite down to one paycheck, but I'm still covering most of the expenses.

I've been slowly locking up excess cash in I bonds and CDs to take advantage of higher interest rates. I realized this is actually serving as a reinforcement to cut ties with my community at some point and transition to a slow-travel lifestyle.

Health - I'm still lifting regularly (4-5 times per week) and was successful with my cut in November despite the holidays and cold weather. I dropped 6.2 pounds last month, which aligned well with my target of a max loss of 1% of my bodyweight per week. I've also been more diligent about incorporating some weighted ab exercises into the last 10-15 minutes of my training sessions a few times per week. I'm thinking about doing a deload this month for at least a week to give my body some extra time to recover. I decided to take a break from alcohol a couple weeks ago, and would like to keep it going for a few months. I set an initial goal of waiting until New Years Eve to see how I'm feeling. It is a lot easier to drop weight if I completely cut out booze, and I felt like it was having some negative effects on my inner dialogue a day or two after drinking. In many ways, alcohol is in opposition to most of my personal goals. I hung out socially on a few different occasions with friends who were drinking during American or European football, and had a great time.

Professional - I might be at a complete burnout stage at work. I'm really struggling with motivation these days. I've probably been here for a while, but I assumed a long vacation over the summer might reinvigorate me. That has worked in the past, and helped me appreciate some of the things I love about my job. It didn't seem to do the trick this time. I'm continuing to plug away and need to stay employed to keep our benefits as DW isn't working and is relying heavily on our insurance. I'm still trying to take things month-by-month, but a spring or summer departure is looking more and more likely based on how I'm feeling at the moment. I'm also aware that the last couple of months have been fairly chaotic in my personal life and were emotionally exhausting. That could easily be adding to the burnout. At this point I'm having trouble envisioning a return to an office/white collar working environment; though I know there would be plenty of open jobs and demand if I decided to return.

I don't like the idea of leaving my career on a low (even if I'm the only one who sees it as a low). Things will get pretty busy for me early in 2023. I'll try to focus on closing out some major projects this month and start fresh next year. I might feel differently a few months down the road, so I'm avoiding any hard dates or deadlines.

[AxelHeyst]

I just saw the pictures of the sawmill. So cool, I love that kind of thing - and the story behind the builder of it.

I hear you about not wanting to leave your career on a low... but also it can be tricky to 'pull out' of a burnout just to quit when things are good. You've done a lot and had some great experiences during your career, and I suspect you'd be able to direct your attention to those experiences when you look back rather than a dip at the end. Putting in whatever effort it takes to claw your way back to a high (or just not-low) place before exiting might not be worth it to your future self.

[2Birds1Stone]

You can live on 4-5% of your assets without any additional income. It's ok to test out a longer work break.

How long do you foresee DW needing to use your insurance heavily? Can you switch to a state plan if income dropped in 2023?

[Western Red Cedar]

@AH - thank you for the thoughts. I don't necessarily want to get to a "high" but would prefer to leave my affairs in good order. I'm pretty close with my management team and some of my other colleagues. I've been with the same organization for eight years. I'd like to make a graceful exit and avoid leaving them with a major project which I'm probably better suited to deal with.

@2B1S - I'm hesitant to tinker with insurance at the moment as we are in the middle of a really intensive treatment program. When DW returns to work it would be pretty simple to switch plans if I decide to quit. I have six weeks of vacation saved up so that would allow us two months of benefits coverage after I turn in my resignation if DW decides not to go back to her job.

I'm not particularly interested in looking at ACA plans in the immediate future. While I could envision spending a short period (a few months) of time in the PNW after I quit, I think it would be much healthier for us to plan for life abroad in the immediate period after leaving work. That has routinely been the vision for both DW and I over the last decade, and I think changing up the living situation and embracing new adventures would be healthier for both of us.

[Western Red Cedar]

Cutting the Cord:

I had a long talk with DW last night about future plans, our respective work obligations/priorities, and moving into a new phase of life. I think March is the earliest, realistic date for my resignation. That could be extended later into the spring or summer of 2023. Yesterday I set up a couple medical appointments next month to make sure everything is in good order before I submit my notice. This is something I needed to do anyway, but it makes me feel a bit more comfortable as we transition into a new phase without employer sponsored insurance. I've got a couple more to set up this week.

I selected many of my MM goals over the last year such as focusing on physical/mental health, decluttering, and refining a withdrawal plan to make the transition to the next phase of life more seamless. I need to continue decluttering and solidifying our withdrawal plan as an exit date approaches. Working 3-6 months into a calendar year should work out well financially as it will allow us to contribute to Roth and pre-tax accounts.

I'll continue to monitor my relationship with work and see how I feel in another month or two. If I'm in a better place with regards to work, I may push on to strengthen the financial base. However, I'm pretty comfortable at the moment with the notion of cutting the cord early and starting a new adventure.

[AxelHeyst]

I'm pretty close with my management team and some of my other colleagues. I've been with the same organization for eight years. I'd like to make a graceful exit and avoid leaving them with a major project which I'm probably better suited to deal with.

Ah, yeah, I get that.

Re: possible March date, that's exciting! How do you think about monitoring your relationship with work? I mean, how do you distinguish between short-term 'chop' and long term trends? I always struggled, well, still do, with being able to maintain perspective of my internal state relative to various points in the past. I've though about finding or creating some kind of 'subjective psychological well-being' test I can self administer on a regular basis, but haven't gotten further than that.

[Western Red Cedar]

Ah, yeah, I get that.

Re: possible March date, that's exciting! How do you think about monitoring your relationship with work? I mean, how do you distinguish between short-term 'chop' and long term trends?

I don't think March is necessarily realistic, but it is feasible. I'll have a better handle on this in about a month. I would actually prefer to continue working and get closer to our $600k household FI goal. I'm just at the point lately where it doesn't really feel worth it. The uptick in the markets over the last two months definitely made me feel a little more comfortable entertaining the idea of SemiERE.

I typically keep things positive in this journal, but I've hinted at burnout a few times over the last year or two. I've been monitoring my emotional state and relationship with work for many years now. I've probably flirted with burnout for at least a couple years, but have used various tricks or strategies to grind through. Lately I've really struggled with motivation in ways that I haven't for almost a decade. That is a pretty clear indication that something has changed and it isn't necessarily a short-term issue. I was entertaining a 12 month sabbatical for 5+ years, but at this point I have no desire to return to traditional, white collar work. This is in spite of the fact that I have loads of autonomy, WFH full time, decent pay, great benefits, supportive management, and work on issues that actually make a difference and reflect personal values.

I'm also open to the notion that I'm dealing with a lot of adversity in my personal life which could be seeping into my professional life.

[mooretrees]

I don't think March is necessarily realistic, but it is feasible. I'll have a better handle on this in about a month. I would actually prefer to continue working and get closer to our $600k household FI goal. I'm just at the point lately where it doesn't really feel worth it. The uptick in the markets over the last two months definitely made me feel a little more comfortable entertaining the idea of SemiERE.

I typically keep things positive in this journal, but I've hinted at burnout a few times over the last year or two. I've been monitoring my emotional state and relationship with work for many years now. I've probably flirted with burnout for at least a couple years, but have used various tricks or strategies to grind through. Lately I've really struggled with motivation in ways that I haven't for almost a decade. That is a pretty clear indication that something has changed and it isn't necessarily a short-term issue. I was entertaining a 12 month sabbatical for 5+ years, but at this point I have no desire to return to traditional, white collar work. This is in spite of the fact that I have loads of autonomy, WFH full time, decent pay, great benefits, supportive management, and work on issues that actually make a difference and reflect personal values.

I'm also open to the notion that I'm dealing with a lot of adversity in my personal life which could be seeping into my professional life.

I think you're in a great position to NOT have to decide if you will return to work if the burnout resolves (though how will you know that without returning to work???) or start the semi-ERE life. From what you've written about your job, you are well liked and valued, that's some big stuff for returning to work in a variety of capacities at a future time. My boss recently recommended that instead of quitting, I should think about a leave of absence. Reasoning is that in my profession, there are easier roads back to work within the leave of absence framework than quitting. I think your 'sabbatical' is likely similar? I sound like I'm pushing you to consider sabbatical, but I think with your finances it might be more freeing to completely cut ties. Some of the work you've done to get ready for leaving your career (hobbies, health, reading about the psychology of money) can only come to fruition IF you really leave your career.

This journey of 'when' to leave your career is a really valuable one to read about, so I appreciate your thoughts. Keep posting about it!

[Smashter]

Your comments on not wanting to do traditional white collar work despite being in an overall great situation really resonate with me. It's like I had a pre-determined budget of hours to spend on white collar computer work for tech companies, no matter how cushy the situation. And that number is approaching 0. There is some guilt around how good I have it and yet wanting to stop relatively soon. Sometimes it helps to think that there is someone who will easily fill my position and would give their left arm for the role. The future me who leaves this role will make that person really happy.

I am excited by your recent developments and I agree with moretrees, please keep posting about it!