Fingeek's Journal

Where are you and where are you going?
fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Thanks for your input @Forskaren! For my property investments, I include both property value and debt (ie property equity is part of my NW). But I don't include my home value/debt/equity, because I can't generate value from it.

As an example, if my home equity went up to £1MM then does that mean I can retire? Well potentially yes if I sell up and downsize, though the home I move to will likely of increased in value too, thus not releasing all that equity. Otherwise the money is locked away without utility. What are your thoughts?

Forskaren
Posts: 189
Joined: Sat Nov 07, 2015 4:04 pm

Re: Fingeek's Journal

Post by Forskaren »

I meant mostly from a risk perspective. If you for example become £250 000 under water on leveraged real estate (including home) and have 250 000 left in other investments, you would be broke if forced to sell.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Yes that makes sense - In my case, I am comfortable that I won't have to sell home, notably because I've been fortunate to prove out servicing the mortgage with the investment income. We do also have a fair amount of equity in home which gives us some level of slack I guess. Worst case, if the SHTF then we'd end up going the motorhome route which sounds like it could be a lot of fun!

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Mar:

Current net worth (not including home): £374,263

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 6.1%
NW deficit to 4% SWR: £197,047
Years of savings to 4% SWR: 4.8yr/Jan 2025

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 6.7%
NW deficit to 4% SWR: £251,472
Years of savings to 4% SWR: 6.2yr/May 2026

---

Well, we're in lockdown just like most other countries around the world. My highest value, freedom, has been "put on pause" as it were for the greater good. How do I feel about it? Not too bad as it happens. I had the usual INTJ reaction of unknown->fear/panic learn obsessively to find some sort of control point. The control point for me is "it's likely that the death rate will settle to be 1% or less" and that me and my immediate family is highly unlikely to be too ill (we might have a light illness or even asymptomatic). From there, I've been more relaxed and pragmatic about things:
- I already work from home, so no real change there. At this point I'm pretty glad I didn't quit work. I'm engaged and enjoying what I'm doing right now. The extra income gives a lot of utility, safety and freedom (Wheaton 4-5 level "buy your way through the problem" thinking, I'm aware).
- We usually keep approx a month of supplies just as we have the storage space and it makes no sense to do weekly shops. We took the decision to take this up to ~4 months of supplies, mainly because of the panic buying in the UK and the likelihood of things getting worse as more people move to panic/bulk buy.
- I'm more and more grateful of the position we have got ourselves in due to FIRE/ERE, in that we have a significant monetary buffer to ride through problems, and relatively resilient in survival areas, in that my wife and I have useful tradeable skills, we have the ability to have minimal reliance on others, and third we've never really been materialistic which helps soften the impact.

NW is down significantly again this month, but I'm comfortable with it. An extra 1yr of savings needed compared to than last month because of the covid stock market drops. I certainly won't be selling, and I'm considering the right time to start investment back up - I'll probably wait a month or two and then will resume DCA. Let's hope the markets recover over these coming years, and we get to be on the nicer side of DCA.

I wish you all happy and healthy months ahead!

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Apr:

Current net worth (not including home): £402,890

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 5.7%
NW deficit to 4% SWR: £169,007
Years of savings to 4% SWR: 4.1yr/Jun 2024

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 6.2%
NW deficit to 4% SWR: £220,700
Years of savings to 4% SWR: 5.4yr/Sep 2025

---

I noted previously that my existential anxiety is directly related to "winning the game", solving the things I set out to achieve and therefore lost the purpose. This hit me on a deeper level this month when I realised that I'm actually pretty happy in work and life now that I have some level of drive/challenge back. The trick will be to balance the level of drive - not too much so that I get stressed/burnt out, and not too little that I lose purpose. Yes my purpose is definitively related to succeeding at goals - as I expect most people are. In Eckhart Tolle terminology, my pain-body/ego is in control for the most part and as such it is satiated by being in doing mode. I'm slowly growing my being mode and being in the moment, and I think the latent anxiety is the ego objecting to this.

As I continue to exercise and meditate, as well as aim to simplify some of the financial things going on, I'm sure the anxiety will continue to drop (oh, there's me in doing/hoping/planning mode again!)

I'm getting significantly better sleep in this last month or two, due to baby settling a lot better, and this is helping my mood and stress levels.

NW is up a tick this month due to the covid markets rebounding. I have opportunistically added some money to investments this month and I will do over the next few too, in the hope that it rides an "eventual" ride back up in the markets.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for May:

Current net worth (not including home): £447,243

To cover ""fixed expenses"" (lean FIRE):
Current Withdrawal Rate requirement: 5.0%
NW deficit to 4% SWR: £116,755
Years of savings to 4% SWR: 2.5yr/Nov 2022

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 5.5%
NW deficit to 4% SWR: £166,013
Years of savings to 4% SWR: 3.5yr/Nov 2023

---

Bit of a bump in NW as the markets recover, nice to see but curious whether it will stay up or fall lower with continued covid.

Still trying to remain in the moment, and enjoy work stuff and that seems to be going fairly well. Anxiety levels are continuing to drop slowly as I continue to get my exercise in, better sleep, and alone time to recharge. Nothing else really to report.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for June:

Current net worth (not including home): £380,730

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 4.8%
NW deficit to 4% SWR: £76,097
Years of savings to 4% SWR: 1.6yr/Feb 2022

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 5.3%
NW deficit to 4% SWR: £121,105
Years of savings to 4% SWR: 2.5yr/Jan 2023

---

We've decided to pay down the £125k remaining on the mortgage. It's not a particularly great 'classical' investment as the mortgage interest rate is 1.6%. However, looking through ERE glasses, it equates to a 7 month sooner FIRE date. The shrinking of the debt and estate is attractive too, if a one-off wealth tax were to happen as a side-effect of covid. This closure should complete in the next month or so, after shuffling some cash about. I've paid a large chunk of this off already, and it has pulled down our NW and our WR requirement a notch - We're closing in on 4% WR!

Still meandering through work and life in general at the moment. I'm trying not to set too rigidly fixed goals, however it's apparent that I'm best when I have some goals. I've started running and meditating a little more which is stabilising my mood and clarity of thought. I have a couple of cleanup-esque type financial goals and life goals, but other than that nothing really for the medium and long term. It's probably time to switch from "simplify" mode again soon and add back some challenge (=growth)

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for July:

Current net worth (not including home): £378,666

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 4.8%
NW deficit to 4% SWR: £72,751
Years of savings to 4% SWR: 1.6yr/Feb 2022

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 5.2%
NW deficit to 4% SWR: £116,154
Years of savings to 4% SWR: 2.5yr/Feb 2023

---

The definition of retirement for me is "full agency over my own time". Clearly not 100% full (as there will always be some commitment you can't get out of, or an emergency to deal with), but as full as is possible - or even, as full as is desirable. And indeed, in my test year off I found that full agency without a focus wasn't desirable for me.

So, as it turns out, I haven't thought about ERE much at all this month. Mainly because I have the right balance of agency and time freedom. I'm happy and stimulated working, and I've job crafted enough to give me intra-day freedom as I want. I don't anticipate this changing for a long while now, at least while I'm enjoying work.

I've started reading and learning again in my (fairly minimal with a toddler!) evening time off which is nice. I think I'm slowly coming out of simplify mode, and back into growth mode. The trick will be to balance growth with still remaining in the Now.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Aug:

Current net worth (not including home): £386,171

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 4.7%
NW deficit to 4% SWR: £66,135
Years of savings to 4% SWR: 1.4yr/Feb 2022

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 5.1%
NW deficit to 4% SWR: £107,966
Years of savings to 4% SWR: 2.3yr/Jan 2023

---

"I have a good life, and I'm still not happy" is something I wrote and thought last year. But more and more now I'm thinking "I have a good life, and I am fairly/often happy". Something @suomalainen and @c_L said helped adjust my thinking a little this month - you sort of give up on your drive/long term planning, and I guess that forces you into contentment. This appears to be happening to me, and I'm doing my best to embrace - not fight - it.

I'm continuing to read more which gives me happiness. Am walking/exercising regularly, and continuing to focus on Being. Finding that balance between Being and Doing mode is interesting, but it seems that bouncing between the two works out best as long as I'm not spending too much time in either extreme (Being leads to stagnation/apathy, Doing leads to burnout/stress).

wolf
Posts: 1102
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Fingeek's Journal

Post by wolf »

Gilberto de Piento, you and me have some similiar mid-term goals/milestone, around 3 to 4 years. I'd like to reach my FI goal (420k fire assets) until 2024. So I am looking forward to walk a similiar path with you two.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Sept:

Current net worth (not including home): £389,927

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 4.7%
NW deficit to 4% SWR: £64,740
Years of savings to 4% SWR: 1.4yr/Feb 2022

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 5.1%
NW deficit to 4% SWR: £104,388
Years of savings to 4% SWR: 2.3yr/Jan 2023

---

Not a huge amount to note down this month... Have been continuing to do a few more enjoyable things and continuing to focus on the now/Being mode. Investments ticking along/accumulating as per plan.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Great to hear @wolf - Yes it will be good to continue sharing the journey, and hopefully learn things off each other in the process!

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Oct:

Current net worth (not including home): £344,527

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 4.7%
NW deficit to 4% SWR: £57,094
Years of savings to 4% SWR: 1.2yr/Dec 2021

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 5.1%
NW deficit to 4% SWR: £96,742
Years of savings to 4% SWR: 2.1yr/Oct 2022

---

Paid off the mortgage this month! This has brought FIREable date ~6 months closer, though moderated by a drop in the investment markets to balance out to a 3 month improvement. Happy bunny... Must remember to pause, savour, and enjoy these sorts of moments, before shooting off and focusing on some other random goal.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Nov:

Current net worth (not including home): £370,669

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 4.4%
NW deficit to 4% SWR: £33,657
Years of savings to 4% SWR: 0.7yr/Aug 2021

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 4.8%
NW deficit to 4% SWR: £72,315
Years of savings to 4% SWR: 1.5yr/Jun 2022

---

Not much to report again this month. WRs are both in the 4.x%s which is nice to see, and keep coming down month on month. On the whole I'm trying to focus on things that interest and improve me - reading, catching up with friends once or twice a week, etc. Stress and anxiety levels seem to be remaining relatively low which is welcome. Continuing to focus on being in the Now. And that's about it.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Dec:

Current net worth (not including home): £377,752

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 4.3%
NW deficit to 4% SWR: £27,708
Years of savings to 4% SWR: 0.6yr/Jul 2021

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 4.7%
NW deficit to 4% SWR: £66,739
Years of savings to 4% SWR: 1.4yr/May 2022

---

Ever since taking the time off in 2019, I've felt fairly directionless, and realised I'm in an INTJ loop/grip cycle. It's a self-fulfilling cycle, as lack of big picture direction leads to a deeper loop. And I guess my subconscious has been telling me this all along as it's been hinting to get back on it and find some sort of challenge. The trick probably being a challenge that'll take a while to complete if at all. Taking time out to myself helps alleviate - meditation, running etc. As does having some 1-1 quiet social interaction where I can discuss some of my thoughts. Work, for now, is filling much of my need for big picture stuff, so that's good. I'm starting to believe that INTJs can't fundamentally do this "switch off, be in the moment" thing as that doesn't tick their big picture achievement boxes, which ultimately is one of the big sources of enjoyment and contentment for us. Good position to be in though, and the introspection always helps - Gives me something to aim towards.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

2020 review

Weird year. Last year I was on my "test retirement year". This year I was back in full-time work. I enjoyed the year on the whole, and work has given me challenge structure and some meaning, and I think that's helped me. It's helped me realise that those are the things I need to build for myself before really FIREing - I need challenge, structure, and something meaningful to focus on. Family for sure plays a part in this, but I need something else, something for myself. Secondly, I'm glad I'm back in work this year as it's not like we'd have been able to do much else than stay around the house ha ha! Thirdly, I've managed to job craft such that I have a good amount of flexibility throughout the day if I wanted to visit a friend or whatever - This has been a nice balance, and about right for now.

Paid off the mortgage and made some good financial decisions this year, which will set us up well for 2021 and 2022. Will be looking for more web-of-goals opportunities going forward - things that will be interesting, useful, meaningful and cash generating. I have some ideas, might share them through the monthly journals.

-

Date: Dec19 -> Dec20
NW: £344,667 -> £377,752

Lean FIRE:
WR: 7.0% -> 4.3%
Deficit to 4%: £254k -> £27k
Years to: 4.9/Nov24 -> 0.6/Jul21

Live as ~today:
WR: 7.6% -> 4.7%
Deficit to 4%: £308k -> £66k
Years to: 5.9/Dec25 -> 1.4/May22

Looking back, it's quite a big improvement in FIRE date and WR this year! A combination of some good investments, paying off the mortgage, and trimming outgoings. It's likely that this will slow down for next year, and so the focus may well continue to move towards looking at outgoings and starting to be a bit less lazy by buying as the solution.


For anyone reading, I hope you had a pleasant (or even prosperous) 2020, and all the best for 2021!
Last edited by fingeek on Fri Jan 01, 2021 5:00 am, edited 1 time in total.

classical_Liberal
Posts: 2283
Joined: Sun Mar 20, 2016 6:05 am

Re: Fingeek's Journal

Post by classical_Liberal »

...
Last edited by classical_Liberal on Fri Feb 05, 2021 2:11 am, edited 1 time in total.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Jan:

Current net worth (not including home): £381,476

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 4.3%
NW deficit to 4% SWR: £24,667
Years of savings to 4% SWR: 0.5yr/Jul 2021

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 4.7%
NW deficit to 4% SWR: £64,163
Years of savings to 4% SWR: 1.4yr/May 2022

---

No more anxiety it seems, which is a major success. I'm generally feeling a lot more chilled out and positive. I've been a bit more engaged in work and in various hobby-type activities too, generally focusing on enjoying the process and being in the moment. It will be interesting to see if the hobbies turn into something longer term and I think that may be part of why I'm getting drawn into some of them too - that longer-term/big picture potential. Fun!

Nothing else on my mind, other than watching the NW increment and WR decrement as per plan.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Feb:

Current net worth (not including home): £416,194

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 3.9%
NW deficit to 4% SWR: £-6,380
Years of savings to 4% SWR: -0.1yr/Feb 2021

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 4.3%
NW deficit to 4% SWR: £34,815
Years of savings to 4% SWR: 0.7yr/Nov 2021

---

Little bump in the markets this month took me to sub-4% on the first metric - Nice milestone hit. Next will be second metric milestone hit, then look at reconciling this with a YMOYL-esque 12-24mnth rolling average of more real-world spending.

fingeek
Posts: 249
Joined: Wed May 24, 2017 8:16 am
Location: Wales

Re: Fingeek's Journal

Post by fingeek »

Update for Mar:

Current net worth (not including home): £453,675

To cover "fixed expenses" (lean FIRE):
Current Withdrawal Rate requirement: 3.9%
NW deficit to 4% SWR: £-8,769
Years of savings to 4% SWR: -0.2yr/Feb 2021

To cover "fixed expenses + optional expenses" (live as today):
Current Withdrawal Rate requirement: 4.3%
NW deficit to 4% SWR: £32,426
Years of savings to 4% SWR: 0.7yr/Dec 2021

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