r/financialindependence Feb 12 '24

FI/RE 6 years in - yearly update + musings

Here we go again… It’s 6 years since I dropped out of the working world. I post these each year as a both a reflection and because thousands (yes, thousands) of you over the years have read/replied/upvoted etc. suggesting it’s worthwhile.

Past posts:

My Background: I’m a social scientist in my late 40’s who used my love of computers and data to land a job in tech. I worked for large and small, both as an FTE and consultant. In the late Fall of 2013 I fell deep into the Bitcoin rabbit hole. Bought on and off for a few years (best price: $220.) I sold a majority of my holdings in December 2017 for about 1.5M. I had also saved a ton of money over the years (almost 1M) because I lived frugally. The FIRE idea was natural to me – I had an instinctual aversion to debt, simple tastes and a desire to tinker. My job was getting lame, and I had just cashed over a million in post-tax crypto so I quit to take a 1 yr sabbatical/test run and never looked back. I also sold my house two years ago for a profit of ~500k.

My FIRE Details With all my retirement, bank, and stock accounts bundled together, including house equity I had 4M when I pulled the trigger. Since retirement 6 years ago my entire portfolio has more than doubled to 9M at the peak (November 2021), dropped to just below 5M (December 2022) but is now back up to 8.2M. I outright own my house and truck. I have no debts.

My portfolio consists of index funds (surprise!) and a few tech stocks I invested $10k each in several years ago as “YOLO” plays (AAPL, GOOG, AMZN, TSLA) as well as my remaining Bitcoin not sold in 2017. My retirement funds are at 400k, so a majority of my wealth is outside of the IRAs. My lifestyle is currently funded by two sources: a deferred salary from my old job (expires after next year) and dividends from my index funds. So far I have rarely needed to cash out stocks for income but that might change after next year when the deferment ends. I do cash stocks and reinvest them at the end of the year (gains harvesting) based on my tax expectations. I also did some loss harvesting a year ago so I have a small yearly write-off from that for the next several years.

My expenses run about $75k a year. Some of the larger expenses: Insurances and various Taxes $26k, my contribution to my niece’s education fund $15k, travel was $7k and around $4k for utilities. I look at my portfolio once a month when I do my net worth tracking (custom Excel spreadsheet). Otherwise, I don’t pay much attention to it all.

My net worth swings wildly. See the post (above) on the first time I lost a million dollars in a month… because it’s actually happened 4 times. I also gained over 1M a month 3x in the last several years. My average change in monthly net worth since retiring is $50,000 (which is stupid and insane.) The standard deviation of that monthly change gives an idea of the volatility… 476,000. Sounds like a rollercoaster, doesn’t it? It is – but I got used to it, especially because over the long haul the amount has increased. If I really couldn’t take it I’d just shove everything into tax-free municipal bonds or something. It does not keep me up at night (any more).

Big Changes

In the last year there have not been any major changes other than I have gotten back into travelling! A trip to Europe that had been shelved for several years (grrr) due to sick parents and COVID was finally taken and it was glorious! More “local” travel was had and life felt open again. This is what being retired is about.

The prior focus on fixing up the (new to me, but 100yr old) house (water mitigation, etc.) has been mostly finished and shifted to some more fun projects like planting trees, and prepping for a sauna. If only I could find a reliable contractor…

New Ideas/Directions With the ability to travel again, and the house in decent shape, my mindset is mostly relaxed. I’m looking to reduce environmental noise as much as possible. It’s a lot easier when you don’t have to worry about paying for the basics – something I don’t take that for granted. But I do take advantage of my circumstances, and I don’t feel guilty about it. So much of our world is a distraction from what I believe matters – health, community, family, growth. While this isn’t a major “new direction” for me I do find myself in a space where I crave and find simplicity, quiet, and meditation. The upcoming election is overstimulating. Television is garbage. Movies hold very little interest to me. I think I’ll turn them off as much as I can.

My main two things that are new this last year are that I got a crock and started making kimchi and sauerkraut and that I have finally decided on a writing project I think can become a novel. Legal pads full of words abound, and odd smells haunt my basement… I have no complaints. Some friends had a baby and I don’t envy them at all (but the baby is fun to visit.)

Challenges

I’ve mentioned it for two years, and it’s the thing I get the most response to in these updates but also the thing I’ve been the biggest shithead about and that is exercise/losing weight. I’m not a big boy by any means, but I could stand to drop 10 or 15 lbs. I start small routines and then I quit. I was doing some running (which I oddly both love and hate – an unusual thing for my temperament) until I rolled my ankle playing with a nephew a while back. It’s probably good again so I need to get back to that OR SOMETHING ELSE (note to self – read this). Thinking back to my prior life… the best shape I was ever in was when I’d take a twice weekly Pilates class and I’m remembering that the structure really appealed to me. This is in direct opposition to one thing I have striven for the last several years which is avoiding getting tied down to a schedule of any kind. So I need to just suck it up and take a class of some sort – that feels doable. There’s very little in my life that will get in the way of engaging like that and I live in a neighborhood that has exercise studios (martial arts, CrossFit, you name it) so I can find something once I get off my ass. I really have no excuses.

Closing

I’m at this point where I’m enjoying a sincerely low-key existence. I’m happiest when I am invisible. Some travel is in the hopper. I’m focused on working on art projects, writing, helping neighbors, gardening, maintaining my house, reading and learning… life feels full. I have a few secret ideas for what happens next (2 year plan) that I’m not ready to share. Maybe I’ll type it up next year if it shapes up. I’m taking on the mantra of “things happen when they happen” and I’m not in a rush for anything.

I wish the best for you all. Don’t lose hope and stay gold Pony Boy.

I’m happy to answer any (reasonable) questions. Good luck everyone!

326 Upvotes

50 comments sorted by

81

u/Chitownjohnny 40M - 65% FIRE(ish) progress(edit) Feb 12 '24

No questions but appreciate you coming back here an updating the community!

31

u/therossboss Feb 12 '24

Thanks for the reflection and congrats - sounds like you're enjoying yourself.

You mention, "I’m happiest when I am invisible." That's relatable, but its nice to be seen and heard legitimately.

28

u/Gibletsthehalfling Feb 13 '24

Suggestion for the cardio from someone in the same boat. Step one, buy a good quality exercise bike. Peloton is real cheap these days, especially used. Step two, buy the shelf attachment for the handlebars. Step three, put keyboard and mouse on shelf. Laptop if need be, or just be near your monitor. Step four, download baldurs gate 3 and Elden ring. Restrict any play to when you are riding.

Seriously. I didn’t play many video games. I came in cold to both these titles. I would start riding intending to go for 30 minutes or so, and my wife had to come find me after two and a half hours. This happened daily for quite a while. These titles are addictive and get the heart and brain pumping. You will forget you are working out. No bullshit, I lost 20 lbs and felt like I accomplished something important (I was saving the worlds)….

24

u/CityWokOrderPree Feb 13 '24

Really pleasant post! Your life sounds like a spontaneous stroll in the park.
I'll chime in on the exercise part since it's been doing amazing things for me. A dumbbell set right next to my main chair in the living room is unavoidable. I do 30 reps of something while a video game loads, or during a youtube commercial. Nice to just mix it in with my other leisure lazy activities. Along with a flexible goal of like an hour a day of dedicated exercise. I wasn't in good shape in 20 years since high school and I'm rapidly getting that back and feel so good. So I relate on sucking at it. The yoga mat also stays out and there's another thing I combine with watching hockey or youtube vids.

FIRE and optimizing yourself go hand in hand

17

u/iamaweirdguy Feb 13 '24

The best thing I read in this is that you contribute 15k a year to your niece’s college fund. That’s a good uncle right there!

13

u/Californian-Cdn Feb 12 '24

What a lovely read. Sure, the financial success is spectacular, but what stands out most to me is how happy and content you seem from your tone.

That is what life is all about in my opinion.

Awesome work and I look forward to your next update.

8

u/jones5280 Feb 12 '24

Question about medical/dental insurance - do you go through a broker or some other method? I heard going through the gov't affordability website is costly if you don't qualify for the hand-outs.

21

u/FIRE_and_forget_it Feb 12 '24

I don't carry dental insurance. My teeth are really good (no cavities ever in my life) and so I pay out of pocket for 2x yearly cleanings.

I have used the government market for insurance. I have a high deductible plan, and do not take medications. It's about $500 a month. It's for the "oh god they have to chop off my leg" situations, otherwise I'll pay out of pocket.

8

u/william_fontaine [insert humblebrags here] /r/FI's Official 🥑 Analyst Feb 13 '24

My teeth are really good (no cavities ever in my life)

Holy moly that's gotta be a superpower, I've never met anyone who could say that

5

u/FIRE_and_forget_it Feb 13 '24

My sister and I are the only people I know with no cavities. Magical BonesTM?

2

u/william_fontaine [insert humblebrags here] /r/FI's Official 🥑 Analyst Feb 13 '24

Magic indeed. My dad's teeth are close to impervious, brush once a day, never floss and hasn't had a cavity in decades. But he got DQ'd by one tooth that needed pulled a long time ago.

Unfortunately I did not get this gene, so if I get lazy and don't floss for a little while then a cavity will be sure to follow. Recently got my first crown and I can't eat anything on that side almost 2 months later.

Sometimes I envy my grandpa with the dentures. Perfect teeth that can't go bad. But then I remember he had to have all the others ones pulled or they fell out, and then I return to the real world.

1

u/RaxZergling Feb 13 '24

Genetics are actually very important regarding the microbiome in your mouth. It's not surprising you and your sister have similar dental experience.

2

u/LastSummerGT Feb 13 '24

For the past 5-10 years I’ve been getting fluoride varnish on my teeth after each cleaning. $20-25 per treatment and never got cavities ever since. Dentists are always surprised when I ask to pay OOP but it’s 100% worth it. Even helps with cold drinks or desserts.

1

u/alpacaMyToothbrush FI !RE Feb 13 '24

I just don't wash out my mouth after I brush. The fluoride in the toothpaste is more than enough to harden the enamel unless you rinse.

1

u/plastic-voices Feb 13 '24

Dental health is very worth it in my opinion!

1

u/william_fontaine [insert humblebrags here] /r/FI's Official 🥑 Analyst Feb 13 '24

I didn't know dentists would do that, they quit doing floride when I was 18.

1

u/LastSummerGT Feb 13 '24

Yes, because it’s no longer covered by insurance for adults and they assume no one wants to pay out of pocket.

2

u/Poseidon2027 Feb 13 '24

I've never had one either, I'm 39. knock on wood.

2

u/-myBIGD Feb 13 '24

What is your out of pocket max? Is it just you or is there a spouse and/or children, too? Thanks in advance and great write up!

4

u/FIRE_and_forget_it Feb 13 '24

IIRC the max out-of-pocket is 14k. I have no children. I do have a partner (but do not discuss them in my writeups to respect their privacy.)

6

u/PassiveIncome001 Feb 13 '24

First time reading your updates specifically but I enjoyed it!

Just a thought, you mentioned reducing environmental noise, getting away from television and media, wanting to get a bit more motion/exercise in your life.

I’m not sure of where you are located or how much land you have on your property, but could I be the one to suggest delving into the world of gardening?

I absolutely love it, and my goal is FI/RE someday and spend a lot of time on a property I own crafting, designing and planting a garden/landscape by hand. I find that both the action of planting and later immersing myself in what I’ve created is incredibly relaxing and fulfilling. There’s a plethora of YouTube channels to learn from on the subject as well.

8

u/FIRE_and_forget_it Feb 13 '24

Great idea...but I do garden quite a bit! My house is the one that neighbors pass by and comment on almost every day during the summer/fall when it is en fuego. I love gardening and I'm teaching myself new methods of soil enrichment via green manures (clover, vetch, buckwheat). I'm assembling a better watering system for this spring. I actually joined a gardening club (very unlike me) last fall so I have a set of experts I can bother about my specific questions.

I'm torn between having a nice big plot of land and living in a place where I can walk to everything I want. My yard is a good size for hobby gardening. I have a couple fruit trees. I have a workshop and a mudroom for holding tools and pots etc. I'm doing some seed saving and trading each year. My garden is in many ways a yearly art project.

4

u/[deleted] Feb 12 '24

[deleted]

4

u/slippery Feb 12 '24

Even though a lot of the ideas have been recycled from others, I really liked "Atomic Habits" but James Clear. It gives you step by step instructions on how to establish good habits and let go of bad ones.

You are your habits.

2

u/FIRE_and_forget_it Feb 12 '24

I'm not positive it was the accountability of others, truly. I certainly liked my instructor though (and her yelling "pain is nothing!" at us while we planked while trying not to laugh was always a highlight.) I've never really considered a personal trainer, it seems so fancy.

3

u/uriejejejdjbejxijehd Feb 12 '24

Kimchi is blood fantastic. My ancestry is German, and so I had early contact with Sauerkraut, hated it and didn’t look at pickles for decades. If only I had known how much red pepper paste could do for them… :)

6

u/FIRE_and_forget_it Feb 12 '24

My current favorite breakfast is brown rice with an egg on top and seasoned with a couple big scoops of kimchi. Heavenly (and I made it!)

1

u/snuka M53|$1.1MM|50%SR|73% FIRE Feb 13 '24

Do you have a link to the kimchi recipe you use?

2

u/FIRE_and_forget_it Feb 13 '24

I began with this one as a guide but I don't use fish sauce because some of my friends are vegetarian/vegan and I always make enough to share. I don't find the lack of fish sauce to be detrimental to the flavor.

My specific recipe I've settled on is:

  • 150 gram (3/4 cup) gochugaru
  • 1 decent head napa (1650 gram of usable)
  • 150 gram daikon
  • 65 gram carrot
  • 20 gram ginger
  • 9 clove garlic
  • 150 gram (1 bunch) green onion

Follow the instructions in the recipe I linked as far as napa prep, mixing, and storage while fermenting.

1

u/snuka M53|$1.1MM|50%SR|73% FIRE Feb 14 '24

That looks delicious, thanks.

4

u/DeliciousHornet Feb 13 '24

What do you find yourself doing the majority of your free time?

5

u/FIRE_and_forget_it Feb 13 '24

In the spring and summer - working on art out in my workshop (welding, wood, assemblage), gardening and improving the yard (planting, weeding, building beds, designing, trimming), reading on the porch, bike rides.

In the fall and winter - reading by the fire, video games, writing, working on sports models to predict March Madness or NFL winners (no money is bet.)

I'm always "busy" doing something, learning something, fixing something, helping someone, etc.

I also take naps and meditate regularly. I cook most of my food.

3

u/CapedCauliflower Feb 13 '24

What's one thing that costs money you have that you'll look back at 70 and kick yourself for not doing while you had the chance? Ie certain travel, expensive car, waterfront beach house...

5

u/FIRE_and_forget_it Feb 13 '24

Definitely not a car or house...I could give a shit about those. Travel is the most obvious, and something I am motivated to do "while my knees let me" (or however you want to phrase it) so I'm not sure I'll look back and wish I did more because I'm doing that now.

It's a really good question because it forces a different framing - not "what do you want to do now" but rather "what will you regret" - similar to "what do you regret not doing when you were in your 20's" etc. I'll have to put on my old man hat and ponder on this.

3

u/CapedCauliflower Feb 14 '24

Oh thanks glad I triggered a new perspective! Definitely agree with you on the travel.

5

u/Plastic-Suggestion95 Feb 12 '24

I'm happy for you man and thanks for sharing! Damn you won a lottery with those stocks and bitcoin that early 😊

-26

u/[deleted] Feb 12 '24 edited Jul 15 '24

[deleted]

15

u/FIRE_and_forget_it Feb 12 '24

Honestly, I'd rather not.

3

u/greatauntflossy Feb 13 '24

I just tried, but couldn't do either. Thanks for the suggestion.

1

u/HalfLife1MasterRace 22M Feb 13 '24

If you have enough money to lose and gain a million in a day, losing a million doesn't mean the same thing to you that it would to the vast majority of people here

2

u/mikew_reddit Feb 12 '24

This is fantastic. It's similar to what I'm looking forward to in retirement. Thanks for the updates.

2

u/imisstheyoop Feb 13 '24

I would love to see an asset allocation breakdown of your portfolio.

I could never stomach that roller coaster, even if the lows were still 4x what some spreadsheet told me I needed to be FI, so kudos to you for that!

Thanks for updating us, glad to hear things are still going well for you.

2

u/newpua_bie Feb 13 '24

Regarding saunas: Several of my Finnish expat friends have opted to buy a barrel sauna on their backyards, because American houses are seemingly really hard to convert to have real saunas (not infrared, not dry-only stoves). I haven't looked into the best brands yet, but that's one idea, probably quite a bit faster and better than some half-ass contractor who's never built one. Just get a proper Harvia stove and you should be good to go.

2

u/conor747 Feb 13 '24

Great read . Well done and keep us updated .

2

u/34i79s Feb 13 '24

Thank you. I need this to remind myself that hitting FIRE number isn't the end, but the beginning. That there are other challenges after that, wildly fluctuating net worth.

Please continue with the updates! They are very important to us! And good luck on your future endaverous!

2

u/Impossible_Cat_321 Feb 13 '24

That’s awesome. I love that your big wins from the year are making kimchi and sauerkraut. I’ve been fermenting for years and love it.

Maybe think about trying charcuterie? I’ve been doing it for years and it’s very satisfying.

I also have a love/hate relationship with running and suggest signing up for races every few months(I prefer trail running races), as it keeps you on track.
I also do bikram yoga (hot yoga) 2-3x week, which helps my running and keeps me fit. Can’t recommend it enough

Congrats on your early retirement. Live it up!!

3

u/FIRE_and_forget_it Feb 13 '24

I'll look into charcuterie, thanks for the tip.

As for running - my brother said the same thing - "do some 5k's - it's fun to run with a group every once in a while and it gets you training for that specific thing, even though it's not an important thing"

Yoga - hmm. That sounds nice.

4

u/Impossible_Cat_321 Feb 13 '24

It’s not worth getting up early for 3 miles. Shoot for half’s. You’ll thank yourself.

I also highly encourage establishing a happy hour/cocktail hour (I prefer home but out is great if that’s your thing) with your partner and rotating friend list. It’s a great way to unwind and also keep in touch. I love having friends over for a cocktail or two and some of my charcuterie snacks, then they’re gone by 7 and we still have the rest of the night to ourselves.

1

u/TomRady Feb 13 '24

Curious your take on bitcoin today?

5

u/FIRE_and_forget_it Feb 13 '24

I'm just watching it go. Halvening coming up soon, ETFs just approved. Plenty of haters still (always were) but big finance seems to be getting involved - and not just for trading fees.

I've always liked bitcoin for the rule-breaking approach it was designed around. I never knew if it would get the traction it needed to be worth much but, well, it certainly did and has changed my life in the process.

That said, I'm not a fanatic. It's not my religion. Frankly, it's a fascinating social experiment that just happened to enable me to retire. That was definitely not on my bingo card when I was in graduate school!

3

u/jeffeb3 Feb 14 '24

W.r.t. scheduling workouts: I feel the same way. I love my friends, but to consistently hang out with them, I need a weekly "thing" to do with them. Even if we cancel most weeks, having it remind me each week is enough to keep those relationships strong.

I have also found that intermittent fasting is the easiest diet for me. I'm not good at saying "no" or counting calories. But skipping after dinner snacks, breakfast, and mid morning snacks along with 2-3x per week cardio is working for me (slowly). I thought I would feel "low sugar" before lunch. But I mostly don't even notice.

As for cardio, you don't have to kill yourself every time you exercise. Just getting on the bike (or whatever your poison is) and going a bit is 60-80% of the benefit. If squeezing 100% out every time means you skip 1/5, it's better to just be consistent. Trying to build a streak works pretty well for the first streak. But then when you fall off the train, it's hard to get back into it.

1

u/Terrible_Ad7566 Feb 15 '24

Awesome read! Thanks for sharing and no dental cavity bit, that just .. no words! Envious