2020 Update:
Another good year in the tech industry. I am not very optimistic about 2021 as the real economy is shit. I have major conflicts between investing and protecting wealth this year. I strongly repositioned out of risk assets as I approach FI to reduce sequence of returns risks. I still think end of 2021 is achievable, but I calculate my SWR based on CAPE so I actually keep getting a little bit farther away as markets go up faster then my investments. Right now my CAPE adjusted SWR is 3% so if things keep going like this I will be 2022 probably.
- Age 43, target FIRE date 12/2021
- House still paid off, real estate at 1.3m worth (up 200k). Got new 7 acres of land in a cheap place few hours away, plan B if I need to old man retire somewhere cheap out in the woods, otherwise just grow trees on it and sell them. A week of property taxes on my house is the SAME as a full year on the land... insane. I feel a bit raped.
- 1.62m in investment accounts (up from 1.2m).
- Bitcoin... maybe going to be awesome?!? Whatever, I'm a long term holder as an insurance policy so I don't feel like I missed the boat if it does well, however I might sell my cost basis soon. Not looking forward to taxes.
- 529 20k (slightly up)
- HSA 42k (up from 30k)
- Rental still around 70k owed (unchanged)
- Accidently got a 3rd side gig from word of mouth from the 2nd side gig that is even more profitable. Mostly done with this 3rd software job, but started a shopify store and testing that out.
- At 91% savings rate now. Job has been much more relaxing (no commute) since lockdown. I have been able to say NO to many things looking at my FI numbers keeping a good work life balance. I even get asked how I say "no" and I tell them I don't care if I keep this job and that gives me great power. I actually think I am doing better in the eyes of management because I am much more confident in meetings and bring up things others seem afraid of... I am just not that worried to lose the job like others who are slightly paranoid. At first the lockdown was difficult as I was working too much. I then setup Alexa timers in my office space to turn everything off at 5pm and leave everything including my phone in my office and that fixed my need to overwork when working from home. People don't seem to like I am unavailable after 5pm, but that is what FU money can buy me :).
Wall of shame stuff
Spent about 25k fixing up yard, house, and office since it is kind of my new prison this year.
I bought calls on SQQQ before election after a very shitty week at work thinking... the election will get me out of this shittastic rat race... That was about 35k down the drain and tacks on a few months more of work. Market timing usually burns me and it did again! I also cannot justify the CAPE right now but I have given up putting logic to the market and went all into RISK parity again using diverse assets, collars, etc. I can at least sleep at night but the markets are bullshit in my opinion right now, but not sure where else to put money to get a return.
I also have to admit that being trapped in my house for so long, I will probably spend a lot of money next year on trips and potentially go on a few shopping sprees. I felt like I put life on pause and it was pretty boring. I may take a year off of my FI goals and live like a normal stupid American and blow all my money. Not sure yet :).
Another caveat, IF real estate falls apart like I think it SHOULD do, then I'm going crazy on investing in it in areas I think will be fine long term or it's some place I want to move too eventually. I did not enjoy the area much where I live and could use some more sun to enjoy my RE days.