This morning, I’ve just worked out that by using the 4% rule, I can now scrape LeanFI with £250 spare.
My current expenses are £1100 a month, and have been for quite a long time. Made a lot easier by owning my house and having paid of the mortgage 3 years ago, and the low running costs of using a Nissan Leaf and a bike as main forms of transport
In the UK, we cant touch any retirement funds until 58, and I’m now 41 (42 in June), My retirement funds are already 25x current expenses, so I’ve reduced contributions as much as possible for an employer match. (10% + a 10% employer match)
I’ve got 145k of post tax savings in index funds, and with a spend of £1000 a month, and a 4% growth per year, I worked out that I can withdraw against these, and they’ll draw down to loose change on my 58th Birthday. as my current expenses are £1100 a month, and I can easily trim £100 when i quit work (commuting costs) I guess I’m technically FI.
Although I'll probably not quit for a little while (these figures are too tight for just about anyone) It's a great Christmas present to myself knowing I can now RE if I want. Its the ultimate FU money.
I think I’ll celebrate this minor victory with a chocolate cake