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General Discussion => Welcome and General Discussion => Topic started by: SwordGuy on December 27, 2017, 08:11:44 AM

Title: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 27, 2017, 08:11:44 AM
Last year, there was a poll that asked what people's net worth is. 

That's useful info to know, but it didn't tell us how well their plan is working. 

If you're aiming for a given amount of passive income, via whatever plan you're using, how close are you?

For example, if you're aiming for a passive income of $40,000 using a 4% SWR via a 100% stocks and bonds portfolio, and you're portfolio is now worth $500,000, you're at 50%.

If you're planning on $20,000 in rental profits and $20,000 in stock/bond profits at a 5% withdrawal rate, then if your current rental profits are $12,000 and your stock/bond portfolio is $160,000, you're at 50%, too.

If you're going to sell your $500,000 paid for house with a realtor and buy a $200,000 house and invest the rest at in stocks and bonds with a 4% SWR, then you can count the equity as $300,000 * .094 (less realtor costs) as $282,000, which would shed off $11280.   Technically you have zero passive income, from this source, but, heck, the purpose is to figure out how close you are, and you're a lot closer than someone who doesn't have $300,000 in house equity that they can (and will) convert to stocks!

Oh, if you've got a $500,000 paid for house but you're not going to sell it when you FIRE, it counts as $0 towards your target income.

I'm curious!  Enquiring minds want to know!  :)

You can see last year's poll here if you're interested in comparing results:

https://forum.mrmoneymustache.com/welcome-to-the-forum/how-close-to-fi-are-you-what's-your-current-of-your-target-passive-income/msg1531197/#msg1531197 (https://forum.mrmoneymustache.com/welcome-to-the-forum/how-close-to-fi-are-you-what's-your-current-of-your-target-passive-income/msg1531197/#msg1531197)

Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: boarder42 on December 27, 2017, 09:23:43 AM
Last poll was in April and I know I'll have extra funds by then that could push me up closer to the 50-60. But I wen with today numbers.

We're up from the 30-40 to 40-50
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 27, 2017, 09:30:17 AM
Also, it would be great if you mention whether you're in the same bracket as last year, or have advanced or regressed.  If you're new to the poll, add some comments to flesh out your situation for the rest of us.

Thanks!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Sarah Saverdink on December 27, 2017, 09:43:51 AM
We're really close to hitting the 50% mark in investable assets based on the target we set for ourselves to FIRE. We're targeting a large FI number by MMM standards because we want to travel and enjoy a lot of hobbies in retirement. And my husband is convinced we'll end up in the poor house if we FIRE too early :)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 27, 2017, 10:48:49 AM
We're really close to hitting the 50% mark in investable assets based on the target we set for ourselves to FIRE. We're targeting a large FI number by MMM standards because we want to travel and enjoy a lot of hobbies in retirement. And my husband is convinced we'll end up in the poor house if we FIRE too early :)

We're FIREing in May, but also went for a larger FI number than many.   We have a handicapped child that will need assistance after we're gone, so the extra safety net was triply important to us.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: BTDretire on December 27, 2017, 02:51:45 PM
First I'm only a few years from FRA, time has a huge advantage.
 I haven't really picked a target passive income. Don't need to,
we won't spend all we can generate.
I can't get my wife to stop working.

I have a property I sold, that generates $12,000 a year in interest.
I have 6 or 7 REITs that generate about $27,000 a year in Dividends. (preferreds)
Another fund that generates over          $20,000 a year in dividends.
 So without trying to generate income, it is happening.
A family member wanted to borrow money to buy a property, I told wife if she wants to do it she needs her name on the deed. After purchase the property was sold on a contract. After a few years the family member wanted out. We happily got a little discount and started collecting all the interest, $12,000. Started at 11%, I renewed it at 8%.
 As the market rose, I looked at REIT preferreds as a bit of a bond proxy, a little diversification
from VTSAX. So now I have the $27,000 in dividends.
 Kinda fell into those, the REIT account was my play account and then it got serious.
 The last fund is mostly tax deffered accounts.
 I'm in a low tax bracket so no taxes on the dividends or interest.
3-1/2 years I'll get $20,000 in SS, a few more years and the wife will gets another $16,000.
So you see why I haven't picked a target passive income, we will never spend the money
that will be generated.
 And, I still can't get my wife to stop working.
I have two college kids, we're making sure they work enough so we can max fund their Roth IRAs.
Putting them through college and and getting them a good start in retirement funding is priority now.
 I suspect I'll be a loser on the tax bill, so I may sell all the REITs and move them in to my tax deferred accounts where they probably should be for many people. I've had an extremely low
tax bill, so having them in taxable accounts hasn't hurt me, buy next year may be different.
  After looking this over, I'm going to put 110% and up not fired.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 27, 2017, 05:27:57 PM
  After looking this over, I'm going to put 110% and up not fired.

Nice setup on the finances!   We're at 110% and not FIREd, too.   But only until May.  Then we'll be 110% and FIREd. :)

It took us a couple of years to psychologically accept that that's where we are.   The math is one thing and the emotions are another.   It took us a bit to catch up on the emotion side of the equation, plus we had a number of debts we wanted to pay off without touching the stash.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: boarder42 on December 27, 2017, 05:32:48 PM
  After looking this over, I'm going to put 110% and up not fired.

Nice setup on the finances!   We're at 110% and not FIREd, too.   But only until May.  Then we'll be 110% and FIREd. :)

It took us a couple of years to psychologically accept that that's where we are.   The math is one thing and the emotions are another.   It took us a bit to catch up on the emotion side of the equation, plus we had a number of debts we wanted to pay off without touching the stash.

With only investments I'd be working still in your shoes too. The market is at high valuations  And while I can't time it with my investing I can work a few extra months for some padding.  Probably would be fine with 4% but what's a few extra months when you've won.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: ysette9 on December 27, 2017, 06:35:38 PM
We are just over 80% of our way to our FIRE number.
I think.
We’ll see if we are brave enough to pull the trigger once we get there. :)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 28, 2017, 06:50:41 AM
We are just over 80% of our way to our FIRE number.
I think.
Weíll see if we are brave enough to pull the trigger once we get there. :)

I understand that!   We waited a couple of years to improve the safety margins.  4 months and a couple of days to go for us!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Bateaux on December 28, 2017, 07:32:23 AM
I chose 100%+ and not FIRED.  I'm not sure what I want to spend in the future.   We've been spending less than what 4% of our stash would provide right now.  Maybe we'll want to spend more later in life.  We're so busy working right now that we don't have time to spend much money.  Once retired we'll likely spend more because we want to travel more.  Padding the stash for another year or two.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Bateaux on December 28, 2017, 07:34:53 AM
We're really close to hitting the 50% mark in investable assets based on the target we set for ourselves to FIRE. We're targeting a large FI number by MMM standards because we want to travel and enjoy a lot of hobbies in retirement. And my husband is convinced we'll end up in the poor house if we FIRE too early :)

We're FIREing in May, but also went for a larger FI number than many.   We have a handicapped child that will need assistance after we're gone, so the extra safety net was triply important to us.

Same here Swordguy.  We have an adult cancer survivor child.   With such an uncertainty with health care in the future were padding the stash while we have good paying jobs.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: PhrugalPhan on December 28, 2017, 09:19:43 AM
This is a tough question when you have a vested pension, but have to work more to get it right away versus waiting to 65 to get payments.  I have 5 years to get my pension, but don't have enough in my other accounts to go forever without a pension, but its close.  I'm putting 100% / not FIREd, but its really subjective. 
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 28, 2017, 11:16:09 AM
This is a tough question when you have a vested pension, but have to work more to get it right away versus waiting to 65 to get payments.  I have 5 years to get my pension, but don't have enough in my other accounts to go forever without a pension, but its close.  I'm putting 100% / not FIREd, but its really subjective.

Yeah, pensions and non-vested items are problematic to me, too.

In one view, if you can't get $x out of it NOW, it's worth $0 NOW.     You might be 29 years, 6 months from getting a 30 year pension, but if you lose your job tomorrow, that pension might be worth $0.   In that case, from my perspective, it's worth $0 now.

However, in a different way of looking at it, if that pension would be enough, you're 29.5/30th of the way there.

I guess it's wise to look at it both ways at the same time. :)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: dude on December 28, 2017, 11:57:33 AM
^ That's where I'm at. Pension will cover about 90% of my pre-retirement expenses, and I'm 16 mos. away.  My goal was to have $800k stashed in my own 401k (not including wife's or joint taxable accounts/IRAs/savings) -- I'm at $716k now, so 87.5% of the way.  Though in truth, I don't NEED $800k to FIRE; I just need the pension + $10k-$12k additional, so I'm already there with $716k (it'd be a 1.4% - 1.7% draw), but I WANT the extra cushion, and since I've got to stick around for the next 16 months anyway, there's no OMY thing going on, and I can't see any good reason to stop saving shitloads even though technically I don't have to. Hopefully, I'll leave behind a ton of money when I die that can be put to good use. So in reality, I'm 100%, not FIREd (but I voted 80-90%, not FIRED).*

* assuming, of course, that I don't value a not-yet collected pension as zero!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Bateaux on December 28, 2017, 06:25:01 PM
^ That's where I'm at. Pension will cover about 90% of my pre-retirement expenses, and I'm 16 mos. away.  My goal was to have $800k stashed in my own 401k (not including wife's or joint taxable accounts/IRAs/savings) -- I'm at $716k now, so 87.5% of the way.  Though in truth, I don't NEED $800k to FIRE; I just need the pension + $10k-$12k additional, so I'm already there with $716k (it'd be a 1.4% - 1.7% draw), but I WANT the extra cushion, and since I've got to stick around for the next 16 months anyway, there's no OMY thing going on, and I can't see any good reason to stop saving shitloads even though technically I don't have to. Hopefully, I'll leave behind a ton of money when I die that can be put to good use. So in reality, I'm 100%, not FIREd (but I voted 80-90%, not FIRED).*

* assuming, of course, that I don't value a not-yet collected pension as zero!
  No doubt it's worth that amount of time.  Maybe they can cut you lose a bit more, flex hours, maybe some unpaid leave, spot ya some vacation to ease the ride.  Good luck and well done.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: swashbucklinstache on December 28, 2017, 07:08:42 PM
Aiming tentatively for 1 million (2017) dollars and a paid off house (or, more likely, equivalent $$$ above and beyond 1 million dollars). Currently 265,000 invested and renting, so put 20-30.

I'm also so far away that I have no idea what my actual spend will look like as I expect a number of significant life changes over the next 7-12 years. Spending averages in the low 20s including rent the past 3-4 years.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Peony on December 28, 2017, 08:22:52 PM
I am tentatively accepting that, at age 55 and living entirely off of rental income (minimal pay from my little part-time job has all been funneled directly into my Vanguard IRA), I am already FIREd with an annual income of about $50,000. Weird that it only just occurred to me this year, since my rental property has been paying 100% of my bills for at least 5 years. I still feel vulnerable because I know my portfolio is not diversified enough. So I'm working on beefing up the non-real estate portion, gradually shifting profits from RE to equities/bonds, but it's only about $250,000 right now. Assuming SS is preserved, I won't get much, but even a low amount like $900 a month will be a welcome additional income stream.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: dude on December 29, 2017, 08:47:02 AM
^ That's where I'm at. Pension will cover about 90% of my pre-retirement expenses, and I'm 16 mos. away.  My goal was to have $800k stashed in my own 401k (not including wife's or joint taxable accounts/IRAs/savings) -- I'm at $716k now, so 87.5% of the way.  Though in truth, I don't NEED $800k to FIRE; I just need the pension + $10k-$12k additional, so I'm already there with $716k (it'd be a 1.4% - 1.7% draw), but I WANT the extra cushion, and since I've got to stick around for the next 16 months anyway, there's no OMY thing going on, and I can't see any good reason to stop saving shitloads even though technically I don't have to. Hopefully, I'll leave behind a ton of money when I die that can be put to good use. So in reality, I'm 100%, not FIREd (but I voted 80-90%, not FIRED).*

* assuming, of course, that I don't value a not-yet collected pension as zero!
  No doubt it's worth that amount of time.  Maybe they can cut you lose a bit more, flex hours, maybe some unpaid leave, spot ya some vacation to ease the ride.  Good luck and well done.

haha! thanks man! yeah, i'll definitely be winding down towards the end of the coming year, and more or less be absent for much of the last 4 months of my career. time to make way for some new blood.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 29, 2017, 10:54:25 AM
Aiming tentatively for 1 million (2017) dollars and a paid off house (or, more likely, equivalent $$$ above and beyond 1 million dollars). Currently 265,000 invested and renting, so put 20-30.

I'm also so far away that I have no idea what my actual spend will look like as I expect a number of significant life changes over the next 7-12 years. Spending averages in the low 20s including rent the past 3-4 years.

You're on a really good trajectory!  Congrats!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: 2Birds1Stone on December 29, 2017, 11:01:37 AM
~60% of baseline FI ($24k/yr)

Up from ~42% last year.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Michael in ABQ on December 29, 2017, 12:09:19 PM
Based on current spending I need about $1 million. That's a way off though and could change by then, especially since we plan to buy a house and pay it off as soon as we can. Not having rent or a mortgage payment would drop FIRE to around $700k. At this point I'm still in the 5-10% category which probably won't change a whole lot in the next few years as were going to be putting all of our spare cash towards replacing our vehicles with slightly newer ones (17 and 8 years old, respectively) then saving up for a down payment on a house. I'll still be setting aside enough to get my full 401k match but with a big family and a single income it's pretty hard to save more than about $10k a year right now. Another seven years in the National Guard and I'll qualify for a pension but I won't be able to start collecting it until age 60 and at that time I anticipate it will be around $10k/year in future dollars which will have a present value of maybe another 50k.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 29, 2017, 01:31:25 PM
~60% of baseline FI ($24k/yr)

Up from ~42% last year.

That's awesome!   You're kicking butt!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 29, 2017, 01:33:32 PM
Based on current spending I need about $1 million. That's a way off though and could change by then, especially since we plan to buy a house and pay it off as soon as we can. Not having rent or a mortgage payment would drop FIRE to around $700k. At this point I'm still in the 5-10% category which probably won't change a whole lot in the next few years as were going to be putting all of our spare cash towards replacing our vehicles with slightly newer ones (17 and 8 years old, respectively) then saving up for a down payment on a house. I'll still be setting aside enough to get my full 401k match but with a big family and a single income it's pretty hard to save more than about $10k a year right now. Another seven years in the National Guard and I'll qualify for a pension but I won't be able to start collecting it until age 60 and at that time I anticipate it will be around $10k/year in future dollars which will have a present value of maybe another 50k.

You're making solid progress and that's what's important!     

Having lots of kids or a special needs child definitely puts a damper on the FI speed of achievement.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Michael in ABQ on December 29, 2017, 01:51:13 PM
Based on current spending I need about $1 million. That's a way off though and could change by then, especially since we plan to buy a house and pay it off as soon as we can. Not having rent or a mortgage payment would drop FIRE to around $700k. At this point I'm still in the 5-10% category which probably won't change a whole lot in the next few years as were going to be putting all of our spare cash towards replacing our vehicles with slightly newer ones (17 and 8 years old, respectively) then saving up for a down payment on a house. I'll still be setting aside enough to get my full 401k match but with a big family and a single income it's pretty hard to save more than about $10k a year right now. Another seven years in the National Guard and I'll qualify for a pension but I won't be able to start collecting it until age 60 and at that time I anticipate it will be around $10k/year in future dollars which will have a present value of maybe another 50k.

You're making solid progress and that's what's important!     

Having lots of kids or a special needs child definitely puts a damper on the FI speed of achievement.

Yes. Even if my income went up 50% FIRE would still be a decade or more away. With a single-earner and the need to have a larger house, car, food, etc. it would be very difficult to save anything like the 30%-50% that some people are able to, especially if they're single or DINK.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 29, 2017, 02:01:56 PM
Based on current spending I need about $1 million. That's a way off though and could change by then, especially since we plan to buy a house and pay it off as soon as we can. Not having rent or a mortgage payment would drop FIRE to around $700k. At this point I'm still in the 5-10% category which probably won't change a whole lot in the next few years as were going to be putting all of our spare cash towards replacing our vehicles with slightly newer ones (17 and 8 years old, respectively) then saving up for a down payment on a house. I'll still be setting aside enough to get my full 401k match but with a big family and a single income it's pretty hard to save more than about $10k a year right now. Another seven years in the National Guard and I'll qualify for a pension but I won't be able to start collecting it until age 60 and at that time I anticipate it will be around $10k/year in future dollars which will have a present value of maybe another 50k.

You're making solid progress and that's what's important!     

Having lots of kids or a special needs child definitely puts a damper on the FI speed of achievement.

Yes. Even if my income went up 50% FIRE would still be a decade or more away. With a single-earner and the need to have a larger house, car, food, etc. it would be very difficult to save anything like the 30%-50% that some people are able to, especially if they're single or DINK.

But the really important thing about this whole FI thing is that it sets you up to live a good quality life and provide for the ones you love when things are bad.   And that's just what you're doing.   Plus after a few years (assuming no more kids), your spouse will be able to work part time once the kids are all in school, which will really help out.  Also, assuming, of course, that's what you both want to have happen.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Melf on December 29, 2017, 02:04:10 PM
I voted 110% and up, FIRE'd.  My investments are $880K+ with $75K in cash for a total NW of just over $950K.  My annual spend/budget for the last couple years has been in the low $20K's so I think I'm in good shape.  I didn't vote in the previous poll but was still above 110% a year ago.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: palerider1858 on December 29, 2017, 03:15:03 PM
14% currently and up from 6% in 2016. Just getting started and have a long way to go.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 29, 2017, 03:26:00 PM
14% currently and up from 6% in 2016. Just getting started and have a long way to go.

8% of the way to your goal in just one year!  That's awesome!

Once those investments start compounding progress just goes faster and faster!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: soccerluvof4 on December 29, 2017, 04:20:26 PM
Fire'd, currently at 127% of net worth not including payed off house of predetermined needed amount for SWR of 4% which I have being taken for first 3 years. 
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 29, 2017, 08:47:09 PM
Fire'd, currently at 127% of net worth not including payed off house of predetermined needed amount for SWR of 4% which I have being taken for first 3 years.

I'm not sure I follow you.   Could you rephrase that a bit for clarity?  My brain's still foggy from the anti-histamines!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 30, 2017, 06:20:04 AM
I voted 110% and up, FIRE'd.  My investments are $880K+ with $75K in cash for a total NW of just over $950K.  My annual spend/budget for the last couple years has been in the low $20K's so I think I'm in good shape.  I didn't vote in the previous poll but was still above 110% a year ago.

With an annual spend in the low $20Ks and that much in investments, I agree with you!  Definitely in good shape!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 30, 2017, 06:55:38 PM
Almost 20% of respondents so far have hit their FIRE number.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Hargrove on December 30, 2017, 07:47:17 PM
Went up 5% last year, 6% this year, and will add between 8-20% in 2018. Pretty excited. I think it's at about the 3-year mark you can finally see the cart start to pull itself.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: marty998 on December 30, 2017, 07:52:13 PM
I'm the below zero vote.

Negative gearing FTW! Lose a few thousand cash on 2 rental properties, gain back a hundred thousand on capital appreciation.

Next year I'll be in the black on a cash basis, as index fund dividends start to climb.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 31, 2017, 03:35:45 PM
I'm the below zero vote.

Negative gearing FTW! Lose a few thousand cash on 2 rental properties, gain back a hundred thousand on capital appreciation.

Next year I'll be in the black on a cash basis, as index fund dividends start to climb.

Sounds like a winning plan!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: wenchsenior on December 31, 2017, 03:41:36 PM
Cracked the 50% funding point back in October.  That was a long time coming...15 years, in fact.  But I expect much faster progress in the next ~5 years...hopefully to the 100% point or beyond.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on December 31, 2017, 05:03:08 PM
Cracked the 50% funding point back in October.  That was a long time coming...15 years, in fact.  But I expect much faster progress in the next ~5 years...hopefully to the 100% point or beyond.

Very true!

Well, except when the market tanks and we all feel we're going backwards instead of making progress.  But if stay the course and continue to invest, progress will accelerate even faster when it recovers.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Bateaux on December 31, 2017, 06:14:41 PM
Good words Swordguy.  This stuff goes backwards even faster than forward.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: sol on December 31, 2017, 06:39:24 PM
We crushed it this year, going from 85% at the end of 2016 to well over 100% at the end of 2017.

Still working, though, in an attempt to buffer future charitable giving.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Retire-Canada on December 31, 2017, 07:44:04 PM
71% @ 4%WR & 89% @ 5%WR. I'm not working past 4% so the pin will get pulled somewhere between 4% & 5%.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: soccerluvof4 on January 01, 2018, 04:50:46 AM
Fire'd, currently at 127% of net worth not including payed off house of predetermined needed amount for SWR of 4% which I have being taken for first 3 years.

I'm not sure I follow you.   Could you rephrase that a bit for clarity?  My brain's still foggy from the anti-histamines!


When I Fire'd I set my withdrawl to be 4% of the amount invested at that time . I am currently 127% beyond that amount when I fired which puts me at about 33x's my fire'd amount. No debt, and does not include my paid for house which is currently worth conservatively 300k. Hope that helps and I understood question /poll right to answer it right! :-)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 01, 2018, 08:24:04 AM
Fire'd, currently at 127% of net worth not including payed off house of predetermined needed amount for SWR of 4% which I have being taken for first 3 years.

I'm not sure I follow you.   Could you rephrase that a bit for clarity?  My brain's still foggy from the anti-histamines!

When I Fire'd I set my withdrawl to be 4% of the amount invested at that time . I am currently 127% beyond that amount when I fired which puts me at about 33x's my fire'd amount. No debt, and does not include my paid for house which is currently worth conservatively 300k. Hope that helps and I understood question /poll right to answer it right! :-)

Thanks, it makes sense to me now.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: wenchsenior on January 01, 2018, 08:31:55 AM
Cracked the 50% funding point back in October.  That was a long time coming...15 years, in fact.  But I expect much faster progress in the next ~5 years...hopefully to the 100% point or beyond.

Very true!

Well, except when the market tanks and we all feel we're going backwards instead of making progress.  But if stay the course and continue to invest, progress will accelerate even faster when it recovers.

Yup.  That's why I added the "~" LOL.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Bird In Hand on January 01, 2018, 08:36:30 AM
We're at 70.3% of a somewhat arbitrary $74k passive income goal.

At the end of last year we were at 59.5%.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 01, 2018, 11:23:13 AM
This time I'm barely into the "110.01% and up" group.


I don't think I could properly articulate why, but the phrase "barely into" in this context made me snort with laughter.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: daverobev on January 01, 2018, 12:41:14 PM
I also selected 110%+ and FIREd but it's tricky. I have expenses at the moment that will go away in time. My spending last year includes some daycare (which is done, for the next little while, but we'll probably start doing 1-2 days a week at some point this year... depends how stingy I'm feeling vs how much I want some actual alone time), and a car loan (which will probably be paid off shortly... it's at 3%... so I'm not sure I should bother but eh.. cash flow!).

The biggie is that we really should move, but if we can stick it out here another year or two we'll basically have paid the current mortgage off. It all becomes so... theoretical? when you have some liquid assets. I could do this, or I could keep the debt.

So based on last year's spending I'm pretty much at 100% using 4%. Going forward - short term, no moving, car loan gone and no daycare - I'm at 130%. Then drop the mortgage I'd be at closer to 170%. Add back in a larger mortgage and I'm at I-don't-know.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 01, 2018, 04:23:26 PM
We crushed it this year, going from 85% at the end of 2016 to well over 100% at the end of 2017.

Still working, though, in an attempt to buffer future charitable giving.

Now that's a *good* plan in both senses of the word.  Good for you!  We want to be able to do the same thing.

My wife said the only reason she would like to be really rich would be to set up a charitable foundation.   Me too.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 01, 2018, 04:25:00 PM
We're at 70.3% of a somewhat arbitrary $74k passive income goal.

At the end of last year we were at 59.5%.

Wow!  Almost 11% of the way to your goal in just one year.  Way to rock that plan!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Abe on January 01, 2018, 06:26:22 PM
Weíre at 20-25% after 3 years. Should get there in 10 years if we continue on course!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Bird In Hand on January 01, 2018, 06:58:56 PM
We're at 70.3% of a somewhat arbitrary $74k passive income goal.

At the end of last year we were at 59.5%.

Wow!  Almost 11% of the way to your goal in just one year.  Way to rock that plan!

Thanks!  I don't expect a repeat performance in 2018, but we'll keep the savings rate as high as we can afford to and hope for the best.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 01, 2018, 07:29:55 PM
Weíre at 20-25% after 3 years. Should get there in 10 years if we continue on course!

Way to go!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 02, 2018, 09:52:57 AM
I also selected 110%+ and FIREd but it's tricky. I have expenses at the moment that will go away in time. My spending last year includes some daycare (which is done, for the next little while, but we'll probably start doing 1-2 days a week at some point this year... depends how stingy I'm feeling vs how much I want some actual alone time), and a car loan (which will probably be paid off shortly... it's at 3%... so I'm not sure I should bother but eh.. cash flow!).

The biggie is that we really should move, but if we can stick it out here another year or two we'll basically have paid the current mortgage off. It all becomes so... theoretical? when you have some liquid assets. I could do this, or I could keep the debt.

So based on last year's spending I'm pretty much at 100% using 4%. Going forward - short term, no moving, car loan gone and no daycare - I'm at 130%. Then drop the mortgage I'd be at closer to 170%. Add back in a larger mortgage and I'm at I-don't-know.

Sounds like you'll be fine regardless!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: daverobev on January 02, 2018, 10:13:26 AM
I also selected 110%+ and FIREd but it's tricky. I have expenses at the moment that will go away in time. My spending last year includes some daycare (which is done, for the next little while, but we'll probably start doing 1-2 days a week at some point this year... depends how stingy I'm feeling vs how much I want some actual alone time), and a car loan (which will probably be paid off shortly... it's at 3%... so I'm not sure I should bother but eh.. cash flow!).

The biggie is that we really should move, but if we can stick it out here another year or two we'll basically have paid the current mortgage off. It all becomes so... theoretical? when you have some liquid assets. I could do this, or I could keep the debt.

So based on last year's spending I'm pretty much at 100% using 4%. Going forward - short term, no moving, car loan gone and no daycare - I'm at 130%. Then drop the mortgage I'd be at closer to 170%. Add back in a larger mortgage and I'm at I-don't-know.

Sounds like you'll be fine regardless!

The issue is going from our current house to probably something twice as expensive. It's a quandry, especially as we are all over the map in terms of lifestyle (country -> chickens and bees, vs condo -> no yard work at all, and renting -> everything is Somebody Else's Problem which is *really* appealing after spending the last few days re caulking the bath mediocrely).

I agree we'll be fine; we're in a position that few outside the FIRE communities could comprehend on what have been fairly modest incomes.

It just hits me every so often - with 'large' (vs living expenses) amounts of money comes great responsibility. Nobody is holding my hand with this; if I want to liquidate my shares tomorrow there is nothing outside myself stopping me. I'm at the top; I was working til the middle-end of last year, and earned roughly what I spent last year. This year I will be living on investments alone (and a bit of child benefit, which goes into the children's investments, mostly). And we are 9? years into a very strong bull market. I "lost" money in 2008-2009 but it was all tied up in a single house, so it wasn't really visible to me. I mean, I *knew* - I did try and sell the house at one point - but what can you do? I didn't want to sell at a 20% loss, so I didn't.

It's been 'the plan' for ages but expecting no money to come except from dividends and selling stuff... for the next 30 years til the government pension kicks in? That's a lot longer than I've been working!

Eh. I mean, my wife's still working. In fact she's early in her trajectory, most likely, though who knows.

It is - mentally - so different from "my salary is $X per month, my expenses $Y, so I'll save $Z" (not that I've had a fixed salary for 9 years now...).

Anyway. I'm very lucky (frugal/etc) to be where I am.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 02, 2018, 12:23:21 PM
19.5% have hit their FIRE number, according to the poll so far.

That's pretty awesome.   
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 03, 2018, 05:30:43 PM
It is - mentally - so different from "my salary is $X per month, my expenses $Y, so I'll save $Z"

We have monthly money coming in from social security and rental properties.   

We also have minimum distributions from 401Ks and IRAs we have to take.  We don't have to spend them, but the tax hit is there regardless.  We also know what they are on the 1st of January.   Divide by 12 and it becomes monthly income.

We have seasonal farm income and dividend income.     That's like an annual bonus that's fairly predictable.  If we take the prior year's farm and dividend income and divide by 12, it also becomes monthly income.

So, in a way, nothing's changed...  :)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Travis on January 03, 2018, 07:22:28 PM
Based on current spending the calculator says we're at 72% of our FIRE target ($861k/$1.2million); however, I'm padding that number to include possible futures taxes we don't currently pay plus vacation spending so on the conservative side we're at 61% ($861k/$1.4million).  I'll probably revise this as we get closer to FIRE and figure out where we'll actually retire, but I consider the latter number to definitely be on the top of the scale.  It comes out to somewhere between 3-5 years until FIRE depending on market performance.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 04, 2018, 09:31:32 AM
Based on current spending the calculator says we're at 72% of our FIRE target ($861k/$1.2million); however, I'm padding that number to include possible futures taxes we don't currently pay plus vacation spending so on the conservative side we're at 61% ($861k/$1.4million).  I'll probably revise this as we get closer to FIRE and figure out where we'll actually retire, but I consider the latter number to definitely be on the top of the scale.  It comes out to somewhere between 3-5 years until FIRE depending on market performance.

When you're passively bringing in 60-70% of the income you need to never have to work again, you know you're making real progress!  3-5 years will go by really quickly!   (Well, maybe not that last one.  And if you fall prey to OMY, definitely not the last one!)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: PoutineLover on January 04, 2018, 09:46:59 AM
My net worth is about 1 year of spending right now, so I guess that would put me at 4%? Still got a ways to go.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Roboturner on January 04, 2018, 09:56:15 AM
84.5% to FI
73.4% to RE goal
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 04, 2018, 12:42:17 PM
My net worth is about 1 year of spending right now, so I guess that would put me at 4%? Still got a ways to go.

A lot of people would be thrilled to be where you are:  a positive net worth of a year's spending and a plan they believed in to move forward!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 04, 2018, 02:17:41 PM
84.5% to FI
73.4% to RE goal

That's some serious progress towards your goal!  Shouldn't take long now since the investments start growing on their own at this point!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Roboturner on January 04, 2018, 02:31:05 PM
That's some serious progress towards your goal!  Shouldn't take long now since the investments start growing on their own at this point!

ha we passed the threshold where daily market movements cause more positive or negative fluctuations than our paychecks. It's had a detrimental affect on my will to work.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Travis on January 04, 2018, 04:43:49 PM
That's some serious progress towards your goal!  Shouldn't take long now since the investments start growing on their own at this point!

ha we passed the threshold where daily market movements cause more positive or negative fluctuations than our paychecks. It's had a detrimental affect on my will to work.

I didn't realize it until I posted the numbers in the "Net worth/Badass" thread, but this year our market returns were more than we put into it from our paychecks.  It's an emotional event.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: mizzourah2006 on January 04, 2018, 05:38:47 PM
from 18 up to 26% in the past year.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 04, 2018, 05:43:50 PM
That's some serious progress towards your goal!  Shouldn't take long now since the investments start growing on their own at this point!

ha we passed the threshold where daily market movements cause more positive or negative fluctuations than our paychecks. It's had a detrimental affect on my will to work.

I didn't realize it until I posted the numbers in the "Net worth/Badass" thread, but this year our market returns were more than we put into it from our paychecks.  It's an emotional event.

No kidding!!    Our market returns were almost more than our gross salaries.   Toss in the rental home and farm profits and they were!

Would love another 5 to 10 years of this kind of returns!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 04, 2018, 09:18:16 PM
from 18 up to 26% in the past year.

8% closer in just one year!  That's awesome!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 04, 2018, 09:31:03 PM
Last year, 10.8% of the 501 respondents had either reached 100% of their FIRE target or had FIREd anyway.

I wonder what our percentage will end up in that category this year?

Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: boarder42 on January 05, 2018, 04:45:17 AM
Id be interested to see if it's shifting upward across the board.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 05, 2018, 06:52:31 AM
Id be interested to see if it's shifting upward across the board.

Me too!   That's why I started last year's poll and this years!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Bird In Hand on January 05, 2018, 07:48:03 AM
Would love another 5 to 10 years of this kind of returns!

Hah -- wouldn't we all?  I'd settle for 2 more years of these returns in a row (specifically, 2018 and 2019).  That would push us over 100% of our target @ 4% SWR.  While I'm maxing out my 401k and hoping it will happen, I'll bet you $18.5k it won't!  :D
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 05, 2018, 12:50:12 PM
Would love another 5 to 10 years of this kind of returns!

Hah -- wouldn't we all?  I'd settle for 2 more years of these returns in a row (specifically, 2018 and 2019).  That would push us over 100% of our target @ 4% SWR.  While I'm maxing out my 401k and hoping it will happen, I'll bet you $18.5k it won't!  :D

Two years would be great.  It would be the first 2 years of FIRE for us, so that would reduce our sequence of returns risk.   It would also provide plenty of capital gains to cash out to turn into rental properties.   Those rental properties would reduce our need to draw from our stock holdings to zero in a normal year.  That pretty much solves the sequence of returns risk from then on out.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 06, 2018, 08:52:54 AM
Almost half the number of folks who answered this poll last year have responded so far.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 07, 2018, 02:15:39 PM
Don't be shy!    Pop your status into the poll!   Enquiring minds want to know!  :)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Much Fishing to Do on January 07, 2018, 03:38:44 PM
I've been shooting for a 5% SWR (I feel comfortable with that given in 15 years I'll start receiving SS to make up for any shortfall in case returns are poor).  I have payments due to my business in the next couple months from a large project that will not only move us past 100% at that 5%, but closer to 100% at a 4.5 SWR which is definitely better.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 07, 2018, 06:08:04 PM
I've been shooting for a 5% SWR (I feel comfortable with that given in 15 years I'll start receiving SS to make up for any shortfall in case returns are poor).  I have payments due to my business in the next couple months from a large project that will not only move us past 100% at that 5%, but closer to 100% at a 4.5 SWR which is definitely better.

That sounds great!

So, you're at the 90+% mark now?   Or getting some really big payments?  :)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: boarder42 on January 08, 2018, 08:21:25 AM
this will be really cool to do annually b/c if you go back to the older one you can start to see a wave forming thats moving up - my guess is in 5-10 years this is a very top heavy graph and would be really cool to do a timelapse and watch that wave move to FIRE.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 08, 2018, 07:06:18 PM
this will be really cool to do annually b/c if you go back to the older one you can start to see a wave forming thats moving up - my guess is in 5-10 years this is a very top heavy graph and would be really cool to do a timelapse and watch that wave move to FIRE.

Well, if you don't see me put up this poll next year at the end of the year, have at it! ;)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Acastus on January 09, 2018, 10:51:26 AM
Including returns plus new money, the egg grew by 4-5 times estimated expenses last year. I was hoping for 2x, so I made serious progress. I lived the RE budget all last year, and it worked for the most part. I want to add some cushion to the 4% SWR to account for a crash sooner than later or to use on luxuries while the boom time lasts. It is easier to tighten your belt from excess to enough than from enough down to frugal.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: rockstache on January 09, 2018, 01:50:05 PM
Thanks for reviving this! We moved from the 10-20% category into the 20-30% category, and it is very exciting!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: BrokenBiscuits on January 09, 2018, 02:10:48 PM
I donít even remember voting last year but glad I did... I can now see iíve Moved up a category and so can see the real progress.

Moved up into the 20-30% group.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 11, 2018, 06:17:04 AM
Including returns plus new money, the egg grew by 4-5 times estimated expenses last year. I was hoping for 2x, so I made serious progress. I lived the RE budget all last year, and it worked for the most part. I want to add some cushion to the 4% SWR to account for a crash sooner than later or to use on luxuries while the boom time lasts. It is easier to tighten your belt from excess to enough than from enough down to frugal.

Awesome!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 11, 2018, 03:10:49 PM
Thanks for reviving this! We moved from the 10-20% category into the 20-30% category, and it is very exciting!

Whoopee!    You've got the hard part behind you!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 11, 2018, 03:11:30 PM
I donít even remember voting last year but glad I did... I can now see iíve Moved up a category and so can see the real progress.

Moved up into the 20-30% group.

Solid progress!!!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 11, 2018, 10:10:21 PM
this will be really cool to do annually b/c if you go back to the older one you can start to see a wave forming thats moving up - my guess is in 5-10 years this is a very top heavy graph and would be really cool to do a timelapse and watch that wave move to FIRE.

So, for next year, should we change all the FIRED options to 'Fired with mortgage' and 'Fired, paid mortgage', and 'Fired, renting'?
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 12, 2018, 02:35:58 PM
If this stock market keeps on a roll for the rest of the year, next year's poll will need some 120%+ options.  ;)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 13, 2018, 10:59:18 AM
So far, 18.0% of the folks have FIRED or hit their FIRE number.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Much Fishing to Do on January 13, 2018, 01:13:19 PM
I've been shooting for a 5% SWR (I feel comfortable with that given in 15 years I'll start receiving SS to make up for any shortfall in case returns are poor).  I have payments due to my business in the next couple months from a large project that will not only move us past 100% at that 5%, but closer to 100% at a 4.5 SWR which is definitely better.

That sounds great!

So, you're at the 90+% mark now?   Or getting some really big payments?  :)

Yes and Yes ;-), I'm a little over 90%+ now at 5%SWR and getting (what to me) is some really big payments that will drive it to 110%+, and thus get me to more of a 4.5%swr.  Definitely my most successful 5 months by far and it takes me about that long till the payments start making it in per my agreements with client.

I'm currently negotiating a way for this client to now take me over...would remove all risk from me and give me a 1k hour/year job helping them integrate the business versus the 3k hrs I've been doing as owner.  I like the work, have pride in the business and feel responsible for the workers, but the hours were just killing me and the last couple of very profitable years quickly getting me to FI did away with the financial need that keeps most of us going even when we know its unhealthy.... 

So, knock on wood, ....all of the sudden everything seems to be falling into place.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 13, 2018, 02:03:13 PM
I've been shooting for a 5% SWR (I feel comfortable with that given in 15 years I'll start receiving SS to make up for any shortfall in case returns are poor).  I have payments due to my business in the next couple months from a large project that will not only move us past 100% at that 5%, but closer to 100% at a 4.5 SWR which is definitely better.

That sounds great!

So, you're at the 90+% mark now?   Or getting some really big payments?  :)

Yes and Yes ;-), I'm a little over 90%+ now at 5%SWR and getting (what to me) is some really big payments that will drive it to 110%+, and thus get me to more of a 4.5%swr.  Definitely my most successful 5 months by far and it takes me about that long till the payments start making it in per my agreements with client.

I'm currently negotiating a way for this client to now take me over...would remove all risk from me and give me a 1k hour/year job helping them integrate the business versus the 3k hrs I've been doing as owner.  I like the work, have pride in the business and feel responsible for the workers, but the hours were just killing me and the last couple of very profitable years quickly getting me to FI did away with the financial need that keeps most of us going even when we know its unhealthy.... 

So, knock on wood, ....all of the sudden everything seems to be falling into place.

Awesome!    (And especially because you feel responsible for the people who work for you!  Way to go!)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: gerardc on January 13, 2018, 02:03:52 PM
Anywhere from 50% to 100%+ depending of my mood of the day, and how much I want to spend... Answered 65%, going up fast.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 13, 2018, 05:08:56 PM
Anywhere from 50% to 100%+ depending of my mood of the day, and how much I want to spend... Answered 65%, going up fast.

So...

You're saying your 100% on your FU fund, and 65% on our FI fund!   Good job!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 14, 2018, 10:35:53 AM
Don't be shy, all you lurkers!    Let us know how you're doing!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 15, 2018, 09:32:48 AM
It's MLK day!  Time to enter your Financial Independence %!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 17, 2018, 06:48:00 AM

We're at 110+% and FIRE in May.

We have 4 different income streams.

Social Security and disability for my wife and daughter.
Rental house income.
Rental farm income.
Stock/Bond portfolio.

I like having totally different income streams.  That way, if something goes wrong in one of them, the others are there to take up the slack.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 17, 2018, 05:30:28 PM
Four snow days and a huge stock market run up so far this year.  Woot!

264 folks have answered the poll so far.  Don't be shy!   You'll be glad next year when you compare what you answered this year with your progress.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Off the Wheel on January 17, 2018, 10:51:40 PM
25% to an investment goal with a 4% SWR. Also two properties, but the 3-5 year plan is to sell both and buy something larger in a lower cost of living area for a family. Depending on how that goes/where we decide to move and what happens with our crazy real estate market, we'll either end up with a small mortgage, no mortgage, or a few hundred thousand extra in the bank - which would make a huge difference to our FI.

I am new to active consideration of FIRE, so happy with where we're at (though a generous gift/market gains/real estate appreciation has certainly helped), but there are so many unknowns in the next few years (invested and equities in a fast-growth start up with an exit strategy, husband just went through a career change and went back to work, trying to have a baby) that my plan is just to save as much as possible, manage my spending as much as possible, and see what happens!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 20, 2018, 02:28:06 PM
25% to an investment goal with a 4% SWR. Also two properties, but the 3-5 year plan is to sell both and buy something larger in a lower cost of living area for a family. Depending on how that goes/where we decide to move and what happens with our crazy real estate market, we'll either end up with a small mortgage, no mortgage, or a few hundred thousand extra in the bank - which would make a huge difference to our FI.

I am new to active consideration of FIRE, so happy with where we're at (though a generous gift/market gains/real estate appreciation has certainly helped), but there are so many unknowns in the next few years (invested and equities in a fast-growth start up with an exit strategy, husband just went through a career change and went back to work, trying to have a baby) that my plan is just to save as much as possible, manage my spending as much as possible, and see what happens!

25% of the way to FI is serious progress!   Your ability to roll with life's punches has been immeasurably improved by getting that far!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Off the Wheel on January 20, 2018, 02:32:30 PM
Thanks @SwordGuy. Love your enthusiasm, and the general positivity of these forums. MMM is a far cry from the rave/techno/party forums I spent most of my teenage years in.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 21, 2018, 06:04:52 PM
16.3% of folks in the poll have either FIRED or reached their FIRE number.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: ender on January 21, 2018, 09:02:42 PM
I suppose 30% or so, but frankly there are so many variables in the next 10 years to know whether that's 30%, 15%, or 60% (ok probably not that much higher :D).
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 22, 2018, 06:16:17 PM
I suppose 30% or so, but frankly there are so many variables in the next 10 years to know whether that's 30%, 15%, or 60% (ok probably not that much higher :D).
@ender, give it your best educated guess.   (Or link to a case study and we'll help you figure it out.)
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: ender on January 23, 2018, 08:41:00 AM
I suppose 30% or so, but frankly there are so many variables in the next 10 years to know whether that's 30%, 15%, or 60% (ok probably not that much higher :D).
@ender, give it your best educated guess.   (Or link to a case study and we'll help you figure it out.)

Well it's more that we are DINKs right now, hopefully becoming single income + kid(s) in the near future.

It's easy to predict out when you are making two fulltime salaries. At the rate we're saving it won't be long. But without a good feel for what children expenses might look like it's hard.

Can always check my journal @SwordGuy if you want ;) I think I still have a link in my signature? I forget, I have all signatures hidden lol.

Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: PlainsWalker on January 23, 2018, 09:11:16 AM
This is a neat way of thinking about progress towards the FI goal.
I am at 47% this January up from 36% a year ago.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 23, 2018, 04:09:12 PM
This is a neat way of thinking about progress towards the FI goal.
I am at 47% this January up from 36% a year ago.

11% progress in one year!  That's awesome!

Particularly since, all things being equal, progress accelerates as your stash grows.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 23, 2018, 04:16:11 PM
I suppose 30% or so, but frankly there are so many variables in the next 10 years to know whether that's 30%, 15%, or 60% (ok probably not that much higher :D).
@ender, give it your best educated guess.   (Or link to a case study and we'll help you figure it out.)

Well it's more that we are DINKs right now, hopefully becoming single income + kid(s) in the near future.

It's easy to predict out when you are making two fulltime salaries. At the rate we're saving it won't be long. But without a good feel for what children expenses might look like it's hard.

Can always check my journal @SwordGuy if you want ;) I think I still have a link in my signature? I forget, I have all signatures hidden lol.

Ah, ok, that makes sense!

If you're going to be FIRED before you have kids, they won't add much to your costs unless there are serious medical issues or y'all go crazy and turn into spend-a-holics about the kids.   Daycare is the biggest expense and you won't need that much of it if you aren't working full time.   If you're already FIRED then the lost income from a stay-at-home parent (or two) won't matter either.

Kids don't need nearly as much craptastic stuff as middle-class American parents provide for them.  If you're home schooling or supplementing public schooling with home schooling, you won't need expensive private schools to get good academic results.

Give the kids lots of love, lots of encouragement to grow, lots of freedom and lots of discipline and most of them will turn out just fine.   

Best of luck!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: GoCubsGo on January 24, 2018, 01:48:29 PM
67% of a $80K spend target (not including home equity).  At 55% last year.  The stock market run the past 8 years is causing eye popping results which I'm a bit wary of celebrating (paper gains) but it's much better than the alternative!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 24, 2018, 05:22:30 PM
67% of a $80K spend target (not including home equity).  At 55% last year.  The stock market run the past 8 years is causing eye popping results which I'm a bit wary of celebrating (paper gains) but it's much better than the alternative!

12% closer in one year is great progress!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: ScreamingHeadGuy on January 25, 2018, 09:09:33 AM
91% of our calculated (bare-bones) FI amount
76% of our calculated (target) RE amount

I chose to respond to the survey based on the RE value.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 25, 2018, 05:17:01 PM
91% of our calculated (bare-bones) FI amount
76% of our calculated (target) RE amount

I chose to respond to the survey based on the RE value.

I agree, the RE value is the one to use, because that's your real target number.

76% means you're getting close!

And a 91% bare-bones rating means you don't have near the level of financial stress that other folks would have in case of a job loss, etc.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: ender on January 25, 2018, 06:05:51 PM
Ah, ok, that makes sense!

If you're going to be FIRED before you have kids, they won't add much to your costs unless there are serious medical issues or y'all go crazy and turn into spend-a-holics about the kids.   Daycare is the biggest expense and you won't need that much of it if you aren't working full time.   If you're already FIRED then the lost income from a stay-at-home parent (or two) won't matter either.

Kids don't need nearly as much craptastic stuff as middle-class American parents provide for them.  If you're home schooling or supplementing public schooling with home schooling, you won't need expensive private schools to get good academic results.

Give the kids lots of love, lots of encouragement to grow, lots of freedom and lots of discipline and most of them will turn out just fine.   

Best of luck!

Thanks!

I think 30% is probably a reasonably decent guesstimate, though there are a lot of things that can change that either way obviously..
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: FireHiker on January 25, 2018, 06:12:12 PM
I track both % of FI based on current actual spending, and on current expected retirement spending (meaning current spending minus mortgage and childcare, keeping everything else the same since kid costs will turn into travel costs hopefully). Current spending we were 24.2% EOY 2017. Target retirement spending 40.9%. I started tracking in the end of 2015, and our percentages then were 16% and 32.6% respectively, so we are making progress. Wish it were going more quickly, but we need to buckle down and really be more disciplined in our spending.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 25, 2018, 08:05:53 PM
Ah, ok, that makes sense!

If you're going to be FIRED before you have kids, they won't add much to your costs unless there are serious medical issues or y'all go crazy and turn into spend-a-holics about the kids.   Daycare is the biggest expense and you won't need that much of it if you aren't working full time.   If you're already FIRED then the lost income from a stay-at-home parent (or two) won't matter either.

Kids don't need nearly as much craptastic stuff as middle-class American parents provide for them.  If you're home schooling or supplementing public schooling with home schooling, you won't need expensive private schools to get good academic results.

Give the kids lots of love, lots of encouragement to grow, lots of freedom and lots of discipline and most of them will turn out just fine.   

Best of luck!

Thanks!

I think 30% is probably a reasonably decent guesstimate, though there are a lot of things that can change that either way obviously..

30% is darn good progress!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 25, 2018, 08:07:10 PM
I track both % of FI based on current actual spending, and on current expected retirement spending (meaning current spending minus mortgage and childcare, keeping everything else the same since kid costs will turn into travel costs hopefully). Current spending we were 24.2% EOY 2017. Target retirement spending 40.9%. I started tracking in the end of 2015, and our percentages then were 16% and 32.6% respectively, so we are making progress. Wish it were going more quickly, but we need to buckle down and really be more disciplined in our spending.

8% per year is solid progress.    If you improve your spending or your income I bet you can do 10% or better this year!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 26, 2018, 07:38:30 PM
Only 10 more days to answer this poll.   So stop lurking and make your mark.  (You know you want to... :))
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 27, 2018, 06:41:32 PM
We need about 200 more votes to equal last year's poll!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Omalley on January 27, 2018, 08:11:00 PM
At our FIRE number just trying to find a way to ease the two of from our careers.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 27, 2018, 08:31:33 PM
At our FIRE number just trying to find a way to ease the two of from our careers.

I understand that!  It took us 2 years past reaching our FIRE number to feel comfortable retiring.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Michael in ABQ on January 30, 2018, 07:04:07 AM
I just looked at my spreadsheet were I track our net worth and used to track our debts as we paid them down. Though it doesn't feel like we're making a whole lot of progress our net worth actually increased about $25k in 2016 and again in 2017. Actual retirement contributions were a bit less than $5k (maybe about $8k with company 401k match) so a lot of that was just paying off debt and building our emergency fund. It felt like we were only saving about $10k a year as that's how much we were able to put in our emergency fund in 2017 but I wasn't considering that we finished paying off the last $4k of our debt at the beginning of the year. Gives me some additional hope for saving up a decent down payment for a house knowing that we can probably continue to save about $15k a year while still contributing at least enough to get my full 401k match. Hopefully a new job this year will boost my income as well. Taxes, though minimal already, will be less in 2018 with the new tax code and we might even get extra back with the higher child tax credit.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 30, 2018, 03:25:10 PM
I just looked at my spreadsheet were I track our net worth and used to track our debts as we paid them down. Though it doesn't feel like we're making a whole lot of progress our net worth actually increased about $25k in 2016 and again in 2017. Actual retirement contributions were a bit less than $5k (maybe about $8k with company 401k match) so a lot of that was just paying off debt and building our emergency fund. It felt like we were only saving about $10k a year as that's how much we were able to put in our emergency fund in 2017 but I wasn't considering that we finished paying off the last $4k of our debt at the beginning of the year. Gives me some additional hope for saving up a decent down payment for a house knowing that we can probably continue to save about $15k a year while still contributing at least enough to get my full 401k match. Hopefully a new job this year will boost my income as well. Taxes, though minimal already, will be less in 2018 with the new tax code and we might even get extra back with the higher child tax credit.

Sounds like you're starting to make some good progress!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: thriftycanuck on January 31, 2018, 06:06:33 PM
I picked between 90-100%, however if I left my job my expenses would drop do to indirect and direct savings. More time to be creative to save money, credit card churn etc.   So in realty probably at 100-110% without the work related expenses.

Still working, for now...but job hopping on a regular basis.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on January 31, 2018, 09:47:38 PM
I picked between 90-100%, however if I left my job my expenses would drop do to indirect and direct savings. More time to be creative to save money, credit card churn etc.   So in realty probably at 100-110% without the work related expenses.

Still working, for now...but job hopping on a regular basis.

Sounds like you're in great shape!     

Are you at 90-100% of your target FIRE number or at 90-100% of your "enough to be FI" number?
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on February 01, 2018, 09:40:35 PM
Only a few more days to enter this poll!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: thriftycanuck on February 02, 2018, 06:04:07 PM
I picked between 90-100%, however if I left my job my expenses would drop do to indirect and direct savings. More time to be creative to save money, credit card churn etc.   So in realty probably at 100-110% without the work related expenses.

Still working, for now...but job hopping on a regular basis.

Sounds like you're in great shape!     

Are you at 90-100% of your target FIRE number or at 90-100% of your "enough to be FI" number?

FIRE #
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on February 02, 2018, 06:11:07 PM
I picked between 90-100%, however if I left my job my expenses would drop do to indirect and direct savings. More time to be creative to save money, credit card churn etc.   So in realty probably at 100-110% without the work related expenses.

Still working, for now...but job hopping on a regular basis.

Sounds like you're in great shape!     

Are you at 90-100% of your target FIRE number or at 90-100% of your "enough to be FI" number?

FIRE #

Oh, then you're absolutely in great shape!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on February 03, 2018, 07:06:02 PM
Only two more days to enter this poll!   
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: EscapeVelocity2020 on February 03, 2018, 08:01:43 PM
Off the charts I guess, but it feels pretty much normal since 2011.  Still expecting the market to go back to finding bottoms this year or the next, and I can't wait to see if the next bottom is higher or lower than March 2009.  Plenty of things to freak out about, and this list is always growning and getting more 'serious'. 

In the meantime, I'm very fortunate to be able to live my life the way I prefer.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Blindsquirrel on February 03, 2018, 10:38:07 PM
    Yeah, at CAPE >30 kinda concerned so still working for awhile. That and have a powerful desire to be bullet proof once I pull the plug on the day job. Call me a chicken.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Freedomin5 on February 04, 2018, 03:16:34 AM
If Iíve mathed it up correctly...

We need about $30k per year in FIRE.

We have a rental throwing off $12k per year.
We also have $200k in investments with a 4% withdrawal rate, so $8k per year.

So we are at 66.67%. 
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Chuck Ditallin on February 04, 2018, 05:40:08 AM
We're definitely RE; we're just waiting for our large illiquid asset (our business) to convert to lovely liquid index funds. This has taken a year to date and probably won't bve done til April/Easter/April Fools' Day...

We had managed to cut our hours down, but one of our key workers is off sick and unlikely to return before 1st March at the earliest, so we're currently working 6 days a week...
 Hopefully, once the sale is through, it's a nice easy gig working 1 day a week to assist the buyer... then out of the door forever on 29th August.

Yeah, hopefully!
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on February 04, 2018, 09:41:41 PM
If Iíve mathed it up correctly...

We need about $30k per year in FIRE.

We have a rental throwing off $12k per year.
We also have $200k in investments with a 4% withdrawal rate, so $8k per year.

So we are at 66.67%.

Definitely solid progress, but it's cutting it pretty close for me.   

An empty rental, a big repair needed, and a really down market is a triple whammy that could easily happen.

Are you going to go with more rentals or focus on stock?


Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: Freedomin5 on February 05, 2018, 04:06:53 AM
If Iíve mathed it up correctly...

We need about $30k per year in FIRE.

We have a rental throwing off $12k per year.
We also have $200k in investments with a 4% withdrawal rate, so $8k per year.

So we are at 66.67%.

Definitely solid progress, but it's cutting it pretty close for me.   

An empty rental, a big repair needed, and a really down market is a triple whammy that could easily happen.

Are you going to go with more rentals or focus on stock?

Yes. Both. Probably one more rental and beefing up on ETFs - likely stopping when we reach around $600k in our investment funds.

The way we chose our rental is not like the typical Bigger Pockets folk - the ROI is lower, but our rental pool is a lot more stable. We have a relatively new luxury condo in a very high demand building right on top of the subway station. We have never had one month empty in the six years that weíve owned it and rent only to solid working professionals who have never been late on rent. This means that our rent  to purchase price is not 1% - itís lower, but it also generates a reliable income. We have also never had a big repair come up, probably because of the newness of the unit. So far, itís been a very hands-off, stress free kind of investment. The only negative is that our tenants tend to like our unit so much they stay for a few years, and rental increases are capped at inflation, so we are charging slightly less than market rates.

We are thinking of switching it up - splitting the equity we have in this unit into two newer units - because this unit is getting older and that means management fees are only going to increase in the future. We just need to find good units in good locations.

This idea of living off of passive income is kind of a theoretical exercise for us at this point, since we donít really have any intention to retire at this point of time, or even in the next five years. Too many interesting projects going on, and most of them are paid (not well paid, but paid). Currently, our current passive income just gets rolled back into growing the Ďstache.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on February 05, 2018, 06:08:55 AM
The way we chose our rental is not like the typical Bigger Pockets folk

We have also never had a big repair come up, probably because of the newness of the unit.

Stuff has been wearing out in that unit for 6 years.  You just haven't gotten the bill yet.

I'm guessing that since you've been following Bigger Pockets that you're setting aside money out of each month's rent to cover those future bills.
A surprising number of folks don't, so if I'm wrong on my guess, please go learn how to calculate your profit correctly and set aside reserves.
Title: Re: What's your CURRENT EOY 2017 % of your Target Passive Income?
Post by: SwordGuy on February 05, 2018, 06:29:32 PM
21.3% of poll respondents have either FIRED or have reached a number they could FIRE at.

Not bad!