Author Topic: EIGHT YEAR anniversary of FIRE  (Read 3919 times)

Financial.Velociraptor

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EIGHT YEAR anniversary of FIRE
« on: October 05, 2020, 01:49:24 PM »
My last day in the office was eight years ago today 5OCT2012.

Still feels good.

2sk22

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Re: EIGHT YEAR anniversary of FIRE
« Reply #1 on: October 05, 2020, 01:54:26 PM »
Congratulations! I can only imagine how great it must feel. My last day of work was just 4 days ago and it has been great too. I have been wondering if I will still feel this way a few years from now :-)

nereo

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Re: EIGHT YEAR anniversary of FIRE
« Reply #2 on: October 05, 2020, 02:14:25 PM »
I'll drink to that...

New Riff Rye, neat.  Sip.

Mrs. Sloth

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Re: EIGHT YEAR anniversary of FIRE
« Reply #3 on: October 05, 2020, 06:16:50 PM »
Congrats!!!

I recall reading that you were under the 25x threshold at the time of retirement...are you there now since you FIRED into a raging bull market?




Gone Fishing

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Re: EIGHT YEAR anniversary of FIRE
« Reply #4 on: October 05, 2020, 07:50:47 PM »
Amazing how the time flies!

Loren Ver

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Re: EIGHT YEAR anniversary of FIRE
« Reply #5 on: October 06, 2020, 02:22:42 PM »
*High Five*

Retire-Canada

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Re: EIGHT YEAR anniversary of FIRE
« Reply #6 on: October 06, 2020, 07:07:21 PM »
Congratulations. Keep living the dream! :-)

chevy1956

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Re: EIGHT YEAR anniversary of FIRE
« Reply #7 on: October 08, 2020, 01:38:04 AM »
Congrats. I think I remember your WR was really high. Has it come down ?

Financial.Velociraptor

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Re: EIGHT YEAR anniversary of FIRE
« Reply #8 on: October 08, 2020, 07:49:21 AM »
Congrats. I think I remember your WR was really high. Has it come down ?

Congrats!!!

I recall reading that you were under the 25x threshold at the time of retirement...are you there now since you FIRED into a raging bull market?

Withdrawal rate at FIRE date was about 10.5%.  It was around 5% before COVID and currently 6.27%. 

Passive income (interest, dividends, distributions) equal 72.23% of annual budget.  Options trading income comes to 225.87% of budget for total budget coverage of 298.11%.  All an "closed positions" basis and before taxes of course. 

Mrs. Sloth

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Re: EIGHT YEAR anniversary of FIRE
« Reply #9 on: October 08, 2020, 09:53:41 AM »
Congrats. I think I remember your WR was really high. Has it come down ?

Congrats!!!

I recall reading that you were under the 25x threshold at the time of retirement...are you there now since you FIRED into a raging bull market?

Withdrawal rate at FIRE date was about 10.5%.  It was around 5% before COVID and currently 6.27%. 

Passive income (interest, dividends, distributions) equal 72.23% of annual budget.  Options trading income comes to 225.87% of budget for total budget coverage of 298.11%.  All an "closed positions" basis and before taxes of course. 


Sounds like you know what you are doing for sure...glad it has worked out for you! Congrats again on 8 years of freedom!

4tify

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Re: EIGHT YEAR anniversary of FIRE
« Reply #10 on: October 08, 2020, 10:26:20 AM »
My hero.

What are your top 3-5 learnings in that time?

soccerluvof4

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Re: EIGHT YEAR anniversary of FIRE
« Reply #11 on: October 09, 2020, 03:37:42 AM »
Well done! Always good to see the success's!! 

Financial.Velociraptor

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Re: EIGHT YEAR anniversary of FIRE
« Reply #12 on: October 09, 2020, 09:51:21 AM »
My hero.

What are your top 3-5 learnings in that time?

Who you are is not the same thing as what you do for money.
There is a lot to be said for just being idle a few hours a day to be with your thoughts.
More money isn't exactly correlated to more happiness.

Metta

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Re: EIGHT YEAR anniversary of FIRE
« Reply #13 on: October 10, 2020, 10:37:00 PM »
Congratulations! Good to see you are still FIREd up and happy.

chevy1956

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Re: EIGHT YEAR anniversary of FIRE
« Reply #14 on: October 11, 2020, 05:13:56 PM »
Congrats. I think I remember your WR was really high. Has it come down ?

Congrats!!!

I recall reading that you were under the 25x threshold at the time of retirement...are you there now since you FIRED into a raging bull market?

Withdrawal rate at FIRE date was about 10.5%.  It was around 5% before COVID and currently 6.27%. 

Passive income (interest, dividends, distributions) equal 72.23% of annual budget.  Options trading income comes to 225.87% of budget for total budget coverage of 298.11%.  All an "closed positions" basis and before taxes of course.

Interesting. Let's see how the next 8 years go. I wouldn't be surprised to see you get under 5% and potentially lower but it is a little risky. I've retired at a 5% WR. I wonder if it will come down rather than go up.

chevy1956

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Re: EIGHT YEAR anniversary of FIRE
« Reply #15 on: October 11, 2020, 05:15:11 PM »
My hero.

What are your top 3-5 learnings in that time?

Who you are is not the same thing as what you do for money.
There is a lot to be said for just being idle a few hours a day to be with your thoughts.
More money isn't exactly correlated to more happiness.

This is great stuff.

Dicey

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Re: EIGHT YEAR anniversary of FIRE
« Reply #16 on: October 11, 2020, 06:46:58 PM »
I didn't want to respond until i was sure this thread hadn't been hijacked.  Glad to see the spammer has been banished. Today is my eighth anniversary and Dec. 5, 2020 is my eight-year FIREversary. Congratulations all around!

DocToDisco

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Re: EIGHT YEAR anniversary of FIRE
« Reply #17 on: October 11, 2020, 10:33:35 PM »
Nice!
« Last Edit: October 11, 2020, 10:37:32 PM by DocToDisco »

mistymoney

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Re: EIGHT YEAR anniversary of FIRE
« Reply #18 on: October 21, 2020, 10:37:41 AM »
Congrats. I think I remember your WR was really high. Has it come down ?

Congrats!!!

I recall reading that you were under the 25x threshold at the time of retirement...are you there now since you FIRED into a raging bull market?

Withdrawal rate at FIRE date was about 10.5%.  It was around 5% before COVID and currently 6.27%. 

Passive income (interest, dividends, distributions) equal 72.23% of annual budget.  Options trading income comes to 225.87% of budget for total budget coverage of 298.11%.  All an "closed positions" basis and before taxes of course.

wow - that is pretty high! I didn't think that could be doable, so I am very intrigued!

I'm a bit confused about the total budget coverage of 298% with the options trading. So - you are working as a trader with your stache?

Any details you can share about making it work with such a high withdrawal rate initially?

bigblock440

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Re: EIGHT YEAR anniversary of FIRE
« Reply #19 on: October 21, 2020, 10:53:08 AM »
Congrats. I think I remember your WR was really high. Has it come down ?

Congrats!!!

I recall reading that you were under the 25x threshold at the time of retirement...are you there now since you FIRED into a raging bull market?

Withdrawal rate at FIRE date was about 10.5%.  It was around 5% before COVID and currently 6.27%. 

Passive income (interest, dividends, distributions) equal 72.23% of annual budget.  Options trading income comes to 225.87% of budget for total budget coverage of 298.11%.  All an "closed positions" basis and before taxes of course.

wow - that is pretty high! I didn't think that could be doable, so I am very intrigued!

I'm a bit confused about the total budget coverage of 298% with the options trading. So - you are working as a trader with your stache?

Any details you can share about making it work with such a high withdrawal rate initially?

Couple of things to keep in mind, a 10.5% withdrawal rate historically has an 8.4% success rate.   It's more likely to fail than not, assuming blind, inflation-indexed withdrawals.  OP's also only 8 years in, so we don't yet know if it's on the success or failure column yet.  Doesn't mean they'll fail, especially since they're not blindly withdrawing a set amount yearly, but it's also too early to tell if it was in fact doable.  Just have to make sure you go into it with eyes wide open and understand that it's not as close to a sure thing as 4/3/2% is.

Financial.Velociraptor

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Re: EIGHT YEAR anniversary of FIRE
« Reply #20 on: October 21, 2020, 11:42:05 AM »
Congrats. I think I remember your WR was really high. Has it come down ?

Congrats!!!

I recall reading that you were under the 25x threshold at the time of retirement...are you there now since you FIRED into a raging bull market?

Withdrawal rate at FIRE date was about 10.5%.  It was around 5% before COVID and currently 6.27%. 

Passive income (interest, dividends, distributions) equal 72.23% of annual budget.  Options trading income comes to 225.87% of budget for total budget coverage of 298.11%.  All an "closed positions" basis and before taxes of course.

wow - that is pretty high! I didn't think that could be doable, so I am very intrigued!

I'm a bit confused about the total budget coverage of 298% with the options trading. So - you are working as a trader with your stache?

Any details you can share about making it work with such a high withdrawal rate initially?

I keep about 70% of my taxable account in fixed income, preferred, REIT, CEFs, and individual bonds bought at a discount to par (used to have MLPs but the tax headache at year end wasn't worth the extra yield, I was basically working for a paltry wage as a tax accountant once a year).  This produces passive income of 13,002/yr (all divs, distributions, and interest) which is currently 72.23% of my 18,000 annual budget (it's not as dire as it sounds, House and car are paid for.) 

The remaining taxable account is in options targeting around 6-8 weeks to expiry.  My annualized earnings on closed positions is 44,051 (e.g. 36,709 in closed positions through 10 months).  October was a very good trading month.  I'm positioned much more defensively for now and through November because of election based uncertainty and will probably see that average decline.  But I'm in good shape for covering the budget.  As my cash balance climbs, I'll ocassionally add more "income" investments.  Eventually my entire budget will be met passively and I can position myself ever more defensively.

To be honest, I expected to go Barista-FIRE doing something trivial part time as consistently trading for income seemed a tall order.  It just hasn't been necessary due to a very kind market.  I started toying with finding non-profit work part time in February.  Had a couple interviews and have been waiting on follow up interviews in March (Zoom) that are on indefinite hold due to COVID. 

I'm currently in a de-risking period with my trading.  I'll be trading in the money bear put spreads on mature dividend growing companies going forward. 

dividendman

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Re: EIGHT YEAR anniversary of FIRE
« Reply #21 on: October 21, 2020, 11:50:29 AM »
Amazing!

cool7hand

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Re: EIGHT YEAR anniversary of FIRE
« Reply #22 on: October 22, 2020, 06:38:01 AM »
Kudos!!

mistymoney

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Re: EIGHT YEAR anniversary of FIRE
« Reply #23 on: October 22, 2020, 07:27:13 AM »
Congrats. I think I remember your WR was really high. Has it come down ?

Congrats!!!

I recall reading that you were under the 25x threshold at the time of retirement...are you there now since you FIRED into a raging bull market?

Withdrawal rate at FIRE date was about 10.5%.  It was around 5% before COVID and currently 6.27%. 

Passive income (interest, dividends, distributions) equal 72.23% of annual budget.  Options trading income comes to 225.87% of budget for total budget coverage of 298.11%.  All an "closed positions" basis and before taxes of course.

wow - that is pretty high! I didn't think that could be doable, so I am very intrigued!

I'm a bit confused about the total budget coverage of 298% with the options trading. So - you are working as a trader with your stache?

Any details you can share about making it work with such a high withdrawal rate initially?

I keep about 70% of my taxable account in fixed income, preferred, REIT, CEFs, and individual bonds bought at a discount to par (used to have MLPs but the tax headache at year end wasn't worth the extra yield, I was basically working for a paltry wage as a tax accountant once a year).  This produces passive income of 13,002/yr (all divs, distributions, and interest) which is currently 72.23% of my 18,000 annual budget (it's not as dire as it sounds, House and car are paid for.) 

The remaining taxable account is in options targeting around 6-8 weeks to expiry.  My annualized earnings on closed positions is 44,051 (e.g. 36,709 in closed positions through 10 months).  October was a very good trading month.  I'm positioned much more defensively for now and through November because of election based uncertainty and will probably see that average decline.  But I'm in good shape for covering the budget.  As my cash balance climbs, I'll ocassionally add more "income" investments.  Eventually my entire budget will be met passively and I can position myself ever more defensively.

To be honest, I expected to go Barista-FIRE doing something trivial part time as consistently trading for income seemed a tall order.  It just hasn't been necessary due to a very kind market.  I started toying with finding non-profit work part time in February.  Had a couple interviews and have been waiting on follow up interviews in March (Zoom) that are on indefinite hold due to COVID. 

I'm currently in a de-risking period with my trading.  I'll be trading in the money bear put spreads on mature dividend growing companies going forward.

Thank you for the expanded explanation. Sounds very interesting!

Kudos on your success with it!