Author Topic: Race from $2M to $4M...and Beyond!  (Read 1037294 times)

couponvan

  • Walrus Stache
  • *******
  • Posts: 8071
  • Location: VA
    • My journal
Re: Race from $2M to $4M...and Beyond!
« Reply #6400 on: October 30, 2022, 12:15:47 PM »
Iíve got to brag on my sub 26 year old new co worker (still on her parents health care because I mentioned looking at the HDHP plans during open season).  She is already maxing out TSP while now living in the Bay Area on a salary with a base of less than 80k.  I also had the other new person up their TSP from 5 to 10% to start getting closer to the max.

Please show them at their age if Roth is a question that theyíre better off going that way vs full pre-tax contributions given their age and years o retirement with tax-free potential and added flexibility for access to funds in early retirement.

ingrownstudentloans

  • Bristles
  • ***
  • Posts: 261
  • Age: 36
Re: Race from $2M to $4M...and Beyond!
« Reply #6401 on: November 08, 2022, 07:09:06 AM »
Joining this race after a short stint in the 1-2 race.  Focusing on continuing to double my money in as short a period of time as possible.

(tracking retirement accounts, taxable accounts and conservative equity in my rental properties, investment land and side businesses)

12/2014    $32,000
12/2016    $64,000 (24 months)
1/2018      $128,000 (25 months)
5/2019      $256,000 (16 months)
11/2020  $512,000 (19 months)
12/2021  $1,024,000 (13 months)
4/2022    $2,048,000 (4 months)
[10/2023 $4,096,000 (19 months] **TARGET**
--
4/1/2022     $2,336,219
5/1/2022     $2,398,670
6/1/2022     $2,556,025 - I realize others in this "race" don't report monthly, or at all, but it's become my monthly ritual when I update the spreadsheets.  Thanks for bearing with me :)

11/1/2022    $2,919,364

Dicey

  • Senior Mustachian
  • ********
  • Posts: 19627
  • Age: 64
  • Location: NorCal
Re: Race from $2M to $4M...and Beyond!
« Reply #6402 on: November 08, 2022, 07:21:18 AM »
Joining this race after a short stint in the 1-2 race.  Focusing on continuing to double my money in as short a period of time as possible.

(tracking retirement accounts, taxable accounts and conservative equity in my rental properties, investment land and side businesses)

12/2014    $32,000
12/2016    $64,000 (24 months)
1/2018      $128,000 (25 months)
5/2019      $256,000 (16 months)
11/2020  $512,000 (19 months)
12/2021  $1,024,000 (13 months)
4/2022    $2,048,000 (4 months)
[10/2023 $4,096,000 (19 months] **TARGET**
--
4/1/2022     $2,336,219
5/1/2022     $2,398,670
6/1/2022     $2,556,025 - I realize others in this "race" don't report monthly, or at all, but it's become my monthly ritual when I update the spreadsheets.  Thanks for bearing with me :)

11/1/2022    $2,919,364
In this market? Details, please!

EscapeVelocity2020

  • Magnum Stache
  • ******
  • Posts: 4207
  • Age: 49
  • Location: Houston
    • EscapeVelocity2020
Re: Race from $2M to $4M...and Beyond!
« Reply #6403 on: November 08, 2022, 08:04:31 AM »
11/1/2022    $2,919,364

Big numbers aren't quite as exciting around these parts, although I congratulate you on having an income over a million a year.  What are your hopes and dreams?  Just having more money, getting to 'and beyond' (which I'm sure you will do within a year or two just by saving)?  Do you plan to ER??

Inquiring minds want to know, since there really isn't any graduating from this thread...  Time to put a little meat on those bones.

LightTripper

  • Handlebar Stache
  • *****
  • Posts: 1982
  • Location: London, UK
  • Rural Londoner. Lazy workaholic. Confused.
Re: Race from $2M to $4M...and Beyond!
« Reply #6404 on: November 08, 2022, 08:51:48 AM »
I finally updated my figures and they don't look too bad.  Pretty flat in sterling terms (my home currency) due to the shitshow currently unfolding at home.  Down in dollars ... but given it's down from "too much money" to still "too much money" and that I'm now retiring at a lower market valuation it's reassuring in a way.

It's amazing how much worse my Developing World and Pacific funds have done compared to the US-dominated global trackers.  The US economy really is something!  I wonder how long it can last?

Taran Wanderer

  • Handlebar Stache
  • *****
  • Posts: 1199
Re: Race from $2M to $4M...and Beyond!
« Reply #6405 on: November 08, 2022, 09:35:31 AM »
We continue to hover around $3.5. Up a few hundred this year. This is partly due to contributions and partly due to gains as Iíve been buying back in with cash that I had (somewhat stupidly) stashed. It seems crazy. I really need to thing about that hopes and dreams question and consider moving on from work into things if rather be doing.

ingrownstudentloans

  • Bristles
  • ***
  • Posts: 261
  • Age: 36
Re: Race from $2M to $4M...and Beyond!
« Reply #6406 on: November 08, 2022, 09:40:29 AM »
11/1/2022    $2,919,364

Big numbers aren't quite as exciting around these parts, although I congratulate you on having an income over a million a year.  What are your hopes and dreams?  Just having more money, getting to 'and beyond' (which I'm sure you will do within a year or two just by saving)?  Do you plan to ER??

Inquiring minds want to know, since there really isn't any graduating from this thread...  Time to put a little meat on those bones.

Well I am still excited.  Your lack of excitement doesn't affect mine at all.  Part of my stoic training :)

Good questions.  I am happy with my job and plan on continuing for at least another 4-5 years.  My goal in that time is to build up my cash generating assets (rentals and cash flowing businesses).  I have chance to create real generational wealth (the "beyond" you reference) over the next couple of years and retire at 40ish with a net worth of $10MM in time to coach my kids soccer teams and be an adult leader for the scouting pack.

Dicey

  • Senior Mustachian
  • ********
  • Posts: 19627
  • Age: 64
  • Location: NorCal
Re: Race from $2M to $4M...and Beyond!
« Reply #6407 on: November 08, 2022, 09:44:54 AM »
11/1/2022    $2,919,364

Big numbers aren't quite as exciting around these parts, although I congratulate you on having an income over a million a year.  What are your hopes and dreams?  Just having more money, getting to 'and beyond' (which I'm sure you will do within a year or two just by saving)?  Do you plan to ER??

Inquiring minds want to know, since there really isn't any graduating from this thread...  Time to put a little meat on those bones.
Wait, are you saying someone called ingrownstudentloans is pulling down $1M a year?

Even if that's true, an increase of $363,339 in five months in the current market is huge, even for this crowd.

Much Fishing to Do

  • Handlebar Stache
  • *****
  • Posts: 1044
Re: Race from $2M to $4M...and Beyond!
« Reply #6408 on: November 08, 2022, 11:09:49 AM »
Iíve got to brag on my sub 26 year old new co worker (still on her parents health care because I mentioned looking at the HDHP plans during open season).  She is already maxing out TSP while now living in the Bay Area on a salary with a base of less than 80k.  I also had the other new person up their TSP from 5 to 10% to start getting closer to the max.

SO I would guess that means they are making $80k gross and living off of $40k after taxes for a single and maxing out contribution (even assuming no other savings) in the Bay area.  Which means they are saving over half a years spending in a year.  Thats amzing at 26 and similar to the numbers I'm gonna be encouraging my graduating kid to be doing.

Fomerly known as something

  • Handlebar Stache
  • *****
  • Posts: 1410
  • Location: CA
Re: Race from $2M to $4M...and Beyond!
« Reply #6409 on: November 08, 2022, 12:49:11 PM »
Iíve got to brag on my sub 26 year old new co worker (still on her parents health care because I mentioned looking at the HDHP plans during open season).  She is already maxing out TSP while now living in the Bay Area on a salary with a base of less than 80k.  I also had the other new person up their TSP from 5 to 10% to start getting closer to the max.

SO I would guess that means they are making $80k gross and living off of $40k after taxes for a single and maxing out contribution (even assuming no other savings) in the Bay area.  Which means they are saving over half a years spending in a year.  Thats amzing at 26 and similar to the numbers I'm gonna be encouraging my graduating kid to be doing.

Yup about right.  Plus their salary goes up rather well for the first five years (government scheduled and so known) and she gets her first raise soon.  With putting that much in that early it allows one to make possibly some big mistakes and still win the game.

In a work sponsored retirement seminar today.  For the first time I heard the presenter sub track out 401k contributions before using the 80% rule.  Iíve always been confused why it wasnít accounted for.

ingrownstudentloans

  • Bristles
  • ***
  • Posts: 261
  • Age: 36
Re: Race from $2M to $4M...and Beyond!
« Reply #6410 on: November 08, 2022, 01:17:53 PM »
11/1/2022    $2,919,364

Big numbers aren't quite as exciting around these parts, although I congratulate you on having an income over a million a year.  What are your hopes and dreams?  Just having more money, getting to 'and beyond' (which I'm sure you will do within a year or two just by saving)?  Do you plan to ER??

Inquiring minds want to know, since there really isn't any graduating from this thread...  Time to put a little meat on those bones.
Wait, are you saying someone called ingrownstudentloans is pulling down $1M a year?

Even if that's true, an increase of $363,339 in five months in the current market is huge, even for this crowd.

Don't want to change the name because it reminds me of where I started on this journey and hopefully shows others that it can be done.  Lots of luck and a little hard work.

EscapeVelocity2020

  • Magnum Stache
  • ******
  • Posts: 4207
  • Age: 49
  • Location: Houston
    • EscapeVelocity2020
Re: Race from $2M to $4M...and Beyond!
« Reply #6411 on: November 09, 2022, 07:03:04 PM »
11/1/2022    $2,919,364

Big numbers aren't quite as exciting around these parts, although I congratulate you on having an income over a million a year.  What are your hopes and dreams?  Just having more money, getting to 'and beyond' (which I'm sure you will do within a year or two just by saving)?  Do you plan to ER??

Inquiring minds want to know, since there really isn't any graduating from this thread...  Time to put a little meat on those bones.

Well I am still excited.  Your lack of excitement doesn't affect mine at all.  Part of my stoic training :)

Good questions.  I am happy with my job and plan on continuing for at least another 4-5 years.  My goal in that time is to build up my cash generating assets (rentals and cash flowing businesses).  I have chance to create real generational wealth (the "beyond" you reference) over the next couple of years and retire at 40ish with a net worth of $10MM in time to coach my kids soccer teams and be an adult leader for the scouting pack.

Thanks for not being too upset by my grumpiness!  We've had a few 'stache growing superstars (tech salaries, TSLA or crypto early investors, CA real estate, etc.)  shoot through this thread posting eye-popping numbers without any real story or anything interesting to say.  They then realize that they have 'graduated' but not really thought about what comes next.  It's easy to feel unfulfilled and lost at that point.

Glad to hear you are still excited, FI is exciting!  In the 'normal world', many would get here only to increase their lifestyle and continue to live just beyond their means...

Thanks for sharing that the goal is to ER at 40ish with $10MM in order to give back to the next generation and community...  as 'Office Space' once said, you don't need $10MM to do that...  or something along those lines.  I have a feeling these ideas will evolve along the way. 

jeroly

  • Bristles
  • ***
  • Posts: 484
Re: Race from $2M to $4M...and Beyond!
« Reply #6412 on: November 20, 2022, 11:30:54 PM »
It's been a roller coaster year financially for us all, and I once again feel amazingly fortunate to have mostly thrived despite market headwinds.

I'm probably down around $200k overall (marking financial assets to market and also taking withdrawals and dividends into account), but since I managed to sell some FL property that I've been carrying on the books at about $150k below market value, my total NW as I calculate it is about level with YE 2021 (I also marked a remaining real property up by $90k to reflect a closer estimate of market value).  My SO's financial assets saw much bigger market losses (maybe about $400k) but she earns and saves a ton and also this year she vested into a defined benefit pension that probably has a present value of about $300k-$500k, so she's actually up a fair bit for the year once we factor the new pension benefit in. Overall we're still comfortably 'beyond.' 

I was able to sell the properties 'as-is' for cash without using a sales agent or staging the properties, just putting up 'for sale by owner' signs linked to a cheap 'VoIP' phone number, so there were virtually no sales costs other than the cost of that trip - total cost for answering / returning the couple hundred phone calls I got was a couple of bucks.  I know that the housing market is slumping overall but my sense of things when I was selling in September was that the bottom end of the market (cheap fixer-uppers / 'handyman's specials') was still very strong, perhaps because folks do really want to buy but are getting priced out of the more expensive market segments so demand at the bottom may even be still growing. Of course that was two months and a couple of interest rate hikes ago, so I wouldn't be surprised if there was a bit more softening even with the recent drop in mortgage rates.

I was finally able to get some foreign travel in this year, restarting my 'bucket list adventures' by doing five weeks in Australia.  I also did some domestic adventuring, hiking in Joshua Tree and Grand Teton NPs, visiting friends in the midwest, and going down to FL twice - once for a quick beach getaway, the other time to deal with the property sale. I'm still working on plans for 2023 but hope to get to Chile's Atacama Desert (perhaps in the fall/Chile's spring), to the Baltic States in the spring, and to Tanzania and Kenya in August in order to watch the wildebeest migration and to climb Kilimanjaro.

The only place that my spending has been dramatically affected by inflation in this year was on the Australian trip.  Despite the good exchange rate, my budget took a beating from high airfares - $1800 to Sydney and then another $1500 on internal flights.  This was certainly my most expensive trip ever, at about $8k for the 5 1/2 weeks. I've generally targeted $1k/week for travel so that's about a 45% increase.

Other inflation observations:

- My biggest expense is my rent, which hasn't been raised since 2017.  So that helps keep the overall inflation adjustment down considerably.
- Next biggest is my ACA coverage, which is going to rise by about 12% next year. When you factor in the extra age-related cost that's probably about in line with overall inflation.  This next year will be my last full year of Obamacare - I will turn 65 and start Medicare in 2024, and I'm figuring my overall healthcare costs will drop from the $15k I budget ($13k premiums plus $2k of uncovered costs) to about half that. Since the end is in sight I haven't been sweating the big current pricetag too much.
- Food in the supermarket is up considerably and we've compensated to a degree by shifting from Safeway to Aldi and even Whole Foods which seems to be offering better value than Safeway these days especially if you take advantage of the Prime deals.
- Food in restaurants is up a fair bit, maybe 20%, but we've cut back our restaurant going a lot since the pandemic and with cold weather incipient here in Washington DC, we'll likely be dining out a lot less in the coming months... by dining out I mean literally outside as my SO still hasn't transitioned to indoor dining (I've only recently restarted this, subsequent to getting my bivalent Covid booster).
- I think that my electricity bill (includes electric heat) has risen but it's been a little hard to assess as my usage patterns have recently shifted.
- Phone bill and main TV service (google's YouTubeTV) are unchanged.  Some streaming service increases (perhaps 15% overall on these).  Reduction in my internet bill of 40% after threatening to cancel service and switch to a competitor.
- Uber costs are much higher and we have offset this by using it much less. This is in my estimation only partly an inflation story and partly an 'Uber is no longer intentionally selling trips below cost' story.
- We use very little petrol so even though gas prices have risen substantially from where they were before the Ukraine War, it hasn't affected our budget much.

I think that overall my spending is up about 10% for the year, but a big chunk of that is because travel was limited last year and I've returned to near my budgeted travel expenditure level of ~$15k.

The main thing we've changed financially besides my selling the property has been for my SO to start diverting income to her company's deferred compensation plan.  It's nonqualified and hence non-guaranteed so it's not without risk (if her company goes under she becomes an unsecured creditor, but typically most if not all of deferred compensation due to employees of bankrupted enterprises is eventually paid).  The plus is that it's paying prime plus some fixed percentage (maybe 2%?) which is both better than we could get from bonds, say, and provides some diversification and ballast.  She's putting 10% of her salary and 70% of her bonus into this, which added up to about 1/3 of her overall income - she also has 401(k) and taxable savings.  If we consider the NQDC balance as part of the FI portion of our financial assets we're probably about 65/35 equities/FI, and equities/FI/RE are about 55/30/15 overall.  We might eventually raise the RE portion if we combine households but that's still down the road.

Since our investment policy statement calls for an annual rebalancing of financial assets, we of course rebalanced our losses in crypto and have bought more BTC, Luna, Terra, FTT, and Solana.  No, just kidding, that was snark, we have a 0% crypto allocation.  However, I did mention this to raise a crypto point - I really wonder how many people who are advocating for x% to be allocated to crypto are going to do an annual portfolio balancing where they realize that the drops in cryptocurrency prices requires them to buy more crypto to maintain those allocations, and then they actually do it?  I think there will be few with the cojones/ovaries to not only HODL but to buy more... and that, my friends, will I believe lead to another leg down in cryptocurrency prices as new demand for the coins falls off the roof  (It would not surprise me if we see BTC at $3,000 or lower by YE 2023.)
« Last Edit: November 21, 2022, 02:50:47 PM by jeroly »

rmorris50

  • Bristles
  • ***
  • Posts: 382
Race from $2M to $4M...and Beyond!
« Reply #6413 on: November 21, 2022, 07:24:07 AM »
Heads up that pension lump sums are dropping precipitously Jan 1 due to increases in IRS discount rates. Iím rolling over my old pension before year end to lock in the gain. Otherwise it drops from $334k to $252k. Yes rates could go back down in the future but I donít want to be at the whim of IRS discount rates.

If your SO is still working at the employer with the pension then maybe there isnít anything she can do unless she decides to retire.


Sent from my iPhone using Tapatalk
« Last Edit: November 21, 2022, 08:11:23 AM by rmorris50 »

2sk22

  • Handlebar Stache
  • *****
  • Posts: 1120
Re: Race from $2M to $4M...and Beyond!
« Reply #6414 on: November 21, 2022, 07:25:35 AM »
It's been a roller coaster year financially for us all, and I once again feel amazingly fortunate to have mostly thrived despite market headwinds.

...

The only place that my spending has been dramatically affected by inflation in this year was on the Australian trip.  Despite the good exchange rate, my budget took a beating from high airfares - $1800 to Sydney and then another $1500 on internal flights.  This was certainly my most expensive trip ever, at about $8k for the 5 1/2 weeks. I've generally targeted $1k/week for travel so that's about a 45% increase.
...
Since our investment policy statement calls for an annual rebalancing of financial assets, we of course rebalanced our losses in crypto and have bought more BTC, Luna, Terra, FTT, and Solana.  No, just kidding, that was snark, we have a 0% crypto allocation.  However, I did mention this to raise a crypto point - I really wonder how many people who are advocating for x% to be allocated to crypto are going to do an annual portfolio balancing where they realize that the drops in cryptocurrency prices requires them to buy more crypto to maintain those allocations, and then they actually do it?  I think there will be few with the cojones/ovaries to not only HODL but to buy more... and that, my friends, will I believe lead to another leg down in cryptocurrency prices as new demand for the coins falls off the roof  (It would not surprise me if we see BTC at $3,000 or lower by YE 2023.)

I enjoyed reading your year end summary and glad that things are going well for you. I agree that the very worst inflation is in the travel sector. Every aspect of travel including airfares, hotels/AirBnB and car rentals are all way more expensive.

Regarding crypto - I have been firmly in the anti-crypto camp ever since I first started reading about it over ten years ago. I lurk a bit on the Reddit FAT Fire group and I have seen a noticeable reduction in the number of crypto bros announcing their retirements :-)

jeroly

  • Bristles
  • ***
  • Posts: 484
Re: Race from $2M to $4M...and Beyond!
« Reply #6415 on: November 21, 2022, 10:45:54 AM »
Heads up that pension lump sums are dropping precipitously Jan 1 due to increases in IRS discount rates. Iím rolling over my old pension before year end to lock in the gain. Otherwise it drops from $334k to $252k. Yes rates could go back down in the future but I donít want to be at the whim of IRS discount rates.

If your SO is still working at the employer with the pension then maybe there isnít anything she can do unless she decides to retire.


Sent from my iPhone using Tapatalk
Iíll have to check it but Iím not sure she even gets the option of a lump sum- I think she may be limited to choosing a fixed period or not, and a joint-and-survivor payout or not.

The PV is merely something I've done to come up with a way of working it into the NW calculations.
When I met my sweetie she said she wanted to work until about seventy and/or saving $5mm. I'm hoping that she'll quit when we get to a combined $10mm, which at our current rate might happen in four years or so (versus 18 years if she works to 70) if I  include that chunk of change to help get the NV there faster.
« Last Edit: November 21, 2022, 02:46:01 PM by jeroly »

Dicey

  • Senior Mustachian
  • ********
  • Posts: 19627
  • Age: 64
  • Location: NorCal
Re: Race from $2M to $4M...and Beyond!
« Reply #6416 on: November 21, 2022, 11:00:29 AM »
Regarding crypto - I have been firmly in the anti-crypto camp ever since I first started reading about it over ten years ago. I lurk a bit on the Reddit FAT Fire group and I have seen a noticeable reduction in the number of crypto bros announcing their retirements :-)
Lol, I always feel the Crypto Bros are like lottery winners who lose it all. They don't necessarily have the money management skills needed to cope with a windfall.

Fomerly known as something

  • Handlebar Stache
  • *****
  • Posts: 1410
  • Location: CA
Re: Race from $2M to $4M...and Beyond!
« Reply #6417 on: November 21, 2022, 07:46:02 PM »
Regarding crypto - I have been firmly in the anti-crypto camp ever since I first started reading about it over ten years ago. I lurk a bit on the Reddit FAT Fire group and I have seen a noticeable reduction in the number of crypto bros announcing their retirements :-)
Lol, I always feel the Crypto Bros are like lottery winners who lose it all. They don't necessarily have the money management skills needed to cope with a windfall.

Well they tend to just roll it into more investments instead of taking profits off the table and walking away, just like at the casino.

My Crypto position has shrunk from $350 to about $135 the last I checked.

soccerluvof4

  • Walrus Stache
  • *******
  • Posts: 7088
  • Location: Artic Midwest
  • Retired at 50
    • My Journal
Re: Race from $2M to $4M...and Beyond!
« Reply #6418 on: November 24, 2022, 05:30:50 AM »
 I know a lot of people that have gone into Crypto and for their sake I hope it comes back but its never been for me.

After reading some of your updates I am down about 18% after yesterdays slight uptick and all I can do is rebalance etc.. I have lived this whole year so far on cash and plan on doing so next year unless we get a much bigger dip then I would add to the market.

Fomerly known as something

  • Handlebar Stache
  • *****
  • Posts: 1410
  • Location: CA
Re: Race from $2M to $4M...and Beyond!
« Reply #6419 on: November 24, 2022, 05:44:39 AM »
The market has come back close to when Iím likely to make another contribution to my DAF next year. 

The market this year took my brokerage fund basically down from over funded to just plain funded.  The last few months has brought it back into the slightly overfunded stage.

LightTripper

  • Handlebar Stache
  • *****
  • Posts: 1982
  • Location: London, UK
  • Rural Londoner. Lazy workaholic. Confused.
Re: Race from $2M to $4M...and Beyond!
« Reply #6420 on: November 24, 2022, 06:19:38 AM »
I've just updated my numbers and I'm up about 1% on this time last year (which means I'm actually significantly down given that I've still been earning and there has been significant inflation over the period).  HOWEVER, from that November to the previous one I was up 17%, and the previous 12 month period about 6% - so it's all just part of the natural volatility of how things evolve. 

I need to rebalance a bit - I suspect I am overweight cash and slightly overweight US at the moment - but otherwise no major concerns.  I'm just stepping into retirement now (or at least, what I consider to be retirement: I'll still be technically employed but at a very low salary and a formula that rewards me only for the work I do - so I'll feel no obligation to take on new work unless it is genuinely interesting or rewarding in some other way).

I'm only a few weeks into this new bit of life, and I'm not sure I've really "relaxed" yet as I'm keeping myself busy with many other things (including a massive backlog of lifemin): but so far it's feeling good!  And already I'm seeing the benefits of simple things like always being able to get enough sleep, being less distracted when I'm spending time with the kids, etc. etc.

arcturus

  • 5 O'Clock Shadow
  • *
  • Posts: 95
  • Age: 53
  • Location: Midwest
Re: Race from $2M to $4M...and Beyond!
« Reply #6421 on: November 24, 2022, 07:09:31 AM »
I've just updated my numbers and I'm up about 1% on this time last year (which means I'm actually significantly down given that I've still been earning and there has been significant inflation over the period).  HOWEVER, from that November to the previous one I was up 17%, and the previous 12 month period about 6% - so it's all just part of the natural volatility of how things evolve. 

I need to rebalance a bit - I suspect I am overweight cash and slightly overweight US at the moment - but otherwise no major concerns.  I'm just stepping into retirement now (or at least, what I consider to be retirement: I'll still be technically employed but at a very low salary and a formula that rewards me only for the work I do - so I'll feel no obligation to take on new work unless it is genuinely interesting or rewarding in some other way).

I'm only a few weeks into this new bit of life, and I'm not sure I've really "relaxed" yet as I'm keeping myself busy with many other things (including a massive backlog of lifemin): but so far it's feeling good!  And already I'm seeing the benefits of simple things like always being able to get enough sleep, being less distracted when I'm spending time with the kids, etc. etc.

Good for you!  I'm still a couple/few years away from this point, but its good to hear your early experiences, as the next chapter is very elusive to me.   I also enjoyed hearing about your transition to retirement approach....and I can't help but to be curious on how those who have pursued this approach -- which sounds like a transition to retirement with your current employer (maybe I'm wrong) -- have been able to mange that.  My greatest fear is pulling that lever and taking on all the downside of it (lower pay), but still having to keep up with the same expectations, because, after all, its still you!

As for my situation, 2022 has been a punch that landed squarely on the jaw!  Between the market movements, my portfolio allocation (heavy equities), and some extraordinary expenses -- college, health, etc. -- I'm down about 10% from end of 2021, inclusive of contributions I've been able to make in 2022.  I don't regularly / reliably track on a monthly basis, so can't do an accurate "year ago" view.   

Back to the earlier thread, I am thankful that I steered clear of crypto -- was actually looking at it ~12-18 months ago and concluded that I couldn't deal with the uncertainty of it and the seeming ambiguity of the underlying fundamental value driver of it.   That would have been the worst possible time to get in.

Hope all of you in the US have a great Thanksgiving weekend!  The job has been crazy over the past few months and so I am hoping for a chance to unplug from that and focus on things that really matter instead of things that don't matter much yet command a large portion of my time/life/attention!


LightTripper

  • Handlebar Stache
  • *****
  • Posts: 1982
  • Location: London, UK
  • Rural Londoner. Lazy workaholic. Confused.
Re: Race from $2M to $4M...and Beyond!
« Reply #6422 on: November 24, 2022, 07:22:22 AM »
Thanks @arcturus !  I do think it's really hard to imagine - you have to kind of just make a decision to make a change and then see how it fits I think, and be open to changing again if it's not working out (or if you think something else could work out better).

I'm really lucky that I work for a consulting firm where I generate my own work, and for the last few years I've been paid according to a formula (where basically I get a percentage of the revenues I bill personally plus a smaller percentage of what others bill on projects I've sourced).  So it's very scalable as long as I'm prepared to be fully flexible on when I work (i.e. even though for the last year I've been on a 24h/week contract, and paid a salary that reflects that, I may have a 60 hour week followed by several 0 hour weeks - although in general I've been pleased to find I've managed to keep things smoother than that, and my "down times" have largely coincided with school holidays).  Basically the formula gives a total compensation figure, and my salary then gets deducted from that, and whatever the balancing figure is gets paid out as a bonus at year end.  There is no possibility I get underpaid for my work (and my employer only loses out if my salary is higher than the total compensation amount at year end).

It works well in the sense that I know I will get paid for the work I do (although it's still up to me to say "no" to things or pass things on to colleagues - where the latter obviously often means passing on some of that sourcing credit too - which is fair enough if it's somebody who is going to take all responsibility for the project).  Anyway, I seem to have been fairly successful in saying "no" and reducing my hours so far, and plan to keep going next year (though with a substantially lower salary than this year, so I can really take on minimal work if I choose).  Staying employed means I continue to benefit from health, dental and travel insurance (although health is more "nice-to-have" than essential in the UK) and things like tax and professional liability insurance are all done though my employer which just makes life simple.

It's not really a reversibly flexible model (as once I've handed things over if those projects go well I'd expect that client to call my colleague next time, rather than me) - but that's fine given that I'm looking for a glide-path out.  It does mean if I change my mind I'd have to put considerable work into building up a new client base - but I really think it's very unlikely that I'll want to do that.

MaybeBabyMustache

  • Magnum Stache
  • ******
  • Posts: 4275
    • My Wild Ride to FI
Re: Race from $2M to $4M...and Beyond!
« Reply #6423 on: November 24, 2022, 08:31:44 AM »
We're down about 10% from our high in April. The two biggest factors: property value drop, & overall stock drop, including company compensation largely tied to stock price. The drop includes the ~$90k or so we added throughout the year, which hurts a little.

arcturus

  • 5 O'Clock Shadow
  • *
  • Posts: 95
  • Age: 53
  • Location: Midwest
Re: Race from $2M to $4M...and Beyond!
« Reply #6424 on: November 24, 2022, 08:53:04 AM »
Sounds like a great situation @LightTripper !  Glad you have had the discipline to say "no."   And its great that it can be a continued source of benefits and maybe a little supplemental income, but on your terms.

On real estate values, I don't seem to have been impacted by that so much -- whether that is just based on the fact that we in the midwest don't tend to see swings up or down or whether its because my zillow valuation has always seemed a bit low, I'm not sure.   

In any event I keep my personal residence (which is my ONLY real-estate exposure anyways) out of my calcs, so its a non-factor in my 10% down figure.   Sitting at slightly under $2.1 invested at the moment.

soccerluvof4

  • Walrus Stache
  • *******
  • Posts: 7088
  • Location: Artic Midwest
  • Retired at 50
    • My Journal
Re: Race from $2M to $4M...and Beyond!
« Reply #6425 on: Today at 04:05:51 AM »
Sounds like a great situation @LightTripper !  Glad you have had the discipline to say "no."   And its great that it can be a continued source of benefits and maybe a little supplemental income, but on your terms.

On real estate values, I don't seem to have been impacted by that so much -- whether that is just based on the fact that we in the midwest don't tend to see swings up or down or whether its because my zillow valuation has always seemed a bit low, I'm not sure.   

In any event I keep my personal residence (which is my ONLY real-estate exposure anyways) out of my calcs, so its a non-factor in my 10% down figure.   Sitting at slightly under $2.1 invested at the moment.



Like you I don't include my paid for home in my numbers. Also as well mine is still worth quite a bit more than I paid for it and being lake property in a desired area it doesn't drop if there's a drop anywhere near as much as regular real estate. There not building lakes and there is no lots on any of the ones near me so you need to spend a fortune on a tear down if you want to get on a decent lake.  But as I mentioned aside from that on a 60/40 portfolio as I have been fired for 8 years now I am down 18%. But was so far up was expecting it at some point and then some.