How FI am I now?

When on the journey to FI, it is always interesting to know if there is progress, standstill or regression. Tracking the status is a very good way to get a view on the trend. Hence, I put the amberindex back in the spotlight.

For a long time, I have not posted about my progress on the FI journey. The last post I made on this dates back from the end of 2017. When I go back into my archives, I even find data that shows that I was at 45pct FI in june 2018. AWSOME…?!?

Where are we today on the FI journey?

After a review of the 2019 expenses, I now have a new baseline for my expenses and thus a new target FI number.

In my current calculations, I use 3,5pct safe withdrawl rate. Somehow, this feels better than the 4pct rule. I think this might change over time, Especially withe the concept of Barrista FI that I read about.

Let’s cut the crap and throw out the new number!

11,39% FI

I am now 11,39% FI!

I do not feel bad anymore on the drop from 45% to 11pct. I am over that. I am adjusted to the new reality.

I also have a new view on FI and the journey to FI. That can be a fat FI journey as well. More on that later.

That 11,39pct is now my new baseline. I started logging all data again so that I can adjust going forward would assumptions change. Here is what I do now

  • Assume a 3,5 pct Safe Withdrawl Rate. Maybe 4 is better or 3? I do not know.
  • I do not count my emergency fund and holiday money in here. Holiday money seems a no brainer as it will be spent on holiday. Emergency fund is debatable
  • I keep legal pensions that I can only acces at 65 73 (or whatever number it will be by then) out of scope. For an early retirement, they are not accessible.
  • The net value of my house is not in here. It is not a money generating asset. Selling it and renting/living elsewhere creates a new situation that I do not want to thinker about now. I can see then what it means in terms of numbers.

How FI are you?


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