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!
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
6573 (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?