Monthly Status: August 2017
Drum roll please…
Ladies and gentlemen. Boys and Girls. Here it is! The long awaited, highly anticipated, the first of many….monthly status check-ins! (And the crowd goes wild!) This is where we see how we line up against the plan we have laid out and how we are going to know if and when it’s time to pull the trigger and take that victory lap around the world. I’m sure excited though it seems FI Girl might be cringing a little.
I used to have a pretty sophisticated Excel workbook for all this, but after putting all of our info in Mint, I started to realize that the values it produced, were very similar to my spreadsheets.
No need for fancy spreadsheets or pricey applications here.
So let’s talk numbers shall we? As stated before our plan is to retire with about $2.2 million in assets. $600K of which would come from the sale of our house. That leaves each of us with $800K that we would need to contribute to our retirement nest egg before we could finally take that victory lap in confidence. FI Girl has about $10K worth of student loans to finish off so her target is $810K. (Sorry FI Girl)
FI Girl and I made a deal that if we were to quit voluntarily from work then we wouldn’t quit until the other person was ready and able. So even if I meet my $800K goal before she hits her $810K goal, I plan to keep working until she makes her number. You will also notice that we have kept our individual accounts separate and have one combined account for shared expenses. It’s the way we decided to do things; doesn’t mean you have to be the same. Do what works for you.
Let’s check Mint to see our current status and see when we’re projected to meet our target:
Looking at this simple view tells us that in order to retire in 18-19 months from now we will each need to contribute $7,300 per month towards our target number. Most of this will come from our bi-weekly paychecks. In addition to this, we can add in any quarterly dividends we receive and growing investment principal.
In the case of this past month, we actually lost some money on our investments so we didn’t make our targets. I bet you thought we finally broke down and went on some crazy lavish spending spree but unfortunately that’s not the case. We got two paychecks that offset more than the loss on our investments. Apparently there was some geo-political instability (North Korea) and a hurricane in Texas that freaked the markets out a bit.
We recognize that there will be months that we have a surplus and other months where we will have a loss. The key is that it all averages out to $7,300 each per month over the 18-19 months we have let to go.
So why are we not completely freaked out about our less than stellar month?
We are buy and hold investors. If our assets were cut in half tomorrow we would have the willpower to not sell. In fact since dividend yield percentages would go up, we would be more likely to revise our $800K / $810K goals DOWN to reflect the new environment.
So we’ve looked at the numbers and our forecast given the target we have both set. Something else we like to keep our eyes on is our theoretical income if we left today. As of this moment here’s what we have to work with:
- $600K (House)+ $596K (FI Girl Savings)+ $647K (FI Guy Savings) = $1.843 Million in our back pocket right now
- $1.843 Million x .025 (dividend yield target) = $46,075 Projected annual income
- $46,075 / 365 days = $126 per day to live off of
Wow. Those numbers look pretty good but our goal is to have $150 per day to live off of during our world tour victory lap(s). So we are essentially working the next 18 or so months to allow ourselves an extra $25 per day to do fun stuff or maybe not have to book with the absolute cheapest airbnb available. (Use our link to get $40 off your first trip!)
Can’t wait to see what next month brings…