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Archive for May, 2021

May 2021 net worth update

May 29th, 2021 at 08:24 pm

I started trying a retirement calculator, realized I needed our current investment numbers which I hadn't run in a few months, and decided to do a full net worth update while I was at it...

NT's UK pensions:
AV: 22,397 pounds ($27,996)
SW: 27,225 pounds ($34,031)
FL: 6,462 pounds ($8,078)
NT's trad. IRA: $110,382
NT's Roth IRA: $64,842
AS's trad. IRA: $27,759
AS's Roth IRA: $93,245
AS's SEP IRA: $71,038
CJ's 401(k): $224,575
CJ's Roth IRA: $70,741
NT's flat: $212,500 (200,000 pounds value x1.25 -15%)
CJ/NT/AS house: $592,200 ($630,000 value -6%)
TOTAL ASSETS: $1,537,387

US Mortgage $368,556
Loan from friends (duplex) $9,000
UK Mortgage 1 $26,005
UK Mortgage 2 $5,483
UK Mortgage 3 $5,773
TOTAL DEBT $414,817

Current Estimated Net Worth: $1,122,570

January 2021 estimate: $1,039,463

Change in net worth: +$83,107

Summary: It's kind of fun skipping a few months of calculations; much more dramatic drops in debt and increases in net worth! We averaged about $20K of gains in net worth per month since January.

Notes on the numbers above: House value estimates are usually approximate. UK pension values updated about once a year. UK asset values and debt amounts are calculated figuring $1.25 for every British pound.

May 2021 retirement goal update

May 29th, 2021 at 07:55 pm

Had to change the retirement goal due to a raise I got last month! Old goal was $814,292 by March 2024.

New goal: $820,892 by March 2024

Current retirement balance: $732,687

November 2020 balance: $632,504

Progress since last update: $100,183

Still needed: $88,205

This interim goal is based on getting my and NT's retirement to 4x my current and his last full-time salary (currently $84,150 and $64,118) by the time we turn 50 and AS's retirement values to 3x her highest annual income ($75,940 in 2018) by the time she turns 45.
$84,150 x 4 = $336,600
$64,118 x 4 = $256,472
$75,940 x 3 = $227,820

It will shift anytime our salary/annual income changes. (The only exception is I won't lower if there's a lower-income year.)

There are 34 months to go before March 2024, so that means we need to gain $2594 per month on average to meet our goal. (Seeing as how we contribute a minimum of $2K per month and average out to more than $2700, that shouldn't be a problem!)

The ultimate goal we're working toward is 8x our annual income by the time we retire at 65.

Tried the Coast FIRE calculator (edited)

May 29th, 2021 at 07:54 pm

I usually get confused and overwhelmed when I try using retirement calculators. That's why I use the 8x rule of thumb as my goalposts for our retirement. But Firefly's post about Coast FIRE made me curious to try that calculator. (

I ran the numbers once, and it said at our current pace we'd reach Coast FIRE in 11 years! That would be incredible!

But then I realized what they meant by "net worth" was total invested. My net worth calculations count the value of our home, so I had to redo it. But, I also realized that initially I had $1500 listed for housing because even after we pay off the mortgage we'll have property taxes and insurance. I forgot that we do intend to still have rental properties, so the money from those should at least offset our housing expenses. Also, I estimated we put aside $2,500 but realized it's closer to $2,700 (conservatively). So I lowered my "net worth," raised retirement contributions, removed the line for housing expenses and tried again.

Here's my attempt at a retirement budget. (Let me know if you see any glaring omissions here.) Keep in mind this is for three adults.

Ideal budget Monthly
Housing $0
Healthcare $1,500
Groceries $1,000
Fun $1,500
Travel $1,000
Utilities $500
Giving $500
Home improvement $500
Gifts $250
Transportation $250
Total monthly $7,000
Annual $84,000

I'm in between my spouses' age, so I used my age but our combined retirement investments.

Current age: 47

Retirement age: 65

Annual spending in retirement: $84,000

Current net worth (retirement balance): $732,687

Monthly contribution: $2,700 (varies, but this is a conservative approximate average)

Investment growth rate: 7%

Inflation rate: 3%

Withdrawal rate: 4%

Coast FIRE number at current age: $1,036,619

Result: You're 12 years from Coast FIRE!

Unbelievable. I only seem to have added one year in my new calculation. Is this telling me at this rate I'll be done saving for retirement by 59 and be able to retire at 65? If so that's amazing, because if you'd asked me when I'd have enough saved I'd've said "never." I'm sure I'm doing something wrong in the above calculations. Can you poke holes in this scenario?