Share your FIRE Milestones - 2013- 2020

[scrabbler1]

Thanks for sharing. I never thought about it this way, so I checked.

My NW exceeded lifetime W2 earnings in late 2011 which I never knew or thought about. Thanks to: time, compound interest, investment real estate & LBYM.

I never thought about this, either, so I checked my own.

Counting only investments, my NW exceeded my lifetime W-2 earnings (frozen in late 2008 when I ERed) for the first time back in early 2011. Then it dropped below later in 2011 before exceeding it again in early 2012. If I include the value of my co-op apartment, then the comparison gets a little muddy because my investment income and portfolio growth in my part-time work years (2001-2008) was about the same as my part-time wage earnings up to that point. But if I look at only the same frozen wage earnings in ER, then I first exceeded them in early 2010 and have never gone below it.

 

[aida2003]

I never thought about this, either, so I checked my own.

Counting only investments, my NW exceeded my lifetime W-2 earnings (frozen in late 2008 when I ERed) for the first time back in early 2011. Then it dropped below later in 2011 before exceeding it again in early 2012. If I include the value of my co-op apartment, then the comparison gets a little muddy because my investment income and portfolio growth in my part-time work years (2001-2008) was about the same as my part-time wage earnings up to that point. But if I look at only the same frozen wage earnings in ER, then I first exceeded them in early 2010 and have never gone below it.

Can someone shed some light how to compute your lifetime W2 earnings for a married couple? Not sure I understand this concept yet.

 

[TOOLMAN]

Can someone shed some light how to compute your lifetime W2 earnings for a married couple? Not sure I understand this concept yet.

Download your current report from SS and total all years W2 amounts.

This metric doesn't adjust for inflation but is a reasonable check of LBYM's or maybe you are just VERY OLD.

 

[Finance Dave]

Paid off our house last November (I haven't logged on much since then LOL). Our target is $1.9M and we're only about $100k short. Still wor*ing, but winding down (more on that in a different thread).

 

[BrianB]

Momentarily hit $1m in liquid & investment assets on 5/8. Fell back again today, though. Funny but I've been watching this goal approach during the market run-up, and it was less exciting than expected - kind of anti-climactic.

 

[inky]

Hit $1M in net worth two days ago. I hadn't expected to hit that milestone before 2014. Dropped below again yesterday but should be above the line again today.

I created a tab in my financial calculation spreadsheet called Milestones where I can record dates together with a snapshot of my accounts the day I reach significant milestones. Gives me a sense of satisfaction to look over the data.

Next goal: $1M in investments only.

 

[Live And Learn]

Inky - I like the "milestones" tab idea ! That would add alot of incentive for many.

 

[martyb]

How does one count pensions when figuring one's net worth? Or is that not something that's included?

 

[steelyman]

How does one count pensions when figuring one's net worth? Or is that not something that's included?

I don't include, as I don't know how long it will last. Just like my salary when working.

 

[martyb]

Most of my/our retirement will be my two pensions, so if I don't figure those I don't really have a way to calculate. Our savings will only account for 15% - 18% of our monthly/yearly net income. The rest is from the pensions. I'm not including wife's SS which is still 10 yrs down the road.

 

[inky]

Most of my/our retirement will be my two pensions, so if I don't figure those I don't really have a way to calculate. Our savings will only account for 15% - 18% of our monthly/yearly net income. The rest is from the pensions. I'm not including wife's SS which is still 10 yrs down the road.

It sounds like it makes sense for you to include the cash value of your pension in your net worth, then.

Here is one description of how to calculate it:

How to Calculate the Cash Value of a Pension | eHow

The Bogleheads site also has a number of threads on this topic.

 

[steelyman]

Most of my/our retirement will be my two pensions, so if I don't figure those I don't really have a way to calculate. Our savings will only account for 15% - 18% of our monthly/yearly net income. The rest is from the pensions. I'm not including wife's SS which is still 10 yrs down the road.

I am not an expert (that should probably be the default signature here). I think you may be talking about covering your expenses, not so much net worth.

Net worth is not as important in my mind - it's more a cocktail party "mine's bigger than.yours" thing.

 

[Felix Mulier]

Made some $, read a book

First, we passed our high water mark last month!

Second, I finished reading The Four Pillars of Investing by William Bernstein. Excellent book that I wish I'd read when it first came out. So to all you young folks out there , take my advice and [-]get [/-] read this book!

P.S. I was ER frugal and bought a used copy online.

 

[bob boag]

OK I retired on July 1 2011. Immediately rolled my $605K 401K into a Fidelity IRA with 50% short-term bond fund & 50% stock funds - no DCA for the kid (lump sum pension went into Vanguard IRA).

Whereupon we had the biggest dip since 2008 and I lost $47K in Sept and Oct 2011. And in the interim I have withdrawn $67K for living expenses via 72T.

Today my Fidelity IRA hit $605.5K

Eeeeeeeeeeeeeeeeeeeeew!!!!
(Meant to be read backwards)

 

[Retire44]

$2,403,000.00 First time surpassing $2.4m.

Portfolio is double the value it was 32 months ago, combination of our contributions and market gains. Yep, I would be okay with it doing that over the next 32 months.

 

[traineeinvestor]

I announced my retirement to all the partners in my office yesterday.

Once we got past the "what will you do" questions, most of them said they were happy for me.

 

[Letj]

$2,403,000.00 First time surpassing $2.4m.

Portfolio is double the value it was 32 months ago, combination of our contributions and market gains. Yep, I would be okay with it doing that over the next 32 months.

Have you truly doubled the value or are you still recovering your pre-crash value?

 

[Retire44]

Have you truly doubled the value or are you still recovering your pre-crash value?

Year-End Portfolio Values

12-31-2007 1,017,070
12-31-2008 713,063
12-31-2009 1,052,126
Today $2,400,000

 

[Letj]

Impressive indeed! I am 85% in stock and did not see that kind of returns. Thanks for sharing; very inspiring.

 

[Retire44]

Impressive indeed! I am 85% in stock and did not see that kind of returns. Thanks for sharing; very inspiring.

Definitely not all returns as we added $100k, $177k and $180k in new cash to our investments in 2010, 2011, 2012.

 

[daylatedollarshort]

I announced my retirement to all the partners in my office yesterday..

Congrats!

 

[Spanky]

Definitely not all returns as we added $100k, $177k and $180k in new cash to our investments in 2010, 2011, 2012.

Impressive, indeed!

 

[almost there]

FIRE Milestones:

All through the years it was having my home paid off and a million in retirement accounts / assets. Now what? Hit it over a year ago. Thought I would feel good about it, but am still not all that comfortable. 51, with a possible early ret. package in the near future (100k & 85% med.)

Not sure milestones really mean all that much.......

 

[Huston55]

FIRE Milestones:

All through the years it was having my home paid off and a million in retirement accounts / assets. Now what? Hit it over a year ago. Thought I would feel good about it, but am still not all that comfortable. 51, with a possible early ret. package in the near future (100k & 85% med.)

Not sure milestones really mean all that much.......

AT-

If I'm reading this correctly: $100k/yr pension + $1M portfolio =~ $135k/yr for ever (and ~$120k/yr if 1/3 of your assets are in your house), and you've got health care covered, then it seems to me you SHOULD feel good...REAL good... good.

There are a lot of folks who'd love to be as "...still not all that comfortable" as you are. I don't know what your expenses will be but, I'd expect you can live well on $120-$135k/yr. So, give yourself a break, celebrate a little.

 

[almost there]

Ahhhhh........ no. (I wish)

The $100k is the potential early out package..........
(Taxed at about 40%)

Looking to generate 50k / yr.

I net $1500 from a rental, with $850k in 401 & Roth.
Owe 60k on the rental, its value today is 350k.
home value about 700k not included.