Semi-Annual Report

[REattempt]

Thought it might be an interesting exercise to look at my FIRE results on a semi-annual basis...almost like a Wednesday weigh-in..

I've normalized the portfolio and expenses to a $1MM Portfolio basis. The WR is then correct also...changing the names to protect the innocent (I loved Dragnet).

First semi-annual report (3/1/2012):
Starting Portfolio: $1,000,000
Current Portfolio : $1,023,430

Category	Actual	Budget	Over/(Under)
Annual Exp.	$5,161	$5,161	0
Home Exp.	$ 582	$1,003	$(421)
Non-Discretionary	$2,850	$2,979	$(129)
Discretionary	$4,131	$5,538	$(1,407)
Total			$(1,958)

I built my budget based on the last 3 years of expenses before FIREing. Here is what I learned in the first 6 months:

1. Home Expenses have been lower because Gas/Electric have been below my budget. Not due to usage, but lower rates.
2. Non-Discretionary Expenses have been lower, but only in the "household" category...I seem to buy less detergent, light bulbs, etc. than the last three years. I find more bargains, use alternatives, conserve more now that I have the time.
3. Discretionary Expenses are lower based on two items:
   1. I buy less gas for the car. I have spent only 2/3 of the budgeted amount; I drive less.
   2. I spend less cash than in the last 3 years. I think all my cash went to buying stuff/entertainment/eating out when I was working. Now, I don't need to and I can better track what I do spend because I have more time. As a result, Food (Groceries and Dining) is 10-15% higher than I budgeted.

Hope this is interesting or helps those that are contemplating ER...

 

[obgyn65]

Thank you for sharing. Congratulations, it seems you will be able to keep your WR < 4%.

 

[Aiming_4_55]

Good deal REattempt.

I've noticed grocery prices going up in general.

It's nice you are spending less than budgeted and the asset balance growing, but you have to spend spend spend to help the country

 

[REattempt]

1st year results....

Well, August 31st marks one year into retirement. Here are the first year results:

I've normalized my portfolio and expenses to a $1MM Starting Portfolio basis.

Starting Portfolio Value: $1,000,000
1 Year Portfolio Value: $1,008,891

	Actual	Budget	Over/(Under)
Annual Expenses	$ 10,444	$ 10,277	$ 168
Home Expenses	$ 996	$ 2,006	$ (1,010)
Non-Discretionary	$ 5,788	$ 5,938	$ (150)
Discretionary	$ 11,613	$ 11,032	$ 582
1 year totals	$ 28,842	$ 29,252	$ (410)
Withdrawal Rate:	2.9%

I built my budget based on the last 3 years of expenses before FIREing. Here is what I learned in the first year:
1. Home Expenses have been lower because Gas/Electric have been below my budget. Not due to usage, but lower rates.
2. Non-Discretionary Expenses have been lower, but only in the "household" and "Medical" categories...I find more bargains, use alternatives, conserve more now that I have the time...and fewer visits to the Doctor.



3. Discretionary Expenses are lower based on two items:

1. I buy less gas for the car. I drive less.
2. I spend less cash than in the last 3 years. I think all my cash went to buying stuff/entertainment/eating out when I was working. Now, I can better track what I do spend because I have more time. Interestingly, Food (Groceries and Dining) is 10-15% higher than I budgeted. Note, my discretionary category also includes big ticket expense of $1700 (normalized) for a new bike and iPad.

Net Net is that 100% of pre-retirement expenses based on last 3 year history provided a great foundation for the budget; I can control enough to manage against it and handle some big ticket items.

Hope this is interesting or helps those that are contemplating ER...

 

[Live And Learn]

Thanks for posting the semi-annual report. With a 2.9% withdrawal rate you're doing great. congratulations !!

 

[obgyn65]

Congratulations, REattempt - it seems you are going great. You might wish to change your screen name now. It's no longer an attempt, it's a success.

 

[David1961]

REattempt:

Thanks for posting and good job. I like the idea of your report. I'll have my first semi-annual report in about 6 months.