29 (now 40) - Long Way to Go, But Digging In

[2029FIREaway]

I continue to be way behind on steady updates, but I'm still invested in this journey and appreciate all the comments and support along the way. A fully tracked decade in the books, so let's close out 2024:

$487,000 Annual Combined Income

NET WORTH END 2014: $354,100
NET WORTH END 2015: $489,300
NET WORTH END 2016: $657,100
NET WORTH END 2017: $805,000
NET WORTH END 2018: $783,810
NET WORTH END 2019: $1,033,270
NET WORTH END 2020: $1,251,400
NET WORTH END 2021: $1,644,325
NET WORTH END 2022: $1,646,540
NET WORTH END 2023: $1,980,621
NET WORTH END 2024: $2,315,279

2014 Annual Expenses: $57,600
2015 Annual Expenses: $57,300
2016 Annual Expenses: $71,715
2017 Annual Expenses: $76,690
2018 Annual Expenses: $84,820
2019 Annual Expenses: $95,520
2020 Annual Expenses: $90,600
2021 Annual Expenses: $123,000
2022 Annual Expenses: $145,000
2023 Annual Expenses: $215,000
2024 Annual Expenses: $250,000

2014 Annual Savings: $71,850
2015 Annual Savings: $90,120
2016 Annual Savings: $81,560
2017 Annual Savings: $98,830
2018 Annual Savings: $121,710
2019 Annual Savings: $125,570
2020 Annual Savings: $161,900
2021 Annual Savings: $196,700
2022 Annual Savings: $170,400
2023 Annual Savings: $130,000
2024 Annual Savings: $134,250

2014 Annual Savings Rate: ~55%
2015 Annual Savings Rate: ~61%
2016 Annual Savings Rate: ~53%
2017 Annual Savings Rate: ~56%
2018 Annual Savings Rate: ~59%
2019 Annual Savings Rate: ~57%
2020 Annual Savings Rate: ~64%
2021 Annual Savings Rate: ~61%
2022 Annual Savings Rate: ~54%
2023 Annual Savings Rate: ~38%
2024 Annual Savings Rate: ~35%

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2024 Goals & Results

I would say we achieved both financial and personal goals this year - net worth growth outpaced our AGI, dividends could have covered nearly 20% of our spending and we fully maxed out our 401(k) and HSA accounts. We pivoted several years back to focusing on FI, rather than RE, given that both our careers pay well, have upward mobility, are gratifying and allow us to support our kids in every way possible (being present physically, emotionally and financially). Spending has gone way up since 2022, but barring unforeseen events, we have no plans to downshift. We had a tremendous experience traveling internationally this year, and we plan to repeat this for years to come.

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2025 Notes & Goals

Things are quite steady these days - knock on wood, they remain that way. Our careers are healthy, the kids are doing very well in school/after school and our travel plans throughout the year are locked and loaded. We'll continue to max out accounts and enjoy the time we have.

Financial goals for the year:

Annual Combined Income: $495,000
Annual Expenses: $242,000
Annual Savings: $141,000
Annual Savings Rate: 37%
Net Worth: $2,750,000

$78,000 401k (including Company Matches)
$11,340 House Principal Payoff
$47,000 Reinvested Dividends
$8,550 HSA_
$144,890 TOTAL

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Here's to wishing everyone a very prosperous and healthy 2025!

This is a brilliant update! You’ve tracked your numbers well. Importantly, you’re living well right now too. At age 40 you’re doing brilliant. We’re a few years older and a bit further ahead. But I reckon you could be done/FI by age 45!

 

[dobig]

Like many before me just found this thread and what an enjoyable thread it is. Love seeing the yearly updates and the shift from being singularly focused on savings to enjoying family and life. It almost reads like a novel. Congrats and please keep updating.

 

[street]

Great job!!! Hope to see more updates in future.

 

[Standard Staples]

MIDYEAR UPDATE:
We're feeling good, despite all the global uncertainty. Everything is generally on track, with a chance to overshoot several goals. Our big international trip is next week, and then it's off to another year/season of school and extracirriculars, followed by the holidays. Looking forward to it!

Financial goals for the year:

Annual Combined Income: $495,000 - Trending Ahead
Annual Expenses: $242,000 - Slightly Off Track
Annual Savings: $141,000 - Trending Ahead
Annual Savings Rate: 37% - On Track
Net Worth: $2,750,000 - On Track, but Need H2 to Match H1 Performance

$78,000 401k (including Company Matches) - Trending Ahead
$11,340 House Principal Payoff - On Track
$47,000 Reinvested Dividends - Trending Ahead
$8,550 HSA_- On Track
$144,890 TOTAL - Trending Ahead

 

[Exit 2024]

Great update, Staples!
I see you are maxing out 401ks and HSAs, any reason you do not do back door Roth?

 

[SJhawkins]

Just read your complete journey, thanks for updates and time commitment to make them, well done.

 

[Standard Staples]

Great update, Staples!
I see you are maxing out 401ks and HSAs, any reason you do not do back door Roth?

I'll admit I probably should, but I think I'm stuck in the mindset of my taxes being higher now than they'll be later down the road - potentially a dangerous gamble.

What has been your approach to that one?

 

[Standard Staples]

Just read your complete journey, thanks for updates and time commitment to make them, well done.

Thanks for reading and commenting - it's always a little strange, yet fulfilling, to look back on the early days compared to now.

 

[pacergal]

Great update. Congratulations on a well made plan.

 

[Exit 2024]

I'll admit I probably should, but I think I'm stuck in the mindset of my taxes being higher now than they'll be later down the road - potentially a dangerous gamble.

What has been your approach to that one?

I understand exactly what you are saying, I also cannot make myself to change contributions from traditional to Roth 401k, I am here with you.

But Roth IRA is an addition to that, after tax money will got either to Roth though back door or to taxable. Roth sounds way better. So we do all of that, max pretax 401k, contribute max to Roth and max to HSAs. Whatever left goes to taxable brokerage, of cause if income allows.