[Cody]

Anyone else feel FI is much harder after 2020?
I originally planned that I could retire at $1,000,000 before 2020. But then the price of things went crazy.

Now I am just shy of $2,000,000 and still don’t feel like I have enough.

Anyone ‘retire’ before 2020 and regret it now? Or am I just stuck in the “it’s never enough” phase?

I actually like my job again and with Starlink, I have been camping a bunch and just working from the campsite. I don’t feel like I need to retire anymore. But the option still intrigues me.

rough numbers $2M real estate, 500k stock, 600k debt

[Denny]

No, with how much the market has gone up since then I feel it is easier.

[Cris]

It’s all about lifestyle choices. I retired in April 2023 with a fraction of what you have. I have been traveling the world full time since 2019 though, and I strategically use geoarbitrage throughout the year.

That allows me to splurge and do epic things throughout the year, guilt free.

I love the financial freedom of 0 debt, and 0 real estate. All of my wealth is in the market, earning more than what I spend in a year, so it keeps growing too. Retirement is a blessing!!

[Christine]

I know others will disagree. It yes. I do feel it’s harder. Even just house repairs or new appliances are astoundingly more expensive.

It makes me fear another black swan event before I retire and has me doubling my FI number.

Putting me roughly at the standard retirement age.

If I had a partner or second income stream I might feel different, but going solo into the world I want security, after 2020, the world just it’s not the same

[Christa]

Not really. As a single mom that started this journey somewhat late, and having just crossed the 1 million net worth mark that I cannot even fathom, I feel very much more free.

I have at last (only at the age of 53) become debt free with mortgage exception. But I have always been the most happy when “living simply”.

Still travel, still live very comfortably. But this is the year I feel in my bones to cut the noise, clutter, consumption more and be mindful of my needs (nature, self-reflection, friendships, and family).

Just yesterday figured I am basically Coast FI and now to see what that means for me!

I have a demanding job in intensive healthcare that I have loved but decreasing salary (CRAZY!…nearly going 1 tax bracket down) the last 3 years and they (large corporation) keep taking things away despite 31 years of experience.

I am seeing my worth. So…I feel this is actually a year where there is potentially much change. And the possibilities seem endless!

[Beki]

YES.
I was in such a good track and then 2020 changed everything.

[Frank]

We are spending about the same amount of money in retirement as we were in 2020.

Your problem is that you are illiquid. You cannot eat shingles, so are very poorly positioned for any retirement.

That is not a problem with the numbers, but on your decision-making in choices of investments, which really makes no sense if early retirement was your goal.

[Gina]

It all depends on your expenses! Some can live on 40k a year and others needs 100-150k. Personally we retired 4 yrs ago with 1.4 mil liquid ans 2.2 mil with our paid for houses.

We travel 6 months a year, mostly in our Airstream. But currently we are in New Zealand for 6 weeks in a rented camper.

Our net worth has stayed the same, since we aren’t old enough for Soc Sec yet. We have been living off of the interest earned.

Personally, being debt free is shear freedom. We have thought about selling our house and traveling full time, but I just don’t like the thought of not being able to go home if one if us had a serious medical issue.

[Ron]

No. I’ve been managing LeanFI early retirement since 2014. Inflation only impacts me marginally and is manageable for me. My liquid networth dipped substantially late 2021-end 2022, but recovered to new highs recently.

In other words I am not drawing down in retirement, but growing my net worth after all spending.

I bean collecting Social Security recentally and that allows net positive cashflow to invest while in retirement.

[Hin]

There always going to something happening, some crisis, some war will break out somewhere, some disaster will hit, the market is going to go up and down.

If you are waiting for peace on earth and perfect security before you retire, you are never going to retire.

[Kent]

The last 5 years have been great for me.
But I suspect that FI is going to get a lot harder when stock and real estate valuations eventually come crashing back to earth.

[Joe]

Total inflation from 2020 to present was 24%, which was approx 4.5% per year and that annual average is obviously skewed way high because of the pop in inflation in 2023 and 2024.

The average annual inflation rate since 1950 to present was 3.5%, so annual inflation since COVID hasn’t actually been materially higher than what is normal.

The fed has tackled this pretty impressively (relative to past bouts of inflation which persisted significantly longer) and inflation is currently at 2.9% with a fed target at 2%

If you doubled your fi number and inflation has only come up 24% since 2020, then either your original fi number was too low (which I think is likely…

Living off $40k per the 4% rule would be very tough for most, especially with the kind of debt you are carrying), or you should be fine.

There is no amount of money that can safeguard you from every imaginable event. Even a multi billionaire who can purchase a private island and hunker down with plenty of employees to meet their every possible need is screwed in the event of a nuclear war.

I know that COVID was so recent that black swan events are never far from anyone’s mind, but you’ll never have enough to combat fear.

So, don’t let fear be your guide and be mindful of the fact that fear is the main thing that media and politicians are selling right now. Don’t fall for their fear mongering.

Do the research, do the math, and work toward a FI number that works for you in your specific circumstances.

[Silwana]

No …just FIRed after some great moves during Covid…. you just don’t have enough.

You need 25 x your expenses in investments…real estate does nothing unless its income producing.

[Jeremy]

What are your yearly expenses? Also, how much are you collecting in rent from your properties?

[Author]

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