Retirement

April 2024 Fire Update – Retired by 40

Hello everyone! Wow, it’s May. The months go by so fast. That’s what happens when life is good. April was a busy month for me. I hit the gym, had some lunch, worked on the blog, took the RB40Jr to all my activities, and enjoyed learning how to make ceramics. Wow! This is the key to a perfect retirement. You have to be a little busy. Well, I had plenty of time to relax too. I read several books, watched a bunch of movies, and went out with Mrs. RB40. It was a good balance.

On the personal finance side, we had a good month. Due to the stock market pullback, our net worth decreased slightly. The stock market rallied strongly in the first quarter of 2024, so the pullback is healthy. That’s what I tell myself anyway. On the other hand, our cash flow last month was very good. One of our real estate crowdfunding projects ended successfully and we got a big payout. Additional passive income brought our FI ratio to 138%. This is great because we had negative cash flow for the first several months. Wow!

Well, I’ll share how I’m doing with my New Year’s goals. Then, I’ll go over my net worth and cash flow. let’s go!

Objectives for 2024

Here is my 2024 goals spreadsheet. It works well. If you can’t keep your New Year’s goals, try this. It is important to review the spreadsheet monthly to track your progress. That way, you can see which goals need extra attention and work on them. Time is running out!

Financial goals

FI Ratio > 100%

The FI ratio is passive income divided by expenses. If you can generate enough passive income to cover your expenses, you’re set. For 2024, I reduced that target to 100%. After 4 months, our FI ratio is 138%. Yes! I think we’ll be fine this year.

*FI ratio = Passive Income / Expenses

The 3% Rule

Everyone is familiar with the 4% retirement withdrawal rule, right? Basically, you should have a successful retirement if you withdraw less than 4% of your investable assets annually. Let’s see if we can spend below 3% in 2024. This is a good way to assess your retirement readiness. We will add everything at the end of the year. It’s looking good so far after 4 months.

Figure out the net worth and expect +10%

I have been tracking my net worth since 2006. Great to see progress. This year, I want to see a 10% increase. At this point, the gain is entirely dependent on the stock market and there is not much I can do to influence this objective. I’ll just track it down and cross my fingers.

Our net worth grew by 4% year-to-date. We will have to wait and see how the stock market performs.

Health goals

Exercise 3 times a week.

Now that I’m 50, health is 1 job. I need to exercise regularly so that I can stay healthy for a long time. I joined a gym and plan to exercise at least 3 times a week. April was a good month. I worked out 15 times and I’m on track. However, my elbows are hurting. Getting fit after 50 is hard!

Health check

It is equally important to see doctors. At this age, we have more maintenance and preventative care to deal with. This is my list for 2024.

  • colonoscopy Done!
  • Annual physical.
  • Dental examination.
  • Glaucoma screening. I have a family history.
  • Immunization. Tdap booster done! Flu and covid vaccines later.

Recreational purposes

International travel

Mrs RB40 turns 50 this year and wants to go on a fun memorable trip. We plan to go to Japan for 3 weeks in the summer. I bought the flight tickets and booked the hotel in advance. I can’t wait for this trip.

Happiness level > 8

I’m a naturally happy guy so it should be easy. Life has been great these past few years.

April was a good month. I was busy and didn’t have any major problems. Ceramics class is a lot of fun. I’m glad I signed up for it.

Help RB40Jr start a YouTube channel.

RB40Jr wants to start a YouTube channel. I will help him run it over the summer. It doesn’t look good. RB40Jr lost interest in starting the channel. Maybe we can rekindle his interest this summer. Then he will have more free time.

Net worth (+4%)

I have been tracking my net worth since 2006. It is very encouraging to see the progress we have made. The power of the mixture is incredible. The first quarter of 2024 has been fantastic. The stock market rose significantly. However, it retreated slightly in April. That’s healthy because tech stocks were getting so hot. I’m optimistic for the rest of the year, though. The economy is still doing well. The stock market should benefit when the Fed cuts interest rates later.

*** Important *** My best advice is to stay the course. Don’t stop investing.. You have to keep investing whether the stock market is going up or down. You may think stocks are overpriced, but it will look cheap in 10 years. Keep investing and someday you will achieve financial freedom. Don’t try to time the market.

This is our net worth chart from Empower. (Personal Capital is now Empower.) Sign up for a free account at Empower to help manage your net worth and investment accounts. I log in to check my net worth and use their free tools. This is a great site for DIY investors.

April 2024 Fire Cash Flow

This FIRE cash flow chart includes my online income, side gigs, and taxable passive income. Mrs RB40 has no income here as she will retire soon.

April was a great month. We had no major expenses and our passive income was higher than usual. Wow, what a relief. We had the first several months with negative cash flow. This month has erased all that and moved us forward.

April 2024 Fire Income: $16,270

Our FIRE revenue in April was outstanding. The real estate crowdfunding payout gave us a huge boost. My online income was fine, but that was due to a one-time cashout event. Blogging income is still trending downward. This is part of the transition. In 5 years, I will stop working completely and start reducing my investments.

  • Real Estate Crowdfunding: $13,253. We didn’t have any payments from real estate crowdfunding last month. You can read more on the RE Crowdfunding Passive Income page.
  • Dividend income: $947 good month.
  • Rental Income: $465. We had a phenomenal month at the rental.
  • Blog Income: $899. Blog income continues to decline.
  • Odd Jobs: $676. I spent about 4-5 hours per week making deliveries. These days, I focus on lunch catering orders.
  • interest: $29.

Cost: $3,613

This year, I plan to spend about $65,000. This was the amount we spent last year. However, we also plan to update the kitchen this year. I should probably increase my budget to accommodate this. We’ll see how it goes.

Here are some details.

  • Housing$1,382. This includes mortgage, utilities, furniture, repairs and maintenance. Our living expenses are quite low because we live in a duplex. We split many costs with our tenant.
  • transporting: $377. Gas and insurance.
  • Entertainment: $401. I spent $360 to attend an intro to ceramics class. It’s fun to learn something new. I am enjoying it immensely. Check out my first few pieces below.
  • Groceries: $563.
  • Health: $222. Health-related costs are increasing as we age.
  • child: $138. Unfortunately, as the RB40Jr ages, so do the baby-related costs. We are paying for his trip to the orthodontist and an international school.
  • Parents: $250. My brother and I send $250/month to my dad to help with expenses. He lives in Thailand so his cost of living is much lower than in the US.

Saving: +$12,657

End of April 2024

Okay, let’s wrap it up. April was a great month for us. Our value dropped a bit, but it wasn’t a big deal. The stock market goes up and down. This does not change anything if you are investing for the long term. I am optimistic for the rest of 2024.

This is for April. Did you have a good month?

Passive income is the key to early retirement. These days, I am investing in commercial properties. Crowd Street. They have many projects across the US. Go check them out!

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Joe started. Retire by 40 2010 to find out how to retire early. After 16 years of investing and saving, he achieved financial independence and retired at the age of 38.

Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects all over the US so check them out!

Joe also highly recommends Personal Capital for DIY investors. They have many useful tools that will help you reach financial independence.


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