Retirement

May 2024 Fire Update – Retired by 40

Hello everyone! Wow, it’s almost summer. The months go by quickly. That’s what happens when life is good. May was a busy month for me. I hit the gym, had some lunch, worked on the blog, took the RB40Jr to all his activities, and enjoyed making ceramic bowls. Wow! This is the key to a perfect retirement. You should keep busy and get out of the house regularly.

On the personal finance side, we had a good month. Our net worth is near an all-time high. The stock market had a good run in May. Also, our cash flow was very good. Oregon had a revenue surplus last year and returned some money to taxpayers. “Cooker” gave our passive income a nice boost. We spent more than usual because I had a big car repair bill. That was about it, though. Other expenses were fine.

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 ready to retire. For 2024, I reduced that target to 100%. We are getting older and I think we can spend a little more. After 5 months, our FI ratio is 123%. This is very good.

*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 looks good so far.

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 8% year-to-date. I’m optimistic, but you never know what’s going to happen next.

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. May was not a good month. I stopped exercising because my elbows and knees hurt. 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. Done!
  • 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.

May was a great month. I had so much fun with my ceramics class. The weather improved. Life was good. It wasn’t perfect, though. We had a couple of problems at home. One night, a random guy came to our door and ripped off our doorbell camera. What a shock! Also, someone messed up a small section of our new fence. Mrs RB40 thinks she was hit by a car. I’m tired of living in the city. There are a lot of jackals in our area.

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 (+8%)

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 stock market performed well in May. Our net worth has increased by 8% since the beginning of the year. The economy is slowing down, but it’s still pretty strong. I think the rest of 2024 should be good.

*** 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 too expensive, but they 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. The small bump is due to rolling my individual 401k into an IRA. Vanguard stopped supporting the i401k and the easiest option was to roll it into an IRA.

(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.

May 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.

May was a good cash flow month. Our passive income received a boost from the Oregon tax refund. This was helpful because I spent more than usual on car repairs. Apart from that, our expenses were reasonable.

May 2024 Fire Income: $7,519

Our FIRE revenue was good in May. The tax return was good.

  • Real Estate Crowdfunding:$0. 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: $1,384. good month
  • Rental Income: $666. We had a phenomenal month at the rental.
  • Blog Income: $1,501. Have a great month on the blog.
  • Odd Jobs: $545. I spent about 4-5 hours per week making deliveries. These days, I focus on lunch catering orders.
  • interest: $32.
  • Tax refund: $3,391. Yay for Oregon “Cooker!” Oregon refunds money to taxpayers when income is high. This is a good policy.

Cost: $5,454

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: $1,324. 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: $1,563. Gas and insurance. We had a big car repair bill. Hopefully our car will be good for a while.
  • Entertainment: $224. We ate out a few times last month. Also, I bought some items for my ceramics class.
  • Groceries: $630 is not bad.
  • Health: $501. Health-related costs are increasing as we age.
  • child: $307. Unfortunately, as the RB40Jr ages, so do the baby’s expenses. We are paying for his trip to the orthodontist and an international school. He also bought a suit for a mock trial at school. A kids suit from Target was $75, pretty cheap.
  • 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.
  • Personal: $194. Mrs. RB40 bought some personal items and got a haircut.
  • Misc: $395. I signed up for a new credit card. This annual fee is higher than I like, but we get $300 back in travel credits.

Saving: +$2,065

End of May 2024

Okay, let’s wrap it up. May was a great month for us. Our net worth returned to an all-time high. Cash flow was positive. I stayed busy, enjoyed my new hobby, made a little income from side hustles, and spent a lot of time with my wife and kid. It doesn’t get any better than that. I am optimistic for the rest of 2024.

This is for May. 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 tons of 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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