Saturday, 1 June 2019

FI40,42

I leave my early retirement with a financial independence number of 40,42.

The number means that all my available assets divided with an annual budget needed to keep the simple life I have, would last me over 40 years. The prediction is that interests and dividends will keep up with price and cost increases (which nobody of course will know anything about for the future, FIRE or no FIRE data. Look it up, it is a thing.)

The number also means that I could live my life without further income until I turn ... 90.
With my family history, I have a life expectancy of over 85, so the assets will be needed and used up in full.

The calculation does not include current values of pensions (private or state) or the value of my home I will always need to live somewhere, I can not assess the value until the studio is sold and a replacement home has been acquired. I may be counting lean, but rather lean than over-reaching.

Anyway, so money isn't the reason why I leave early retirement.
I leave because I need to know that I can, because it makes emigration from my mother's country and immigration into the man's country so much easier, and because I need the challenge (apparently - it is as much a surprise to me as it is to anybody else. But I really do not like not working (or making plans and decisions with large investments).) So I am going back to work.

The calculations of the independence number in the future will have to be set up, as well as a new annual budget calculated. Setting up taxation, moving money between countries and generating savings in the new country will also take time. The future will have to sort itself out.

So far during this blog, since January 2015, I have gone from a financial independence number of 28,9 to over 40. The calculations have not changed, I have not received any major pay-outs but instead paid my tax debt from having sold my house already in 2014, and I have worked 80% the entire time, keeping two homes in two different countries the entire time. Size matters, and even small savings grow over the years. Small budgets help, making them smaller step by step makes the savings better.