The Sunday Best (1/21/2018)
The Sunday Best is a collection of articles I’ve curated for your reading pleasure.
Presenting, this week’s Sunday Best:
Radical Personal Finance shares his thoughts (in written form) on The Stages of Financial Independence. Which of the seven stages are you in?
Joel of FI180 stepped away from a high-stress computer gig a couple months ago. We got to hang out a bit in Florida a couple weeks ago, where he gave a great talk at Camp FI SE. Elements of that speech made it into his recent post in which he shares Lessons in Early Retirement.
Early Retirement often relies on the 4% rule that dictates you should save 25x your annual expenses. Four Pillar Freedom backtested a 100% stock portfolio and got astounding results. Here’s How the “25 Times Expenses” Portfolio Has Performed Over the Past 89 Years.
Big ERN has been busy implementing safe withdrawal rates over at Early Retirement Now. His case studies are always thorough and can offer a few nuggets that may apply to your own situation. Ten Lessons From Ten Safe Withdrawal Rate Case Studies. The studies:
- “John Smith”: Seven-figure net worth, but not quite ready for FIRE yet. Big ERN would recommend a few more years in the workforce!
- “Captain Ron”: Early retirement on a sailboat. How much can they withdraw from their $3m portfolio to stay afloat (pun intended) in retirement?
- “Rene”: No need to worry about the recent layoff: You are more than ready for early retirement!
- “Mrs. Greece”: More than ready to retire due to large portfolio size and moderate living expenses, especially if the husband keeps working!
- “Mrs. Wish I Could Surf”: Alternative investments (real estate hard money loans). Keep the mortgage or pay it off? Either way, more than ready to retire!
- “Mr. Corporate”: Geographic Arbitrage by moving to a low-cost European country. Roth Conversions and zero tax liability!
- “Ms. Almost FI”: Your name is a misnomer. You are ready to retire now even when self-funding substantial long-term care expenses in the future!
- “Mr. Corporate Refugee”: How to deal with a large portion of the net worth tied up in a house in a high-cost-of-living area?
- “Mrs. Wanderlust”: Substantial supplemental cash flows due to buying an RV and then selling it later.
- “Mr. and Mrs. Shirts”: Ready to retire this year, but should Mr. Shirts work for another nine months for some additional big payday?
- Millionaire Interview #31
- Millionaire Interview #32
- Millionaire Interview #33
- Millionaire Interview #34
- Millionaire Interview #35
The last entry in both of the above series comes from Mr. Shirts, or as I like to call him, “SIS” of Stop Ironing Shirts. He expands on the “golden handcuffs” he’s wearing in Early Retirement Decisions: One More Year.
Let’s close with a couple more looks at a hot topic: Tax Reform for Physicians.
- Fox & Company | Nuggets from The Tax Cuts and Jobs Act
- Wall Street Physician | How the New Tax Bill Will Affect Medical Residents
Setting Goals in 2018
I’m not big on New Year’s Resolutions. I mean, I usually make one — two years ago I decided I would finally start a website — but in general, I don’t think they last. Intentions are good, but follow-through usually isn’t. How many of you have broken yours already?
Other years, I’ve said the usual. Eat better, work out more, drink a little less. But I generally don’t set SMART goals or hold myself accountable.
I’m trying to do things a little differently this year. I didn’t resolve to do anything differently at the beginning of the year, but after reading J.D. Roth’s goals for the year and seeing Mr. 1500’s progress, and sitting down with both of them a week into 2018, I was inspired to start tracking some goals of my own.
My wife has been tracking her miles run since 2008. She stays in great shape. I’ve been tracking my miles run for 12 days. I’m not yet in great shape, but I’m working on it, slowly but surely. After not really exercising at all since mid-fall, I’ve got some catching up to do!
I won’t share my best guesstimates from the first eight days of the year (suffice to say it would make Rod Farva look good by comparison), and I won’t promise to share my numbers again, but here’s what I’ve got since then:
My goals are somewhat poorly defined, but I’d like to do most of the following:
- Run at least one mile per alcoholic drink consumed (defined as 12 oz. of 5% ABV or equivalent).
- Do 25 or more pullups a day, substituting a higher number of pushups or something else when I don’t have easy access to a pullup structure.
- Eat at least a couple fruits and / or vegetables a day.
- Get down to 162 pounds. Last April, I said I wanted to lose ten pounds, and I was 172 pounds then. I’ve got until the end of April to make it happen within a year of setting that goal. I’ve been close, and I think technically under briefly after a long run last summer, but I use my nighttime weight as the official weigh-in. 6.4 pounds to go. Wish me luck!
What are you working on in 2018? How will you hold yourself accountable?
Have a wonderful wintery week!
-Physician on FIRE