Our Early Retirement Didn’t Go As Planned… Our Net Worth Went UP Half a Million Dollars!

In contrast to early retirement modeling that looks for all the worst cases and failure modes, our actual life the past almost four years illustrates that good things can offset the bad events in life.

Financial planning for early retirement is pretty straightforward. Figure out how much you plan on spending in early retirement then save up till you have between 25 and 33 times your annual expenses in your investment portfolio. We initially planned on spending $32,000 per year plus a large lump sum for the three kids’ college tuition. Using the 33x multiplier (which represents a 3% withdrawal rate), that means we needed $1,056,000 plus another $100,000 to cover tuition, or roughly $1,150,000 in total investments. That’s about what we started with four years ago but now we have a lot more.

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Looking in the Rearview Mirror

Here we are at the tail end of 2015. I wanted to pause and reflect on where we are today and what we’ve been up to during the year.

I started out 2015 with a post asking Should We Conceal Our Wealth? This post got a lot of social media shares because it addresses a concern that faces those who are accumulating wealth while trying to fly under the radar undetected.

Then I explained Why We Chose The Worst School In The District.

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