THE PLAN

 

Mission: 

Financial Independence (FI)

 

Motivation to be FI: 

Gain and maintain control over our time

 

Goals while FI: 

  1. Spend time creating memories with loved ones
  2. Live sustainably in beautiful places
  3. Give generously 

 

Inspirations:

 

Starting Point (as of January 2017):

Income (Gross): $187,000/year

Yearly expenses:

  • Tax:                        $46,750   (25.0%)
  • Rent:                      $26,400   (14.1%)
  • Groceries:              $ 6,000   (  3.2%)
  • Entertainment:    $ 4,000   (   2.1%)
  • Travel:                     $ 5,600   (   3.0%)
  • TOTAL:                       $88,250  (47.2%)

Yearly Savings:

  • Company:             $27,000   ( 14.6%) 
  • Remainder:          $71,750     ( 38.4%)
  • TOTAL:                      $98,750    (52.8%)

Current Net Worth:         $81,800

 

Target FI Date:

  • Best Case:                  10/15/18            (1.7 years, Income/Expenses/Savings as above, ROIC: 18%, Withdrawal rate: 15%)
  • Median Case:            05/15/20          (3.6 years, Income/Expenses/Savings as above, ROIC: 11%, Withdrawal rate: 9%)
  • Standard FI Case:     07/01/23          (7.4 years, Income/Expenses/Savings as above, ROIC: 7%, Withdrawal rate: 4%) 

 

Assumptions:

  1. Continue working/side-gigs once FI  for more flexible timing
  2. Our expenses may grow when children arrive, aim to be FI before then
  3. Willing to take on some additional risk now while we have capacity to experiment and learn in order to achieve 'Best Case'

 

Strategies and Experiments:

  • Buy-and-hold equities
  • Make use of leverage at the right price
  • Use stock options to target lower entry prices on long equity/index positions
  • Take advantage of company incentive schemes
  • Generate additional income from creative endeavors 

 

 

  

 

Latest ArticleS


Instagram @the_mofis