Inflation is the boogey man for the early retired. I have noticed my cost of living rising all across the board. I now expect my costs to rise a few thousand dollars more than I had projected for this year.

Luckily, asset prices have been skyrocketing much above inflation rates which alleviated my concerns. My plan is to use this portfolio to help combat potentially an extended period of high inflation with stagnant or low annual market returns. The portfolio had a major update last month as I weighted more into tech and leaned more into growth.

Inflation can really take a bite in your early retirement so forget about the 4% SWR (Safe Withdrawal Rate) rule or that leanFIRE goal you may have planned for. At minimum, you should pursue the NTYP (Never Touch Your Principal) retirement, or fatFIRE if you plan on retiring before 40.

The best FIRE is the one where your living standards increase year after year. The one where your income increases at an healthy rate above the inflation rate. The one where any economic cycle thrown at you feels like a small bump in the road. And the one where your net worth continues to rise perpetually!

Anyhow, let us check up on those dividends, shall we? 😊