It’s crazy but it has been 7 years since I have FIRE’d. Every major decision made was carefully planned, analyzed, and scrutinized before implementing. Luckily, all scenarios have panned out fairly well and in many case better than expected. 7 years down with 4 to 5 decades to go!

One of the largest worries for those who FIRE is a scenario like the one we have today. High inflation eating away at one’s income. This is why one should still focus on income growth and savings rate even after FIRE. Resiliency in any market conditions is a must.

But life happens! Cash FLOWS in and out. Sometimes more out than in and vice versa. It’s important not to sweat the bad months too much as the good are likely right around the corner once again. With that in mind, let’s get this bloody quarter in the books!

 

My Baby Steps Towards $10 Million

Investments Goals

• 2020-3: Generate $10,000 in dividend income
• 2020-3: Invest at minimum $1,500 per month into the dividend portfolio.
• 2020-3: Reach a $50,000 Fundrise Portfolio.
• 2020-5: Maintain steady portfolio growth between 6% to 12%
• 2021-9: Invest $200 per month into M1 Growth Pie.
• 2020-6 to 2021-9: Invest $100 per month into M1 Growth Pie.

Income, Cash Flow, & Saving Goals

• 2020-3: Achieve positive cash flow every month of the year.
• 2020-5: Increase annual income by 6% every year.
• 2020-6: Maintain long term average savings rate at or above 30%.

Net Worth Goals

• 2020-6: Maintain Beyond FIRE Net Worth Average above 6%.

 

Generate $10,000 in Dividend Income

Dividends are one of the most passive sources of income but you can never assume businesses will pay them out forever hence the diversification into option premiums. This portfolio’s primary focus is to generate income but I am also adding a significant amount of risk by adding holdings like BST, BMEZ, BIGZ, and single stock holdings. The other purpose is to increase my smaller cap holdings overall due to the length of my FIRE term. It’s also my way to invest more passively into tech. The current environment is tough for investing in tech but my expectations on where rates will stabilize in 1 to 2 years is not much higher from where we are now. I do not expect a FED pivot but at least a pause.

 

Invest at Minimum $1,500 per Month Into The Dividend Portfolio

The LBF Dividend Portfolio had a total net inflow of $25,436.17 YTD ($2,826.24 per month average) by the end of Q3.

 

Reach a $50,000 Fundrise Portfolio

• No updates to the Fundrise iPO share pricing for the month.
• Total combined value of Fundrise investments comes to $46,947.41.

Very close to hitting that 50K goal!

Interested in Fundrise? Sign up using my referral link and get started!

 

Maintain steady portfolio growth between 6% to 12%

Tech has been decimated this year. My heavy concentration in tech really hit my overall portfolio this year. Six out of nine months have been red months for me this year. Markets are giving back all gains from the massively stimulated returns of the past 2 years. We finally had some capitulation in markets with staple names being sold off. I expect some relief in the last quarter but who knows what the world will throw at us next. My next tranche will be deployed when the S&P 500 corrects 30% of its highs.

 

Invest $200 per Month into M1 Growth Pie

You can check out my updated pie here! Sign up free and get $10 free! Sign up with M1 Finance!

 

Achieve positive cash flow every month of the year

I will likely be spending quite a bit on the house for the next few months. Not the most ideal moment to be spending on the house especially with the current state of the markets. I will likely try to stretch out the large expenses over a few months and make sure I am able to take advantage of any market opportunities that may arise.

 

Increase annual income by 6% every year

Income is down -18.3% yoy. The drop in income was expected due to the massive windfall income from last year. I expect to close the year with my income down between -15% to about -20% for the year.

 

Maintain long term average savings rate at or above 30%

My target for this year will not be met! Spending on the house will zap my savings rate for the year and likely affect the next. I will be lucky to stay above 10% this year from what I expect to be spending. 🫡

 

Maintain Beyond FIRE Net Worth Average above 6%

Snapshot of net worth from Personal Capital. Sign up using my link and get $20.

Net worth YTD: -10.6%

My long term goal for my net worth is to keep the average above 6%. Since FIRE, my average currently resides at 8.6%.

Home prices and equities are dropping. Home prices have finally began to fall meaningfully. This year is one of my worst years ever recorded looking back from 2006. However, it comes on the backs of one of the best years ever. This shouldn’t be too surprising and in all honesty many people knew what was coming. Many vocally expressed their fear that the massive rise in asset prices was unsustainable, but still record numbers of investors remained heavily leveraged.

Human greed and emotions got the best of many investors. Being fearful when many are being greedy is one thing and taking the appropriate actions is another.

 

ETA 10 Million

Based on current trends, projections and expectations for future growth, my best to worst case scenario towards a $10 million net worth will be the following:

How many years will it take to reach $10 Million net worth?

18 to 35 years 

By what age?

Between 60 and 77

 

Final Thoughts

I recently came across a podcast that touches on some great lessons and wisdom some similar to ones I have come to learn over the years. It was one of the most satisfying and enjoyable podcast I have listened to in years. I highly recommend you watch and listen to this podcast!

Happy investing and onwards my friends! 🚀