ten month update (apr 2018)
Spending: Living expenses for the month came to
$4628. This is $1855 over the 2018 monthly targeted amount of $2773. Our
spending is 66.9% over budget for the month, 15.6% over for the year,
and 18.4% over since retirement. We generated $30,804 of income this
month from my wife wanting to work, some of my old book royalties, and
an unexpected inheritance. Our investment withdrawal was -$26,176 this
month (a $26,176 deposit), thus our pro-rated, annually-adjusted
withdrawal rate is -28.32% for the month, -10.03% for the year, and
-0.15% since retirement. Without the additional income stream, our
pro-rated, annually-adjusted withdrawal rate would have been 5.01% for
the month, 3.47% for the year, and 3.55% since retirement.
Investments: The portfolio went from $1,117,315 to $1,103,975 (a 1.19% decrease for the month), which went up to a new total of (drum-roll) $1,130,151 after cashing the checks and paying the bills. This is a 10.18% increase from the original starting balance of $1,025,772, even after withdrawals of $16,977 for living expenses over ten months. Since retirement, capital income from the investment portfolio has produced the equivalent of a full-time employee generating $52.24/hr of labor income. To sustain the original portfolio balance, $17.95/hr is the pace needed for COL based on spending rate; $-7.98/hr is the pace needed for COL based on withdrawal rate. Ignoring possible dividends, VTSAX (61% AA) went down 2.3% this month (1.0% down for the year); VFWAX (20% AA) went down 1.0% (0.8% down for the year); VWLUX (19% AA) went up 0.2% (down 2.3% for the year).
Reflections: I do not wish to get into details of the $30k inheritance that we received. I will only say that it was not expected, not from a death, and the person was well aware of our financial status (likely carried out due to perceived fairness and equality for all parties involved). Our receiving of that much money in a lump sum also comes close to invalidating the documentation behind the whole reason for this process. Spending was up due to dental work ($1000), vacation reservations ($500), and a decision to go crazy by blowing 3% of the inheritance ($1000). We bought a camera, running shoes, two race entries, two album reissues, and some clothes. The remaining 97% went straight to VWLUX. I almost feel guilty.
Experiences: I put 61 hours into Final Fantasy XV over seven days, finishing the game and most of the side quests. I think it was fairly average by series standards. My marathon training peaked at 40mpw and is now tapering. I spent way too much time following recent political developments.
Upcoming: The marathon state championship is April 7. I was poised to take the victory (based on the winning time in 2016 and 2017), but some guy who is on a mission to win 100 marathons is driving eight hours to do this one. His reputation in the running community couldn’t possibly be any lower. He has a history of cherry picking small races nowhere near his home in order to get his numbers up. At some point this month, we’ll be taking a driving vacation across flyover country to visit the states that my wife has not yet been to. This will bring her up to my current count of 49. I’ll be trying for a victory in another local race on May 5. Afterwards, I plan on cutting back on running while I get some more experience with bicycling and swimming. Needless to say, I’ll also be doing whatever the fuck I want.
Investments: The portfolio went from $1,117,315 to $1,103,975 (a 1.19% decrease for the month), which went up to a new total of (drum-roll) $1,130,151 after cashing the checks and paying the bills. This is a 10.18% increase from the original starting balance of $1,025,772, even after withdrawals of $16,977 for living expenses over ten months. Since retirement, capital income from the investment portfolio has produced the equivalent of a full-time employee generating $52.24/hr of labor income. To sustain the original portfolio balance, $17.95/hr is the pace needed for COL based on spending rate; $-7.98/hr is the pace needed for COL based on withdrawal rate. Ignoring possible dividends, VTSAX (61% AA) went down 2.3% this month (1.0% down for the year); VFWAX (20% AA) went down 1.0% (0.8% down for the year); VWLUX (19% AA) went up 0.2% (down 2.3% for the year).
Reflections: I do not wish to get into details of the $30k inheritance that we received. I will only say that it was not expected, not from a death, and the person was well aware of our financial status (likely carried out due to perceived fairness and equality for all parties involved). Our receiving of that much money in a lump sum also comes close to invalidating the documentation behind the whole reason for this process. Spending was up due to dental work ($1000), vacation reservations ($500), and a decision to go crazy by blowing 3% of the inheritance ($1000). We bought a camera, running shoes, two race entries, two album reissues, and some clothes. The remaining 97% went straight to VWLUX. I almost feel guilty.
Experiences: I put 61 hours into Final Fantasy XV over seven days, finishing the game and most of the side quests. I think it was fairly average by series standards. My marathon training peaked at 40mpw and is now tapering. I spent way too much time following recent political developments.
Upcoming: The marathon state championship is April 7. I was poised to take the victory (based on the winning time in 2016 and 2017), but some guy who is on a mission to win 100 marathons is driving eight hours to do this one. His reputation in the running community couldn’t possibly be any lower. He has a history of cherry picking small races nowhere near his home in order to get his numbers up. At some point this month, we’ll be taking a driving vacation across flyover country to visit the states that my wife has not yet been to. This will bring her up to my current count of 49. I’ll be trying for a victory in another local race on May 5. Afterwards, I plan on cutting back on running while I get some more experience with bicycling and swimming. Needless to say, I’ll also be doing whatever the fuck I want.