Versions
- 1/2/2021 : First Update
- 12/20/2021: Second Update
History
My FIRE journey started in 2014…..07/21/2014 to be exact is when I wrote the About section of this blog. I have completed 6 years on the FIRE journey and moving to my 7th year. I went from accidentally learning about FI to earning the following Passive Income dollars per month from 2014 to 2020 with a 2021 estimate as well.
Year | Dividends per month |
2014 | $0171.02 |
2015 | $0705.80 |
2016 | $0840.80 |
2017 | $1040.13 |
2018 | $1380.78 |
2019 | $0868.90 |
2020 | $0733.73 |
2021 | $0877.75 (goal for 2021 was $900) |
FIRE targets for life
My Financial Independence criterion, that I followed for the period 2014-2019, is listed here. In 2020, I changed the way I track the path to reach that goal. Why? I educated myself on a different way of looking at my portfolio called Bucket Investing Approach. I have listed my rationale and explained how I want to use the Bucket Investing approach in my financial life here.
With that in mind, I am going to introduce my FIRE targets for life! From this table, I will derive the 2021 yearly financial goals later.
Bucket 1: CASH | 3 yrs of living expenses |
Bucket 2: BONDS | 7 yrs of living expenses |
Bucket 3: EQUITY | 30 yrs of living expenses |
Bucket CF1: College Fund 1 | $100K |
Bucket CF2: College Fund 2 | $100K |
Bucket Mort: Mortgage Loan-to-Value ratio | 0% (fully paid off mortgage) |
Bucket Med: Medical Fund | $100k….via HSA |
Using the above targets table, my goals for 2021 will be derived next.
FIRE goals for 2021
For 2021, I have the following mini goals to get me closer to the FIRE targets for life listed in the previous table.
Contribute $12K to Bucket 1 (CASH Bucket…3yrs of living expenses)- 03/31/2021
- 06/30/2021
- 09/30/2021
- 12/31/2021 DONE
Contribute $0K to Bucket 2 (BOND Bucket….7yrs of living expenses)- 03/31/2021 Done (Nothing to do this year)
- 06/30/2021
- 09/30/2021
- 12/31/2021
Contribute $12K to Bucket 3 (EQUITY Bucket) via Brokerage Account- 03/31/2021
- 06/30/2021
- 09/30/2021 DONE
- 12/31/2021
Contribute $39K to Bucket 3 (EQUITY Bucket) via 401K…30yrs of living expenses- 03/31/2021
- 06/30/2021
- 09/30/2021
- 12/31/2021 DONE
Keep Loan to Value (LTV) ratio <= 75% for 2021- 03/31/2021
- 06/30/2021
- 09/30/2021 DONE
- 12/31/2021
Max out HSA contributions ($7100)- 03/31/2021
- 06/30/2021
- 09/30/2021
- 12/31/2021 DONE
Contribute $1800 to 529 College Fund 1- 03/31/2021
- 06/30/2021
- 09/30/2021 $6,691.58 DONE
- 12/31/2021
Contribute $4800 to 529 College Fund 2- 03/31/2021
- 06/30/2021
- 09/30/2021 $6,825.39 DONE
- 12/31/2021
- Estate Planning (Will, POD beneficiaries, Caretaker for children)
- 03/31/2021
- 06/30/2021
- 09/30/2021
- 12/31/2021
Bucket Status 2021
Name | Purpose | Percent Complete |
Bucket 1 | CASH (3 yrs of living expenses) | 37.47% |
Bucket 2 | BONDS (7 yrs of living expenses) | 39.60% |
Bucket 3 | EQUITY (30 years of living expenses) | 43.25% |
Bucket CF1 | College Fund 1 | 87.79% |
Bucket CF2 | College Fund 2 | 27.70% |
Bucket Mortgage | Loan to Value ratio | 67.72% |
Bucket HSA | HSA Medical Fund | 41.27% |