2021 Goals and Quarterly Updates

Versions
  • 1/2/2021: First Draft

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.

YearDividends per month
2014$0171.02
2015$0705.80
2016$0840.80
2017$1040.13
2018$1380.78
2019$0868.90
2020$0733.73
2021$0900.00 (goal for 2021)

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: CASH3 yrs of living expenses
Bucket 2: BONDS7 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 ratio0% (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.

  1. Contribute $12K to Bucket 1 (CASH Bucket…3yrs of living expenses)
    1. 03/31/2021
    2. 06/30/2021      
    3. 09/30/2021      
    4. 12/31/2021      
  2. Contribute $0K to Bucket 2 (BOND Bucket….7yrs of living expenses)
    1. 03/31/2021 Done (Nothing to do this year)
    2. 06/30/2021      
    3. 09/30/2021      
    4. 12/31/2021      
  3. Contribute $12K to Bucket 3 (EQUITY Bucket) via Brokerage Account
    1. 03/31/2021
    2. 06/30/2021
    3. 09/30/2021
    4. 12/31/2021      
  4. Contribute $39K to Bucket 3 (EQUITY Bucket) via 401K30yrs of living expenses
    1. 03/31/2021
    2. 06/30/2021
    3. 09/30/2021
    4. 12/31/2021      
  5. Keep Loan to Value (LTV) ratio <= 75% for 2021
    1. 03/31/2021
    2. 06/30/2021  
    3. 09/30/2021      
    4. 12/31/2021 
  6. Max out HSA contributions ($7100)
    1. 03/31/2021
    2. 06/30/2021      
    3. 09/30/2021     
    4. 12/31/2021          
  7. Contribute $1800 to 529 College Fund 1
    1. 03/31/2021
    2. 06/30/2021      
    3. 09/30/2021      
    4. 12/31/2021    
  8. Contribute $4800 to 529 College Fund 2
    1. 03/31/2021
    2. 06/30/2021    
    3. 09/30/2021
    4. 12/31/2021     
  9. Estate Planning (Will, POD beneficiaries, Caretaker for children)
    1. 03/31/2021
    2. 06/30/2021     
    3. 09/30/2021      
    4. 12/31/2021

Bucket Status 2021

NamePurposePercent Complete
Bucket 1CASH (3 yrs of living expenses)27.06%
Bucket 2BONDS (7 yrs of living expenses)73.32%
Bucket 3EQUITY (30 years of living expenses)40.75%
Bucket CF1College Fund 191.68%
Bucket CF2College Fund 222.27%
Bucket MortgageLoan to Value ratio67.72%
Bucket HSAHSA Medical Fund29.81%