Retiring from my long term career
Today is the first day of the rest of my life.
I have been working at various 9 to 5 jobs for the last 14 years. But no more.
June 28th was officially my final day at work. 🙂
So now I’m officially out of the workforce. And I couldn’t be happier. 😄
It’s always a bitter sweet moment when you leave the job you enjoy.
But I think I have made the right decision.
I know 14 years doesn’t sound like a long time for many people. But as a millennial it’s a large chunk of my life.
There are various definitions of retirement. I like to use the most common one which is quitting one’s job and leaving the workforce.
Thank you everyone for following along on my journey first to financial independence, and now to retiring from my 9 to 5 job. 😀
Oprah Winfrey said we become what we believe.
So when I created this blog over a decade ago I believed I could retire by age 35.
Oprah was right. 🤗
I no longer dread Mondays because everyday feels like a weekend now! 🥳
In an era when most millennials are living paycheck to paycheck, it sure is a tremendous privilege to be able to live on a stable stream of passive income for the rest of my life. 😊
What I will be doing now
It’s incredible to have an extra 40 hours every week. And I do not intend to waste a minute of it!
I’m afraid to just sit on my hands all day because I’ll probably lose feelings in my fingers.
And then I’ll really be out of touch. 😎
That’s why I will keep myself busy with fun activities that will primarily fit into 2 categories.
The first is purely for fun, such as reading comic books or watching Netflix. 🙂
The other is to improve my long term health, relationships, or financial stability.
Everything else I can simply ignore at this point and focus on developing the things that are important to me.
So for the next little while I plan to enjoy activities such as sleeping in, cooking, and chilling at home.
In terms of side projects I don’t have anything I want to take on right now.
But that’s what my free time is for. It’s hard to think clearly with a busy mind and a full schedule. But a calm mind with no time constraint is more open to discover new and interesting ideas. 🙂
Who knows? Maybe I’ll write a book, start a business, adopt a puppy, or plant a vegetable garden in my backyard. I don’t plan to do any of that right now. But they’re all possible ideas I can revisit years or even decades later. I am in no rush to start anything new. After all. I already have an abundance of the most valuable asset. Time. 😉
That’s it for what I plan to do. Now onto the household finances and making sure the numbers still work despite the bear market! 😀
Investments at a glance
Here’s how my investments look right now.
I have a total of roughly $2 million worth of investments.
About half of my investments are in real estate. I have 2 investment condos. Both are cash flow positive.
The remaining ~50% contains stocks, bonds, cryptocurrencies, etc.
Associated with these investments are loans.
My total mortgage balance and margin debt outstanding is $650,000.
This means the equity I have in my investments is worth $1,350,000.
I expect this figure to increase over time as I slowly pay down the debt while the asset side increases over time.
Household budget (income and expense)
Here are all the income sources we have now in retirement:
- Net cash flow from rental income = $2,800
- TFSA withdrawal = $1,000
- Taxable account withdrawal = $3,000
- RRSP withdrawal = $1,000
Total monthly income = $7,800
This withdrawal strategy is based on my video explaining the best way to drawdown a portfolio while minimizing income tax across time. I have tweaked the strategy a bit to compensate for current economic conditions.
I’m glad I was able to come up with this withdrawal plan before leaving the workforce. This is useful when it comes to planning for my long term financial needs and tax implications.
Am I concerned to withdraw money from my investment accounts when the stock market has fallen by so much this year? Not at all. 🙂 This was a scenario that was built in to my retirement plan.
And the $3,000 monthly withdrawal from my taxable account will not be from selling stocks, but from borrowing on margin debt. The reason is so I can capture all the upside of the next bull market when stocks eventually start going up again.
This is called the buy and borrow method, which is a much better way to manage your finances than just buying and selling. 🙂 Rather than offloading stocks in the decumulation stage of life you simply hold onto your investments forever.
Here are all our household expenses:
- Housing = $5,500 (mortgage payment + property tax)
- Groceries = $500
- Utilities = $400
- Transportation = $150
- Interest charges = $150
- Fun money = $200
- Estimated income tax = $600
Total monthly spending = $7,500
I have included tax liability into the budget to get a more accurate picture of our total cost of living. The tax amount is again based on that video I made before and the estimated tax bracket I will be in.
Based on these calculations our income should be able to cover all our expenses.
In fact, we actually have a $300 monthly surplus for unexpected cost overruns. 🙂
Does spending $7,500 per month make us chubby FIRE or is it still within the boundaries of regular FIRE?
You tell me. 🙂
Is this enough?
You might think a $300 monthly surplus is cutting it close. What if we run into an emergency and need to come up with $10,000? These scenarios are accounted for in my plan. I increased my home equity line of credit borrowing room before I quit work so now I have access to a lot more money than before.
If there’s anything I’ve learned from my financial journey is that you can’t plan out every detail of your retirement because things will change beyond your control. And the best way to deal with finances in retirement is to think of your retirement plan as a process, not a closed ended plan.
Re-evaluate your goals and priorities each year, just as you would if you were still working. And make adjustments accordingly. The best investment plan is one that can easily adapt to changing circumstances over time. 🙂
Additional income sources
I actually have other income streams that are unaccounted for in the budget above.
One is a retirement package that pays me about $2,000 per month on average for the next 1.5 years. This is a combination of severance, built up vacation time, and employment insurance benefits. This should provide a smooth transition from earning a full time salary to nothing.
So from now until the end of 2023 our household income will actually be $9,800 per month before dropping back down to $7,800. But a lot can happen between now and then. 🙂
I also plan to continue trading options. Spending just an hour with options each month typically produces $1,000 or more of additional income. It doesn’t take too much time and the hourly rate is hard to pass up.
I have left out these two income sources in my official retirement calculations because they’re either temporary, or require active management, whereas I would prefer my retirement income to come from permanently passive sources. So any income I do earn from my severance package or options trading will probably be invested back into my investment portfolio for growth and future use. 😀
And in case anyone is wondering, I do not make any money from running this blog. There aren’t any ads here. And I’m also not making money from my YouTube channel. In order to qualify for its partner program and run ads the channel requires 1,000 subscribers and 4,000 hours of watch time per year. And my videos only receive about 3,200 hours per year, lol. I do have over 1,000 subscribers now though so at least one of the requirements is met. Yay!
Thanks to everyone who has subscribed to my channel.
Although I do have thousands of followers on social media services like Twitter and Facebook I don’t monetize them at all either. I’m pretty good with money, but I suck at marketing myself, lol.
My hurdle rate
What would it take for me to continue working?
Right now I value my time at $200 per hour.
So if I don’t get an offer for that price I won’t do it. There are exceptions of course. If Pixar offers me a job as a story boardartist because they like my stick figure drawings I would probably bend my rate a bit for them, lol.
Everyone will have a different hurdle rate. But generally speaking the more wealthy you are, the more you will value your time, and the higher your hurdle rate will likely be.
Since I’m financially independent, I don’t need additional money to live the lifestyle I want.
However, I will consider working and paying more for an even more comfortable life.
For example, let’s say I want to fly business class instead of economy and it will cost me an extra $4,000.
Since my hurdle rate is $200 I am okay taking on a 20 hour contract so I can enjoy a business class seat on a plane. 🙂
It seems like more and more people are realizing that their time is more important than money.
This is why we’re seeing the Great Resignation across the world.
I expect my rate to go up over time. Have you thought about what your hurdle rate would be? If you’re working now do you think your rate will change once you retire? Just some fun questions to think about. 🙂
I expect my net worth to increase, at least during the first 40 years of retirement, before fall after I turn 75 years old.
It shouldn’t be a surprise to see a portfolio grow as someone enters into retirement. In fact, that is what happens most of the time. The idea of running out of money in retirement has been excessively inflated to scare people.
Statistically if you retired with $1 million and withdraw 4% of your portfolio each year, your chance of ending up with $4 million after 30 years is higher than your chance of having less than $1 million. This is according to financial planning Michael Kitces. It’s surprising to realize your chance to 4 times your original nest egg is so high.
The data says 5 out of 6 retirees will die with more money than they started with at the beginning of their retirement. So I am not worried about running out of money.
Preventing awkward conversations
A common issue people face when they reach early FI status is describing what they do to others in social situations.
So if anyone asks I will simply tell them I am a financial analyst. 🙂
It’s technically true. I analyze the financial markets to make appropriate decisions.
Financial analyst is a wide, catch-all role that could involve investing, budgeting, and general capital allocation.
This way I don’t have to explain to strangers how I’m retired from my day job, but manage a 7 figure investment portfolio. It’s too personal and not relatable anyway.
Why leave the workforce now in 2022?
Here are some reason why I have decided to quit my job.
- I just finished working on a major 2 year project. So now is a good time to leave the industry. It’s bad karma to leave in the middle of a project, especially when team members rely on each other.
- June is when my employer pays out the annual bonus. So to be honest I was waiting to receive the bonus before leaving my job. 😅
- I turned 35 a few months ago. And I think it fits the spirit of this blog’s name to quit working at this age.
- We’re welcoming a new member to our household and I want to stay home to look after the family and brush up on my dad jokes. 😉
Here is a snippet from my very first blog post on this site 12 years ago.
It’s been an unbelievable journey. I’ve learned so much about personal finance and connected with so many amazing readers and bloggers along the way!
I will continue to make weekly blog posts and YouTube videos to keep everyone updated on what I’m up to with my finances. 🙂
As always, thank you for reading. 😀
Random Useless Fact:
The U.K. is currently facing the hottest day on record.
Congrats on your FIRE at an early age. You will be one of the few with more time ahead of them in retirement rather than more time in a work environment.
$7.5K spend is really high but only because of the mortgage. Get rid of that and you are home free (excuse the pun).
Great pun Ricardo. 😁 The mortgage certainly is the biggest expense. I wish I could get rid of it easily. Unfortunately the current mortgage balance is still over $1,000,000 so it will take me some time, haha.
Congrats on reaching FIRE! It’s been fun following your journey, and I’m so happy you’ve reach your goal! Best of luck with expanding the family!
Thank you for reading and following along, Karen. A growing family will keep me busy for sure. 😀 I heard raising children will be a lot of work, but I’m sure it’s easier in a household that’s already reached FIRE.
Congratulations on all fronts! Your journey to FIRE has been amazing and an inspiration. I can only hope to emulate you! Best of luck to your growing family! =D
I’m happy to inspire others where ever I can, even if it’s from getting back up after failing like losing $21,000 in my Shopify trade this year, haha. Thanks for your support, Jenny! Good luck in your financial journey as well. 🤗
Congrats I’ve been following your blog since the beginning. It makes me happy to see you succeed!
What I find incredible is that 81% of your budget goes towards housing and taxes!
It just goes to show what a high cost of living country Canada is!
Thanks for being a long time reader, Brian. 😀
I have to admit, I was completely taken by surprise when the Bank of Canada hiked by 1.00% last week. Back in 2020 the BoC Governor Tiff Macklem said he would keep rates low and below neutral until 2023. I guess he changed his mind.
And unfortunately for me, the mortgage on my principal residence has a variable interest rate that actually changes based on the Bank’s policy rate.
But I think the BoC has overshot, and will be forced to cut rates again by next year as the economy heads into a recession. Time will tell. 🙂
I would edit that comment Brian to say, high cost of living in Vancouver, not Canada.
Congrats on the jump to FIRE Liquid, hard work on your plan will treat you well in the next stage of life.
look up Canada vs Sweden, UK, Japan and many other high cost of living countries on the webite “numbeo” you’ll be shocked to see that Canada is now significantly more expensive than all or most of them.
I don’t live in Vancouver or Toronto and have friends who live all over the world with whom I compare prices with and 90% of the time it’s most expensive here.
This is so amazing. Big congrats! Your “plan” for retirement sounds perfect.
Thanks for the comment. 🤗 I’ll probably tweak my plan as time goes on. Being more flexible is often better than being more prepared because the latter can be hard to do.
This means a big part of financial planning revolves around the proper mindset and expectation, rather than specific forecasts or models.
Congrats! This is so awesome to read. I’ve been silently following you when you purchased your first farm land in Sask.
I have a question about your withdrawal strategy.
1) how do you do the buy and borrow method with a marginal account? Usually, the account requires you to cover margin position first before withdrawing any funds.
2) when you don’t have employment income anymore, do you plan to withdraw more rrsp?
Wow, that was maybe 10 years ago. Thanks for being a loyal reader for so long. 🙏
To answer your questions…
1) You do have to cover your margin requirements first. But that doesn’t take very much. If you deposit $100 into a brand new margin account and buy $100 worth of stocks, you will have available excess liquidity.
Commonly this amount can be used to buy more shares than the initial $100, which would be buying stocks on margin. But instead of doing that you could also use this available borrowing room by simply withdrawing money from your margin account. This will create a negative cash balance, similarly to buying stocks on margin. As long as you have collateral, the broker will lend you money and you can use it however you want.
2) Without employment income I do plan to withdraw more money from my RRSP. I think $1,000 to $2,000 per month is a good range to balance out the income tax burden over time. 🙂
Boy, you will be surprised how little free time you will have once your little one comes along haha!! It’s like a 12 hour job every day and then there are night time interruptions and then you are so tired to even focus on anything else productive. I know your wife is there too help too but even with two parents highly involved it is tiring.
Then when they start to talk back and run around it’s even more tiring than the baby phase lol!!
How is your grocery spending only $500 a month? That’s pretty good!
Thanks GYM. The baby is here now. 👶 And you’re right. It’s a lot of work, even with two adults taking turns, haha.
My wife retired a few months before me. So it’s a good thing both of us don’t have to worry about going to work anymore.
Our backyard vegetable garden helps to reduce the cost of food. Also, my mom likes to bring over home cooked dishes sometimes.
$500 a month is just the budget for us 2 adults. Now with a third mouth to feed and diaper costs, I expect our household budget will go up a bit. Thankfully there’s the CCB income to offset the extra expense.
I’ll have to update our numbers and share them in the future once I have a better idea of how much we need to budget for the baby.😀
Congrats Liquid! Pretty amazing stuff.
Sleeping in with a little one? Ha good luck with that lol.
And here I thought I could sleep in every day after leaving my job, lol.
I’ll have to sleep train the little guy ASAP, lol. In any case I’m going to need some luck for sure. Thanks Bob. 😁
Congrats! I retired at 41. I get up earlier now, I wake up very day at 530am for a workout (when I’m not making excuses) and I play a sport most days to stay fit. It’s easy to find time now to plan adventures.
Sounds like you have the millionaire mindset, Brett. 🙌 Even after retiring you are still living each day to the fullest. That’s really inspiring. Thanks for sharing. 😄
I’m so happy and proud of you!! I’ve been following along with great interest.
I look forward to reading about your retirement days.
Thank you, Stephanie. I’ll continue to give regular updates on this blog. 😁
It has been GREAT watching your journey and learning a few things along the way. My one hope is that you don’t completely disappear and check in with us from time to time!!
Enjoy shifting gears and the time you can now spend with family, friends, and passion project.
I’m still working on that balance, but I enjoy my career yet so I’m keeping it going. I’m planning to reevaluate the end of 2024 after all of my stock awards are vested.
I’ll certainly let everyone know how it’s going and what new activities I’m up to. 🙂 I’m glad you find my content informative and useful.
It sounds like 2024 is going to be an exciting year for you, at least financial wise. A lot of people go from full-time work to part-time or contract work before retiring completely.
This creates a transitional period and makes it easier to decide if you’re ready yet to leave the workforce completely. Good luck on your journey to retirement. 😬
Congratulations on the early retirement and the expanding family!! I’ve been a silent reader for the past 4 years and have had a great time following along on your financial journey, from farmlands to options.
Coincidentally, I was reading a post about retiring early from Financial Samurai and wanted to see what you thought and how some of his reflections might line up with your plans. He seems to have retired at 35 as well and is now 45 and reflecting back on his 10 years of early retirement: https://www.financialsamurai.com/fake-retirement/
Thanks dropping by and commenting. I appreciate the long time readership. 🙂 Sam’s writing is often very insightful and I enjoy reading his perspective. There are a lot of parallels between his situation and myself, so I sometimes look up to him as what my life could potentially be like in the future, lol. In terms of the post about his last 10 years in “fake retirement,” I can already relate to most of what he’s saying. I think that’s because the takeaway points he listed are realizations that you can come to, even if you’re not retired. His point about appreciating time more in retirement than in prior working years resonated with me the most and it’s not something I had really thought about before. But it’s absolutely true. The older you get the more you try to not waste your time, even though old people tend to be retired and have all the free time in the world. I think this idea is related to the hurdle rate I wrote about in my post above. The more wealthy you are, the more value you put on your time. When you’re financially independent, you don’t “have” to do anything… Read more »
Hooray—you’ve finally taken the plunge! I’m so happy for you and am excited to see where life takes you now that you’ve gained all this time freedom.
As expected, it sounds like you’ve planned your post-work finances meticulously! Despite retiring into a messy financial world (as did we), I have no doubt you’ll be more than okay. Well done!
I’ve never heard of the buy and borrow method and am very intrigued. As you know, I’m a huge fan of leveraged investing. I’ll need to do more reading on this. 😉
I think your YouTube numbers are pretty darned impressive. You’re good at it, so I’d say keep working at that. You’ll be at 4,000 annual views in no time!
It might be fun to write a post updating everyone on my YouTube numbers and other content metrics. I know you’ve done something similar in the past and your audience really liked it so I might borrow that idea. 😁
The buy and borrow strategy has always been a core part of financial planning for many high net worth individuals. As long as the rate of withdrawal from a portfolio is less than its investment returns you will never run out of excess equity to draw from.
There are also tax advantages to this a well.😁
Congrats! Enjoy the relaxing honeymoon phase doing nothing until the little one comes. Your new job title will soon become teacher (to your child – that’s what we’re going with in our house at least). Enjoy!
Thanks Court. I like that job title lol. 😁 Every parent is a teacher. And their child, a student.
I wonder if actual trained teachers make for better parents. 😅
Amazing. Huge congrats liquid! Looking forward to seeing what you accomplish with all of your free time going forward.
Thanks a lot, AL. I look forward to seeing what happens as well. It seems like a lot of people turn to writing books because they have a lot to tell the world. I’m still not sure what I want to do yet, but I until I figure it out I will just enjoy the simple life. 🤗
I think a lot of problems in the world today would simply go away if more people could sit quietly with their own thoughts without feeling like they have to do something all the time. 😄
Amazing! And congrats! You are leaving at the age I left in 2012 and I have no regrets. It’s been a blast!
You’re going to have so much fun and all the time you spend with your family it will be worth it. You can always make more money, but never more time.
Thanks Sam. 😄 Glad to hear you didn’t have any regrets when you left the workforce all those years ago.
When you consider that time is more valuable than money, the reasons and motivations behind making money become much more clear and purposeful. This not only makes reaching FI easier and more quickly, but also gives you something to look forward to – which is of ocurse buying back your time.
Wow, amazing! Congrats. You did it as you said you would!
I have been following you since 2014 and because of your posts in Aug ’20, I went ahead and borrowed against my Home Equity to buy individual stocks. I love your posts and your insights.
I wouldn’t have the guts to retire with $1M+ mortgage though. LOL. How are you able to do it? What happens when you renew the mortgage? Wouldn’t the bank want you to have a full-time job?
That’s a long time. Thanks for reading throughout all these years. 🤗
When I renew the mortgage my payments will likely not change very much because I’ll be sticking to my existing lender. I only need to show proof of income if I’m switching to another bank after my current variable rate mortgage term ends.
Congratulations Liquid to you and your wife both for the retirement and for the new addition to your family 😊 I’m so happy for you. Enjoy your early retirement and family time. Also you’re almost there with YouTube Monetization. It’s only a matter of time buddy. Keep it up. 😀🙏😎
Thanks for the encouragement Moe. 🙂 As long as I keep creating videos consistently I’m sure I’ll be able to qualify for the YouTube partner program sooner or later. I’m not counting on producing videos to make money. But if it happens then that would be awesome. 😃
Congrats Liquid! Your reports on options made me sell cash secured puts and am entertaining the idea of buying a house to flip in order to use leverage. These two ideas clicked for me thank you for sharing your experiences and hope you continue.
Great job thinking outside the box. Most people don’t even consider options, but conservative strategies like the CSP can be very useful in generating extra income in a sideways market. 😄
Depending on where you live real estate can be a powerful way to build wealth due to the leverage aspect. Just make sure you do all the necessary legwork, and consider that you make money based on the price that you pay, not the price that you sell. Homes are still expensive in my city, but I think 2023 or 2024 may present opportunities to buy real estate at relatively low prices.
Congrats on the milestone!! I have been following you since you started. Hoping to pull the trigger myself in next year but I am much older. Question for you on your monthly income. Other than the rental income, how much of the other account withdrawals are dividends/distributions vs selling of the underlying investments? I am curious. Thanks and good luck with your chapter and new family addition.
Thanks for all the supportive comments throughout the years. 🤗 That’s cool you are about to retire as well. I’ll keep everyone posted on any interesting realizations in this transition. So far it’s been really nice to not have to wake up early for work, lol.
These are the 3 accounts that I can withdraw from and how much I plan on taking out per month.
The distribution to liquidation ratios from my tax sheltered accounts are about 20%:80%.
In terms of my IBKR margin account, the distribution each month is about $700. But that’s actually irrelevant because I don’t plan to sell any of my investments in there. In fact I don’t even plan to stop the DRIP.
I will simply make up the difference by using my margin borrowing capacity. This means I’ll withdraw money from my account to spend, effectively going deeper into margin debt. This will change if real interest rates become positive again, but right now I can still be paid to borrow. And I don’t have to sell any investments when stocks are down. 🙂
This is TERRIFIC news! Congratulations. Can’t wait to keep reading about your journey and future plans and adventures.
And, hey, if you ever write that book, you got your first buyer lined up.
Thanks for sharing all the amazing news. You deserve it.
That’s nice to know I’ll have at least one book sale, lol. Thanks for the conversations on this blog and on social media. 😄
Congrats on being well ahead of most people. One of the most interesting things is that you aren’t afraid to venture outside of “normal” i.e. your farm land from several years ago, or *gasp* using margin and I’m sure plenty of other things that I’ve forgotten or missed along the way. I’m looking forward to the day when we can join you as FIRE.
I’m sure you’ll reach FIRE soon enough. You’re one of the earliest bloggers that I’ve followed and it’s been very cool to see your net worth grow from 5 figures to 7 figures over the last decade.
Thinking outside the box is kind of my thing, lol. I take a lot of inspiration from Dave Ramsey, like his saying about how if you’re willing to live like no one else, then later you can live like no one else. I like to apply this philosophy to investing. If I invest in some unconventional assets now then later I’ll be in a more diversified and resilient position than the average investor. 😄
Congrats liquid, i’ve enjoyed reading your blog over the last couple of years. I don’t pretend to know how you live but your expenses seem very low (outside the mortgage). $200 of ‘fun money’ doesn’t seem like it would go very far.
Thanks Robert. I didn’t grow up with an allowance so I’m use to spending my free time doing things that don’t cost a lot of money. Even after moving out and living on my own I mostly stayed home to surf the internet and play video games, typical nerd stuff, haha.
$200 is just what my household is spending now on frivolous activities, but if anything changes in retirement I’ll be sure to update. Actually, since we have another mouth to feed now I’m sure our spending will increase with diapers, wipes, etc. So I’ll be sure to track everything as we get use to this new normal. 😀
Awesome, Liquid. Congrats 🙂 Loved this part in particular: But they’re all possible ideas I can revisit years or even decades later. I am in no rush to start anything new. After all. I already have an abundance of the most valuable asset. Time. 😉 Yes, time, the ultimate commodity. Net worth by you with about $1.4 M is incredible for someone in their mid-30s. Interesting you are pulling the plug on the workforce, yet, you have $650k in debt. We’re doing almost the opposite for our FI journey since my wife is largely debt-averse. We’ll have $0 debt and a $375-$500k HELOC (or more) we can tap in semi-retirement in a few years as needed for any leveraged investing – but that’s our plan – lots of different roads (some shorter, some longer) to achieve FI. I won’t own any bonds myself but rather all equities and mostly dividend paying equities as we enter semi-retirement. I figure even with just “living off dividends” (and ETF distributions as well) we should be OK without any CPP, any OAS or even any TFSA withdrawals in the first 20-30 years of retirement. We want a good margin of safety with about a… Read more »
That would be amazing if you can not tap into your TFSA for the first 20-30 years of retirement. Imagine how large it would grow to if given all that time of unimpeded, tax-free, growth compounded! 😁
I’ll certainly write a post about what I’ll do and then reflect on that and see how things actually go. Thanks for the idea. One year from now I can also share a follow up and how my net worth has changed.
We have a cash wedge as well, but a smaller one of around $8,000. Part of the reason is because we need $3,000 in our account to avoid the monthly service fee, haha. Thanks for the support and camaraderie over so many years. Absolutely agree that many roads can lead to the same FI destination. 😀
Congratulations Liquid! I’ve got 5 years on you and just hit 2.3M net worth. I don’t think I’ll be able to pull the plug until I hit 5M….
Be a while yet.
Thanks dude. We all have different needs. It looks like you can easily retire much earlier than most people in the medical field. And you can fat FIRE with $5M. 😄
The irony is most people who retire early don’t actually need to retire at all. They just move on to things they enjoy more but probably still earn money because they’re providing value to society in one way or another.
Hey Liquid, hopefully with your early retirement you can make more YT videos 🙂 I love your content on your blog, we need more of it on YT!
As someone just 1 year older than you and working part-time for the past 3 years, I know exactly what you mean about time. There’s no amount of money that can buy you time. It’s funny how we humans always put a price on it 🤣
Thanks Mr. Financial. That’s the plan. 😀 I’ll be spending more time making videos and other content. Keep up the great work with your channel as well.
[…] “Today is the first day of the rest of my life. […]
I started reading your blog last year. I wish I had discovered it a year earlier lol.
Then I may actually would have been brave enough to borrow from my HELOC.
Thanks for your transparency in sharing your journey.
It truly has been thus far inspiring.
I just borrowed $60K this year from my HELOC to put into the stock market. And of course right after I did that the market dropped further, haha. I can’t wait until the end of the year when I think we’ll get to see the recovery. 😀
Using leverage is always tricky. Had you borrowed from your HELOC to invest in stocks last year and continued to hold onto your stocks you would be down right now, lol.
But the important thing is to understand what you’re doing and know the risks involved so that even if things don’t turn out well, you can be confident that you can either get out of that bad situation or have the patience to wait for it to pass. Glad to have you as a reader. I hope I can continue to inspire.
Cheers Arvin. 🤗
Congrats!! I’m still saving up so I can CHOOSE to work or retire like you! How did you still get severence and Employment Insurance payouts if you quit and were not let go from your job?
Keep it up, Tim. The more you save and invest during this market correction the faster you’ll reach FI later. The reward of freedom and choice is totally worth it. I’m noticing now how fortunate it is to have 2 parents look after an infant because neither has to work. 🤗
The severance is just a company policy to help employees who have a baby and take time off. And the employment insurance benefits are from the Canadian government. I’m taking advantage of the extended parental benefits program where you receive financial assistance if you’re enrolled with EI and become a new parent.
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Amazing, congratulations. Thank you very much for sharing your journey, your information has been a great tool to my journey.
Thanks AHR. 😄 I’m glad you find my content useful to help you make informed decisions. I’ll continue to make regular posts.
And congratulations on the new addition to the family, enjoy every sec.
That’s my plan, lol. Every moment is precious.
Congratulations on your retirement! I’ve been reading since almost the very beginning of your journey and you have been so inspirational.
You mentioned taking 3K out of your margin per month, but dripping the dividends so that means the dividends won’t be paying the margin back. How will this work in the long run? Will you just sell some stocks to cover the margin when the market recovers?
Congratulations on the baby. It’s exhausting but worth every moment.
Hey ckat, thanks for dropping by. That’s correct. I plan to DRIP as much as I can in my margin account because I want to continue accumulating shares.
As I withdraw cash from the account, my margin debt balance will simply grow and become bigger over time. But I do plan to sell options occasionally and use the premiums to offset some of the interest paid. I may also sell stocks if I need to pay down the loan, but so far there is no intent on doing so.
As long as my investments grow in dollar amount faster than my margin debt I’ll never run out of equity to draw down from. 🙂
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Liquid, I don’t mean to be pessimistic but what’s are your thoughts about experiencing a market like the Nikkei in Japan? The Nikkei is still not back to its peak set back in 1989. Do you think this could happen in North America?
Since the US dollar is the world’s reserve currency it’s unlikely for the S&P 500 to experience the same fate. But it certainly is possible within my lifetime to experience a long period of practically no growth in the markets. If that does happen, I will use conservative options strategies to generate option premiums (income.) 🙂
For example, writing monthly iron condors to make 4%/year on a portfolio is very low risk for an experienced options seller.
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it’s good to see another self directed investor in stocks who puts out exactly what’s in the portfolio. well done and congrats on leaving the rat race.
Thanks. 🙂 I think it’s useful for people to share their ideas and portfolio holdings. Having that open discussion is a great way to learn about new stocks that sometime fly under the radar.
Woohoo! Congrats on achieving the retirement milestone. Best wishes for you and your family on adding a third.
Thanks. We’re having lots of fun with the baby so far. 😁
I have been following your blogs for few years and you been great motivation for me.
Just wanted to say Congrats and all the best.
Thanks for being a long time reader.
Good luck with your financial journey, Mohamad. 😄