Early Retirement Update – December 2023

This is my latest retirement estimate for December 2023, based on all of the numbers up until November. It’s a way to close out the year and see how my financial progress has affected my early retirement goals. Inflation has been the big story this year, with the expenses side of the equation really slowing down any significant progress. My liquid net worth hit a peak in July and got back fairly close to that peak in November, so that is a positive that I am working with to close out the year for this estimation.

A reminder of the three ways I will track my progress:

  1. The first way will actually be with a simple Excel calculator that I made. I’ll plug in my monthly expenses, savings rate, and net worth. And the calculator will say just how long I have until retirement. Maybe it will say that I can retire tomorrow?
  2. The second way I’ll calculate this is through an equation and the help of Wolfram Alpha.
  3. The third and final way I’ll be calculating my early retirement date is with the help of the Mad Fientist Laboratory. I’ll input expenses, savings, and net worth and let his calculations do the rest of the work.

Retirement estimation based on 4% market growth:

Retirement estimation based on 7% market growth:

So this is a mostly positive result, with the 4% growth showing a decrease in overall time until retirement, and the 7% growth remaining mostly flat. I’ve definitely had increased spending this year with all the medical expenses and inflation eating into every category of my budget. I’m very curious to see how 2024 goes, and I may potentially change some of these targets.

Retirement estimation if I never save another dollar:

While the second half of this year has been fairly rocky, the increase in net worth at the end of 2023 has really made this look a lot better. Since last December, I’ve pushed up my early retirement date by 3 years, with the average being 24 years from now. I’d still be having a retirement that’s earlier than a traditional one even if I never save another dollar. It’s a nice peace of mind to know that is true.

Photo by Adrian Infernus on Unsplash

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