My 10 Year Plan: 2017 Update

I typ­i­cal­ly update my long-term pro­jec­tions each year around late spring. Due to the fact some­one pressed the fast for­ward but­ton on my year, I’m updat­ing it now instead! If you’re unfa­mil­iar with my 10 year plan series, you can catch up by read­ing 2015’s iter­a­tion and 2016’s post before you con­tin­ue with 2017.

I didn’t real­ly plan on turn­ing this into a series, but it’s def­i­nite­ly fun to look back at the old posts and see how quick­ly things changed! As I’m liv­ing it, it doesn’t seem that fast, but look­ing back once a year real­ly shows how fast things are accel­er­at­ing!

 

My first post in 2015 had my esti­mat­ed net worth at the end of 2017 being $138k. Last year’s post esti­mat­ed it as $162k. I’m only a few thou­sand dol­lars from my esti­mat­ed goal with 5 months left in 2017. It seems insane to me that I upped the pro­jec­tion by $30,000 and I’m going to beat the pants off that! The pro­jec­tion for this year should be even more fun!

I’m kind of get­ting away from set­tling on one FI num­ber. I know I said $587,500 in the past, but I’m think­ing if I can cre­ate enough “pas­sive” and pas­sive income to replace my W-2 job I’ll stop work­ing then. So far that looks to be about $2500/month, but we’ll see where that goes. I have a hard time not spend­ing mon­ey!

Anoth­er thing I’m real­iz­ing that could be com­pli­cat­ed is merg­ing finances and plans with a part­ner. I’m nowhere near ready to do that with my boyfriend now, but being togeth­er and hearing/seeing his plan made me won­der how we’d merge our stuff and plans togeth­er. I’ve trained myself to think “worse case sce­nario” of being alone and on the FI jour­ney, but I hon­est­ly have no idea how the merg­er would look in the future. Would we have too much mon­ey stuffed away in retire­ment accounts and not enough in tax­able? How would we do bank accounts? Would we merge our accounts as much as pos­si­ble or keep them sep­a­rate for the most part? When would be a good time for him to quit work­ing? For me to quit work­ing? What would we do for health­care? Would one of us go remote and move to the other’s loca­tion to have the best of both worlds (part­ner and big W-2 income)? All of these ques­tions are buried in my brain and will need pon­der­ing on a day when that time appears to be clos­er.

My Plan

Goal: $587,500 (23,500 x 25)

Start: Age 23, Net worth $10,000

Year 1 (2014): Age 24
Net worth $45k
Par­tial­ly maxed 401k
Maxed Roth IRA
rent­ed
Com­ments: I made a mis­take when cal­cu­lat­ing how much went into my 401k. I includ­ed the com­pa­ny match. So, while I end­ed up with almost $18k saved like I thought I would, I actu­al­ly only saved $13k. I did max out my Roth IRA though, and also rent­ed a house.
Year 2 (2015): Age 25
Net worth: $83k
Maxed 401k
Maxed Roth IRA
rent­ed
Com­ments: As of Decem­ber 2015, my net worth was $83,000 (ish). I maxed out my 401(k) for real and vest­ed my employ­er con­tri­bu­tions, in addi­tion to max­ing out my Roth IRA. I rent­ed an apart­ment for the last 6 months of 2015.
Year 3 (2016): Age 26
Net worth $133k
Max 401k
Max Roth IRA
rent
Com­ments: My last year in the Ear­ly Devel­op­ment pro­gram. I got a raise and a pro­mo­tion at the end of the year, which helped boost my net worth to $133k! That beat my pro­jec­tion by $9k and is due in part to a big bonus and max­ing all my retire­ment accounts.
Year 4 (2017): Age 27
Net worth e$200k
Max 401k
Max Roth IRA
buy a house
Com­ments: No work­ing over­seas for the fore­see­able future 🙁 I vest­ed my pen­sion and will max out all my retire­ment accounts. I bought my first mul­ti-fam­i­ly prop­er­ty! I pre­dict my net worth will be $200k by the time 2018 rolls around.
Year 5 (2018): Age 28
Net worth e$276k
Max 401k
Max Roth IRA
buy anoth­er house
Com­ments: I’ll be eli­gi­ble for a new job in the spring, so I could get anoth­er promotion/raise/moving allowance. I’ll buy anoth­er mul­ti-fam­i­ly prop­er­ty and rent it out. I could also move in/to be with my boyfriend. Esti­mat­ed net worth is $276k.
Year 6 (2019): Age 29
Net worth e$357k
Max 401k
Roth IRA
buy anoth­er house??
Com­ments: Maybe live over­seas? Maybe quit the W2 job? Maybe buy more prop­er­ties? Life starts get­ting a bit hazy here. Esti­mat­ed net worth is $357k. Holy smokes is that start­ing to pick up steam with a vengeance.
Year 7 (2020): Age 30
Net worth e$445k
Max 401k
Max Roth IRA
LANDLORD EXTREME???
Com­ments: MOAR PROPERTIES??? I should prob­a­bly not buy so many prop­er­ties that I start to become a hoard­er. Awk­ward. Net worth esti­mat­ed to be $445k. WOWZAS.
Year 8 (2021): Age 31
Net worth e$538k
Max 401k
Max Roth IRA
prob­a­bly done buy­ing prop­er­ties
Com­ments: Ok this is just get­ting ridicu­lous. I’d have one more year left at this rate…. and I’d be 31. FIST PUMP BRO! Esti­mat­ed net worth is $538k, as I’m sure you can see on the left there.
Year 9 (2022): Age 32
Net worth e$639k
Max 401k
Max Roth IRA
Com­ments: So yeah…. once I hit that mag­ic FI num­ber I’d prob­a­bly quit. That com­pound inter­est is ridicu­lous though. RIDICULOUSLY AMAZING! Esti­mat­ed net worth would be $639k, which would be rough­ly $25,560 income every year per the 4% rule. That’s more than enough to live off of with a PT job for fun mon­ey.
Year 10 (2023): Age 33
Net worth e$746k
Max 401k
Max Roth IRA
Com­ments: Or I could work a bit more and make my net worth even high­er! This would get me $29,840 income per year. Hol­l­laaa
Year 11 (2024): Age 34
Net worth e$861k
Max 401k
Max Roth IRA
Com­ments: One more year of cal­cu­la­tions just to keep the tables the same length. This would be- wait for it- $34,440 income per year which is a lot of padding and awe­some­ly amaz­ing.

Hon­est­ly, despite my some­what flip­pant atti­tude in the com­ments above, I’m kin­da freak­ing out a bit. That is some INSANE com­pound inter­est-ing going on in those accounts.

Insane in the Mem­brane

$100k+ jumps in net worth in one year??? Seems a bit out­ra­geous but that’s what the num­bers say. I will be very inter­est­ed to see what next year’s num­bers look like for this series to see if I’m close at all.

Just in case you like pret­ty graphs, I made a pret­ty graph to chart the num­bers list­ed above. 2015 is the bot­tom line, 2016 is the mid­dle line, and 2017 is the top line. It’s also log­a­rith­mic, by the way. Log 4 is what Google Sheets says.

I updat­ed the FV for­mu­la from $7500 to $15,000 per quar­ter since I seemed to be doing such a ‘bad’ job at pre­dict­ing the future last time. Dou­bling the pre­dict­ed amount is noth­ing to sneeze at!

Also take into con­sid­er­a­tion that this is sole­ly mon­ey I earn until I retire ear­ly. This chart doesn’t include mon­ey com­ing in from Social Secu­ri­ty or my new­ly vest­ed Defined Ben­e­fit pen­sion! If SS sticks around, I could poten­tial­ly start get­ting $1800 a month extra! But I feel like that would take a minor mir­a­cle since I’m so young. Sigh. It’s nice to dream about!

Where do you think your net worth will be at the end of the year? In 5 years? Any­one want to place a fun side bet?

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30 thoughts on “My 10 Year Plan: 2017 Update

    • Yeah there’s a lot I left out in the post. This is most­ly just to focus on how much my NW could grow if I keep this whole crazy FI thing going.

  1. Fan­tas­tic work! Plans to hire prop­er­ty man­agers to lessen your load, espe­cial­ly if mov­ing over­seas? Plan to con­tin­ue to pur­chase prop­er­ty in your area or look out­side for opti­mal return pur­pos­es? I’m still look­ing at var­i­ous ways to improve cash flow in FI, but with­out active man­age­ment or any work on my part 🙂

    • Yes I will absolute­ly hire a prop­er­ty man­ag­er. All the prop­er­ties I buy have that built in. I still am look­ing in my area since the returns are bet­ter than just about any mar­ket I’ve seen.

    • It’s so awe­some! Of course this is all pred­i­cat­ed on the mar­ket con­tin­u­ing to climb so we’ll see how that goes. I rec­om­mend it! It’s def­i­nite­ly a fun exer­cise even if the formula/figuring is a lit­tle crude.

  2. Nice job, Gwen!! You’re real­ly plow­ing for­ward full steam ahead.

    That graph though! Maybe I’ll need to work on incor­po­rat­ing FV into my spread­sheet 🙂

    Inspi­ra­tional post, for sure!

    Cheers,

    FM

  3. Not to be a ‘down­er’, but what hap­pens if the mar­ket takes a turn for the worse? Some­thing like 2008 or 2000? I didn’t read your invest­ing strat­e­gy, so for­give me if this has already been answered some­where.

    • Yeah this is all high­ly depen­dent on the mar­ket con­tin­u­ing to climb. The FV for­mu­la has this pegged at 7% growth. Obvi­ous­ly I don’t think the mar­ket won’t crash at some point but I’m in the buy and hold camp so I won’t be sell­ing as much as pos­si­ble in a down mar­ket.

  4. I bet it’s a lot of fun to see how things progress year to year 🙂 Are you hop­ing to have kids in the future? How do they fac­tor into your plan if so?

    • It quite hon­est­ly blows my mind to see the progress each year. It’s one of the best parts about writ­ing a blog!

      I’m cur­rent­ly unde­cid­ed on kids. With the right part­ner, I wouldn’t hes­i­tate. Just depends on who I end up with and if we decide to have them. I don’t think they’ll impact spend­ing too much. There are ways to keep spend­ing down on kid­dos.

  5. Good stuff! Gwen, when you fac­tor social secu­ri­ty remem­ber that it is based on your high­est 30 years of wage income. So with FIRE you would have a lot of zeros to account for in the math. Def­i­nite­ly not a rea­son to avoid ear­ly retire­ment, but just to keep in mind that your annu­al social secu­ri­ty state­ment (where I’m guess­ing that $1800 fig­ure came from) assumes that you will con­tin­ue work­ing til retire­ment age.

    • That $1800 fig­ure came from my pen­sion of $1100 plus an esti­mate for SS. Of course, I’m not actu­al­ly count­ing either of those in my pro­jec­tions because who knows if they’re still going to be there in 35 years.

  6. Impres­sive tra­jec­to­ry on the net worth! You’re real­ly get­ting that snow ball rolling. Hope­ful­ly your boyfriend is on the same page as you are finan­cial­ly and aspi­ra­tional­ly, that’ll make merg­ing finances eas­i­er. I’m huge­ly for­tu­nate my wife and I have always had the same finan­cial goals in mind, it makes life so much eas­i­er!
    The Green Swan recent­ly post­ed…Retire­ment Income Draw­down Part 2: Infla­tion and Mar­ket ReturnsMy Profile

    • If any­thing, he’s a few pages ahead of me! He and I are very aligned on our finan­cial goals and aspi­ra­tions. It is the best feel­ing ever to be with some­one who not only under­stands why I’m doing these things, but encour­ages me and inspires me to do bet­ter.

  7. Dang — how’d I miss this! First I would like to say you are DRIVING ME CRAZY with your 23500/yr cal­cu­la­tion. I need whole num­bers! Even if you are not using your FI num­ber any­more I am bump­ing you up an extra $500 per years to make it 24k = 600k FI. 🙂 I seri­ous­ly have the twitch­es right now.

    Beyond that, I love the idea of a 10 year pro­jec­tion. Even if it is loose­ly based with soooooooo many fac­tors to con­sid­er, it is fun to look back and see where your head was at. I think some­one recent­ly men­tioned an app/website that you can write your future self a let­ter and it will send it for you in 5 years or what­ev­er. I need to get on that. I mean, I know the blog is basi­cal­ly that but some­thing I can’t look back on and cheat! When I come to vis­it you can help me with the mathy stuff for my 5 year pro­jec­tion (in 10 years I’ll almost be 50!! I don’t want to think that far!).
    Miss Mazu­ma recent­ly post­ed…Make The First MoveMy Profile

  8. Con­grats on all your progress and con­tin­u­ous­ly look­ing for­ward. You will be in FI in no time. Maybe one sug­ges­tion I have is to take it easy. I used to track my NW very intense­ly but it end­ed up giv­ing me a lot of pres­sure. Enjoy the jour­ney and I am sure you will get there before you know it.
    Mao recent­ly post­ed…The ONE thing that Amer­i­cans can do bet­terMy Profile

  9. Wait until this cur­rent real estate bub­ble bursts and be poised to strike on prop­er­ty 2. I’m pret­ty sure we’ll get a nice lit­tle dip in the not so dis­tant future (1 to 2 years maybe)? I’ve been chomp­ing at the bit to add prop­er­ty #5 but the twin cities mar­ket is INSANE. I would be look­ing else­where, but I’m not ready to go Paula Pant just yet.

  10. Your blog has been such an inspi­ra­tion to me! I love read­ing your posts and updates, they always get me so pumped up for the future. I have so much faith in you just from read­ing your posts, I know you’ll be able to reach your goals in no time. Your blog, and a few oth­ers, have inspired me to start my own jour­ney.

    I began my jour­ney in April of this year, so I’m pret­ty fresh on the FIRE train. My cur­rent net worth is $18,778 (on my blog I have it at -$4,800 because I wasn’t includ­ing my truck in my net worth until now). I’m hop­ing by the end of the year I will get it up to $19,300. I don’t have a job right now so I’m not expect­ing a large growth here. How­ev­er, I am a licensed Real­tor, so if I sell any hous­es this goal may change dras­ti­cal­ly 😛 Or for me it would be dras­tic any­ways.

    In 5 years, my goal is at least $200,000. I don’t know what my future holds or what kind of income I will be mak­ing in the future but con­sid­er­ing how lit­tle I spend, I think I’ll be able to do this eas­i­ly as long as I avoid lifestyle infla­tion and put my mon­ey in the right places.

    I also bet you’ll exceed your goals!

    Good luck!

  11. Pret­ty Impres­sive! The way you shared your goals is just amaz­ing. I think one should have plans after retire­ment to live a com­fort­able life. Thank you for shar­ing such a nice infor­ma­tion with the users.

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