I have decided to move to quarterly net worth updates as monthly ones started to become a bit repetitive and didn’t really add any extra value or insights for me any more.
I keep meaning to post on other topics but never seem to have the time to sit down and do it.
Looking back over the last three months since my previous update, time really has gone by fast and my planned fire date is only 2 years away now. I have started easing back on the work already, but it still ebbs and flows, and the kids continue to keep us mega busy.
We had a nice Christmas and new year, mainly relaxing at home watching trash tv, though we did fit in a few days out.
A trip to Manchester on the bus saw us take in the Christmas markets, have a spot of lunch and finish up with a Virtual Reality session for the 4 younger ones.
We also had a night away in York with the 4 youngest kids. We browsed the Christmas markets, went to York dungeons and had plenty to eat and drink. We thought we may have to spend Christmas in York as the return trains kept getting cancelled due to the Christmas eve strike. We managed to get back ok in the end though, albeit delayed.
We brought in the new year at home for a change as me and Mrs fu normally go out, and after new year’s day we took the kids go-carting which was great fun, quite expensive, but worth it.
On the financial front, we have moved forward over the year (+£23k) but not as much as the previous year (+£176k). This is due to equity markets performing badly and a slowing in house price growth.
What does the coming year have in store for us?
I have not set any new goals or resolutions, other than to carry on along the same path to FIRE in April 2025 and keep trying to be intentional.
I continue to think about and refine my decumulation plans and ideas, especially around withdrawal rates. I intend to use a dynamic withdrawal strategy rather than the basic 4% rule, and I will explain more in a future post.
The eldest 3 kids are doing well at work and are still investing for their FIRE journey. Updates coming soon.
FU#4 does his GCSE’s this summer, and is currently trying to decide what he is doing next, either A levels or an apprenticeship.
Fu#5/6 do their GCSE’s the following year, so it may be that when we FIRE all the kids are in work!
Time really does fly.
The Numbers
Original FI Target – £1.25m – to give £50k/year income @ 4% withdrawal rate.
Current FI value – £852k networth+ £481k (2xState pen £19.2k x 25) + £88k (DB pen £3.5k x 25)) = £1.417m
% to Target FI – 113.8% (113.4% last quarter)
Time to FI = Achieved! (achieved-April 21)
QUARTERLY UPDATE AND GOALS
Last quarters figures in brackets
Net Worth Q4 ’22 – £852,658 (Q3 ’22 £848,073) +0.5% +£4,585
Assets – £1,056,557 (£1,048,377) +0.8% +£8,180
Cash/bank £8361 (£7975)
Main Home Q4 £520,138 (Q3 £531,104) -2.1% -£10,966
Rental Properties Q4 £214,557 (Q3 £219,080) -2.1% -£4,523
Pension SIPP £313,501 (£290,218) +8% +£23,283
Liabilities – £203,899 (£200,304) +1.8% +£3,595
Main Home Mortgage £76,250 (£77,300)
Loans, Debts and credit cards £127,649 (£123,004)
Overall Net Worth in Q4 increased by £4.5k. A rebound in my SIPP offset a 2% fall in property values.
Rolling year-on-year change in net worth from Q4 2021 is +£23,700 (assets +£38,584 liabilities +£14,884)
Since we began tracking in June ’18, our net worth has increased by £438k, at an average of £8.1k per month.
Property
My house price YOY change +5.99%. (Q4 2021 – Q4 2022 NW England)
The Equity in my main home is £443,888.
Main home and rental property values are calculated using the Nationwide House price index.
Nationwide’s December ’22 update reports annual house price growth continued to slow sharply at the end of 2022.
The UK annual % change in house prices is +2.8%, with a UK average house price of £262k.
Dividends
I am just keeping track of rolling 12m average from now on.
Rolling 12m average is £781/m (£763/m last quarter)
Other Monthly/weekly goals
Matched Betting £0 this quarter (£0 last quarter)
Didn’t do any MB this quarter.
Total to date since starting 62m ago £13934 Av. £225/m (£13934 to last qtr. Av. 240/m), broken down as follows.
Casino/slot offers to date £7006(7006) = +£0 this qtr.
Each way sniping to date £625 (£625) = £0 this qtr.
Normal match betting offers £0 this qtr.
Diet and Fitness
Put a couple of kgs on this qtr. to 78kg and 24% body fat . (76kg, 22% body fat last qtr).
My target is to get to 70kg and/or under 15% body fat.
eBay/selling – Nothing done this qtr.
Hi Fu, I always enjoy your updates you’ve some similarities to me (mid-forties, kids, wanting to Fire in next few years) so I can relate to them.
I’m curious if you’ll do a post on you decumulation thoughts/plan. My dilemma is the bridge from FIRE to state pension and the house equity. I take a conservative approach and strip it out of the net worth.
Any thoughts or saving it for a later post?
Hi Peter
Thanks for your comment.
Yes, I do plan to do an updated decumulation post, but basically I am using a higher withdrawal rate from my SIPP until state pension kicks in. I have modelled the cash flow out on a spreadsheet so should be ok without the need to tap into equity in my house. Stripping out house equity would mean I would work for far longer than necessary.
Cheers