Browse Category: Our Path to FIRE

Our Path To Fire

When Is Enough, Enough?

Financial IndependenceBased on its title, you may be surprised to learn this post isn’t going to be about figuring out how much money you might need to achieve financial independence.

We’ve already written about the 4% rule, and we’ve also outlined our financial goals as we track our progress towards FIRE.

Looking solely at the numbers, I know our family is over 75% of the way to our definition of financial independence, and that if nothing significant changes in our lives, we are likely to reach our target in less than four years.

Today, when I ask when is enough, enough, I am being more philosophical.

Continue Reading

Q3 2017 Financial Scorecard: 75% Of The Way To FIRE!

Financial IndependenceAs we head into autumn, the leaves are changing colors, the baseball playoffs are underway, and football season is heating up as the weather is cooling off.

Which can mean only one thing for the ROMT family: it’s time to report on our financial progress during the third quarter!

Publicly tracking our progress towards financial independence and early retirement has really focused our attention on the topic. I’m pleased with the progress we made over the past three months on our Net Worth, 529 Account Funding, and Passive Income goals. We still have a lot of work ahead of us, but during the third quarter we were heading down our path to FIRE with all cylinders firing!

Without further ado, let’s take a look at our progress as of September 30, 2017:

Continue Reading

ROMT’s FIRE Prowess Score

FIRE Prowess ScoreLast month, The Green Swan introduced a new FIRE metric that has received a lot of attention, the Swan FIRE Prowess Gauge.

FIRE Prowess is easy to calculate. It’s simply the change in your net worth, divided by your gross income, for any time period.

FIRE Prowess = Change In Net Worth / Gross Income

Most of us will have FIRE Prowess scores between 0.0x and 1.0x. The higher your FIRE Prowess number is, the better you are doing at increasing your net worth.

Numbers above 1.0x mean your net worth is growing faster than your income, which is an incredible result, presumably driven by both a relatively frugal lifestyle in the context of your income, and strong investment results.

A negative number means your net worth is headed in the wrong direction, which could be caused by spending more than you earn, a job loss, borrowing money to purchase depreciating assets, poor investment performance, or many other factors.

Continue Reading

Quarterly Financial Scorecard: Q2 2017

Early Retirement
Could early retirement really be just four years away? We still have a lot of work to do!

Last week, I outlined how I plan to measure our progress during our quest for financial independence and early retirement.

Today, we’ll open the curtain into our finances for the first time, and share where we stand in relation to our Net Worth, 529 Account Funding, and Passive Income goals as of June 30, 2017 – just four years before our target FIRE date of Friday, July 2, 2021.

I. Net Worth: 73.1% of Goal

Our net worth declined by 1.0% during Q2 2017. On the surface, this was a poor performance, as the S&P 500 was up 2.6% during the quarter. Not all of our assets are in the stock market, so the comparison is a bit unfair, but we’d still normally expect our net worth to rise with a strong stock market bolstered by additional savings and investments.

Continue Reading

How I’m Measuring Our Progress Towards FIRE

Early RetirementWhile there are many ways to measure progress towards financial independence and early retirement, I tend to focus on the numbers more than the less tangible aspects of the journey.

As we continue down our path to FIRE, I will post a Quarterly Financial Scorecard every three months, documenting our progress along the four dimensions I am measuring.

But before posting our Quarterly Financial Scorecard for Q2 2017, I want to outline what we are measuring during our quest for financial independence:

Continue Reading

If Nobody Reads What I Write, Am I Still Blogging?

ROMT Logo Square

Over the past couple weeks, I have written several posts about our family’s decision to purchase a home solar energy system.

Although I have less than two months of blogging history to base things on, my posts on solar energy have proven to be among the least popular topics I have written about, based upon the number of people reading them.

Amazingly, someone has actually found and looked at everything I have posted on this blog, which is focused on our quest for early retirement and financial independence. But as a newbie, I am still struggling to determine what people are most interested in reading about.

Do readers want cold, hard facts about personal finance, or more entertaining articles about my family’s financial escapades?

Continue Reading

How Learning About FIRE Has Changed My Life

ROMT Logo Square

It has been a couple weeks since I started this blog, and a few months since I began learning what FIRE was all about.

But I have been pretty serious about personal finance for almost a quarter of a century.

After getting my first job out of college, I had disposable income for the first time in my life.

Of course, I also had a lot of expenses I conveniently didn’t have to deal with while I was living with my parents.

Continue Reading

Welcome to Retiring On My Terms

Welcome to my blog, Retiring On My Terms.

In the interest of full disclosure, I want to be up front about what I believe are three key requirements to achieve financial independence and/or early retirement (FIRE):

Earn more.

Spend less.

Productively invest the difference.

I recognize this view is nothing revolutionary.

So why should I read what you have to say, you ask?

Great question!

Like every writer, I bring a different perspective than others to solving this equation. I hope parts of my background resonate with you, and that my postings make you want to read more.

I am married, and in my mid-40s, with two elementary school aged children. My wife has worked as a stay at home mother since our first child was born.

I work full-time. Besides my paycheck, our only income sources are interest and dividends. We own no rental real estate, and we don’t have any side hustles.

We live in a relatively expensive area of the United States. Although we generally purchase conservatively, our spending levels are less Spartan than those of many other FIRE bloggers.

I have a different perspective on investing than many others. I believe much of the conventional wisdom you have heard is correct. But I don’t think 100% of your portfolio should be in index funds.

I intend to retire from the full-time workforce before I turn 50, and before either of our children will be college age. We intend to pay for a significant portion of their college expenses, if that is the path in life they decide to pursue.

I hope you enjoy following our journey, and look forward to your thoughts.

Thank you for reading!

Disclaimer and Disclosure

Retiring On My Terms is for informational and entertainment purposes only. We are not financial advisors. You are responsible for your own decisions. Before making any financial decisions, you should consider your own financial circumstances, and consult with a professional advisor.

We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.