2021 marked the first full year of our lifetimes living under global pandemic conditions, and hopefully it will be the only one! Despite the continuing authoritarianism, economic upheaval, suffering and fear associated with the COVID-19 coronavirus pandemic, the U.S. stock market had another incredible run last year.

For the full year, the S&P 500 returned nearly 29%, including reinvested dividends. Returns in the fourth quarter were particularly strong, at around 11%, which helped our portfolio bounce back from a move in the wrong direction during Q3.

As we begin 2022, we’re closer to financial independence and early retirement than we’ve ever been. I’m cautiously optimistic this may be the year when we can finally exit the rat race – potentially a year later than originally hoped when I started writing here in 2017, but in line with my thoughts when we reset our plans in the early stages of the pandemic. For the first time since we started on this journey, we’ve achieved two of the three long-term financial goals we’ve been pursuing.

Of course, plans are always subject to change. Bidenflation continues to eat away at the purchasing power of Americans, supply chains around the world remain disrupted, and coronavirus cases are still near record levels as we approach two years since we first heard the phrase “15 days to slow the spread.” Three weeks into 2022, our finances look materially worse than they did at the end of December, as the S&P 500 has dropped over 7% already this year, and the NASDAQ has plunged around 11%! Hopefully markets will stabilize in the coming weeks, and over the next few months emergency measures associated with the pandemic will evolve into a common sense approach to potentially living with endemic conditions as we get closer to warmer weather in the Northern Hemisphere.