Polliesdividend

When do I reach FI? – Post 2017

Since the beginning of my blog, once a year, I write a post in which I calculated when I would reach FI.

 

I want to track my progress, so lets do the same calculations with recent numbers. This is  a (yearly) returning blog post, so I used the numbers of January 1th of each year.

 

www.polliesdividend.com

 

I crunched these numbers and calculated the future value of my Vrijheid Fonds for the year I will turn 50 and for the year I will turn 65.

When I know these values I can calculate my future dividend in these years. I’ll need about € 40,000 per year to keep up the same life style. So my Vrijheid Fonds needs to be approx. € 1,1M before I can live of my passive income.

 

2017

In the beginning of this year my weighted dividend Yield of my Vrijheid Fonds was around 3.2%. This is lower than last year, because of the increase of the share prices. Have we reached the top yet? I don’t know, what I do know is that the yield of most of the stocks is historically low.

The weighted average dividend growth rate of around 4.45% and also lower than last year. This is mainly due to the oil stocks that haven’t raised their dividend (significant). To compare the data with the past years I use the same overall yearly growth of 12%.

 

  2015 2016 2017
Value €55,050 €63,965 €79.156
Weighted average Yield 3.66% 3.57% 3.20%
DGR 6.92% 6.86% 4.45%
Yearly fresh capital €5,000 €5,000 € 7,000
Yearly growth 12.00% 12.00% 12.00%
Future value 2023 €185,000 €192,000 € 213.046
Future Dividend €6,800 €6,850 €6.817
Future value 2038 €1,200,000 €1,236,500 €1.427.081
Future Dividend €44,000 €44,100 €45.667
Possible retirement year 65 64 63

 

The same as last year, I still cannot retire when I turn 50 (booh, booh). One year of hard work resulted in approx. €20,000 of extra future value (in 2023). It is small, but it still is some extra value, and thus some extra future dividend. And I’m happy to say that with these numbers I can retire one year earlier 🙂 Yeah!!

This is mainly due to the higher yearly fresh capital I put into my beast.

And yes I know this is just a simple calculation with a couple of assumptions. So these are not hard data. It just gives me a direction and shows me that I’m on the right track.

What can I do to speed this up? Keep pumping in fresh capital as much as possible and as early as possible. So this is what I’m going to do.

At what age do you reach FI?
What is your advice for me, to reach FI sooner?

Cheers,

Pollie

 

 

 

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6 thoughts on “When do I reach FI? – Post 2017

  1. Mr. Robot

    Great writeup Pollie. I’ve no idea whaen I will reach FI but for me thats not the end goal. I want to be able to have the (or in worst case more) freedom to choose how I live my life.

    As to how to achieve FI faster, the only thing I can think of which you probably are already doing is sidehustling as much as you can to add fresh capital above your normal rate of deposits.

  2. Leon

    Funny i also calculated at 50 years to must have an passieve income off €40.000
    From 50 to 67 is 17 years x €40.000 = €667.000 to have in stocks value.
    Not 1.100.000 as you have, cause why would you have still 1.100.000 in stock value when your 67?

    1. Pollie Post author

      Hello Leon,

      Thanks for stopping by and taking the time to write a comment.
      I agree with you that you need € 667k to “survive” from 50 till 67
      However if you only have this amount, you will eat up your portfolio in these 17 years.
      My 1.1M is based on approx. €40.000 of passive income from my portfolio. To generate this amount of passive income, your portfolio needs to be around 1.1M. My passive income will still be here after I turn 67!
      And thus with doing this, I don’t eat my “goose” but only her golden eggs.

      I hope this answers your question. We both are right, but only have a different approach and longterm perspective.

      Cheers,
      Pollie

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