Last year I wrote 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. I want this be a (yearly) returning blog post, so I used the numbers of January 1th of each year.
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.
With a weighted dividend Yield of around 3.5 % and a weighted average dividend growth rate of around 7% a yearly growth of 12% must be do able.
|Weighted average Yield||3.66%||3.57%|
|Yearly fresh capital||€5,000||€5,000|
|Future value 2023||€185,000||€192,000|
|Future value 2038||€1,200,000||€1,236,500|
I still cannot retire when I turn 50 (booh, booh). One year of hard work resulted in approx. €7,000.- of extra future value (in 2023). It is small, but it still is some extra value. And thus some extra future dividend. I hope that next year when I make these calculations I ‘m able to say. I can retire at least one year earlier.
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?