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.
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.
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%.
|Weighted average Yield||3.66%||3.57%||3.20%|
|Yearly fresh capital||€5,000||€5,000||€ 7,000|
|Future value 2023||€185,000||€192,000||€ 213.046|
|Future value 2038||€1,200,000||€1,236,500||€1.427.081|
|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?