The Full Financial Breakdown at Early Retirement

Here we are, at our very last quarterly financial update post chronicling the journey to early retirement. (Insert Kevin McAllister from Home Alone scream here. Which I may have watched more than once over the holidays. It holds up, you guys.)

While there’s a ton we have no idea about in early retirement — what will we be doing five years from now? how long will it take us to learn the skill of not filling up our schedules? what oddball hobbies will we fall head over heels in love with? — we feel more than solid on the financial side, which you’ll see here in more detail than I’ve shared before.

And while you’re free to say this in the comments, too, I’ll head some of y’all off and say: Yes, I know it will look to plenty of folks like we overprepared. And that’s fine if you think that. Each of us has to figure out our own comfort level with savings, withdrawal rate and all the rest. Our comfort level on financial stuff is more conservative than some others’, namely because of all the health care unknowns, the bubbly-feeling state of the economy, the cost of long-term care down the road and a bunch of other factors that folks tend to underestimate.

Plus, as I said to a new friend at the Longmont meetup yesterday, we’d much rather have our names on NPR as program sponsors for years after we die than risk running out of money. Far better, in our view, to leave behind a charitable legacy and to have overshot than to hit some bad sequence of returns, follow that with an extended flat market, and realize in our late 70s, when it’s too late to do much about it, that we don’t have enough. Being able to possibly oversave and still retire at 38 and 41? That is a, ”Pinch us!” moment, and not, ”Doh! We worked too long!”

But let’s actually get to the show-and-tell portion, so you can see what I’m talking about. Without further ado, it’s the full financial rundown at the time we’re reaching the goal post (or the starting line, depending how you see the early retirement journey). And keep reading to the end, where I share much more concrete detail than I have before!

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