Am I FI?

As I noted in my post about my net worth at the end of 2023, said net worth went up quite a bit since the beginning of 2023. Actually, it went up by a lot.

I’m still thinking about my annual spending for 2023, but it’s clear that my net worth is more than 25 times that amount. My net worth is even more than 25 times my expected spending, i.e. my current spending, plus extra spending to cover health insurance costs, increased travel, anticipated large costs in the future (a new car, a new roof, etc.)

According to guidelines suggested by the Trinity study, if I have assets (liquid assets, no less) of 25 times my spending needs–such that I can live off of a 4% return–I ought to be able to live on my investments for the next 30 years. With a good chance of having lots left over for my heirs when I die.

So, am I FI (financially independent)?

Whether fortunate or unfortunate, I knew about my net worth before going to WCICON24.

I picked up a lot of tips at that meeting, but a few were, perhaps, less obvious to me until I returned home.

Since my return home, I’ve purchased an expensive mattress, some new bedding to go with, and started making plans for a very big trip (flying to Australia!!). I’m considering paying for nicer seats on the plane, since it’s a long trip to get there.

With all these large expenditures, and pipe dreams of more trips and outlays, (plus the ever-present risk of a drop in stock prices) it is not clear that I will remain FI for the rest of the year.

I supposed it’s just as well that I am more excited about some parts of my medical practice, and am not yet ready to hang up my stethoscope (cutting back on hours is totally on the table, however). This will give me a little time to see if my spending going totally off the rails, while allowing me to earn and save a bit more money in case it does.

I may not yet be totally FI, but I’m certainly getting closer.

What do you plan to do once you realize you are FI?