4 Years Of Early Retirement: Finances, What’s Changed And What’s Next?

How have I now been retired longer than I held my longest job? Longer than I was in college? Longer than any period in my life? Literally how 🙂 ? I have no idea, but it’s true. Time is flying and I’m celebrating completing Year 4 of my early retirement!

So to commemorate the end of my fourth retired year and get pumped for the 5th, I wanted to go over where I’ve been, what I’ve spent, any revelations I’ve had, and what’s next in retirement 🙂 . Let’s get into it!

Year 4: Where In The World Is Purple? 

In case you want to catch up, here are the recaps from previous years:

• 1 Year Of Early Retirement: Spending, Accidental Income, What’s Changed And What’s Next?
• 2 Years Of Early Retirement: Finances, What’s Changed And What’s Next?
• 3 Years Of Early Retirement: Finances, What’s Changed And What’s Next?

In Retirement Year 4, I visited these US states🇺🇸:

1. New York
2. Texas
3. California
4. Nevada
5. Arizona
6. Massachusetts
7. New Hampshire

I also visited these countries:

1. Australia🇦🇺
2. New Zealand🇳🇿
3. Singapore🇸🇬
4. México🇲🇽
5. Costa Rica🇨🇷
6. Canada🇨🇦
7. Iceland🇮🇸

I went around Australia🇦🇺 to fulfill a lifelong dream of snorkeling the Great Barrier Reef and shockingly it lived up to my high expectations 🙂 .

• Review: Down Under Cruise And Dive – A Great Barrier Reef Snorkeling Adventure
• The Month Of Australia: September 2023 Recap

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I also visited New Zealand🇳🇿 for the first time. My Mom and I visited Auckland, Milford Sound, Queenstown and the famous Glowworm Caves.

• Review: Glowworm Waitomo – Ruakuri Cave Tour From Auckland, New Zealand
• The Month Of New Zealand: October 2023 Recap

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My Partner and I then lived in Puerto Vallarta, México🇲🇽 for 6 weeks to enjoy some sun while winter spread across the US.

• Review: Los Arcos Snorkeling Tour in Puerto Vallarta, México
• The Month Of Puerto Vallarta: November 2023 Recap

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After popping back to the US to celebrate the holidays, my Partner and I then set off to spend 2 months in San José, Costa Rica🇨🇷.

• Slow Travel Review: San José, Costa Rica – The Land Of Pura Vida
• The Month Of Costa Rica: February 2024 Recap
• The Month Of San José: March 2024 Recap

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We then headed back to the US specifically to see my first Total Solar Eclipse. Here’s how that went:

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• The Month Of The Solar Eclipse: April 2024 Recap

After that we did a roadtrip with my Mom across California to see Lake Tahoe, the giant redwoods at Muir Woods and Yosemite National Park. It was a lovely time.

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I then went over to Arizona to visit some friends and have a family reunion before heading back to the Northeast US for the summer.

• The Month Of Arizona: May 2024 Recap
• The Month Of Upstate NY: June 2024 Recap

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Then my Partner and I headed back to Montréal, Canada🇨🇦 – the first international location we’ve visited twice, let alone two summers in a row. We spent a fantastic two months there exploring all the free festivals summer brings to that city.

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And I’m currently circumnavigating Iceland🇮🇸 and too busy seeing everything this gorgeous country has to offer to post pictures of it, but those posts are coming on my Insta soon…ish 😉 !

Year 4 Spending

Before I get ahead of myself though, let’s see how much I spent living in 7 US states🇺🇸, Canada🇨🇦, México🇲🇽, Costa Rica🇨🇷, Australia🇦🇺, New Zealand🇳🇿 Singapore🇸🇬 and and Iceland🇮🇸 in my fourth year of retirement! Here’s the full picture:

Retirement Year 4 Spending Goal: $23,400

Actual Year 4 Spending: $22,187.21

I’m going to do a full breakdown of my spending in December like I have every year if you want to know the details, but overall, I’m pleasantly surprised that all this travel hasn’t broken the bank 🙂 . In fact I was 5% under-budget despite all that’s happened in the last year. Nice!

Year 4 Net Worth

So that’s how much I spent, but how has my money changed since I retired?

2020

Investments: $500,000
Cash: $40,000
TOTAL NET WORTH: $540,000

2024

Investments: $812,534
Cash: $48,972
TOTAL NET WORTH: $861,506

And here’s how my net worth has grown since I graduated college in 2011 with $5,000 (final 2024 numbers are obviously pending):

As you can see, when I retired I had a net worth of $540,000 including $40,000 in cash. As of this writing, I have a total net worth of about $861,506 including $48,972 in cash. That’s an all-time net worth high for me. Madness!

Originally the unexpectedly slow drain of my cash cushion was a result of a few thousand dollars of my taxable account’s dividends being deposited into my Ally High-Yield Savings Account, and a small amount of accidental income I’ve made. I always break that down fully in my annual December income post, so look out for that this year. As an example, here’s that post from 2023:

• How I Made $4,359 While Retired In 2023

However, the $40,000 I saved in cash when I decided to retire in 2020, was supposed to run out long before that time, but it didn’t. So to celebrate entering Year 4 of retirement last year, I finally touched my portfolio and withdrew $20,000. I then re-upped my cash recently for Year 5 recently. If you’re curious how I sold my investments, I walk through that here:

• How I Sell Investments To Fund My Retirement: A Step-By-Step Guide

Revelations

I Found A Food Balance!

I mentioned in last year’s retirement recap that one of my focuses this year would be finding a food balance. I love food and one of the ways I most enjoy exploring a new country or city is through its unique food.

However, after a lot of trial and error, I’ve discovered that my body feels best when I eat keto and the local delicacies of a new location are rarely carb and sugar free 🙂 . I was looking for a solution to both enjoy one of my favorite things and also feel my best and I think I’ve found it!

I mapped out my entire year and where I would be each day, and then made a plan for the days that I could be keto and the days I would focus on exploring less keto friendly cuisine. Previously, I wouldn’t take a keto day here or there because it used to take my body about a week to re-enter ketosis so it didn’t make a lot of sense to me.

But I started realizing recently that my body has been much quicker about that transition recently. So I mapped my whole year, identified when I would be keto, and then made meal plans that I could easily shop for and cook in different countries. And it’s been going really well!

I’ve eaten absolutely delicious things in multiple countries and was still keto most of the time and have lost 26 lbs of my pandemic weight. Wins all around!

International Holidays

After my adventure accidentally traveling to Canada on Canada Day, I got more serious about checking international holidays before traveling abroad.

• Review: Greyhound/FlixBus – Albany, NY to Montréal, Canada

I mentioned this challenge to a reader and they had a fantastic suggestion. Apparently, Google has a set holiday calendar for every country, which totally makes sense, but I’d never thought about it. And it’s super easy to add these to my Google Calendar so now when I’m planning travel and glancing at my calendar, I’m aware if a local holiday might present a challenge to my travel plans.

All I have to do is go into Google Calendar and then:

• Go to the left side toolbar
• Scroll down to Other Calendars
• Click the + icon
• Select Browse Calendars of Interest
• Scroll to Regional Holidays
• Click Browse All
• Then select all the country calendars I want to add!

Multi-City Flights

Since I ping pong all over the world with my nomad travels, roundtrip flights have been a thing of my past. I book one-way flights, which at times cost just as much as a roundtrip flight nonsensically.

However, this year I’ve learned a new tip. At times a multi-city flight on one airline does save money over buying multiple one-way tickets.

On Google Flights, there is a button to select One-Way, Roundtrip or Multi-City flights. This is the tool I use to compare if doing a Multi-City ticket would save me money.

I then weigh the pros and cons because if I have multiple flights on one ticket, it can cause problems because they are all connected and you often can’t just cancel one leg of the trip or not show up without the whole itinerary being thrown in the garbage. But when those things don’t matter, I book multi-city!

I did this on multiple domestic flights this year, such as one from Sacramento to Phoenix and then to Albany a week later. I also learned this trick can help internationally as well.

When I was planning my Iceland trip I learned that IcelandAir Multi-City is a free-for-all. They don’t care about what city you’re leaving from or arriving to and it still counts as Multi-City.

So I paid $917.10 total for a ticket from Boston to Iceland and then a week later from Iceland to Zurich and then months later from Amsterdam to NYC. Awesome 🙂 .

No Sequence Of Returns Risk Worries

So I’m entering my 5th year of retirement and I already have the cash I’ll be spending. I don’t need to touch my portfolio again until the beginning of Year 6.

I’ve basically gotten through the worst sequence of returns risk of my retirement and it went better than forecasted financially, (despite starting my retirement in 2020, which was not looking like sunshine and roses when I was in it). I obviously still need to keep an eye on my investments and spending until Year 10 when I’m basically in the clear, but the most vulnerable years are behind me and that feels really cool!

What’s Next?

So that’s where I am after 4 years of retirement. Financially, things are going swimmingly. I’ve topped up my cash and have more than enough for Year 5 of retirement.

Overall, I’m still the happiest, most mentally stable and physically fit I’ve ever been. As for my day-to-day life, in Year 5 I’m excited to continue exploring the US and the world including trips to Switzerland🇨🇭, Italy🇮🇹, The Netherlands🇳🇱, Japan🇯🇵, New Zealand🇳🇿, The UK🇬🇧 and Peru🇵🇪!

So that’s what I’m up to. Let’s see what Year 5 holds!

Do you have any questions for me about Retirement Year 4?

Also if you’re interested in a more in-depth look at what I’ve been up to in Year 4, here are my monthly retirement recaps from the past year:

1. The Month Of New Zealand: October 2023
2. The Month Of Puerto Vallarta: November 2023
3. The Month Of Warmth: December 2023
4. The Month Of Family: January 2024 Recap
5. The Month Of Costa Rica: February 2024 Recap
6. The Month Of San José: March 2024 Recap
7. The Month Of The Solar Eclipse: April 2024 Recap
8. The Month Of Arizona: May 2024 Recap
9. The Month Of Upstate NY: June 2024 Recap
10. The Month Of Montréal: July 2024 Recap
11. The Month Of Canada: August 2024 Recap
12. The Month Of Iceland: September 2024 Recap