Four Years In!

 

Today marks the completion of four years of retirement and the first day of year five.  So far, so good!  It has definitely been a journey, but a journey well traveled.  I am settling into retired life rather nicely, learning a lot about myself and enjoying my own company on the regular while I make my way through each day.  It has been a rather remarkable time in my life.

 

In reviewing my finances I was pleasantly surprised to see that my overall net worth has changed a bit from where I was when I retired in 2022 and for the better!  With careful spending and adhering to a budget I’ve been able to live rather well with the proceeds from my very part time job which has allowed me to continue investing and growing my wealth.  Hip, hip hurray!  By working an average of fifteen hours a week at my dream job I have been able to pay the utility bills, buy my groceries, clothing, fill my vehicles with fuel as well as maintain them and have some fun too.

 

I had a certain amount set aside to cover my expenses these first years while I waited to turn 62 and start collecting social security this year in September.  I also have an emergency fund, which I am fortunate not to have needed to touch.  I was able to use some of the extra money leftover from my retirement funds to buy the Subaru and complete repairs, pay my annual insurance payments each year, plus have a tree service come and remove a dying maple tree and prune my big sycamore.  By reinvesting other funds I have made enough to cover those expenses and then some so as of today I have not just broken even, but I’m ahead.  Because I have been doing so well, I was able to increase my Fun & Leisure budget this year and I am able to be a little more generous with my grocery spending as well.

 

Some of you have questioned the wisdom of taking Social Security at age 62 and suggest I wait, but I can assure you that the numbers have been crunched and I’ve met with my financial advisor to ensure this is the right decision for me, especially as my “break even” age is 79¾.  The pros far out way the cons.  Remember, finances are different for everyone and decisions in that regard need to be structured for each individual.  My plan is to wisely invest those funds and continue to grow my wealth so I am very comfortable with this decision.

 

Currently I do not have any big travel plans, but I do have some smaller scale ideas I am working on.  I plan to do more entertaining and going out with my friends this year too.  Other than that I imagine it will be business as usual.  I am rather pleased with how well things have been going.  With all of that in mind I am definitely ready for year five.  Time to get busy!