I knew me and my partner’s approximate net worth, but I had never calculated it precisely. Since I knew we were getting very close to a major milestone, I decided to calculate our assets down to the dollar.
Turns out, we had already crossed that checkpoint line after last week’s stock market uptick. We reached the big $1M in liquid assets!
Of course, that number change depending on how the stock performs in the coming weeks, but I view this as a major step toward financial independence.
According to the calculators, $1M should be enough for two of us and our dog to retire comfortably in Japan. But because I would be dealing with Japanese tax rules, I want to leave enough cushion for the 20% flat tax on investment gains, currency risk, and, of course, sequence-of-return risk.
My Honest Feelings Right Now
I thought I would feel more confident once I reached $1M. After all, so many FIRE calculators imply that once I hit that number, I am ready to fire my boss. But in reality, I still don’t feel ready at all. I don’t think I will feel ready even if I had additional $500K.
Some well-known FIRE advocates like Kristy Shen and Grant Sabatier targeted $1M as their FI number. But I am not them.
I am not good at real estate investment like Grant. I am also not interested in the kind of ultra-cheap travel lifestyle that Kristy and Bryce lives.
My main strategy is much simpler. Live in Japan and take advantage of lower inflation rate and strong US dollar. But what happens if those conditions change in the coming years? What is my plan B?
Well, surprise! I don’t have one.
My sort-of plan B is to find a temporary job in Japan, wait for the US market to recover, and avoid withdrawals until then. But would any decent Japanese company want a traditional path drop-out like me? Unknown. And even if I could get a job, would I be able to handle Japan’s notoriously demanding work culture? Also unknown. It would be so ironic if I left a relatively high-paying corporate job only to end up in another corporate job, but now with lower pay. And possibility of karoshi. (I wonder if that is still a thing in Japan?)
Conclusion
This post isn’t about calculation or excel sheet.
That is because I wanted to capture my thoughts in real time. Maybe when I look back on this, I might think “Wow, I should’ve just quit right then.” Or maybe I will think, “Why the heck did I even think I am ready?”
Only time will tell.
FIRE isn’t just about numbers. It is also about being willing to step into uncertainty. It is about making a major life decision. It is about letting go of complacency. And more than anything, it is about building a completely different mindset, one that most of us were never taught in school or at home.
