Life becomes interesting when theory turns to practice!
It’s one thing to have an FU-Fund, hidden away in a financial institution somewhere, purely represented as numbers on a spreadsheet. It’s quite another to actually be deep into the process of cashing it in, preparing for a
period of unemployment sabbatical from January 2018.
I’m doing the calculations over and over and over, cutting back all unnecessary spend, looking into capital gains tax implications, trying to make the best decisions to ensure that the bucket of cash stretches as far as possible without sacrificing
any too much quality of life. It’s too late now, the deed is done….
People ask of me “Was this planned?”
Yes and No!
I’ve known for a long time this day was coming but never knew exactly when. To be honest I was only expecting it in 6 years time, at age 55. Also, the plan, if one can so grandly call it that, was always more to gather enough in order to be able to quit permanently.
But, as an old salt knows, plans should always be drawn with a stick in the sand since the tides of life have a habit of washing them away at times.
And so it has come to pass that events at The Office have become too much for me to stomach. “I quit!” is now a reality.
The FU-Fund consists of 2 portions. The first, held in unit trusts and shares, will fund phase-1; 8 to 10 months of living. If, in that time I still haven’t found another suitable and sufficient source of income, then phase-2 will be funded by the corporate pension fund (which will be transferred to a preservation fund on resignation). There’s about another 2 years of living there. If I cannot come up with some income in that timeframe then I’m going to call myself pretty useless!
The problems are few but potentially critical:
- The FU-Fund is also the emergency fund. And we all know that life has this nasty habit of throwing “emergencies” your way, especially when they’re not needed.
- In order to stretch the money, all savings and investments are put on hold. This obviously impacts the final FIRE date and needs be addressed asap. It also means that the FI stash is now on its own. No added monthly boosters. Only compound interest.
- Cashing out the corporate pension should be a last resort. We need this growing towards the final FIRE date. But, there is uncertainty about whether it will be needed or not and that’s why it’s going into a preservation fund. It maintains the benefits there but allows a single transaction to cash out before 55. Just in case!
- I’m 49, pale and male – living in South Africa. Enough said! This is most likely the end of normal, corporate career – forever.
Not all of these are negative factors. The last is probably the incentive I need to be autonomous, to create and run my own little lifestyle business?
So, while I still have one foot in the door, hoping for some kind of “offer” to keep me working here, deep down I know it’s not worth it. The stress and misery of this particular corporate is killing me. It would be a huge mistake to stay. I need to search for new opportuniies closer to the boat.
And so, for better or worse, the plan has being put into action, not in exactly the same way as envisaged but close enough. Now it’s time to ensure that my free time is not wasted.