It’s been a long time since I can remember a year where I’ve experienced so much while doing so little. I always thought an abundance of choices in life was what gave us the most room to grow and define ourselves. Yet, this year, this 2020, it’s the lack of everything that has defined me. The lack of travel, the lack of drinking, the lack of visiting friends, the lack of work. The lack of choice has irrevocably altered my view of the world. If there’s a silver lining, I think this year has put me more in tune with what I value most in life.

The beginning of this year started completely different than it ended for me. In January, I was dropping thousands on lower level Forty Niner playoff tickets, spending more on a multi-country European vacation scheduled for March, while eating out every day for lunch. We were just blowing money away as fast as we could make it.

This December ended with us saving 50% of our income for 9 consecutive months. While our portfolio value increased 93% from its January to December 1st total. In the process of the year, we’ve decided to pursue our dreams of traveling long term again rather than placating ourselves with one vacation a year till we’re 65. In that regard alone, despite the difficulties, 2020 has been a good year, a necessary year.

1920 is 2020 is 1920

Last night I was talking with my wife about the similarities between 2020 and the time leading into the 1920s. A hundred years ago, the world powers had just finished participating in the long and terrible Great War. A devasting flu strain was making its way around the world killing millions and “ended” in April 1920. Prohibition was enacted in 1920. A lot of crazy shit was going down in 1920. Yet despite these challenges, the decade that followed was one of enormous growth, due to economic and cultural prosperity as the world emerged from the ashes of war, virus, and recession.

I think that this whole covid thing and the last two decades of war against terror and its migrational and political repercussions, is in a way, our era’s Great War. Okay, is it absurd to compare? Maybe. The length, casualties, and horrors pale in comparison to WW1—the Battle of the Somme saw one million casualties alone—but the virus’ economic havoc on the entire world, is what a war economy tends to be. I think I can justifiably say, all of us are ready to get back to normalcy, just as the world was in 1920.

President Warren Harding, who ran in 1920, promised to bring a “return to normalcy“. His message won over Americans, who thought politcs had gone astray during World War 1. I find that a strikingly familiar sentiment from our incoming administration’s message today.

Our economies both stumbled a bit too. The 1920-1921 depression was an 18-month deflationary recession and economic decline. It was marked by high unemployment of 11.7%, and the Dow dropping 47% after reaching an all-time high in 1919. In 2020, the index similarly dropped 35% after reaching its all-time high and unemployment this year hit 14.7% in April.

I’m just saying, I see a lot of similarities between our time and what America was going through a century ago. I think we have the ingredients for a similar sort of cocktail for a roaring decade. Apple just announced they will start producing cars by 2024. Tesla isn’t going anywhere–okay they’re going to Texas–but electric cars are here to stay. So is green energy. And a repopulation of more affordable parts of the country.

Who knows what will emerge from the altered covid economy of 2020. Do we have our own Lost Generation of the ’20s; those who unfairly had the window closed on scholarships, school, and once in a lifetime youthful opportunity because of lockdown measures?

After a year like this last one, I believe good things are in store. 2020 knocked me on my butt and humbled me quite a bit. It’s probably what I needed. We all need a good pop in the mouth once and a while.

FIRE Progress in 2020 Review

We are grateful to have stayed gainfully employed this year, despite the ravaging this pandemic has done to the economy. Not for one moment do we take this for granted. And likewise, we are proud, not arrogant, of doing the right things in life so that we are in this position to prosper.

The market has done well, so we have done well. We are 10 months ahead of schedule for our forecasted FIRE date.

As of December 1st, we are now 22% of the way to our FI number. Nearly double the value we had back in January of this year. This percentage reflects the combined total of our gains and contributions.

Here’s our investment allocation this year. Just where I want it right now. In 2022 we will slowly start growing that International up to 30%.

We should arrive at our number in 6 years with 7% annual growth. I’m hoping to beat that. So hopefully sometime in or before 2026 FIRE will be upon us.

A Happily Disengaged Christmas

Normally, we’d go to Sacramento to my wife’s uncle’s house for a big party on Christmas Eve and party till midnight. Then go visit my parents on Christmas Day. We won’t be doing either.

This year we are going to hang out at the house. After spending a Thanksgiving alone, just the wife and kids, we are having some family over for Christmas. Just my wife’s sister and her parents. The one benefit is not driving back home so damn late/early like I end up doing at 3 am on Christmas Day after the party. So I’ll get some good sleep.

We didn’t want to spend a Christmas alone after our depressing Thanksgiving. Luckily, I get tested every week through my company, and my in-laws do too with their job. This makes us feel a little better about socializing with the family.

As soon as that shot is available for the herds I’m ready for it. Side note: I’m appalled by how many of my friends have come out as anti-vaxxers!

I’ll probably rotisserie a few chickens, maybe make some tacos, definitely eat some tamales. Pop some non-alcoholic sparkling cider. It’ll be nice to have a house full of kids. I know my daughters are also itching to see their cousins. They face time with each other, but it’s not the same. I’m also looking forward to being around people. These small jobs I’ve been doing since June can be pretty damn isolating since I’m the only “boss” there.

Merry Christmas!

Now Kick Rocks 2020!

Thank you 2020! Now peace out!! I’m ready for the roaring 2020’s.

How’s your 2020 gone? I know the obvious answer is shitty…but were there any unexpected upsides or benefits that this year has gifted you?

Have you made any travel plans for 2021? We used our voucher for a flight to Portugal in November…fingers crossed things are back to normal then.