Thank You, 2020. Now Kick Rocks!
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.
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Nice on Noel! Congrats to getting on the FI journey this year and cheers to the great progress made in such a brief time. Yep, lots of parallels to the 1920 for sure and I hope we can all emerge stronger and soon!
Enjoy the low-key time with the family. Tacos and tamales! I’m in! Happy holidays and here to a great 2021!
Thanks Mr. Fate. Hope you enjoy your Christmas and Boxing Day as well. Here’s to a great 2021.
Congratulations on leveraging 2020 as your pivot to FIRE! Seriously, you should give yourselves alot of credit. Some of my friends with young children found themselves spending more than they anticipated this year, mostly for unexpected childcare and take-out while they grappled with remote work and school. 2020 was my 6th year of saving/investing for FIRE. Today, Squash and I are hopeful that we can beat our original expectations too! Enjoy these last weeks of 2020. You have much to celebrate and look forward to in 2021 and beyond.
Thank you Tara! Yea for some reason this pandemic woke us up from just drifting along in life. Wow 6 years! That’s awesome. I know you guys will beat your “date”. I’m looking forward to when you and Squash are location independent–hopefully, you’ll still be blogging so we can follow along with your travels.
Congrats on the financial accomplishments! All awesome. The silver lining for us is the same, even more focused on what’s important.
One of my great grandmothers and her infant died in that flu pandemic so we have been discussing the similarities with this current pandemic too. Simone’s mom always says “nothing is new under the face of the sun, it’s simply rotation”. Man….
Anyway, we definitely want to travel more. Maybe not major trips until we get more debt gone but next year we are planning a family vacation with extended family since we haven’t seen each other in so long. Really hoping things have settled down by then.
Portugal is on our wish list. Hoping you get you trip in next year.
I’m really ready for 2020 to kick rocks!
Thank you. That’s a nice quote Simone’s mother has. I believe the biggest lesson history has for us is that things always seem like the “worst ever” but we get through it stronger. Yes, the travel bug has us bad. I know we’ll always probably end up spending more than we want on travel, but that’s not the worst thing to break the budget on. I have some travel rewards points burning a hole in my digital pockets that we will use. Thanks for stopping by to read and comment. I enjoy your blog and look forward to following along in 2021 as you knock off more debt. Happy Holidays!
ah, the great financial epiphany of 2020! good on you for pumping the brakes on some excesses. that’s a good looking tree. we never had a 3 year old but had one particular dog who liked ornaments years back. i’m glad you get some social time with extended family and i truly feel worst for some of the younger people and missing out on some milestone events.
we had a good money year and you sure did too. well done on being ahead of schedule. i hope we both stay there and have all the choices available. merry christmas and all the best to you, noel.
That’s right! 2020 was a great year just because of that epiphany. Yea I feel bad for the younger folks too, it’s screwing up a lot of people. Merry Christmas to you, Mrs. Smidlap, and Banjo.
“Humbling,” is probably the best word to describe 2020. I always like reading these year end posts (and I have to write mine, but enjoy the reflection). It’s cool to see how people have changed and what they learned from another 365 days of living.
Biggest unexpected upside for me personally, was working from home. I proposed to my boss in February during my annual review that I work from home two days a month and he rejected it. And then a month later we’re working everyday from home… hahahaha. I did not see that one coming. Also, we’re good savers normally, but just not being able to do stuff and eliminating my commute, I think we’ll probably spend 50% less than last year, which I had no clue it would be such a big number.
No travel plans yet. My brother moved to Virginia during the start of the pandemic, so I’d like to get to the East Coast if at all possible next year. But we’ll see.
And honestly, congratulations for taking action and implementing all of those changes this year. The hardest part is just starting and now you’re on your way. Plus, my hat is always off to people who can accomplish it with kids. I think that’s another accomplishment in itself.
Happy holidays bud!
Yea “humbling” is probably the top word for describing 2020, definitely. That’s cool you get to work from home. I bet you save a ton of money and not to mention the time saved from dodging those SoCal parking lots. I hear good things about Virginia. That ought to be a fun trip. Lots of historic things to see in that area. The only place on the east coast I’ve been to is NYC. I’d like to hit up DC and New England one of these years. Yeah, we’re looking forward to continuing chugging along the FI path. Starting is the hardest part. It’s nice being able to follow along with you and other bloggers who are pursuing common goals. Makes it easier and more fun. Happy Holidays dude! Here’s to a fruitful and roaring 2021!
Happy holidays to you and the family! Glad you were able to make the most of the year, perhaps retain a few lessons learned, and make a hopeful plan for 2021. Sounds like you guys probably managed to have a good Christmas, too!
2020 certainly through our planned semiretirement out of whack. Jenni still pulled the trigger in May as we’d been discussing for over a year, but the rest of 2020 was pretty empty without travel as we’d planned. Still, we made the best of it I think. And, we’re most thankful to get out of it still healthy as 2020 closes.
We’d vaguely had Portugal in our plans for 2020, so I’m a little jealous to see you guys have it set for late 2021! Depending on how the year progresses, maybe we’ll be out there by then, too! 🙂 One can hope.
Let’s hope the 1920s reflect the 2020s with some significant progress ahead, but that it doesn’t end with a huge depression 🙂
Cheers!
We had a fantastic Christmas. Hats off to Jenni for pulling the retire trigger this year. That’s a huge achievement. Yea I think I’d we can make it out if 2020 healthy that’s a win. I’m hoping this vaccine can be rolled out to the masses by the time the weather gets better. We’ll see. Haha yes, let’s hope we have a roaring twenties minus the Black Friday. Happy Holidays to you guys!
Lovely tree, even with the ornaments higher up! LOL! Congratulations on such a prosperous year! I hope 2021 brings you even more good fortune. It’s great how this year helped you change your habits and even your goals. Interesting comparisons between the past and present, though I’m not convinced we’re headed toward normalcy yet. That said, I hope you get to Portugal next year. Happy New Year!
Thanks Katie. Yea I hope 2021 brings all of us great fortune. I’m really optimistic about the year ahead. I sure hope by the end of the year we can rip these masks off. I know I threw the dice on Portugal. I hope the airlines will let me move it again if things aren’t clear for travel by then. Thanks for commenting. Happy New Year!