Freed by 50

I usually make it a point to only check my Fidelity account on the 15th of every month (net worth day) unless it’s an RSU vesting period or ESPP (employee stock purchase plan) day. August 1st is one of two annual ESPP days, and I always sell 100% of my ESPP shares immediately as a rule. After the sale I was poking around my account when I added up the balances of my retirement and after tax accounts and was immediately struck with a feeling of weightlessness. I’m at escape velocity.

When I say weightlessness I don’t mean a metaphorical feeling for the purposes of the space analogy I’m using. I mean that feeling of euphoria you feel when a huge stress is lifted from your shoulders. Only this felt as if a responsibility I’d had for decades was no longer mine. What’s more, that I didn’t exactly have to worry about the responsibility anymore because it would take care of itself from here on out. I’m in the passenger seat now.

Taking a step back, I’ll explain what I mean by “escape velocity” in personal finance. This is the point at which, on average, your portfolio earns more than you can afford to contribute to it. In my case I have been investing $10k/month for years. At an average 10% rate of return (the long term average for the S&P 500), my portfolio has begun growing at a rate greater than my ability to contribute to it. This tracks with my 2024 end of year review where end of year gains far exceeded my contributions. However I’m now seeing this happen monthly, rather than in large chunks during market fluctuations.

For the time being, I have no plans to change my contributions. If I’m to reach my goal of complete financial independence by 50 (three years and four months from the time of this post) I will need to continue to be aggressive with my savings. However, I now have the peace of mind knowing that if I ever need to take my foot off the gas, or stop contributions entirely, this will continue to grow at an incredible rate.

This has forced me to really start to think about what I want to do when the time comes. At 50 years old I will still have plenty of gas left in the tank, but I’m not sure I want to continue to work at giant enterprise corporations anymore. I’d much rather spend my time creating a business of my own. I’ll also need to provide health insurance for my family, and I’d like to help my kids pay for college if they choose to go. What does life look like post FI? Could I actually walk away from this income and these benefits voluntarily? How will I spend my time and fill my need to be creative?

I have a lot to think about.