Moving to a new country is expensive. Moreover, inflation combined with a higher cost of living pushed our expenses beyond what we expected. We had to adjust our lifestyle and spending habits to keep our expenses within our budget.
Although we faced inflation and moved to a high cost of living place in 2022, we managed to keep our expenses in check. Dedication to constantly track our expenses and search for best alternative were critical to enjoy the year without tightening our belts. While our withdrawals have naturally increased, they still remain in the safe zone.
2022 has been a roller coaster year for our portfolio and expenses. Nevertheless, we managed to stay calm although an impressive drop along the year. As we learned a few years back, the best thing to do is actually nothing, and let the storm pass. It is thus important to design a plan in less turbulent times, and stick to it when facing some headwinds.
You are considering Dubai in your FIRE plan because it has no tax. Indeed, Dubai is very attractive with nice hot weather and no personal income tax. However, you will experience hidden fees everywhere which do really add up. Stay vigilant.
You are experiencing the “One More Year Syndrome” (OMYS), because your FIRE plan isn’t bulletproof yet. You might need to review your plan and/or your finances so that you feel comfortable to finally claim that you are Financially Independent.
Patience and organization are key skills to settle for FIRE in France. Process is transparent but can be lengthy. Start as early as possible and chase politely if there is no progress to ensure that key documents are not missing.
Build a consolidated view of all your assets (multi-currency and multi-location) in a single FIRE wealth management tool for FREE, and estimate your monthly Safe Withdrawal amounts based on CAPE ratio.
Choosing a home is a daunting task when there is no job or family anchor. Assess your criteria, weigh them, and go visit your Top 3 FIRE places in France you shortlisted for your early retirement to check that reality matches your expectations.
Although our asset mix, portfolio value and CAPE ratio evolved over time, Big ERN’s Safe Withdrawal Rate formula helped us navigate through the past turbulent 3 years, and strategize our distribution strategy. Portfolio valuation needs to be examined with the CAPE ratio to be meaningful.