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Subject:  Re: Lost Decade Recap Date:  12/6/2010  9:05 PM
Author:  yttire Number:  4906 of 5129

Tell us how you’ve made out the past 10 years, how you’ve made adjustments, the disappointments, the victories etc…

When I started thinking about FIRE, I had two spreadsheets- the "moderate growth" spreadsheet and the "aggressive growth" spreadsheet.

The moderate growth spreadsheet had a rate of return of around 7.8% on investments. The aggressive growth spreadsheet had a rate of return of 15% on investments.

I stopped comparing the assets to the aggressive growth spreadsheet by 2004.

Our actual net worth compared to the moderate growth spreadsheet was doing extraordinarily well in September of 2007. We were about 6 quarters ahead of where we should have been.

Then, we started slipping backwards (but still ahead) until at the end of Dec 2008 we were official behind target by 3 quarters. Wow, that is quite a change of 9 quarters over a short time frame! Of course, there was a major stock market crash in the middle of that.

A high savings rate and decent returns of investment brought us back to being on track of March 2010, and today we have slipped "behind the curve" by about a month due to more conservative investing strategy and reduced savings to some degree. However, it is pretty amazing that we are within a month of the original target goal considering it is almost ten years later.

I am not optimistic we will "keep up with the curve".