Millionaire Librarian

For the last few months we have been selling, giving away, and throwing out all of our possessions in preparation for a move to Ecuador. It has been tough at times but each item removed from our grasp is a small step towards our new life. The last items we need to get rid of are our cars which were listed yesterday.

Largely the stock market has rebounded back to all time highs after Trump’s tariffs inserted instability and volatility into the market and economy. Despite my own political ideas I have remained fully invested and have advised my friends to do the same. This time was different. but the market did the same thing it always does. There was a pullback and then the market marched upwards to new all time highs. Compared to a year ago I have diversified some out of a total market index fund into around 10% bonds and 20% international compared to being 100% in a total market index fund. This change has been in order to smooth the ride and have a variety of funds to go to pull from when I need money.

According our Monte Carlo simulation in ProjectionLab.com we have a 100% chance to survive and thrive based on our financial needs in Ecuador. However, it always helps to have more money to inflate lifestyle with more dinners out, a home cleaner, and it looks like this is what our portfolio will provide.

This last year with its pullback has been different mostly because I have not been investing large amounts of money in the economy. Previously I looked forwards to the market retreating and I would watch my contributions buy more and more shares every couple of weeks in my 401k. Having to sell those cheaper shares during this pullback to finance our lifestyle was difficult.

It has been fun visiting many of my inlaw’s friends who are at traditional retirement age. It often gets mentioned that we are retiring and they ask how. Lauren’s mother often comments saying “Lauren and her husband are very frugal.” Though that is true only when we are compared to other Americans. Generally I would say the main difference is that we have cheaper houses and cars compared to a typical American. We also tend to shop at cheaper grocery stores like Costco or Aldi and try to each eat most meals in. However, especially on this trip many of our meals have been at restaurants because we have been traveling so much. I try to make our frugality something we lean towards and not an ironclad rule that is used to beat down the other person.