FIRE Calculator

Released in v0.1

Introduction

Description: Calculate and simulate the number of years to achieve FIRE

Use Case: Forecast how long it takes to achieve FIRE, understanding your estimated withdrawal rate and amount by the time you achieve FIRE

Page: /retirement/fire

User Guide

Key in the relevant details

If you want to figure out how much you need to save annually, simply click the checkbox and key in your target age instead.

All the other fields are rather self-explanatory. For your asset allocation, ensure that the 4 boxes add up to 100. You are free to play around with the expected rate of return numbers however you see fit.

Understanding the Optional Fields:

1. Withdrawal Rate (%) - Determines how much you will draw down from your portfolio annually once you achieve FIRE (Default 4%)

2. Target Annual Withdrawal (%) - If you have a fixed withdrawal amount such as $3k monthly or $36k annually, you can simply key that in so that this will be taken into account as well

3. Inflation Rate (%) - The annualized average inflation rate that will impact your portfolio and overall expenses over time (Default 2.5%)

Visualize your path to FIRE

There is a brief description explaining to you how the graphs are calculated, with key information such as your approximate future annual expenses, the weighted rate of return on your portfolio, as well as how much you can withdraw when you reach FIRE.

The first chart shows your progress towards FIRE, where your withdrawal rate will cover your estimated expenses (factoring in for inflation). The green line shows the withdrawal amount based on your withdrawal rate and the purple line shows the inflation-adjusted annual expenses. You will achieve FIRE when the green line crosses the purple line, as seen in the image below.

The second chart shows your net worth growing based on the expected rate of return from your investments. The green line is your invested/initial capital while the purple line is the value of the portfolio factoring in the returns.