3 ms·
Another presentation of the same idea is the Networthify early retirement calculator: https://networthify.com/calculator/earlyretirement?income=50000&initialBa
by shoo 6y ago
Another presentation of the same idea is the Networthify early retirement calculator: https://networthify.com/calculator/earlyretirement?income=50000&initialBalance=0&expenses=20000&annualPct=5&withdrawalRate=4 https://networthify.com/calculator/earlyretirement?income=50...
The behaviour of the system flips as you go from investment_income < annual_expenses to investment_income > annual_expenses , where investment_income = capital * return_on_capital . Before the transition, capital drains to zero over time, after the transition, capital grows to infinity over time. +/- the model being an crude approximation of reality.
- fred_is_fred 6y agoI like the concept there but it assumes that my expenses are fixed. Once the kids move out and my house is paid off, my expenses fall dramatically.
- mdm12 6y agohttps://engaging-data.com/fire-calculator/ https://engaging-data.com/fire-calculator/ provides separate inputs for retirement spending and current spending. It also supports different projection methods (fixed returns, Monte Carlo, etc.)
- fred_is_fred 6y agoThanks - this is exactly what I was looking for!
- AstralStorm 6y agoNice simulation. It lacks an estimate of chance of total failure given maximum predicted spending.