Legacy Target:
FIRE and Forget Target:

The calculator is currency agnostic, values can be any currency, but should be the same currency.
 

What values to use...


Age
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Your current age in years.

Current Savings
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Your current bottom line. This is the total value of all your assets

You may want to exclude your fixed assets such as your house and add that as a future credit with the expected value at sale rather than current value. See Future Credits/Debits

Yearly Savings
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This is the amount that you expect to be able to save each year until your retirement.

If you think this may change over time our may want to use the Future Credits/Debits to split future Savings if you forsee that you will be able to save different amounts at different stages in your life.

Retirement Age
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The age you plan to retire

Checkout Age
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It's a little dark to think about when retirement 'ends' - and certainly for most people not an Age that is 'planned'. However the most common mistake when FIRE planning is underestimating the amount of time spent in retirement despite the fact that the whole raison d'ĂȘtre of the lifestyle is to have a long retirement. This age is irrelavent if you can achieve your FIRE and Forget target.

Yearly Return
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This is the expected growth per year on your savings from now until the end of your retirement. Another common mistake is over estimating the return on investments, over estimating the increase in property value or underestimating interest rates or inflation. If you're looking at historical averages you should take into account a period that is the same length as your retirement. You'll want to have a clear long term strategy from now until the end of your retirement.

Retirement Outgoing
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This is the amount you will be spending each year to maintain the lifestyle you want in retirement. You may have less vacations, toys etc later in your retirement but also inflation will mean that things will cost more so the amount doesn't change too much. However you may want to use the Future Credits/Debits if you forsee big changes in your future outgoings at different stages in your retirement.

Future Credits/Debits
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In the Future Credits and Debits you can add a one off payment or expected deposit or any extra annual income or expenses over a certain time in your future. The calculator assumes that future credits will be invested and accrue interest at the given Expected Yearly Return

Example Future Credit:

You expect to sell your house when you're 50 for 500,000. Click on the add button to create a new Future Credit/Debit. Add the value '500,000' to the Amount and '50' to the Age. Leave the To field empty.

Example Future Debit:

You expect you will have to pay School fees of 10,000 a year for 5 years when you are 40. Click on the add button to create a new Future Credit/Debit. Add the value '-10,000' to the Amount and '40' to the Age and the age To field empty.

You may want to use Future Credits/Debits for the following:

Credits
  • Property Sale
  • Other retirement income such consulting or part time work
  • A Bond or other investment that will mature at a particular time and that has not been included in your savings total
  • Pension
  • Bonuses
Debits
  • Annual Vacations
  • Alimony
  • Wedding
  • School fees
Legacy Target
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This is your first FIRE target. Once you have saved this amount you will be able to retire at the age you've provided. Above this target at the end of your retirment you will still have something left. This is, of course, dependent on:

  • The expected yearly returns being maintained throughout your retirement.
  • That you dont spend more than your planned outgoings.
  • Your retirement ends on or before your planned checkout age.

The target does not take into account Future Debits or Credits

FIRE and Forget Target
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This is the ultimate FIRE target, it means that provided you don't spend more than your planned retirement outgoings and your expected yearly return is maintained throughout your retirement your bottom line will not drop and so the length of your retirement is irrelevant!

The target does not take into account Future Debits or Credits

Understanding the FIRE Chart
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The chart shows your expected bottom line from now until the end of your retirement. When your bottom line is below your Legacy Target the area will be in Red, above the Legacy Target the area will be shown in Yellow and above the 'FIRE and Forget Target' the area will be in Green.