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Personally, I use the 4% rule (also known as the 25X rule) almost daily to help me make better financial decisions. It’s also useful for everyone - not just those knocking on the door of financial independence.

This number isn’t perfect, but it’s close enough for a quick calculation. The OG Early Retirement Calculator: A Pen and Graph Paperīest for: Those just starting their journey towards financial independence.Ī general rule of thumb when it comes to financial independence is that you can withdraw 4% of your portfolio every year.įor example, if you have $1 million in your portfolio, your safe withdrawal rate would be $40,000 per year.īy limiting withdrawals to 4% and investing the rest wisely, there’s a very low chance (if any) that you’ll run out of money. The OG Early Retirement Calculator: A Pen and Graph Paper In this article, I highlight three financial independence calculators that can help you make better decisions today and avoid unwelcome surprises in the future. That’s why a high-quality financial independence or retirement calculator can be immensely valuable.

In either case, the chance that you’ll run out of money during retirement.Īccurate answers to these questions are essential, in part because they tell you whether you need to make an adjustment or change course.īut the calculations can be complex, even if your finances themselves aren’t very complicated.

If not, how much longer you’ll have to work if you keep up your current pace of saving.

Whether you’re on track to retire at your desired age.

Regardless of where you are in your financial journey, it’s important to know certain information about your retirement planning - especially if your goal is financial independence and early retirement. May earn money when you make a purchase or sign-upĪfter clicking.

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