Your number and date
Your number and your date.
The date comes from your net worth, the amount you add each month and a growth rate you can change.
Your number, from your spending.
Yearly spending ÷ withdrawal rate.
$50,000 ÷ 4% = $1,250,000
- 3%, 3.5%, 4% or 5%
- Lock your goal
- US research, 30-year retirements
Cautious, base and optimistic.
Cautious and optimistic sit 3 points either side of your growth rate.
- Cautious44years3% a year
- Base30years6% a year
- Optimistic23years9% a year
- Looks up to 60 years ahead
What if you changed one thing.
- Add $200 a month2.1years2.1 years sooner
- Earn 2% more a year5.0years5.0 years sooner
- A risk slider: safe, balanced or aggressive
- Growth includes money you added
Milestones every 5%.
About twenty checkpoints, each with a date.
How the date is worked out
Balance
(1 + growth ÷ 12)
Monthly amount
Repeats until your goal, for up to 60 years.
Is the forecast adjusted for inflation?
Only if you use a growth rate after inflation. Your goal is a fixed dollar amount.
Why does it say my growth is 15%?
The automatic estimate is capped at 15% and includes money you add. Type your own figure, for example 5%, for a cautious view.
What’s the 4% rule?
A rule of thumb from US research on retirements of about 30 years. It isn’t a guarantee.
Four questions give you a date.
The guided setup asks your age, stop age, spending and saving.
