The Coastfire Calculator helps users determine their required savings to achieve financial independence by a desired age, project future retirement savings, and assess if they are on track to reach their financial goals.
Coastfire Calculator
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How to Use the Coastfire Calculator
The Coastfire Calculator is designed to help you determine the financial targets you need to reach to achieve financial independence. Follow the steps below to make the most of this tool.
Step 1: Enter Your Information
Begin by inputting your personal and financial details in the fields provided. This will ensure the calculations are tailored to your situation. Here’s what you need to provide:
- Current Age: Enter your current age. It must be between 18 and 100.
- Desired Coast FIRE Age: Enter the age at which you wish to be financially independent. This should be between 35 and 100.
- Full Retirement Age: Input your target age for full retirement, which should also be between 35 and 100.
- Current Investment Portfolio ($): Indicate how much you have currently saved. The minimum amount should be 0.
- Expected Annual Retirement Expenses ($): Specify how much you expect to spend each year once you retire.
- Expected Annual Return Rate (%): Enter the expected annual return rate of your investments, between 1% and 20%.
- Safe Withdrawal Rate (%): State the percentage of your retirement savings you can withdraw each year (between 2% and 10%).
Step 2: Review the Calculations
Once you have entered your information, the calculator will provide the following results:
- Target Retirement Amount: This is the total amount you need to have saved by your retirement age to support your expected annual expenses using your specified withdrawal rate.
- Coast FIRE Number: This figure represents how much you need to have invested today to reach your target amount by retirement age, assuming no additional contributions.
- Coast FIRE Status: Learn whether you are currently ‘On Track’ or if you ‘Need More Savings’ to reach your Coast FIRE number.
- Years Until Coast FIRE: This is the number of years between your current age and your desired Coast FIRE age.
- Additional Savings Needed: If you are not currently on track, this amount shows how much more you need to save to reach your Coast FIRE target.
- Projected Amount at Retirement: This is the estimated value of your current savings at your retirement age, assuming your expected return rate.
Step 3: Interpret Your Results
After reviewing the calculations, consider your financial strategy. If you are ‘On Track’, continue to maintain your investment plans. If ‘Need More Savings’, consider adjusting your savings strategy to meet your goals.
Use this tool periodically to assess your progress toward financial independence and ensure your plans align with your retirement goals.