I think it looks really nice and it easy to use. I like this a lot, especially the emphasis on how investing early can enable to you give increasingly large amounts in the future.
Off the top of my head the only changes I would make would be to either
Tweak the safe withdrawal rate info. Either
choose 3.5% as the default safe withdrawal rate rather than 4% (mainly because of how 4% is generally viewed as acceptable for a retirement of 30 years; more info at Early Retirement Now). (edit: 4% works pretty well for a 30-year retirement, but for retirements that last longer than 30 years a 4% rate becomes increasingly risky. Michael Kitces recommends a 3.5% rate for a retirement of 40 or 50 years (about 31 minutes in).)
or add in a few words about about the safe withdrawal rate, such as this: 4% is commonly used in the U.S. for retirements lasting up to 30 years, meaning your FI number is equal to 25x your annual expenses. Lower numbers are recommended for longer retirements.
Clarify what the DONATION RATE IMPACT TO TOTAL FI NUMBER chart means.
There’s been some updated studies completed since the Trinity Study proving that you may actually be able to withdraw even more than 4% safely. And that it really depends mostly on when you retire, what your portfolio valuation is upon retirement, and what happens to that valuation in those first few years not earning active income. Michael Kitces talks about it here and here. So i still feel confident to leave the base number at 4% and if people want to change it they can.
I further clarified DONATION RATE IMPACT TO TOTAL FI NUMBER
Thanks for the links. I’ll explore those, and maybe even end up updating an overly conservative perspective on safe withdrawal rates and long retirements. :)
I think it looks really nice and it easy to use. I like this a lot, especially the emphasis on how investing early can enable to you give increasingly large amounts in the future.
Off the top of my head the only changes I would make would be to either
Tweak the safe withdrawal rate info. Either
choose 3.5% as the default safe withdrawal rate rather than 4% (mainly because of how 4% is generally viewed as acceptable for a retirement of 30 years; more info at Early Retirement Now). (edit: 4% works pretty well for a 30-year retirement, but for retirements that last longer than 30 years a 4% rate becomes increasingly risky. Michael Kitces recommends a 3.5% rate for a retirement of 40 or 50 years (about 31 minutes in).)
or add in a few words about about the safe withdrawal rate, such as this: 4% is commonly used in the U.S. for retirements lasting up to 30 years, meaning your FI number is equal to 25x your annual expenses. Lower numbers are recommended for longer retirements.
Clarify what the DONATION RATE IMPACT TO TOTAL FI NUMBER chart means.
There’s been some updated studies completed since the Trinity Study proving that you may actually be able to withdraw even more than 4% safely. And that it really depends mostly on when you retire, what your portfolio valuation is upon retirement, and what happens to that valuation in those first few years not earning active income. Michael Kitces talks about it here and here. So i still feel confident to leave the base number at 4% and if people want to change it they can.
I further clarified DONATION RATE IMPACT TO TOTAL FI NUMBER
Thanks for the links. I’ll explore those, and maybe even end up updating an overly conservative perspective on safe withdrawal rates and long retirements. :)