ER 6 Ys ago at 52 with few bucks and a spreadsheet. Have a question

[miki]

Hi Everyone
Have a lot to tell and say but firstly here is the practical part before I bore you with bio and philosophy:​

I have been using a spreadsheet to control my financials since I ERed. The outcome of the spreadsheet is a yield (%) that I have to obtain in order to keep going (until a predetermined age) at our average rate of expense of the last 12 months (for which I have a separate spreadsheet). I find this number to be the best guide to where I am standing. It is now at 4.5% without any reserve for unexpected items and 6% with a certain (predetermined) reserve. I now plan to post it on the net (in Israel) to help a friend generate some traffic to his (investment consulting business) site. My questions are: 1. Do you know of a similar calculator on the net? I have spent quite a while looking and all the ones I found relate to income you can generate from a certain amount of assets assuming a certain yield but not the other way around. 2) Do you find a required yield number to be useful in controlling your FI status?​

Thanks a CU around​

Miki​

 

[Donzo]

I think the questions you are asking can be answered by FIRECalc - you can find the link on the bottom of this page-

Welcome!

 

[miki]

I think the questions you are asking can be answered by FIRECalc - you can find the link on the bottom of this page-

Welcome!

Thanks but as I understand it FIRECalc takes a historic rate of return to calculate your fate. Mine take the assets, spending and years to live and brings back the requierd rate of return. I am not saying it is better but it is a different kind of information.

 

[Alan]

Welcome to the board - I look forward to seeing the feedback as I don't understand the question. By wanting to know the yield as opposed to a withdrawal % against a probability of success are you saying that you want to know what the yield should be to provide the income you need without depleting your assets?

 

[SecondCor521]

miki,

1. No.
2. No.

Shalom,

2Cor521

 

[miki]

Welcome to the board - I look forward to seeing the feedback as I don't understand the question. By wanting to know the yield as opposed to a withdrawal % against a probability of success are you saying that you want to know what the yield should be to provide the income you need without depleting your assets?

Thanks. I have an option for depletion of assets down to a chosen level (in case you want to leave an inheritance. input is age, LE, savings, inflation, net cash monthly outlay and tax. The reason I prefer it to all the fancy calculators I see in the net is that an assumption that the world is going to behave in the next 30 years like it did in the last 30 years is too strong for my taste. I believe in "Risk + flexibility". I was ready to RE with less than 80% chance of success. OTOH I am prepared to pay the price - flxible spending if I have to. In the current capital market conditions I don't see how anybody can assume a long term 7-10% ROR or 2% inflation even when you take the long term. Global warming is already taking its toll in economic terms and this is only the beginning. To summarize: I would like to be the one estimating if I can achieve a certain LT ROR. This is the crucial number and should not stay behind under assumptions.
Miki​