If you aren’t exactly retiring early, then factor do you use instead of need 25x expenses? Firecalc comes up with 100% based on expected spending and savings pattern. My issue is inflation. I would like to retire in a few years at 57. DH will continue for a few years to max out his pension until 61 and lower his % of health care sharing. Calculators are coming up with 100% with our estimates. We just need to stay the course with savings and not second guessing the market. DH has a state pension and can buy state health until we reach Medicare age. If our budget is $70k, pension is $42k, SS s/b $22K or higher, plus investments, then we should be on track.
I am calculating on every format I can find. I also have an excel file. The one thing I am not following well is the inflation discussion and how to compensate within my spreadsheet.
If we estimate $1.5M in investments and I deduct 3% with an assumed rate of return of 4%, then how would you add in an estimated inflation rate? I made it very simple just so I could follow easily.
Balance
1,500,000
deduct 3%
45,000
1,455,000
growth 4%
1,513,200
deduct 3%
45,396
1,467,804
growth 4%
1,526,516
Suggestions? Thoughts?
I am calculating on every format I can find. I also have an excel file. The one thing I am not following well is the inflation discussion and how to compensate within my spreadsheet.
If we estimate $1.5M in investments and I deduct 3% with an assumed rate of return of 4%, then how would you add in an estimated inflation rate? I made it very simple just so I could follow easily.
Balance
1,500,000
deduct 3%
45,000
1,455,000
growth 4%
1,513,200
deduct 3%
45,396
1,467,804
growth 4%
1,526,516
Suggestions? Thoughts?