FIRECalc Initial Value

[Jsonnier]

Why would the calculator show a range of initial values? For example, the 750k in the first page default show quite a range of year one values in the standard results.

 

[SecondCor521]

It's the result of what would have happened to that $750K portfolio after one year starting in 1871, 1872, 1873, etc. Some years the investment returns are good and you end up with more than $750K at the end of year 1. Some years the investment returns are poor and you end up with less than $750K at the end of year 1.

Each colored line on the result graph represents how you would have done had you retired in a particular year.

Another way to say it is that the $750K is what you start with at year 0.

2Cor521

 

[Jsonnier]

Thank you.