A question that is often asked is “When Can I Retire?” and “How Early Can I Retire?” The most important factor in answering these questions is your savings rate. The higher your savings rate, the sooner you can reach financial independence based on your current spending. We’ve created a FIRE Calculator to help you figure out the answer to that question.
If you’re seeking early retirement we’ll help you calculate the retirement savings amount you need. That way, after retirement, you won’t run out of money.
Want to learn more about FIRE (Financial Independence Retire Early)? Check out our free FIRE Guide.
Want to learn how to use our FIRE calc most effectively? Check out the video below.
Want to calculate your FIRE target number? Check out our FIRE Calculator below!
Can you retire early in the next 10 years?
When your Able to Draw exceeds your Desired Income you are financially independent and have achieved financial freedom.
The earlier your retirement age, the lower your withdraw rate should be. This means your investments will have a higher likelihood of lasting longer without running out. Want to learn more about the math behind FIRE? See how retiring early is possible.
Want to better understand if you should be investing your money pre-tax in a Traditional IRA vs a Roth IRA? Check out the investing chapter of our FIRE Guide.
Retirement planning can be stressful, confusing and difficult. Everyone will formulate their own retirement strategy. Whether you utilize a financial advisor or self manage your investments, understand the opportunity cost associated with your decisions. It’s important that your investment plan takes into consideration other costs such as college savings, additional living expenses you may require including care costs, and other unexpected annual expenses.
Reducing your current annual expenses can only lower your retirement age so far. Those seeking early retirement should also consider how many years they expect to live, and ensure their withdrawal rate allows them to not run out of money.