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Retirement Projection

Plan when your portfolio can sustain spending in real terms.

Required capital (stable principal)

$1,832,766

Total invested

$1,126,000

Total from passive income

$715,985

Net worth at target time

$1,841,985

Result

Estimated time to reach readiness threshold

22 years and 5 months (269 months)

Readiness threshold reached

How to Use This Retirement Projection Calculator

This planning tool helps you map out your path to financial independence. By analyzing starting capital, contributions, and real returns, it projects how your portfolio can sustain your lifestyle over time.

1. Choose Your Planning Mode

  • Time to retirement readiness: Calculates exactly when you will have enough money based on current savings.
  • Withdrawal at target time: Evaluates if your projected net worth is enough to support you starting at a future date.

2. Input Your Core Financials

Enter your starting balance and contributions. The tool uses net savings and the real interest rate (return minus inflation) to model growth and simulate the target period.

3. Select a Withdrawal Strategy

  • Stable Principal: A conservative approach where you live entirely off returns without touching initial capital.
  • Allow Principal Drawdown: Assumes you spend down your capital over your retirement years (finite annuity).

Benchmarks

  • Real Rate (less than 5%): Don't use nominal rates, account for inflation and taxes. Real purchasing power is the only metric that matters.
  • The 4% Rule: A standard benchmark for sustainable annual withdrawals over long horizons.

Common Pitfalls

  • Over-Optimism: Assuming real returns above 6% ignores market volatility and long-term cycles.
  • Safety Buffer: Retirement costs (health/travel) often rise. Add a 20% margin to your expenses.

The Mathematics

Perpetuity (Stable Principal)

K* =
Er

Finite Annuity (Principal Drawdown)

W = K ·
r(1 + r)ⁿ(1 + r)ⁿ - 1

Variable Legend

  • K* = Required Capital (Target)
  • E = Expected Expenses
  • r = Real Interest Rate
  • W = Withdrawal Amount
  • K = Initial Capital Acquired
  • n = Number of Periods (Months/Years)

Suggested

Calculator

Compound Interest

Project future value or solve the required rate to hit a target.

Calculator

Real Return For High Yield (US)

Calculate real returns for US High Yield accounts with inflation.

GOLD

Export Price Index (End Use): Nonmonetary Gold