Most people are now working well into their 70’s. Whether that’s for financial reasons or just so they have something to do it is the truth.
The other side of the crowd are those who are retiring in their 30’s and living a life most can only dream of.
Whichever group you fall under the cFIREsim calculator can help you reach your goal.
What is cFIREsim?
A quick cFIREsim review may seem overwhelming. How much will I spend while in retirement? Will I spend more or less? Will I be able to travel on the amount of money I have? Will social security still be a thing? It’s hard to tell but some things are going to be easier than others.
For instance, how much money do you have saved? Will you have a pension? Do you plan on doing something that provides even a small income?
How Does It Work?
Once you fill out the information cFIREsim goes to work. It plugs that information in and runs it through the set amount of years you expect to need that money. If you expect to retire early and live a long time on your nest egg than you will need to increase the amount of years.
For mine, I expect to need retirement funds for around 50 years since I’ll likely retire in my 30’s and be around till my 80’s. With that number cFIREsim reviews every 50-year interval from 1871 and gives me the amount of times it failed or succeeded.
With a 50 year retirement and spending $30,000 a year (an increase over what I spend now minus debt) if I save $770,000 then I would have succeeded 83.51% of the time. Not a bad percentage especially if you consider I can also work and make money on top of that.
Why Use cFIREsim?
With so many calculators out there why use cFIREsim?
First, it’s easy to use. Yes, it looks complicated and there is a lot of information you CAN put in, but you don’t have to. All you really need to do is put in the amount of money you have, the years you plan to be retired, and the amount of spending you plan to have.
Second, you can customize it as much as you want. Will you have a pension? A part time job? Or will you be buying another home? Whatever you’re going to do will affect the calculator and with cFIREsim you can input all of that in.
Third, this calculator doesn’t run off of how things may be in the future, instead it runs on how things have run in the past. How would your retirement fund have worked if you retired for that long during the great depression? Or one of the many recessions over the years?
Retire When You’re Ready
Hopefully, this cFIREsim review helps you when you’re trying to decide if you’re ready to retire or not. It can also help you know how much you need to save in order to retire.
No matter if you’re working for many more years, or only a few more cFIREsim can help you make the best decisions.