Client-side · private

financial independenceFIREFI numbersavings rateretirement4% ruleinvesting

//// Financial · Independence & FIRE

Financial Independence: How Close Are You?

Your FI number is annual expenses times 25. The variable that changes everything is your savings rate. See the math — and the timeline.

401(k) Limit 2024$23,000(+$7,500 catch-up 50+)

Roth IRA Limit$7,000(MAGI phase-out applies)

S&P 500 Avg Return~10%/yr(nominal, historical)

Your FI Number

$1,250,000

Annual expenses × 25 (4% rule)

Years to FI

28 years

At your current savings rate

FI Age

Age 53

Traditional retirement range

Your Numbers

Current Age

yrs

Annual Income

Annual ExpensesWhat you actually spend each year

Current Invested Assets401k, IRA, brokerage — not home equity

Annual SavingsSavings rate: 20.0% of income

Expected Real ReturnAfter inflation (7% = historical stock market)

What If You Saved $200/Month More?

At your current savings rate you're FI at age 53. If you save $200/month more, you'd be FI at age 51 — that's 2 years earlier.

$200/month = $2,400/year in additional savings — 2 fewer years of working.

Progress to FI

You're 1% of the way to your FI Number. Gap remaining: $1,240,000.

Savings Rate Impact

Your savings rate is the most powerful lever you have. Here's how each rate changes your timeline (same starting assets and return).

Savings Rate	Years to FI	FI Age
10%	37	Age 62
20%← you	28	Age 53
30%	24	Age 49
40%	20	Age 45
50%	18	Age 43
60%	16	Age 41
70%	15	Age 40

FI Number (4% rule)

FI Number = Annual Expenses × 25

$50,000 × 25

= $1,250,000

Based on the 4% safe withdrawal rate — a portfolio 25× your annual expenses can sustain 30+ years of withdrawals with high historical probability.

Current savings rate

Savings Rate = Annual Savings ÷ Annual Income × 100

$15,000 ÷ $75,000 × 100

= 20.0%

Gap to FI

Gap = FI Number − Current Invested Assets

$1,250,000 − $10,000

= $1,240,000

Compound growth formula

FV = P×(1+r)^n + PMT×((1+r)^n − 1)/r

P=$10,000, PMT=$15,000/yr, r=7%

= Used to find n where FV ≥ FI Number

Iterates year by year until the portfolio reaches the FI Number. Uses real (inflation-adjusted) return so all values are in today's dollars.

Years to FI

Solve for n: FV(n) ≥ FI Number

Start: $10,000, target: $1,250,000

= 28 years

FI age

FI Age = Current Age + Years to FI

25 + 28

= Age 53

Savings rate sensitivity

Higher savings rate → fewer years working

At 20% rate: 28 yrs | At 50% rate: 18 yrs

= See table below for all rates

Savings rate is the single biggest lever. Going from 20% to 40% can cut your working years nearly in half.

Key insight

The 4% rule and compound growth math are the foundation. But your savings rate is the variable that actually changes everything — higher savings both grows the portfolio faster AND lowers the FI target.

#ShowYourWork