Basic FIRE Retirement Model
10
Determine if current savings and contribution levels will reach the FIRE target over 30 years.
NOTEAbout This Model
## Determine if current savings and contribution levels will reach the FIRE target over 30 years. This model explores how **Portfolio Trajectory** could play out, depending on Current Savings, Annual Expenses, Annual Savings Rate, Annual Investment Return. Hit **Run** to see the range of possibilities.
VARIABLEAnnual Investment Return
beta(2, 18.4)
Historical stock/bond mix returns typically fall in this range.
annual_investment_return
CONSTANTAnnual Expenses
65000
How much you spend per year.
annual_expenses
VARIABLEAnnual Savings Rate
beta(5.5, 14.5)
The percentage of income (relative to expenses) saved each year.
annual_savings_rate
CONSTANTCurrent Savings
100000
Your total invested savings today.
current_savings
TIME SERIESPortfolio Trajectory
prev * (1 + annual_investment_return) + (annual_expenses * annual_savings_rate)
30 months
from current_savings
The growth of the retirement portfolio over 30 years including annual contributions and investment returns.
portfolio_trajectory
OUTPUTPortfolio Trajectory
portfolio_trajectory
Track the portfolio trajectory output
What is Carlo?
Carlo is a visual tool for Monte Carlo simulation. Model uncertainty by dragging probability distributions, connecting them visually, and running thousands of scenarios instantly.