diff --git a/src/app/page.tsx b/src/app/page.tsx index b5c8cf0..7f56ec5 100644 --- a/src/app/page.tsx +++ b/src/app/page.tsx @@ -10,9 +10,9 @@ import Footer from "./components/footer"; export default function HomePage() { return ( -
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InvestingFIRE Logo

- What is FIRE? Understanding Financial Independence and Early + What Is FIRE? Understanding Financial Independence and Early Retirement

- FIRE stands for "Financial Independence, Retire Early." - It's a movement focused on aggressive saving and strategic - investing to build a substantial portfolio. The goal is for - investment returns to cover living expenses indefinitely, freeing - you from traditional employment. Achieving FIRE means gaining the - freedom to pursue passions, travel, or simply enjoy life without - needing a regular paycheck. Sound investing advice is crucial for - building the wealth needed. + FIRE stands for{" "} + Financial Independence, Retire Early. It's a + lifestyle movement built around two core ideas:

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  • + Aggressive saving & investing—often 50%+ of + income—so your capital grows rapidly. +
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  • + Passive-income coverage—when your investment + returns exceed your living expenses, you gain freedom from a + traditional 9-5. +
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- The core principle involves maximizing your savings rate (often - 50%+) and investing wisely, typically in low-cost, diversified - assets like index funds. Your "FIRE number" – the capital - needed – is often estimated as 25 times your desired annual - spending, derived from the 4% safe withdrawal rate guideline. This - FIRE calculator helps you personalize this estimate. + By reaching your personal FIRE Number—the nest egg needed + to cover your inflation-adjusted spending—you unlock the option to + step away from a daily paycheck and pursue passion projects, travel, + family, or anything else. This calculator helps you simulate your + journey, estimate how much you need, and visualize both your + accumulation phase and your retirement withdrawals over time.

@@ -63,51 +69,58 @@ export default function HomePage() { How This FIRE Calculator Provides Investing Insights

- This calculator helps visualize your path to FIRE by projecting - investment growth based on your inputs. Understanding these - projections is a key piece of investing advice for long-term - planning. Here's a breakdown of the inputs: + Our interactive tool goes beyond a simple “25x annual spending” + rule. It runs a year-by-year simulation of your + portfolio, combining:

  • - Starting Capital: The total amount you currently - have invested. + Starting Capital—your current invested balance
  • - Monthly Savings: The amount you consistently save - and invest each month. + Monthly Savings—ongoing contributions to your + portfolio
  • - Current Age: Your current age in years. + Expected Annual Growth Rate (CAGR)—compounding + returns before inflation
  • - Expected Annual Growth Rate (%): The average - annual return you expect from your investments (after fees, before - inflation). + Annual Inflation Rate—to inflate your target + withdrawal each year
  • - Desired Monthly Allowance (Today's Value):{" "} - How much you want to be able to spend each month in retirement, in - today's money value. + Desired Monthly Allowance—today's-value + spending goal
  • - Annual Inflation Rate (%): The expected average - rate at which the cost of living will increase. + Retirement Age & Life Expectancy—defines your + accumulation horizon and payout period +
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Key features:

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  • + Real-time calculation—as you tweak any input, + your FIRE Number and chart update instantly.
  • - Life Expectancy (Age): The age until which you - want your funds to last. + Interactive chart with area plots for both{" "} + portfolio balance and{" "} + inflation-adjusted allowance, plus reference lines + showing your retirement date and required FIRE Number. +
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  • + Custom simulation—switches from accumulation + (adding savings) to retirement (withdrawing allowance), + compounding each year based on your growth rate.

- The calculator simulates your investment growth year by year, - incorporating monthly contributions, the power of compound growth (a - core investing principle), and inflation's impact on your - target allowance. It estimates the age at which your capital could - sustain your desired, inflation-adjusted monthly spending throughout - your expected retirement until your specified life expectancy. It - calculates your potential "FIRE Number" and the age you - might reach financial independence. + With this level of granularity, you can confidently experiment with + savings rate, target retirement age, and investment assumptions to + discover how small tweaks speed up or delay your path to financial + independence.

@@ -118,86 +131,106 @@ export default function HomePage() { - What is the 4% rule? + What methodology does this calculator use? - The 4% rule is a guideline suggesting that you can safely - withdraw 4% of your investment portfolio's value in your - first year of retirement, and then adjust that amount for - inflation each subsequent year, with a high probability of your - money lasting for at least 30 years. This calculator uses a more - dynamic simulation based on your life expectancy but is related - to this concept. + We run a multi-year projection in two phases: +
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  1. + Accumulation: Your balance grows by CAGR + and you add monthly savings. +
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  2. + Retirement: The balance continues + compounding, but you withdraw an inflation-adjusted monthly + allowance. +
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+ The result: a precise estimate of the capital you'll have + at retirement (your “FIRE Number”) and how long it will last + until your chosen life expectancy. - Is the Expected Growth Rate realistic? Finding the right - investing advice often starts here. + Why isn't this just the 4% rule? - Historically, diversified stock market investments have returned - around 7-10% annually long-term (before inflation). A rate of 7% - (after fees) is common, but remember past performance - doesn't guarantee future results, a fundamental piece of - investing advice. Choose a rate reflecting your risk tolerance - and investment strategy. + The 4% rule is a useful starting point (25× annual spending), + but it assumes a fixed withdrawal rate with inflation + adjustments and doesn't model ongoing savings or dynamic + market returns. Our calculator simulates each year's + growth, contributions, and inflation-indexed withdrawals to give + you a tailored picture. - How does inflation impact my FIRE number? + How do I choose a realistic growth rate? - Inflation erodes the purchasing power of money over time. Your - desired monthly allowance needs to increase each year just to - maintain the same standard of living. This calculator accounts - for this by adjusting your target allowance upwards based on the - inflation rate you provide, ensuring the calculated FIRE number - supports your desired lifestyle in future dollars. + Historically, a diversified portfolio of equities and bonds has + returned around 7-10% per year before inflation. We recommend + starting around 6-8% (net of fees), then running “what-if” + scenarios—5% on the conservative side, 10% on the aggressive + side—to see how they affect your timeline. - Can I really retire early with FIRE? + How does inflation factor into my FIRE Number? - Retiring significantly early is achievable but demands - discipline, a high savings rate, and smart investing. Success - depends on income, expenses, savings habits, and investment - returns. Use this FIRE calculator as a planning tool, - understanding it provides estimates based on your assumptions - and chosen investing approach. + Cost of living rises. To maintain today's lifestyle, your + monthly allowance must grow each year by your inflation rate. + This calculator automatically inflates your desired monthly + spending and subtracts it from your portfolio during retirement, + ensuring your FIRE Number keeps pace with rising expenses. - What does FIRE stand for? + Can I really retire early with FIRE? - FIRE stands for Financial Independence, Retire Early. It - represents a lifestyle movement aimed at maximizing your savings - rate through increased income and/or decreased expenses to - achieve financial independence and retire much earlier than - traditional retirement age. + Early retirement is achievable with disciplined saving, smart + investing, and realistic assumptions. This tool helps you set + targets, visualize outcomes, and adjust inputs—so you can build + confidence in your plan and make informed trade-offs between + lifestyle, risk, and timeline. - How much should I save each month? + How should I use this calculator effectively? - FIRE enthusiasts typically aim to save 50-70% of their income. - The more you can save, the faster you'll reach your FIRE - goal. However, the right amount depends on your income, - lifestyle, and target retirement age. Use the calculator to - experiment with different monthly savings amounts to see their - impact on your retirement timeline. +
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  • + Start with your actual numbers (capital, savings, age). +
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  • + Set conservative - mid - aggressive growth rates to bound + possibilities. +
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  • + Slide your retirement age to explore “early” vs. + “traditional” scenarios. +
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  • + Review the chart—especially the reference lines—to see when + you hit FI and how withdrawals impact your balance. +
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  • + Experiment with higher savings rates or lower target + spending to accelerate your path. +
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@@ -209,77 +242,48 @@ export default function HomePage() { FIRE Journey & Investing Resources

- Ready to dive deeper into FIRE and solidify your investing strategy? - Explore these valuable resources for financial independence planning - and investing advice: + Ready to deepen your knowledge and build a bullet-proof plan? Below + are some of our favorite blogs, books, tools, and communities for + financial independence and smart investing.

Getting Started with FIRE:

  1. - Calculate your personal numbers using this FIRE calculator and - other tools. + Run your first projection above to find your target FIRE Number. +
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  2. Identify areas to boost savings or reduce expenses.
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  3. + Study index-fund strategies and low-cost investing advice.
  4. - Seek sound investing advice and consider joining communities - like r/Fire for support. + Join{" "} + + supportive communities like r/Fire + {" "} + to learn from real journeys.
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  5. Explore books and podcasts to deepen your understanding
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- Books & Investment Learning -

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Books & Podcasts

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- Additional FIRE & Investing Calculators + Additional Calculators & Tools

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- Recent Investing & FIRE Articles -

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