new strategy human algo
This commit is contained in:
@@ -8,7 +8,6 @@ import * as z from "zod";
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import { Button } from "@/components/ui/button";
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import { Input } from "@/components/ui/input";
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import { Label } from "@/components/ui/label";
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import {
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Form,
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FormControl,
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@@ -66,23 +65,27 @@ const formSchema = z.object({
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// Type for form values
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type FormValues = z.infer<typeof formSchema>;
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interface YearlyData {
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age: number;
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year: number;
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balance: number;
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phase: "accumulation" | "retirement";
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monthlyAllowance: number;
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fireNumber: number | null;
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}
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interface CalculationResult {
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fireNumber: number | null;
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retirementAge: number | null;
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inflationAdjustedAllowance: number | null;
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retirementYears: number | null;
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error?: string;
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yearlyData?: Array<{
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age: number;
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year: number;
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balance: number;
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phase: "accumulation" | "retirement";
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}>;
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yearlyData?: Record<string, YearlyData>;
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}
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export default function FireCalculatorForm() {
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const [result, setResult] = useState<CalculationResult | null>(null);
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const currentYear = new Date().getFullYear();
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const irlYear = new Date().getFullYear();
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// Initialize form with default values
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const form = useForm<FormValues>({
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@@ -100,263 +103,103 @@ export default function FireCalculatorForm() {
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});
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function onSubmit(values: FormValues) {
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/*
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PSEUDOCODE
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1. calculate all balances if no retirement.
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2. calculate all required FIRE numbers for each possible year of retirement for the selected strategy.
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2.1 calculate the monthly allowance for each year of retirement for all years, fire number is these but cumulative.
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3. binary search the crossover
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4. calculate new balance for each year of retirement
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5. graph balance, balance if no retirement, fire numbers, allowances
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*/
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setResult(null); // Reset previous results
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const startingCapital = values.startingCapital;
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const monthlySavings = values.monthlySavings;
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const currentAge = values.currentAge;
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const annualGrowthRate = values.cagr / 100;
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const age = values.currentAge;
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const annualGrowthRate = 1 + values.cagr / 100;
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const initialMonthlyAllowance = values.desiredMonthlyAllowance;
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const annualInflation = values.inflationRate / 100;
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const lifeExpectancy = values.lifeExpectancy;
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const annualInflation = 1 + values.inflationRate / 100;
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const ageOfDeath = values.lifeExpectancy;
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const retirementStrategy = values.retirementStrategy;
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const monthlyGrowthRate = Math.pow(1 + annualGrowthRate, 1 / 12) - 1;
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const monthlyInflationRate = Math.pow(1 + annualInflation, 1 / 12) - 1;
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const maxIterations = 100; // Adjusted max iterations for age limit
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let requiredCapital: number | null = null;
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let retirementAge: number | null = null;
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let finalInflationAdjustedAllowance: number | null = null;
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let canRetire = false;
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let errorMessage: string | undefined = undefined;
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// Array to store yearly data for the chart
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const yearlyData: CalculationResult["yearlyData"] = [];
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yearlyData.push({
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age: currentAge,
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year: currentYear,
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balance: startingCapital,
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phase: "accumulation",
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});
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// Array to store yearly data for the chart with initial value
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const yearlyData: Record<number, YearlyData> = {
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[irlYear]: {
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age: age,
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year: irlYear,
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balance: startingCapital,
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phase: "accumulation",
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monthlyAllowance: initialMonthlyAllowance,
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fireNumber: null,
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},
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};
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// calculate all balances if no retirement
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for (let year = irlYear + 1; year <= irlYear + ageOfDeath - age; year++) {
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const previousYearData = yearlyData[year - 1];
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if (!previousYearData) {
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continue;
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}
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yearlyData[year] = {
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age: age + year - irlYear,
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year: year,
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balance:
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previousYearData.balance * annualGrowthRate + monthlySavings * 12,
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phase: "accumulation",
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monthlyAllowance: previousYearData.monthlyAllowance * annualInflation,
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fireNumber: null,
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};
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}
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// calculate FIRE numbers based on allowances
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for (let year = irlYear + ageOfDeath - age; year >= irlYear; year--) {
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const yearData = yearlyData[year];
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if (!yearData) {
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continue;
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}
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yearData.fireNumber =
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(yearlyData[year + 1]?.fireNumber ?? 0) +
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12 * yearData.monthlyAllowance;
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}
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let currentCapital = startingCapital;
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let age = currentAge;
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let monthlyAllowance = initialMonthlyAllowance;
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// calculate new balance and retirement age
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for (let year = irlYear; year <= irlYear + ageOfDeath - age; year++) {
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const yearData = yearlyData[year];
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const previousYearData = yearlyData[year - 1];
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if (!yearData?.fireNumber) {
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continue;
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}
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if (!previousYearData) {
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yearData.monthlyAllowance = 0;
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continue;
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}
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if (yearData.balance > yearData.fireNumber) {
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retirementAge ??= yearData.age;
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requiredCapital ??= yearData.balance;
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finalInflationAdjustedAllowance ??= yearData.monthlyAllowance;
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yearData.phase = "retirement";
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yearData.balance =
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previousYearData.balance * annualGrowthRate -
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yearData.monthlyAllowance * 12;
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} else {
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yearData.monthlyAllowance = 0;
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}
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}
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// --- Calculation Logic based on Strategy ---
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if (retirementStrategy === "4% Rule") {
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// --- 4% Rule Calculation ---
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requiredCapital = (initialMonthlyAllowance * 12) / 0.04;
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// Simulate accumulation until the 4% rule target is met
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while (age < lifeExpectancy) {
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if (currentCapital >= requiredCapital) {
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canRetire = true;
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retirementAge = age;
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finalInflationAdjustedAllowance = monthlyAllowance;
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break; // Found retirement age
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}
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// Simulate one year of saving and growth
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for (let month = 0; month < 12; month++) {
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currentCapital += monthlySavings;
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currentCapital *= 1 + monthlyGrowthRate;
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monthlyAllowance *= 1 + monthlyInflationRate; // Keep track of inflation-adjusted allowance
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}
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age++;
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yearlyData.push({
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age: age,
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year: currentYear + (age - currentAge),
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balance: Math.round(currentCapital),
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phase: "accumulation",
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});
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if (age >= lifeExpectancy) break; // Stop if life expectancy is reached
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}
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if (!canRetire) {
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errorMessage =
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"Cannot reach FIRE goal (4% Rule) before life expectancy.";
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requiredCapital = null; // Cannot retire, so no specific FIRE number applies this way
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} else if (retirementAge !== null) {
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// Simulate retirement phase for chart data (using 4% withdrawal adjusted for inflation)
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let simulationCapital = currentCapital;
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let simulationAge = retirementAge;
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// Mark retirement phase in existing data
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yearlyData.forEach((data) => {
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if (data.age >= retirementAge!) {
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data.phase = "retirement";
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}
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});
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while (simulationAge < lifeExpectancy) {
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let yearlyWithdrawal = requiredCapital * 0.04; // Initial 4%
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// Adjust for inflation annually from retirement start
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yearlyWithdrawal *= Math.pow(
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1 + annualInflation,
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simulationAge - retirementAge,
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);
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const monthlyWithdrawal = yearlyWithdrawal / 12;
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for (let month = 0; month < 12; month++) {
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simulationCapital -=
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monthlyWithdrawal * Math.pow(1 + monthlyInflationRate, month); // Approximate intra-year inflation on withdrawal
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simulationCapital *= 1 + monthlyGrowthRate;
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}
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simulationAge++;
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yearlyData.push({
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age: simulationAge,
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year: currentYear + (simulationAge - currentAge),
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balance: Math.round(simulationCapital),
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phase: "retirement",
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});
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}
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}
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} else {
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// --- Depletion and Maintenance Calculation (Simulation-based) ---
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let iterations = 0;
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while (age < lifeExpectancy && iterations < maxIterations) {
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// Simulate one year of saving and growth
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for (let month = 0; month < 12; month++) {
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currentCapital += monthlySavings;
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currentCapital *= 1 + monthlyGrowthRate;
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monthlyAllowance *= 1 + monthlyInflationRate;
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}
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age++;
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iterations++;
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yearlyData.push({
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age: age,
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year: currentYear + (age - currentAge),
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balance: Math.round(currentCapital),
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phase: "accumulation",
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});
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// --- Check if retirement is possible at this age ---
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let testCapital = currentCapital;
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let testAge = age;
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let testAllowance = monthlyAllowance;
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let isSufficient = true;
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// Simulate retirement phase to check sufficiency
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while (testAge < lifeExpectancy) {
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const yearlyStartCapital = testCapital;
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for (let month = 0; month < 12; month++) {
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const withdrawal = testAllowance;
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testCapital -= withdrawal;
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const growth = testCapital * monthlyGrowthRate;
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testCapital += growth; // Apply growth *after* withdrawal for the month
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testAllowance *= 1 + monthlyInflationRate; // Inflate allowance for next month
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}
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testAge++;
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if (testCapital <= 0) {
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// Depleted capital before life expectancy
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isSufficient = false;
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break;
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}
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if (retirementStrategy === "Maintenance") {
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// Maintenance check: Withdrawal should not exceed growth for the year
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// Use average capital for a slightly more stable check? Or end-of-year growth vs start-of-year withdrawal?
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// Let's check if end-of-year capital is less than start-of-year capital
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if (testCapital < yearlyStartCapital) {
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isSufficient = false;
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break; // Capital decreased, maintenance failed
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}
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// Alternative check: yearlyWithdrawal > yearlyGrowth
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// if (yearlyWithdrawal > yearlyGrowth) {
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// isSufficient = false;
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// break; // Withdrawals exceed growth, maintenance failed
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// }
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}
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} // End retirement simulation check
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if (isSufficient) {
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canRetire = true;
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retirementAge = age;
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requiredCapital = currentCapital; // The capital needed at this point
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finalInflationAdjustedAllowance = monthlyAllowance; // Allowance level at retirement
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break; // Found retirement age
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}
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} // End accumulation simulation loop
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if (!canRetire) {
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errorMessage = `Cannot reach FIRE goal (${retirementStrategy}) before life expectancy or within ${maxIterations} years.`;
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requiredCapital = null;
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} else if (retirementAge !== null) {
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// Simulate the actual retirement phase for chart data if retirement is possible
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let simulationCapital = requiredCapital!;
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let simulationAge = retirementAge;
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let simulationAllowance = finalInflationAdjustedAllowance!;
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// Mark retirement phase in existing data
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yearlyData.forEach((data) => {
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if (data.age >= retirementAge!) {
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data.phase = "retirement";
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}
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});
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// Simulate remaining years until life expectancy
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while (simulationAge < lifeExpectancy) {
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for (let month = 0; month < 12; month++) {
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simulationCapital -= simulationAllowance;
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simulationCapital *= 1 + monthlyGrowthRate;
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simulationAllowance *= 1 + monthlyInflationRate;
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}
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simulationAge++;
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// Ensure capital doesn't go below zero for chart visibility in Depletion
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const displayBalance =
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retirementStrategy === "Depletion"
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? Math.max(0, simulationCapital)
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: simulationCapital;
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yearlyData.push({
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age: simulationAge,
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year: currentYear + (simulationAge - currentAge),
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balance: Math.round(displayBalance),
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phase: "retirement",
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});
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}
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}
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} // End Depletion/Maintenance logic
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// --- Set Final Result ---
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if (
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canRetire &&
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retirementAge !== null &&
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requiredCapital !== null &&
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finalInflationAdjustedAllowance !== null
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) {
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// Ensure yearlyData covers up to lifeExpectancy if retirement happens early
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const lastDataYear =
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yearlyData[yearlyData.length - 1]?.year ?? currentYear;
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const expectedEndYear = currentYear + (lifeExpectancy - currentAge);
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if (lastDataYear < expectedEndYear) {
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// Need to continue simulation purely for charting if the main calc stopped early
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// (This might already be covered by the post-retirement simulation loops added above)
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console.warn(
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"Chart data might not extend fully to life expectancy in some scenarios.",
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);
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}
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setResult({
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fireNumber: requiredCapital,
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retirementAge: retirementAge,
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inflationAdjustedAllowance: finalInflationAdjustedAllowance,
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retirementYears: lifeExpectancy - retirementAge,
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yearlyData: yearlyData,
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error: undefined,
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});
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} else {
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setResult({
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fireNumber: null,
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retirementAge: null,
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inflationAdjustedAllowance: null,
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retirementYears: null,
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yearlyData: yearlyData, // Show accumulation data even if goal not reached
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error:
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errorMessage ?? "Calculation failed to find a retirement scenario.",
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});
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}
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setResult({
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fireNumber: requiredCapital,
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retirementAge: retirementAge,
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inflationAdjustedAllowance: finalInflationAdjustedAllowance,
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retirementYears: ageOfDeath - retirementAge,
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yearlyData: Object.values(yearlyData),
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error: undefined,
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});
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}
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// Helper function to format currency without specific symbols
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@@ -615,7 +458,7 @@ export default function FireCalculatorForm() {
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</div>
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)}
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{result?.yearlyData && result.yearlyData.length > 0 && (
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{result?.yearlyData && (
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<Card>
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<CardHeader>
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<CardTitle>Financial Projection</CardTitle>
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@@ -633,6 +476,10 @@ export default function FireCalculatorForm() {
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},
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fireNumber: {
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label: "FIRE Number",
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color: "var(--chart-2)",
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},
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realBalance: {
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label: "Real Balance",
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color: "var(--chart-3)",
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},
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}}
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@@ -669,7 +516,9 @@ export default function FireCalculatorForm() {
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return (
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<div className="bg-background border p-2 shadow-sm">
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<p className="font-medium">{`Year: ${data.year.toString()} (Age: ${data.age.toString()})`}</p>
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<p className="text-primary">{`Balance: ${formatNumber(data.balance)}`}</p>
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<p className="text-chart-1">{`Balance: ${formatNumber(data.balance)}`}</p>
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<p className="text-chart-2">{`FIRE number: ${formatNumber(data.fireNumber)}`}</p>
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<p className="text-chart-4">{`Monthly allowance: ${formatNumber(data.monthlyAllowance)}`}</p>
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{result.fireNumber !== null && (
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<p className="text-destructive">{`Target FIRE Number: ${formatNumber(result.fireNumber)}`}</p>
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)}
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@@ -693,6 +542,42 @@ export default function FireCalculatorForm() {
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stopOpacity={0.1}
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/>
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</linearGradient>
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<linearGradient
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id="fillFireNumber"
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x1="0"
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y1="0"
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x2="0"
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y2="1"
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>
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<stop
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offset="5%"
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stopColor="var(--chart-2)"
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stopOpacity={0.8}
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/>
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<stop
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offset="95%"
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stopColor="var(--chart-2)"
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stopOpacity={0.1}
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/>
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</linearGradient>
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<linearGradient
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id="fillAllowance"
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x1="0"
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y1="0"
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x2="0"
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y2="1"
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>
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<stop
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offset="5%"
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stopColor="var(--chart-4)"
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stopOpacity={0.8}
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/>
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<stop
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offset="95%"
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stopColor="var(--chart-4)"
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stopOpacity={0.1}
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/>
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</linearGradient>
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</defs>
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<Area
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type="monotone"
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@@ -703,6 +588,24 @@ export default function FireCalculatorForm() {
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fillOpacity={0.4}
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activeDot={{ r: 6 }}
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/>
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<Area
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type="monotone"
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dataKey="fireNumber"
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name="fireNumber"
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stroke="var(--chart-2)"
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fill="url(#fillFireNumber)"
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fillOpacity={0.4}
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activeDot={{ r: 6 }}
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/>
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<Area
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type="monotone"
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dataKey="monthlyAllowance"
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name="allowance"
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stroke="var(--chart-4)"
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fill="url(#fillAllowance)"
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fillOpacity={0.4}
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activeDot={{ r: 6 }}
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/>
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{result.fireNumber && (
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<ReferenceLine
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y={result.fireNumber}
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@@ -718,7 +621,7 @@ export default function FireCalculatorForm() {
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{result.retirementAge && (
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<ReferenceLine
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x={
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currentYear +
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irlYear +
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(result.retirementAge - form.getValues().currentAge)
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}
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stroke="var(--chart-2)"
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Block a user