Calculating Your Fire Number

How to Start Planning for Retirement

Calculating Your FIRE Number

The first step in planning for retirement is to determine your FIRE number-the amount of money you need to have invested to retire at your goal age. This calculator can help you with this step by estimating your retirement savings based on your current contributions. It will also calculate how much you will need to save in the future to reach your goal.

How Much Do You Need in Retirement?

To calculate how much you will need in retirement, you will need to factor in your expected expenses. This includes things like housing, food, transportation, healthcare, and entertainment. You will also need to consider your desired lifestyle. Do you want to travel? Pursue hobbies? Spend time with family and friends?

Once you have a good estimate of your expenses, you can start to plan how to reach your FIRE number. This may involve increasing your savings rate, investing in a retirement account, or starting a side hustle.

How Much Are You Going to Have?

The final step in planning for retirement is to estimate how much you are going to have saved by the time you retire. This is where the retirement calculator comes in handy. It will take into account your current savings, your expected contributions, and your investment returns. It will then estimate how much you will have accumulated by the time you retire.

Of course, it is important to remember that this is just an estimate. The actual amount you have in retirement will depend on a number of factors, including your investment performance, inflation, and unexpected expenses.