|B$C| Financial Independence
 Share
The version of the browser you are using is no longer supported. Please upgrade to a supported browser.Dismiss

 
View only
 
 
ACDEFGHIJ
3
This graph shows, for the extent to which you're able to reduce your expenditures in proportion to your income, how many years you would need to work until the earnings on your investments entirely cover your living expenses. The annual returns should be considered to account for inflation; history tells us that 5% is a reasonable long-term real annualized return. This simulation makes the tacit assumption that your inflation-adjusted living expenses will remain constant (an outcome-negative assumption), but it also leaves out Social Security and any other sources of income you might come upon in your Copious, Financially-Independent Free Time (an outcome-positive assumption).
4
While these factors might change the absolute calculated values, they in no way diminish the importance of the intrinsic functional relationships between variables that this image displays
5
Savings Rate3% return4% return5% return6% return7% return8% return9% return10% return
6
5%101.3376.3361.3351.3344.2538.9234.7531.42
7
10%77.8358.6747.1739.5034.0029.9226.6724.08
8
15%64.1748.3338.8332.5028.0024.5822.0019.83
9
20%54.4241.0032.9227.5823.7520.8318.6716.83
10
25%46.8335.3328.3323.7520.4218.0016.0814.50
11
30%40.6730.6724.6720.5817.7515.5813.9212.58
12
35%35.5026.7521.5018.0015.5013.5812.1711.00
13
40%30.9223.3318.7515.6713.5011.8310.589.58
14
45%27.0020.3316.3313.6711.7510.339.258.33
15
50%23.4217.6714.1711.8310.179.008.007.25
16
55%20.1715.1712.2510.258.837.756.926.25
17
60%17.2513.0010.428.757.506.585.925.33
18
65%14.5010.928.757.336.335.584.924.50
19
70%12.009.087.256.085.254.584.083.67
20
75%9.677.335.834.924.253.673.333.00
21
80%7.505.674.503.753.252.832.582.33
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Loading...
Main menu