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Chapter 13 · Hitting A Financial Grand Slam

Financial Independence Calculator

Enter expenses, reliable outside income, assets and contributions consistently in today's dollars. This is a simplified educational projection, not a retirement-income guarantee.

Step 1 — Know your number

Current annual living expenses (reference only)
$
Estimated annual expenses at financial independence
$
Planning withdrawal rate
%
Withdrawal multiplier
Multiplier25×
Annual outside income at FI (from the table below)
Per year$0.00
Annual expenses funded by portfolio
Per year—
Your financial independence number—

The default 4% rate gives a 25× multiplier. It is a planning assumption, not a promise that a portfolio lasts indefinitely. Outside income reduces the spending your portfolio must fund. Include taxes and healthcare in expenses. Avoid counting portfolio dividends both as outside income and as part of portfolio withdrawals.

Step 2 — Know your gap

Current investable assets
$
Remaining gap to FI target
Gap—
Progress toward FI target
Progress—

Include assets available to support your spending plan. Do not include a home's value unless your plan converts that value into investable funds. A zero FI target means the entered outside income covers the entered expenses — not that every retirement risk is resolved.

Step 3 — Estimate your timeline

Annual investment contributions
$
Estimated real annual return (after inflation)
%
Projection starting date (optional)
Estimated years to target
Years—
Estimated target date (rounded up to month)
Date—

Timeline assumes a constant real return, constant annual contributions at year-end, and a fixed FI target in today's dollars. It ignores market volatility and changes in taxes, spending and income. The target date is approximate.

Plan check

Enter estimated annual FI expenses to begin.

Income streams — avoid double counting

Dividends / portfolio income Reference only — excluded from outside-income offset
$
$
Rental income (net) Included in outside-income offset
$
$
Business / royalty income (net) Included in outside-income offset
$
$
Social Security / pension Included in outside-income offset
$
$
Other outside income Included in outside-income offset
$
$
Total outside monthly income — current$0.00
Total outside monthly income — at FI$0.00

Each row has two boxes: current monthly (left) and monthly at FI (right). Use net rental/business income after costs. Only count amounts available when FI begins; a later Social Security start may require a separate bridge plan.

Educational planning tool; not personalized financial advice. Nothing you type is saved or sent anywhere — use Save as PDF to keep a copy.